Document:

exv10w3

EXHIBIT 10.3

PLEDGE AGREEMENT

          PLEDGE AGREEMENT, dated as of May 2, 2011 (as amended, restated, modified and/or supplemented
from time to time, this “Agreement”), made by each of the undersigned pledgors (together
with any other entity that becomes a party hereto pursuant to Section 24(a) hereof, each a
“Pledgor” and, collectively, the “Pledgors”) and each of the undersigned issuers of
Pledged Securities (together with any other entity that becomes a party hereto pursuant to Section
24(b) hereof, each an “Issuer” and, collectively, the “Issuers”), in favor of BANK
OF AMERICA, N.A., as Administrative Agent (in such capacity, together with any successors and
assigns in such capacity, the “Administrative Agent”) for the benefit of the Secured
Parties.

W I T N E S S E T H :

          WHEREAS, Corporate Property Associates 16 — Global Incorporated, a Maryland corporation (the
“REIT”), CPA 16 LLC, a Delaware limited liability company (the “Operating
Partnership”, and together with the REIT, the “Parent Guarantors”), CPA 16 Merger Sub
Inc., a Maryland corporation (the “Borrower”),the lenders from time to time party thereto
(the “Lenders”) and the Administrative Agent have entered into a Credit Agreement, dated as
of the date hereof (as amended, modified, restated and/or supplemented from time to time, the
“Credit Agreement”), providing for the making of Loans to the Borrower, and the issuance of
Letters of Credit for the account of the REIT and/or one or more of its Subsidiaries, all as
contemplated therein;

          WHEREAS, it is a condition precedent to the effectiveness of the Credit Agreement and the
making of Loans and issuance of Letters of Credit thereunder that each Pledgor shall have executed
and delivered to the Administrative Agent this Agreement; and

          WHEREAS, each Pledgor desires to execute this Agreement to satisfy the condition described in
the preceding paragraph;

          NOW, THEREFORE, in consideration of the benefits accruing to each Pledgor, the receipt and
sufficiency of which are hereby acknowledged, each Pledgor hereby makes the following
representations and warranties to the Administrative Agent, for the benefit of the Secured Parties,
and hereby covenants and agrees with the Administrative Agent, for the benefit of the Secured
Parties, as follows:

          1. SECURITY FOR OBLIGATIONS. This Agreement is made by each Pledgor for the benefit of the Secured Parties to secure the
Obligations.

          2. DEFINITIONS. All capitalized terms used herein and not otherwise defined herein shall have the meanings
specified in the Credit Agreement. The following capitalized terms used herein shall have the
definitions specified below:

          “Certificated Security” shall have the meaning given such term in Section 8-102(a)(4)
of the UCC.

 

 

          “Clearing Corporation” shall have the meaning given such term in Section 8-102(a)(5)
of the UCC.

          “Collateral” shall have the meaning given such term in Section 3.1 hereof.

          “Collateral Accounts” shall mean any and all deposit accounts in which Cash Collateral
is deposited and/or maintained.

          “Control Agreement” shall mean an agreement, in form and substance satisfactory to the
Administrative Agent, establishing the Administrative Agent’s control (as defined in the UCC) with
respect to any Collateral Account.

          “Financial Asset” shall have the meaning given such term in Section 8-102(a)(9) of the
UCC.

          “Instrument” shall have the meaning given such term in Section 9-102(a)(47) of the
UCC.

          “Location” of any Pledgor shall have the meaning given such term in Section 9-307 of
the UCC.

          “Membership Interest” shall mean the entire membership interest at any time owned by
any Pledgor in any limited liability company (other than a Non-Borrowing Base Subsidiary).

          “Non-Borrowing Base Subsidiary” shall mean (a) any Subsidiary of the REIT that (i)
does not own all or any portion of any Eligible Investment Property included in the Borrowing Pool
and (ii) does not, directly or indirectly, own any Equity Interests of any Subsidiary of the REIT
who owns an Eligible Investment Property included in the Borrowing Pool, (b) any Person that is not
a Subsidiary of the REIT, (c) the Operating Partnership and (d) the Borrower.

          “Partnership Interest” shall mean the entire partnership interest (whether general
and/or limited partnership interests) at any time owned by any Pledgor in any partnership (other
than a Non-Borrowing Base Subsidiary).

          “Pledge Agreement Joinder” shall have the meaning given such term in Section 24(a) of
this Agreement.

          “Pledged LLC” shall mean any limited liability company (other than a Non-Borrowing
Base Subsidiary) in which any Pledgor owns a membership interest.

          “Pledged Membership Interests” shall mean all Membership Interests at any time pledged
or required to be pledged hereunder.

          “Pledged Partnership” shall mean any partnership (other than a Non-Borrowing Base
Subsidiary) in which any Pledgor owns a partnership interest.

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          “Pledged Partnership Interests” shall mean all Partnership Interests at any time
pledged or required to be pledged hereunder.

          “Pledged Securities” shall mean all Pledged Stock, Pledged Partnership Interests,
Pledged Membership Interests and Pledged Trust Interests.

          “Pledged Trust” shall mean any business trust, statutory trust or other trust (other
than a Non-Borrowing Base Subsidiary) in which any Pledgor owns a Trust Interest.

          “Pledged Trust Interests” shall mean all Trust Interests at any time pledged or
required to be pledged hereunder.

          “Pledged Stock” shall mean all Stock at any time pledged or required to be pledged
hereunder.

          “Proceeds” shall have the meaning given such term in Section 9-102(a)(64) of the UCC.

          “Registered Organization” shall have the meaning given such term in Section
9-102(a)(70) of the UCC.

          “Securities” shall mean all of the Stock, Partnership Interests, Membership Interests
and Trust Interests.

          “Securities Intermediary” shall have the meaning given such term in Section 8-102(14)
of the UCC.

          “Security Entitlement” shall have the meaning given such term in Section 8-102(a)(17)
of the UCC.

          “Stock” shall mean all of the issued and outstanding shares of capital stock at any
time owned by any Pledgor in any corporation (other than a Non-Borrowing Base Subsidiary).

          “Termination Date” has the meaning given such term in Section 18(a) hereof.

          “Trust Interest” shall mean the entire ownership interest at any time owned by any
Pledgor in any business trust, statutory trust or any other trust (other than a Non-Borrowing Base
Subsidiary).

          “UCC” shall mean the Uniform Commercial Code as in effect in the State of New York
from time to time; provided that all references herein to specific Sections or subsections
of the UCC are references to such Sections or subsections, as the case may be, of the Uniform
Commercial Code as in effect in the State of New York on the date hereof.

          “Uncertificated Security” shall have the meaning given such term in Section
8-102(a)(18) of the UCC.

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          3. PLEDGE OF SECURITIES, ETC.

          3.1 Pledge. As security for the payment and performance in full of the Obligations, each Pledgor does hereby
grant, pledge, hypothecate, mortgage, charge and assign to the Administrative Agent for the benefit
of the Secured Parties, and does hereby grant and create a continuing security interest in favor of
the Administrative Agent for the benefit of the Secured Parties in, all of such Pledgor’s right,
title and interest in and to the following, whether now existing or hereafter from time to time
acquired (collectively, the “Collateral”):

     (i) all of the Securities owned or held by such Pledgor from time to time and all
options and warrants owned by such Pledgor from time to time to purchase Securities (and all
certificates or instruments evidencing such Securities);

     (ii) each Collateral Account, including any and all assets of whatever type or kind
deposited in any Collateral Account, whether now owned or hereafter acquired, existing or
arising (including, without limitation, all Financial Assets, monies, checks, drafts,
Instruments or interests therein of any type or nature deposited or required by the Credit
Agreement or any other Loan Document to be deposited in such Collateral Account, and all
investments and all certificates and other instruments (including depository receipts, if
any) from time to time representing or evidencing the same, and all dividends, interest,
distributions, cash and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the foregoing);

     (iii) all of such Pledgor’s (x) Partnership Interests and all of such Pledgor’s right,
title and interest in each Pledged Partnership, (y) Membership Interests and all of such
Pledgor’s right, title and interest in each Pledged LLC and (z) Trust Interests and all of
such Pledgor’s right, title and interest in each Pledged Trust, in each case including,
without limitation:

     (a) all the capital thereof and its interest in all profits, losses and other
distributions to which such Pledgor shall at any time be entitled in respect of such
Partnership Interests, Membership Interests and/or Trust Interests;

     (b) all other payments due or to become due such Pledgor in respect of such
Partnership Interests, Membership Interests and/or Trust Interests, whether under
any partnership agreement, limited liability company agreement, trust agreement or
otherwise, whether as contractual obligations, damages, insurance proceeds or
otherwise;

     (c) all of its claims, rights, powers, privileges, authority, options, security
interests, liens and remedies, if any, under any partnership agreement, limited
liability company agreement or trust agreement, or at law, or otherwise in
respect of such Partnership Interests, Membership Interests, Trusts Interests,
Pledged Partnership, Pledged LLC and/or Pledged Trust;

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     (d) all present and future claims, if any, of such Pledgor against each Pledged
Partnership, Pledged LLC and Pledged Trust for moneys loaned or advanced, for
services rendered or otherwise;

     (e) all of such Pledgor’s rights under any partnership agreement, limited
liability company agreement, trust agreement or at law to exercise and enforce every
right, power, remedy, authority, option and privilege of such Pledgor relating to
the Partnership Interests, the Membership Interests and/or the Trust Interests,
including any power to terminate, cancel or modify any partnership agreement, any
limited liability company agreement or any trust agreement, to execute any
instruments and to take any and all other action on behalf of and in the name of
such Pledgor in respect of any Partnership Interests, Membership Interests or Trust
Interests and any Pledged Partnership, Pledged LLC or Pledged Trust to make
determinations, to exercise any election (including, but not limited to, election of
remedies) or option or to give or receive any notice, consent, amendment, waiver or
approval, together with full power and authority to demand, receive, enforce or
collect any of the foregoing, to enforce or execute any checks or other instruments
or orders, to file any claims and to take any action in connection with any of the
foregoing; and

     (f) all other property hereafter delivered in substitution for or in addition
to any of the foregoing, all certificates and instruments representing or evidencing
such other property and all cash, securities, interest, dividends, rights and other
property at any time and from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all thereof;

     (iv) all Security Entitlements owned by such Pledgor from time to time in any and all
of the foregoing; and

     (v) all Proceeds of any and all of the foregoing.

          3.2 Procedures. (a) To the extent that any Pledgor at any time or from time to time owns, acquires or obtains
any right, title or interest in any Collateral, such Collateral shall automatically (and without
the taking of any action by such Pledgor) be pledged pursuant to Section 3.1 of this Agreement and,
in addition thereto, such Pledgor shall forthwith take the following actions as set forth below:

     (i) with respect to a Certificated Security (other than a Certificated Security
credited on the books of a Clearing Corporation or Securities Intermediary), such Pledgor
shall physically deliver such Certificated Security to the Administrative Agent, endorsed to
the Administrative Agent or endorsed in blank;

     (ii) with respect to an Uncertificated Security (other than an Uncertificated Security
credited on the books of a Clearing Corporation or Securities Intermediary),
such Pledgor shall cause the issuer of such Uncertificated Security to duly authorize,
execute, and deliver to the Administrative Agent, an agreement for the benefit of the
Administrative Agent and the other Secured Parties substantially in the form of Annex D

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hereto (appropriately completed to the satisfaction of the Administrative Agent and with
such modifications, if any, as shall be reasonably satisfactory to the Administrative Agent)
pursuant to which such issuer agrees to comply with any and all instructions originated by
the Administrative Agent without further consent by the registered owner and not to comply
with instructions regarding such Uncertificated Security (and any Partnership Interests and
Membership Interests and Trust Interests issued by such issuer) originated by any other
Person other than a court of competent jurisdiction;

     (iii) with respect to any Collateral consisting of a Certificated Security,
Uncertificated Security, Partnership Interest, Membership Interest or Trust Interest
credited on the books of a Clearing Corporation or Securities Intermediary (including a
Federal Reserve Bank, Participants Trust Company or The Depository Trust Company), such
Pledgor shall promptly notify the Administrative Agent thereof and shall promptly take (x)
all actions required (i) to comply with the applicable rules of such Clearing Corporation or
Securities Intermediary and (ii) to perfect the security interest of the Administrative
Agent pursuant hereto under applicable law (including, in any event, under Sections
9-314(a), (b) and (c), 9-106 and 8-106(d) of the UCC) and (y) such other actions as the
Administrative Agent deems necessary or desirable to effect the foregoing; and

     (iv) with respect to a Partnership Interest, a Membership Interest or a Trust Interest
(other than a Partnership Interest, Membership Interest or Trust Interest (x) credited on
the books of a Clearing Corporation or Securities Intermediary or (y) constituting an
Uncertificated Security or a Certificated Security), take the actions required by Section
3.2(b)(ii) hereof.

          (b) In addition to the actions required to be taken pursuant to Section 3.2(a) hereof, each
Pledgor shall take the following additional actions with respect to the Collateral:

     (i) with respect to all Collateral of such Pledgor whereby or with respect to which the
Administrative Agent may obtain “control” thereof within the meaning of Section 8-106 of the
UCC (or under any provision of the UCC as the same may be amended or supplemented from time
to time, or under the laws of any relevant State other than the State of New York), such
Pledgor shall take all actions as may be requested from time to time by the Administrative
Agent so that “control” of such Collateral is obtained and at all times held by the
Administrative Agent; and

     (ii) each Pledgor shall from time to time cause appropriate financing statements (on
appropriate forms) under the Uniform Commercial Code as in effect in the various relevant
States, covering all Collateral hereunder (with the form of such financing statements to be
satisfactory to the Administrative Agent), to be filed in the relevant filing offices so
that at all times the Administrative Agent’s security interest pursuant hereto in all
Collateral which can be perfected by the filing of such financing statements (in each case
to the maximum extent perfection by filing may be obtained under the laws
of the relevant States, including, without limitation, Section 9-312(a) of the UCC) is
so perfected.

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          3.3 Subsequently Acquired Collateral. If any Pledgor shall acquire (by purchase, dividend or otherwise) any additional Collateral at
any time or from time to time after the date hereof, such Pledgor will forthwith thereafter take
(or cause to be taken) all action with respect to such Collateral in accordance with the procedures
set forth in Section 3.2 hereof, and will deliver to the Administrative Agent all information and
other items required to be provided under Section 6.12 of the Credit Agreement with respect thereto
within the time periods specified therein.

          3.4 Certain Representations and Warranties Concerning the Collateral. Each Pledgor represents and warrants that on the date hereof: (a) each Subsidiary of such
Pledgor whose Equity Interests are required to be pledged hereunder, and the direct ownership
thereof, is listed on Annex A hereto; (b) the Stock held by such Pledgor consists of the number and
type of shares of the capital stock of the corporations as described in Annex B hereto; (c) such
Stock constitutes that percentage of the issued and outstanding capital stock of the issuing
corporation as set forth in Annex B hereto; (d) such Pledgor is the holder of record and sole
beneficial owner of the Stock held by such Pledgor and there exists no options or preemption rights
in respect of any of the Stock; (e) the Partnership Interests, Membership Interests and Trust
Interests, as the case may be, held by such Pledgor constitute that percentage of the entire
interest of the respective Pledged Partnership, Pledged LLC or Pledged Trust, as the case may be,
as is set forth under its name in Annex C hereto; and (f) the Pledgor has complied with the
respective procedure set forth in Section 3.2(a) hereof with respect to each item of Collateral
described in Annexes B and C hereto.

          4. APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC. The Administrative Agent shall have the right to appoint one or more sub-agents for the
purpose of retaining physical possession of the Pledged Securities, which may be held (in the
discretion of the Administrative Agent) in the name of the relevant Pledgor, endorsed or assigned
in blank or in favor of the Administrative Agent or any nominee or nominees of the Administrative
Agent or a sub-agent appointed by the Administrative Agent.

          5. VOTING, ETC., WHILE NO EVENT OF DEFAULT. Unless and until there shall have occurred and be continuing an Event of Default, each Pledgor
shall be entitled to exercise, as it shall think fit, all voting and other rights attaching to any
and all Pledged Securities owned by it, and to give consents, waivers or ratifications in respect
thereof, provided that no vote shall be cast or any consent, waiver or ratification given
or any action taken which would violate, result in breach of any covenant contained in, or be
inconsistent with, any of the terms of this Agreement, the Credit Agreement or any other Loan
Document, or which would have the effect of impairing the security interests of the Administrative
Agent or any other Secured Party in the Collateral or the priority thereof. All such rights of a
Pledgor to vote and to give consents, waivers and ratifications shall cease upon
the occurrence and during the continuance of an Event of Default, whereupon Section 7 hereof shall
become applicable.

          6. DIVIDENDS AND OTHER DISTRIBUTIONS. Unless and until an Event of Default shall have occurred and be continuing, all cash dividends,
distributions or other amounts payable in respect of the Pledged Securities shall be paid to the
respective Pledgor, provided that all dividends, distributions or other amounts payable in
respect of the Pledged Securities which represent in whole or in part an extraordinary, liquidating
or other distribution in return of capital not permitted by the Credit Agreement shall be paid, to
the extent so determined to represent an extraordinary, liquidating or other distribution

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in return
of capital not permitted by the Credit Agreement, to the Administrative Agent and retained by it as
part of the Collateral (unless such cash dividends or distributions are applied to repay the
Obligations pursuant to Section 9 of this Agreement). The Administrative Agent shall also be
entitled to receive directly, and to retain as part of the Collateral:

     (i) all other or additional stock, notes, membership interests, partnership interests,
trust interests or other securities or property (other than cash) paid or distributed by way
of dividend or otherwise in respect of the Collateral;

     (ii) all other or additional stock, membership interests, partnership interests trust
interests or other securities or property (including cash) paid or distributed in respect of
the Collateral by way of stock-split, spin-off, split-up, reclassification, combination of
            shares or similar rearrangement; and

     (iii) all other or additional stock, membership interests, partnership interests trust
interests or other securities or property (including cash) which may be paid in respect of
the Collateral by reason of any consolidation, merger, exchange of stock, conveyance of
assets, liquidation or similar corporate reorganization.

Nothing contained in this Section 6 shall limit or restrict in any way the Administrative Agent’s
right to receive the proceeds of the Collateral in any form in accordance with Section 3 of this
Agreement. All dividends, distributions or other payments which are received by the respective
Pledgor contrary to the provisions of this Section 6 or Section 7 shall be received in trust for
the benefit of the Secured Parties, shall be segregated from other property or funds of such
Pledgor and shall be forthwith paid over to the Administrative Agent as Collateral in the same form
as so received (with any necessary endorsement).

          7. REMEDIES IN CASE OF AN EVENT OF DEFAULT. If an Event of Default shall have occurred and be continuing, the Administrative Agent shall be
entitled to exercise all of the rights, powers and remedies (whether vested in it by this Agreement
or any other Loan Document or by law) for the protection and enforcement of its rights in respect
of the Collateral, including, without limitation, all the rights and remedies of a secured creditor
upon default under the UCC, and the Administrative Agent shall be entitled, without limitation, to
exercise any or all of the following rights, which each Pledgor hereby agrees to be commercially
reasonable:

     (i) to receive all amounts payable in respect of the Collateral otherwise to such
Pledgor payable under Section 6 hereof,

     (ii) to transfer all or any part of the Collateral into the Administrative Agent’s name
or the name of its nominee or nominees;

     (iii) to vote all or any part of the Collateral (whether or not transferred into the
name of the Administrative Agent) and give all consents, waivers and ratifications in
respect of the Collateral and otherwise act with respect thereto as though it were the
outright owner thereof (each Pledgor hereby irrevocably constituting and appointing the

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Administrative Agent the proxy and attorney-in-fact of such Pledgor, with full power of
substitution to do so);

     (iv) to set off any and all Collateral against any and all Obligations, and to withdraw
any and all cash or other Collateral from any and all Collateral Accounts and to apply such
cash and other Collateral to the payment of any and all Obligations; and

     (v) at any time or from time to time to sell, assign and deliver, or grant options to
purchase, all or any part of the Collateral, or any interest therein, at any public or
private sale, without demand of performance, advertisement or notice of intention to sell or
of the time or place of sale or adjournment thereof or to redeem or otherwise (all of which
are hereby waived by each Pledgor), for cash, on credit or for other property, for immediate
or future delivery without any assumption by any Secured Party of credit risk, and for such
price or prices and on such terms as the Administrative Agent in its absolute discretion may
determine, provided that at least 10 days’ prior written notice of the time and
place of any such sale shall be given to such Pledgor. The Administrative Agent shall not
be obligated to make such sale of Collateral regardless of whether any such notice of sale
has theretofore been given. Each purchaser at any such sale shall hold the property so sold
absolutely free from any claim or right on the part of any Pledgor, and each Pledgor hereby
waives and releases to the full extent permitted by law any right or equity redemption with
respect to the Collateral, whether before or after sale hereunder, all rights, if any, of
marshalling the Collateral and any other security for the Obligations or otherwise, and all
rights, if any, of stay and/or appraisal which it now has or may at any time in the future
have under any rule of law or statute now existing or hereafter enacted. At any such sale,
unless prohibited by applicable law, the Administrative Agent on behalf of all Secured
Parties (or certain of them) may bid for and purchase (by bidding in Obligations or
otherwise) all or any part of the Collateral so sold free from any such right or equity of
redemption. Neither the Administrative Agent nor any Secured Party shall be liable for
failure to collect or realize upon any or all of the Collateral or for any delay in so doing
nor shall it be under any obligation to take any action whatsoever with regard thereto.

          8. REMEDIES, ETC., CUMULATIVE. Each right, power and remedy of the Administrative Agent and the other Secured Parties provided
for in this Agreement or any other Loan Document, or now or hereafter existing at law or in equity
or by statute shall be cumulative and concurrent and shall be in addition to every
other such right, power or remedy. The exercise or beginning of the exercise by the Administrative
Agent or any other Secured Party of any one or more of the rights, powers or remedies provided for
in this Agreement or any other Loan Document or now or hereafter existing at law or in equity or by
statute or otherwise shall not preclude the simultaneous or later exercise by the Administrative
Agent or any other Secured Party of all such other rights, powers or remedies, and no failure or
delay on the part of the Administrative Agent or any other Secured Party to exercise any such
right, power or remedy shall operate as a waiver thereof. Unless otherwise required by the Loan
Documents, no notice to or demand on any Pledgor in any case shall entitle it to any other or
further notice or demand in similar other circumstances or constitute a waiver of any of the rights
of the Administrative Agent or any other Secured Party to any other further action in any
circumstances without demand or notice. This Agreement may be enforced only by the action of the
Administrative 

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Agent and no other Secured Party shall have any right individually to seek to
enforce or to enforce this Agreement or to realize upon the security to be granted hereby.

          9. APPLICATION OF PROCEEDS. (a) All moneys collected by the Administrative Agent upon any sale or other disposition of the
Collateral, together with all other moneys received by the Administrative Agent hereunder, shall be
applied in accordance with Section 8.03 of the Credit Agreement.

          (b) It is understood that each Pledgor shall remain jointly and severally liable to the extent
of any deficiency between (x) the amount of the Obligations for which it is liable directly or as a
Guarantor that are satisfied with proceeds of the Collateral and (y) the aggregate outstanding
amount of the Obligations.

          10. PURCHASERS OF COLLATERAL. Upon any sale of the Collateral by the Administrative Agent hereunder (whether by virtue of the
power of sale herein granted, pursuant to judicial process or otherwise), the receipt of the
Administrative Agent shall be a sufficient discharge to the purchaser or purchasers of the
Collateral so sold, and such purchaser or purchasers shall not be obligated to see to the
application of any part of the purchase money paid over to the Administrative Agent or be
answerable in any way for the misapplication or nonapplication thereof.

          11. INDEMNITY. Each Pledgor jointly and severally agrees (i) to indemnify and hold harmless the Administrative
Agent and the other Secured Parties from and against any and all claims, demands, losses, judgments
and liabilities of whatsoever kind or nature, and (ii) to reimburse the Administrative Agent for
all reasonable out-of-pocket costs and expenses, including reasonable attorneys’ fees, arising in
connection with any amendment, waiver or modification to this Agreement and the administration
thereof and the Administrative Agent and the other Secured Parties for all out-of-pocket costs and
expenses (including attorney’s fees) arising out of, in connection with, or as a result of the
exercise by the Administrative Agent of any right or remedy granted to it hereunder or under any
other Loan Document except, with respect to clause (i) above, for those arising from such Person’s
gross negligence or willful misconduct as determined
by a court of competent jurisdiction in a final and non-appealable decision. In no event shall the
Administrative Agent be liable, in the absence of gross negligence or willful misconduct on its
part as determined by a court of competent jurisdiction in a final and non-appealable decision, for
any matter or thing in connection with this Agreement other than to account for moneys or other
property actually received by it in accordance with the terms hereof. If and to the extent that
the obligations of any Pledgor under this Section 11 are unenforceable for any reason, such Pledgor
hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations
which is permissible under applicable law.

          12. FURTHER ASSURANCES; POWER OF ATTORNEY. (a) Each Pledgor agrees that it will join with the Administrative Agent in executing and, at
such Pledgor’s own expense, file and refile under the Uniform Commercial Code such financing
statements, continuation statements and other documents in such offices as the Administrative Agent
may reasonably deem necessary or appropriate and wherever required or permitted by law in order to
perfect and preserve the Administrative Agent’s security interest in the Collateral hereunder and
hereby authorizes the Administrative Agent to file financing statements and amendments thereto

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relative to all or any part of the Collateral without the signature of such Pledgor where permitted
by law, and agrees to do such further acts and things and to execute and deliver to the
Administrative Agent such additional conveyances, assignments, agreements and instruments as the
Administrative Agent may reasonably require or deem advisable to carry into effect the purposes of
this Agreement or to further assure and confirm unto the Administrative Agent its rights, powers
and remedies hereunder or thereunder.

          (b) Each Pledgor hereby appoints the Administrative Agent such Pledgor’s attorney-in-fact,
with full authority in the place and stead of such Pledgor and in the name of such Pledgor or
otherwise, from time to time after the occurrence and during the continuance of an Event of
Default, in the Administrative Agent’s reasonable discretion to take any action and to execute any
instrument which the Administrative Agent may reasonably deem necessary or advisable to accomplish
the purposes of this Agreement.

          13. THE ADMINISTRATIVE AGENT AS COLLATERAL AGENT. The Administrative Agent will hold in accordance with this Agreement all items of the Collateral
at any time received under this Agreement. It is expressly understood and agreed that the
obligations of the Administrative Agent as holder of the Collateral and interests therein and with
respect to the disposition thereof, and otherwise under this Agreement, are only those expressly
set forth in this Agreement. The Administrative Agent shall act hereunder on the terms and
conditions set forth herein and in Article IX of the Credit Agreement. If any Pledgor fails to
perform or comply with any of its agreements contained in this Agreement and the Administrative
Agent, as provided for by the terms of this Agreement or any other Loan Document, shall itself
perform or comply, or otherwise cause performance or compliance, with such agreement, the expenses
of the Administrative Agent incurred in connection with such performance or compliance, together
with interest thereon at the rate then in effect in respect of the Base Rate Loans, shall be
payable by such Pledgor to the Administrative Agent on demand and shall constitute Obligations
secured by the Collateral.

          14. TRANSFER BY THE PLEDGORS. No Pledgor will sell or otherwise dispose of, grant any option with respect to, or mortgage,
pledge or otherwise encumber any of the Collateral or any interest therein, except as otherwise
allowed under the Credit Agreement.

          15. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGORS. (a) Each Pledgor represents, warrants and covenants (which representations, warranties and
covenants shall not, in the case of each Pledgor that owns a Pledge-Restricted Defeasance Property,
be made or performed by such Pledgor until on and after the occurrence of the Defeasance Trigger
Date with respect to such Pledge-Restricted Defeasance Property) that:

     (i) it is, or at the time when pledged hereunder will be, the legal, beneficial and
record owner of, and has (or will have) good and marketable title to, all Securities pledged
by it hereunder, subject to no pledge, lien, mortgage, hypothecation, security interest,
charge, option or other encumbrance whatsoever, except Liens permitted under clauses (a) and
(b) of Section 7.01 of the Credit Agreement;

     (ii) it has full power, authority and legal right to pledge all the Collateral pledged
by it pursuant to this Agreement;

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     (iii) this Agreement has been duly authorized, executed and delivered by such Pledgor
and constitutes a legal, valid and binding obligation of such Pledgor enforceable in
accordance with its terms, except to the extent that the enforceability thereof may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws generally affecting creditors’ rights and by equitable principles (regardless of
whether enforcement is sought in equity or at law);

     (iv) except to the extent already obtained or made, no consent of any other party
(including, without limitation, any stockholder, limited or general partner, member or
creditor of such Pledgor or any of its Subsidiaries) and no consent, license, permit,
approval or authorization of, exemption by, notice or report to, or registration, filing or
declaration with, any governmental authority is required to be obtained by such Pledgor in
connection with (a) the execution, delivery or performance of this Agreement (including,
without limitation, the granting by such Pledgor of the Liens granted by it pursuant to this
Agreement), (b) the validity or enforceability of this Agreement, (c) the perfection or
enforceability of the Administrative Agent’s security interest in the Collateral, except for
filings and recordings required under the UCC or (d) except for compliance with or as may be
required by applicable securities laws, the exercise by the Administrative Agent of any of
its rights or remedies provided herein;

     (v) the execution, delivery and performance of this Agreement by such Pledgor has been
duly authorized by all necessary corporate or other organizational action, and does not and
will not (a) contravene the terms of any of such Pledgor’s Organization Documents; (b)
conflict with or result in any breach or contravention of, or, except pursuant to this
Agreement, the creation of any Lien under, or require any
payment to be made under (i) any material Contractual Obligation to which such Pledgor
is a party or affecting such Pledgor or the properties of such Pledgor or any of its
Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or
any arbitral award to which such Pledgor or its property is subject; or (c) violate any
applicable Laws, except as could not reasonably be expected to have a Material Adverse
Effect;

     (vi) all the shares of Stock constituting Collateral have been duly and validly issued,
are fully paid and non-assessable, to the extent such concepts are applicable, and are
subject to no options to purchase or similar rights;

     (vii) the pledge, assignment and delivery to the Administrative Agent in the State of
New York of the original Certificated Securities, endorsed to the Administrative Agent or
accompanied by undated stock powers or other instruments of transfer executed in blank,
creates a valid and perfected first priority Lien in such Securities and the proceeds
thereof, subject to no other Lien other than Liens permitted under clause (b) of Section
7.01 of the Credit Agreement or to any agreement purporting to grant to any third party a
Lien on the property or assets of such Pledgor which would include the Securities;

     (viii) it has the unqualified right to pledge and grant a security interest in the
Partnership Interests, Membership Interests and Trust Interests as herein provided

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without the consent of any other Person, firm, association or entity which has not been obtained;

     (ix) the Partnership Interests, Membership Interests and Trust Interests pledged by it
pursuant to this Agreement have been validly acquired and are fully paid for and are duly
and validly pledged hereunder;

     (x) it is not in default in the payment of any portion of any mandatory capital
contribution, if any, required to be made under any partnership agreement of any Pledged
Partnership or limited liability company agreement of any Pledged LLC or trust agreement of
any Pledged Trust, and such Pledgor is not in violation of any other material provisions of
any partnership agreement of any Pledged Partnership or limited liability company agreement
of any Pledged LLC or trust agreement of any Pledged Trust, or otherwise in default or
violation thereunder, no Partnership Interest, Membership Interest or Trust Interest is
subject to any defense, offset or counterclaim, nor have any of the foregoing been asserted
or alleged against such Pledgor by any Person with respect thereto and as of the Closing
Date, there are no certificates, instruments, documents or other writings (other than the
partnership agreements and certificates, if any, delivered to the Administrative Agent)
which evidence any Partnership Interest, Membership Interest or Trust Interest of such
Pledgor;

     (xi) the pledge and assignment of the Partnership Interests, the Membership Interests
and the Trusts Interests pursuant to this Agreement, together with the relevant filings,
consents or recordings (which filings, consents and recordings have been made or obtained),
creates a valid, perfected and continuing first priority security interest in such
Partnership Interests, Membership Interests and Trust Interests and the proceeds thereof,
subject to no prior lien or encumbrance other than Liens permitted under clause (b) of
Section 7.01 of the Credit Agreement or to any agreement purporting to grant to any third
party a lien or encumbrance on the property or assets of such Pledgor which would include
the Collateral;

     (xii) there are no currently effective financing statements under the UCC covering any
property which is now or hereafter may be included in the Collateral and such Pledgor will
not, without the prior written consent of the Administrative Agent, execute and, until the
Termination Date (as hereinafter defined), allow there to be on file in any public office,
any enforceable financing statement or statements covering any or all of the Collateral,
except financing statements filed or to be filed in favor of the Administrative Agent as
secured party;

     (xiii) it shall give the Administrative Agent prompt notice of any written claim
relating to the Collateral and shall deliver to the Administrative Agent a copy of each
other demand, notice or document received by it which may materially and adversely affect
the Administrative Agent’s interest hereunder in the Collateral promptly upon, but in any
event within 10 days after, such Pledgor’ s receipt thereof;

     (xiv) it shall not withdraw as a partner of any Pledged Partnership or member of any
Pledged LLC or a trustee of any trust, or file or pursue or take any action which may,

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directly or indirectly, cause a dissolution or liquidation of or with respect to any Pledged
Partnership, Pledged LLC or Pledged Trust, or seek a partition of any property of any
Pledged Partnership, Pledged LLC or Pledged Trust, except in connection with a transaction
permitted by the Credit Agreement;

     (xv) as of the date hereof, all of its Partnership Interests, Membership Interests and
Trust Interests are uncertificated and each Pledgor covenants and agrees that it will not
approve any action by any Pledged Partnership Pledged LLC or Pledged Trust to convert such
uncertificated interests into certificated interests;

     (xvi) it will take no action which would violate or be inconsistent with any of the
terms of any Loan Document, or which would have the effect of impairing the position or
interests of the Administrative Agent or any other Secured Party under any Loan Document
except in connection with a transaction permitted by the Credit Agreement;

     (xvii) “control” (as defined in Section 8-106 of the UCC) has been obtained by the
Administrative Agent over all of such Pledgor’s Collateral consisting of Securities with
respect to which such “control” may be obtained pursuant to Section 8-106 of the UCC;

     (xviii) “control” (as defined in Section 9-104 of the UCC) have been obtained by the
Administrative Agent over all Collateral Accounts;

     (xix) it will furnish to the Administrative Agent prompt written notice of any issuance
of Equity Interests that occurs after the date hereof by a Pledged LLC, Pledged
Partnership, Pledged Trust or other Person that has issued Equity Interests which are
pledged (in whole or in part) by a Pledgor hereunder; and

     (xx) except as set forth on Annex F, it has not (1) changed its corporate or
organizational name in the past five years or (2) changed its jurisdiction of incorporation
or organization during the past four months.

          (b) Each Issuer hereby represents and warrants (which representations and warranties shall
not, in the case of each Issuer of Securities of a Pledgor that owns a Pledge-Restricted Defeasance
Property, be made by such Issuer until on and after the Defeasance Trigger Date with respect to
such Pledge-Restricted Defeasance Property) that:

     (i) this Agreement has been duly authorized, executed and delivered by such Issuer and
constitutes a legal, valid and binding obligation of such Issuer enforceable in accordance
with its terms, except to the extent that the enforceability thereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws
generally affecting creditors’ rights and by equitable principles (regardless of whether
enforcement is sought in equity or at law);

     (ii) except to the extent already obtained or made, no consent of any other party
(including, without limitation, any stockholder, limited or general partner, member or
creditor of such Issuer or any of its Subsidiaries) and no consent, license, permit,

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approval or authorization of, exemption by, notice or report to, or registration, filing or
declaration with, any governmental authority is required to be obtained by such Issuer in
connection with the execution, delivery or performance of this Agreement;

     (iii) the execution, delivery and performance of this Agreement by such Issuer has been
duly authorized by all necessary corporate or other organizational action, and does not and
will not (a) contravene the terms of any of such Issuer’s Organization Documents; (b)
conflict with or result in any breach or contravention of, or the creation of any Lien
under, or require any payment to be made under (i) any material Contractual Obligation to
which such Issuer is a party or affecting such Issuer or the properties of such Issuer or
any of its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental
Authority or any arbitral award to which such Issuer or its property is subject, except as
could not reasonably be expected to have a Material Adverse Effect; or (c) violate any
applicable Laws, except as could not reasonably be expected to have a Material Adverse
Effect; and

     (iv) the pledge by the applicable Pledgor of, and the granting by the applicable
Pledgor of a security interest in, the Equity Interests of such Issuer to the Administrative
Agent, for the benefit of the Creditor Parties, does not contravene the terms of any of such
Issuer’s Organization Documents.

          16. PLEDGORS’ OBLIGATIONS ABSOLUTE, ETC. The obligations of each Pledgor under this Agreement shall be absolute, irrevocable and
unconditional and shall remain in full force and effect without regard to, and shall not be
released, suspended, discharged, terminated or otherwise affected by, any circumstance or
occurrence whatsoever, including, without limitation:

     (i) any renewal, extension, amendment or modification of, or addition or supplement to
or deletion from any of the Loan Documents, or any other instrument or agreement referred to
therein, or any assignment or transfer of any thereof,

     (ii) any waiver, consent, extension, indulgence or other action or inaction under or in
respect of any such agreement or instrument or this Agreement;

     (iii) any furnishing of any additional security to the Administrative Agent or its
assignee or any acceptance thereof or any release of any security by the Administrative
Agent or its assignee;

     (iv) any limitation on any party’s liability or obligations under any such instrument
or agreement or any invalidity or unenforceability, in whole or in part, of any such
instrument or agreement or any term thereof; or

     (v) any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceeding relating to such Pledgor or any Subsidiary of such
Pledgor, or any action taken with respect to this Agreement by any trustee or receiver, or
by any court, in any such proceeding, whether or not such Pledgor shall have notice or
knowledge of any of the foregoing.

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          17. PRIVATE SALES OF PLEDGED SECURITIES If at any time when the Administrative Agent shall determine to exercise its right to sell all
or any part of the Pledged Securities pursuant to Section 7 hereof, and such Pledged Securities or
the part thereof to be sold shall not, for any reason whatsoever, be effectively registered under
the Securities Act, as then in effect, the Administrative Agent may, in its sole and absolute
discretion, sell such Pledged Securities or part thereof by private sale in such manner and under
such circumstances as the Administrative Agent may deem necessary or advisable in order that such
sale may legally be effected without such registration. Without limiting the generality of the
foregoing, in any such event the Administrative Agent, in its sole and absolute discretion, (i) may
proceed to make such private sale notwithstanding that a registration statement for the purpose of
registering such Pledged Securities or part thereof shall have been filed under the Securities Act,
(ii) may approach and negotiate with a single possible purchaser, or accept the first offer
received, to effect such sale and (iii) may restrict such sale to a purchaser who will represent
and agree that such purchaser is purchasing for its own account, for investment, and not with a
view to the distribution or sale of such Pledged Securities or part thereof. In the event of any
such sale, the Administrative Agent and the other Secured Parties shall incur no responsibility or
liability for selling all or any part of the Pledged Securities at a price which the Administrative
Agent, in its sole and absolute discretion, may in good faith deem reasonable
under the circumstances, notwithstanding the possibility that a substantially higher price might be
realized if the sale were deferred until the registration as aforesaid.

          18. TERMINATION; RELEASE. (a) After the Termination Date (as defined below), this Agreement shall terminate
(provided that all indemnities set forth herein and in the other Loan Documents including,
without limitation, in Section 11 hereof shall survive any such termination) and the Administrative
Agent, at the request and expense of the Pledgors, will execute and deliver to the Pledgors a
proper instrument or instruments acknowledging the satisfaction and termination of this Agreement
as provided above, and will duly assign, transfer and deliver to the Pledgors (without recourse and
without any representation or warranty) such of the Collateral as may be in the possession of the
Administrative Agent and as has not theretofore been sold or otherwise applied or released pursuant
to this Agreement. As used in this Agreement, “Termination Date” shall mean the date upon
which all of the Commitments have been terminated, no Note under the Credit Agreement is unpaid,
all Loans have been paid in full, all Letters of Credit have been cancelled, have expired or
terminated or have been collateralized to the satisfaction of the Administrative Agent and the L/C
Issuer and all other Obligations have been paid in full.

          (b) In the event that any Investment Property included in the Borrowing Pool is removed from
the Borrowing Pool in accordance with Section 2.18(c), (d), (e) and (f)(ii) of the Credit
Agreement, and all required prepayments of Loans and all obligations to Cash Collateralize L/C
Obligations, if any, have been made in connection therewith, the Administrative Agent, at the
request and expense of the Borrower, will release from the security interest granted by the
applicable Pledgor(s) under this Agreement (without recourse and without any representation or
warranty) the Equity Interests of (i) the Affiliated Investor that owns such Investment Property
and (ii) each Subsidiary of the Borrower or the REIT that directly or indirectly owns Equity
Interests of such Affiliated Investor; provided, that notwithstanding the foregoing, no
Equity Interests of any Subsidiary of the Borrower or the REIT shall be released if such Subsidiary
(i) owns all or any part of any other Investment Property included in the

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Borrowing Pool or (ii)
directly or indirectly owns any Equity Interests of any Affiliated Investor that owns any other
Investment Property included in the Borrowing Pool. The Administrative Agent shall, at the sole
expense of the Borrower, take such further actions as reasonably requested by the Borrower to
evidence and confirm any such release of Collateral as a result of the foregoing provisions this
clause (b).

          (c) In the event that any part of the Collateral is sold or otherwise disposed of in
connection with a sale or other disposition permitted by Section 7.05 of the Credit Agreement or is
otherwise released at the direction of the Required Lenders (or all the Lenders if required by
Section 10.01 of the Credit Agreement), and the proceeds of such sale or other disposition or from
such release are applied in accordance with the terms of the Credit Agreement to the extent
required to be so applied, the Administrative Agent, at the request and expense of the respective
Pledgor, will release such Collateral from this Agreement, duly assign, transfer and deliver to
such Pledgor (without recourse and without any representation or warranty) such of the Collateral
as is then being (or has been) so sold, disposed of or released and as may be in possession of the
Administrative Agent and has not theretofore been released pursuant to this Agreement.

          (d) At any time that any Pledgor desires that Collateral be released as provided in the
foregoing Section 18(a), (b) or (c) hereof, it shall deliver to the Administrative Agent a
certificate signed by an officer stating that the release of the respective Collateral is permitted
pursuant to Section 18(a), (b) or (c) hereof. The Administrative Agent shall have no liability
whatsoever to any Secured Party as the result of any release of Collateral by it in accordance with
(or which the Administrative Agent in the absence of gross negligence and willful misconduct
believes to be in accordance with) this Section 18.

          19. NOTICES, ETC. All notices and other communications hereunder shall be in writing (including telegraphic,
telex, telecopier, facsimile or cable communication) and shall be delivered, telegraphed, telexed,
telecopied, faxed, cabled, or mailed (by first class mail, postage prepaid):

     (i) if to any Pledgor or Issuer, at its address set forth opposite its signature below;

     (ii) if to the Administrative Agent, at its address set forth on
Schedule 10.02 of the Credit Agreement.

or at such other address as shall have been furnished in writing by any Person described above to
the party required to give notice hereunder.

          20. WAIVER; AMENDMENT. None of the terms and conditions of this Agreement may be changed, waived, modified or varied in
any manner whatsoever unless in writing duly signed by the Administrative Agent (with the consent
of the Required Lenders or all of the Lenders, to the extent required by Section 10.01 of the
Credit Agreement) and each Pledgor affected thereby.

          21. ADMINISTRATIVE AGENT AND OTHER SECURED PARTIES NOT BOUND. (a) Nothing herein shall be construed to make the Administrative Agent or any other

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Secured
Party liable as a general partner or limited partner of any Pledged Partnership or as a member of
any Pledged LLC or as a trustee of any Pledged Trust, and neither the Administrative Agent nor any
Secured Party by virtue of this Agreement or otherwise (except as referred to in the following
sentence) shall have any of the duties, obligations or liabilities of a general partner or limited
partner of any Pledged Partnership or of a member of any Pledged LLC or of a trustee of any Pledged
Trust. The parties hereto expressly agree that, unless the Administrative Agent shall become the
absolute owner of a Partnership Interest or a Membership Interest or a Trust Interest pursuant
hereto, this Agreement shall not be construed as creating a partnership or joint venture or
membership agreement among the Administrative Agent, any other Secured Party and/or a Pledgor.

          (b) The Administrative Agent shall have only those powers set forth herein and the
Administrative Agent and the other Secured Parties shall assume none of the duties,
obligations or liabilities of a general partner or limited partner of any Pledged Partnership
or of a member of any Pledged LLC, or of a trustee of any trust or of a Pledgor.

          (c) The Administrative Agent and the other Secured Parties shall not be obligated to perform
or discharge any obligation of a Pledgor as a result of the collateral assignment hereby effected.

          (d) The acceptance by the Administrative Agent of this Agreement, with all the rights, powers,
privileges and authority so created, shall not at any time or in any event obligate the
Administrative Agent or any other Secured Party to appear in or defend any action or proceeding
relating to the Collateral to which it is not a party, or to take any action hereunder or
thereunder, or to expend any money or incur any expenses or perform or discharge any obligation,
duty or liability under the Collateral.

          22. MISCELLANEOUS. This Agreement shall create a continuing security interest in the Collateral and shall (i)
remain in full force and effect, subject to release and/or termination as set forth in Section 18
hereof, (ii) be binding upon each Pledgor, its successors and assigns; provided that no
Pledgor shall assign any of its rights or obligations hereunder without the prior written consent
of the Administrative Agent (with the prior written consent of the Required Lenders or all of the
Lenders, to the extent required by Section 10.01 of the Credit Agreement) (and any attempted such
assignment without such consent shall be null and void), and (iii) inure, together with the rights
and remedies of the Administrative Agent hereunder, to the benefit of the Administrative Agent, the
other Secured Parties and their respective successors, transferees and assigns. The headings of
the several sections and subsections in this Agreement are for purposes of reference only and shall
not limit or define the meaning hereof. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together shall constitute one
instrument. In the event that any provision of this Agreement shall prove to be invalid or
unenforceable, such provision shall be deemed to be severable from the other provisions of this
Agreement which shall remain binding on all parties hereto. To the fullest extent permitted by
applicable law, no Pledgor or Issuer shall assert, and each of the Pledgors and Issuers hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the

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transactions contemplated hereby or thereby, any
Loan or Letter of Credit or the use of proceeds thereof.

          23. GOVERNING LAW, ETC. (a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE SECURED PARTIES AND OF THE PLEDGORS
AND THE ISSUERS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW
YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS. Any legal action or proceeding with respect
to this Agreement or any other Loan Document may be brought in the courts of the State of New York
sitting in New York County or of the United States of America for the Southern District of New
York, and any appellate court from any thereof and, by
execution and delivery of this Agreement, each Pledgor and each Issuer hereby irrevocably accepts
for itself and in respect of its property, generally and unconditionally, the non-exclusive
jurisdiction of the aforesaid courts. Each Pledgor and each Issuer further irrevocably consents to
the service of process out of any of the aforementioned courts, in the manner provided for in
Section 10.02 of the Credit Agreement, to each Pledgor and Issuer at its address set forth opposite
its signature below. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided law. Nothing herein shall affect the right of any of the Secured
Parties to serve process in any other manner permitted by law or to commence legal proceedings or
otherwise proceed against any Pledgor in any other jurisdiction.

          (b) Each Pledgor and each Issuer hereby irrevocably waives any objection which it may now or
hereafter have to the laying of venue of any of the aforesaid actions or proceedings arising out of
or in connection with this Agreement or any other Loan Document brought in the courts referred to
in clause (a) above and hereby further irrevocably waives and agrees not to plead or claim in any
such court that such action or proceeding brought in any such court has been brought in an
inconvenient forum.

          (c) EACH PLEDGOR, EACH ISSUER AND THE ADMINISTRATIVE AGENT HEREBY IRREVOCABLY WAIVE ALL RIGHT
TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT, THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

          24. ADDITIONAL PLEDGORS. (a) It is understood and agreed that any Subsidiary of the REIT that is required to become a
party to this Agreement pursuant to the Credit Agreement shall become a Pledgor hereunder by
executing a joinder agreement in the form attached hereto as Annex E (each, a Pledge
Agreement Joinder”).

(b) Each Pledgor hereby agrees it will cause each issuer of any Equity Interests owned by such
Pledgor (other than any issuer that is a Non-Borrowing Base Subsidiary) to become an Issuer
hereunder by executing a Pledge Agreement Joinder.

          25. COUNTERPARTS. This Agreement may be executed in any number of counterparts and by the different parties hereto
on separate counterparts, each of which when so

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executed and delivered shall be an original, but
all of which shall together constitute one and the same instrument.

          26. CONTRIBUTION. At any time a payment is made by any Pledgor (other than the Borrower) (each, a “Specified
Pledgor”) in respect of the Obligations from the proceeds of any sale or other disposition of
Collateral owned by such Specified Pledgor (each, a “Relevant Payment”), the right of
contribution of each Specified Pledgor hereunder against each other such Specified Pledgor shall be
determined as provided in the immediately following sentence, with the right of contribution
of each Specified Pledgor to be revised and restated as of each date on which a Relevant Payment is
made. At any time that a Relevant Payment is made by a Specified Pledgor that results in the
aggregate payments made by such Specified Pledgor hereunder in respect of the Obligations to and
including the date of the Relevant Payment exceeding such Specified Pledgor’s Contribution
Percentage (as defined below) of the aggregate payments made by all Specified Pledgors hereunder in
respect of the Obligations from the proceeds of any sale or other disposition of Collateral owned
by the Specified Pledgors to and including the date of the Relevant Payment (such excess, the
“Aggregate Excess Amount”), each such Specified Pledgor shall have a right of contribution
against each other Specified Pledgor who either has not made (or whose Collateral has not been used
to make) any payments or has made (or whose Collateral has been used to make) payments hereunder in
respect of the Obligations to and including the date of the Relevant Payment in an aggregate amount
less than such other Specified Pledgor’s Contribution Percentage of the aggregate payments made to
and including the date of the Relevant Payment by all Specified Pledgors hereunder in respect of
the Obligations from the proceeds of any sale or other disposition of Collateral owned by the
Specified Pledgors (the aggregate amount of such deficit, the “Aggregate Deficit Amount”)
in an amount equal to (x) a fraction the numerator of which is the Aggregate Excess Amount of such
Specified Pledgor and the denominator of which is the Aggregate Excess Amount of all Specified
Pledgors multiplied by (y) the Aggregate Deficit Amount of such other Specified Pledgor. A
Specified Pledgor’s right of contribution pursuant to the preceding sentences shall arise at the
time of each computation, subject to adjustment at the time of any subsequent computation;
provided, that no Specified Pledgor may take any action to enforce such right until the
Termination Date has occurred, it being expressly recognized and agreed by all parties hereto that
any Specified Pledgor’s right of contribution arising pursuant to this Agreement against any other
Specified Pledgor shall be expressly junior and subordinate to such other Specified Pledgor’s
obligations and liabilities in respect of the Obligations and any other obligations owing under
this Agreement. As used in this Section 26: (i) each Specified Pledgor’s “Contribution
Percentage” shall mean the percentage obtained by dividing (x) the Adjusted Net Worth (as
defined below) of such Specified Pledgor by (y) the aggregate Adjusted Net Worth of all Specified
Pledgors; (ii) the “Adjusted Net Worth” of each Specified Pledgor shall mean the greater of
(x) the Net Worth (as defined below) of such Specified Pledgor and (y) zero; and (iii) the “Net
Worth” of each Specified Pledgor shall mean the amount by which the fair salable value of such
Specified Pledgor’s assets on the date of any Relevant Payment exceeds its existing debts and other
liabilities (including contingent liabilities, but without giving effect to any obligations arising
under this Agreement, any Guaranteed Obligations under, and as defined in, the Guaranty) on such
date. All parties hereto recognize and agree that, except for any right of contribution arising
pursuant to this Section 26 or any other Loan Document, each Specified Pledgor who makes (or whose
Collateral has been used to make) any payment in respect of the Obligations shall have no right of
contribution or subrogation against any other Specified Pledgor in respect of such

20

 

payment. Each
of the Specified Pledgors recognizes and acknowledges that the rights to contribution arising
hereunder shall constitute an asset in favor of the party entitled to such contribution. In this
connection, each Specified Pledgor has the right to waive its contribution right against any
Specified Pledgor to the extent that after giving effect to such waiver such Specified Pledgor
would remain solvent, in the determination of the Administrative Agent or the Required Lenders.

          27. LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED ORGANIZATION);
JURISDICTION OF ORGANIZATION; LOCATION; ORGANIZATIONAL IDENTIFICATION NUMBERS; CHANGES THERETO;
ETC. No Pledgor shall change its legal name, its type of organization or its status as a Registered
Organization (in the case of a Registered Organization), as the case may be, its jurisdiction of
organization, its Location, or its organizational identification number (if any), except that any
such changes shall be permitted (so long as not in violation of the applicable requirements of the
Loan Documents and so long as the same do not involve (x) a Registered Organization ceasing to
constitute same or (y) any Pledgor changing its jurisdiction of organization or Location from the
United States or a State thereof to a jurisdiction of organization or Location, as the case may be,
outside the United States or a State thereof) if (i) it shall have given to the Administrative
Agent not less than 10 Business Days’ prior written notice of each change to its legal name, its
type of organization, whether or not it is a Registered Organization, its jurisdiction of
organization, its Location and its organizational identification number (if any), and (ii) in
connection with the respective change or changes, it shall have taken all action reasonably
requested by the Administrative Agent to maintain the security interests of the Administrative
Agent in the Collateral intended to be granted hereby at all times fully perfected and in full
force and effect. In addition, to the extent that any Pledgor does not have an organizational
identification number on the date hereof and later obtains one, such Pledgor shall promptly
thereafter deliver a written notification to the Administrative Agent of such organizational
identification number and shall take all actions reasonably satisfactory to the Administrative
Agent to the extent necessary to maintain the security interest of the Administrative Agent in the
Collateral intended to be granted hereby fully perfected and in full force and effect.

          28. SEVERABILITY. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

          29. HEADINGS DESCRIPTIVE. The headings of the several Sections of this Agreement are inserted for convenience only and
shall not in any way affect the meaning or construction of any provision of this Agreement.

          30. ACKNOWLEDGMENTS AND AGREEMENTS BY ISSUERS AND PLEDGORS

21

 

          (a) Each Issuer acknowledges receipt of a copy of this Agreement and agrees to be bound hereby
and agrees to comply with the terms hereof as such terms are applicable to such Issuer.

          (b) Without limiting the foregoing provisions of this Section 30:

     (i) Each Pledgor hereby irrevocably agrees not to vote to amend, and each Issuer hereby
irrevocably agrees not to amend, (i) the applicable Issuer’s Organization Documents to
provide that its Pledged Securities are “securities” governed by Article 8 of the UCC or
(ii) the provisions of the applicable Issuer’s Organization Documents stating that the
Pledged Securities of such Issuer are securities governed by Article 8 of the UCC, and each
Pledgor and each Issuer hereby agrees and acknowledges that any such vote shall be invalid
and any such amendment shall be void ab initio.

     (ii) Each Pledgor, and each Issuer, hereby irrevocably (a) consents to the grant of the
security interests by all applicable Pledgors described in this Pledge Agreement, (b)
consents to any transfer or conveyance of the Collateral to the Administrative Agent or any
other Person pursuant to the Administrative Agent’s exercise of any of its rights and
remedies under this Pledge Agreement or any of the other Loan Documents, at law or in
equity, (c) consents to the admission of any transferee, upon any transfer of any of the
Collateral to such transferee pursuant to an exercise of the Administrative Agent’s rights
and remedies, as a partner (including as the general partner) or member (including as the
managing member) of the applicable partnership or limited liability company, and (d) agrees
that all terms and conditions in the Organization Documents applicable to the pledge of any
Collateral, the enforcement thereof, the transfer of any Collateral or the admission of any
transferee of any Collateral as a partner (including as the general partner) or member
(including as the managing member) of any partnership or limited liability company have been
satisfied or waived.

     (iii) Each Issuer hereby agrees that it will comply with all instructions given by the
Administrative Agent with respect to the Equity Interests of such Issuer pledged by the
applicable Pledgor hereunder without further consent by such Pledgor. The Administrative
Agent hereby agrees that it will not deliver any instructions pursuant to this Section
30(b)(iii) to any Issuer with respect to any pledged Equity Interests issued by such Issuer,
except upon the occurrence and during the continuance of an Event of Default.

* * * *

22

 

[Signature Page to Joinder to Pledge Agreement]

 

 

     IN WITNESS WHEREOF, each Pledgor and the Administrative Agent have caused this Agreement
to be executed and delivered by their duly authorized officers as of the date first above written.

	 	 	 	 	 	 	 

	Address:	 	PLEDGORS:	 	 
		 	 	 	 	 	 
	c/o W.P. Carey & Co. LLC
	 	CORPORATE PROPERTY ASSOCIATES	 	 
	50 Rockefeller Plaza	 	16 - GLOBAL INCORPORATED	 	 
	New York, NY 10020	 	 	 	 	 	 
	Fax No.:                         

	 	By:	 	/s/ Christopher Hayes	 	 
	Email:                             

	 	 	 	 

Name: Christopher Hayes
	 	 
	Attention:                     

	 	 	 	Title: Vice President	 	 

	 	 	 	 	 
	 	CPA 16 MERGER SUB INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	APPLIED FOUR (DE) QRS 14-75, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	APPLIED UTAH (UT) QRS 14-76, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	ASSEMBLY (MD)

 	 
	 	By:  	/s/ Brooks G. Gordon	 
	 	 	Name:  	Brooks G. Gordon	 
	 	 	Title:  	Trustee 	 

2

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANDWIDTH (UT) QRS 14-58, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	BP(IL)GP QRS 14-97, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	BP(IL) TRUST

 	 
	 	By:  	/s/ Brooks G. Gordon	 
	 	 	Name:  	Brooks G. Gordon 	 
	 	 	Title:  	Trustee 	 
	 

	 	 	 	 	 
	 	COLD (DE) QRS 12-50, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 
	 

	 	CPA16 GERMAN (DE) LIMITED PARTNERSHIP	 
	 	 	 	 	 
	 	By: CPA16 GERMAN GP (DE) QRS 16-155, INC., as
its general partner	 
	 	 	 	 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 
	 	CPA16 GERMAN GP (DE) QRS 16-155, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 

3

 

	 	 	 	 	 

	 	CRATE (GER) QRS 16-142 LLC	 
	 	 	 	 	 
	 	By: CPA16 GERMAN (DE) LIMITED PARTNERSHIP, as
managing member	 
	 	 	 	 	 
	 	By: CPA16 GERMAN GP (DE) QRS 16-155, Inc., its
general partner	 
	 	 	 	 	 
	 	By:  	/s/ Brooks G. Gordon	 
	 	 	Name:  	Brooks G. Gordon 	 
	 	 	Title:  	Director 	 
	 
	 	DOUGH (DE) QRS 14-77, INC.

 	 
	 	By:  	/s/ Brooks G. Gordon	 
	 	 	Name:  	Brooks G. Gordon 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	DOUGH (MD)

 	 
	 	By:  	/s/ Brooks G. Gordon	 
	 	 	Name:  	Brooks G. Gordon 	 
	 	 	Title:  	Trustee 	 
	 

	 	 	 	 	 
	 	FIT(TX)GP QRS 12-60, INC.

 	 
	 	By:  	/s/ Brooks G. Gordon	 
	 	 	Name:  	Brooks G. Gordon 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	FIT(TX) TRUST

 	 
	 	By:  	/s/ Brooks G. Gordon	 
	 	 	Name:  	Brooks G. Gordon 	 
	 	 	Title:  	Trustee 	 

4

 

	 	 	 	 	 

	 	 	 	 	 
	 	FRAME (TX) QRS 14-25, INC.

 	 
	 	By:  	/s/ Brooks G. Gordon	 
	 	 	Name:  	Brooks G. Gordon 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	INITIATOR (CA) QRS 12-53, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	INITIATOR (CA) QRS 14-62, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LEATHER (DE) QRS 14-72, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LTI (DE) QRS 14-81, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LTI TRUST (MD)

 	 
	 	By:  	/s/ Brooks G. Gordon	 
	 	 	Name:  	Brooks G. Gordon 	 
	 	 	Title:  	Trustee 	 

5

 

	 	 	 	 	 
	 	METAL (DE) QRS 14-67, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 
	 	PLATES (DE) QRS 14-63, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	POLD (GER) QRS 16-133 LLC	 
	 	 	 	 	 
	 	By: CPA16 GERMAN (DE) LIMITED PARTNERSHIP, as
its managing member	 
	 	 	 	 	 
	 	By: CPA16 GERMAN GP (DE) QRS 16-155, Inc., as
its general partner	 
	 	 	 	 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 
	 	POPCORN (TX) QRS 14-43, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 

	 	 	 	 	 
	 	STORAGE (DE) QRS 14-23, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

6

 

	 	 	 	 	 
	 	VINYL (DE) QRS 14-71, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	ISSUERS:	 
	 	 	 	 	 
	 	AFD (KV) LLC	 
	 	 	 	 	 
	 	By: STORAGE (DE) QRS 14-23, INC., as its
managing member	 
	 	 	 	 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 
	 	APPLIED FOUR (DE) QRS 14-75, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	APPLIED UTAH (UT) QRS 14-76, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	ASSEMBLY (MD)

 	 
	 	By:  	/s/ Brooks G. Gordon	 
	 	 	Name:  	Brooks G. Gordon	 
	 	 	Title:  	Trustee 	 

7

 

	 	 	 	 	 

	 	 	 	 	 	 	 

	 	 	AUTOSAFE AIRBAG 12 (CA) LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: INITIATOR (CA) QRS 12-53, INC., as its
general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christopher Hayes	 	 
	 

	 	 	 	 

Name: Christopher Hayes
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 

	 	 	AUTOSAFE AIRBAG 14 (CA) LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: INITIATOR (CA) QRS 14-62, INC., as its
general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christopher Hayes	 	 
	 

	 	 	 	 

Name: Christopher Hayes
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	BANDWIDTH (UT) QRS 14-58, INC.

 	 	 
	 	 	By:  	 	/s/ Christopher Hayes	 	 
	 	 	 	 	Name: Christopher Hayes 	 	 
	 	 	 	 	Title: Vice President 	 	 
	 	 	 	 
	 
	 	 	BP(IL)GP QRS 14-97, INC.

 	 	 
	 	 	By:  	 	/s/ Christopher Hayes	 	 
	 	 	 	 	Name: Christopher Hayes 	 	 
	 	 	 	 	Title: Vice President 	 	 

8

 

	 	 	 	 	 

	 	 	 	 	 

	 	BP(IL) L.P.	 
	 	 	 	 	 
	 	By: BP(IL)GP QRS 14-97, INC., as its general
partner	 
	 	 	 	 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 	 	 	 	 
	 	BP(IL) TRUST

 	 
	 	By:  	/s/ Brooks G. Gordon 	 
	 	 	Name:  	Brooks G. Gordon 	 
	 	 	Title:  	Trustee 	 
	 
	 	 	 	 	 
	 	CAN (WI) QRS 12-34, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 	 	 
	 	CAN-TWO (DE) QRS 12-67, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 	 	 
	 	COLD (DE) QRS 12-50, INC.

 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	CPA16 GERMAN (DE) LIMITED PARTNERSHIP	 
	 	 	 	 	 
	 	By: CPA16 GERMAN GP (DE) QRS 16-155, INC., as
its general partner	 
	 	 	 	 	 
	 	By:  	/s/ Christopher Hayes	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 

9

 

	 	 	 	 	 
	 	CPA16 GERMAN GP (DE) QRS 16-155, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 
	 	CTS(IN) QRS 12-63, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 
	 

	 	CUPS (DE) LP	 
	 	 	 	 	 
	 	By: PLATES (DE) QRS 14-63, INC., as its
general partner	 
	 	 	 	 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 

10

 

	 	 	 	 	 	 	 

	 	 	DELAWARE FRAME (TX), LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: FRAME (TX) QRS 14-25, INC., as its general
partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christopher Hayes	 	 
	 

	 	 	 	 

Name: Christopher Hayes
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	DEVELOP (TX) LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: POPCORN (TX) QRS 14-43, INC., as its
general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christopher Hayes 	 	 
	 

	 	 	 	 

Name: Christopher Hayes
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	DOUGH (DE) QRS 14-77, INC.

 	 	 
	 	 	By:  	 	/s/ Christopher Hayes 	 	 
	 	 	 	 	Name: Christopher Hayes 	 	 
	 	 	 	 	Title: Vice President 	 	 
	 
	 
	 	 	DOUGH (MD)

 	 	 
	 	 	By:  	 	/s/
Brooks G. Gordon	 	 
	 	 	 	 	Name: Brooks G. Gordon 	 	 
	 	 	 	 	Title: Trustee 	 	 

 

11

 

	 	 	 	 	 

	 	 	 	 	 	 	 

	 	 	DYNE (DE) LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: METAL (DE) QRS 14-67 INC., as its general
partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christopher Hayes 	 	 
	 

	 	 	 	 

Name: Christopher Hayes
	 	 
	 

	 	 	 	Title: Vice President	 	 

	 	 	 	 	 	 	 

	 	 	FABRIC (DE) GP	 	 
	 
	 	 	 	 	 	 
	 	 	By: LEATHER (DE) QRS 14-72, INC., as its
general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christopher Hayes 	 	 
	 

	 	 	 	 

Name: Christopher Hayes
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	FIT(TX)GP QRS 12-60, INC.

 	 	 
	 	 	By:  	 	/s/ Christopher Hayes 	 	 
	 	 	 	 	Name: Christopher Hayes 	 	 
	 	 	 	 	Title: Vice President 	 	 
	 

	 	 	 	 	 	 	 

	 	 	FIT(TX) LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: FIT(TX)GP QRS 12-60, INC., as its general
partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christopher Hayes 	 	 
	 

	 	 	 	 

Name: Christopher Hayes
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	FIT(TX) TRUST

 	 	 
	 	 	By:  	 	/s/
Brooks G. Gordon 	 	 
	 	 	 	 	Name: Brooks G. Gordon 	 	 
	 	 	 	 	Title: Trustee 	 	 
	 

12

 

	 	 	 	 	 
	 	FRAME (TX) QRS 14-25, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	GERB (CT) QRS 14-73, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	HOTEL (MN) QRS 16-84, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	HOTEL OPERATOR (MN) TRS 16-87, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	INITIATOR (CA) QRS 12-53, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	INITIATOR (CA) QRS 14-62, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

13

 

	 	 	 	 	 
	 	JEN (MA) QRS 12-54, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	 	Name: Christopher Hayes 	 
	 	 	 	Title: Vice President 	 
	 
	 	KSM LIVINGSTON (NJ) QRS 16-76, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	 	Name: Christopher Hayes 	 
	 	 	 	Title: Vice President 	 
	 

	 	 	 	 	 
	 	LEATHER (DE) QRS 14-72, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	 	Name: Christopher Hayes 	 
	 	 	 	Title: Vice President 	 
	 
	 

	 	LEI (GER) QRS 16-134 LLC	 
	 
	 	 	 	 	 
	 	By: POLD (GER) QRS 16-133, LLC	 
	 
	 	 	 	 	 
	 	By: CPA16 GERMAN (DE) LIMITED PARTNERSHIP,
its managing member	 
	 
	 	 	 	 	 
	 	By: CPA16 GERMAN GP (DE) QRS 16-155, Inc.,
its general partner	 
	 
	 	 	 	 	 
	 

	By:	 	/s/ Christopher Hayes 	 	
	 

	 	 	 	 	 
	 

	 	 	Name: Christopher Hayes

Title: Vice President	 	
	 

	 	LINCOLN (DE) LP	 
	 
	 	 	 	 	 
	 	By: LTI (DE) QRS 14-81, INC., as its general
partner	 
	 
	 	 	 	 	 
	 

	By:	 	/s/ Christopher Hayes 	 	 
	 

	 	 	 	 	 
	 

	 	 	Name: Christopher Hayes	 	 
	 

	 	 	Title: Vice President	 	 

14

 

	 	 	 	 	 
	 	LPD (CT) QRS 16-132, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LPORT 2 (WA) QRS 16-147, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LTI (DE) QRS 14-81, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LTI TRUST (MD)

 	 
	 	By:  	/s/
Brooks G. Gordon 	 
	 	 	Name:  	Brooks G. Gordon 	 
	 	 	Title:  	Trustee 	 
	 

	 	 	 	 	 
	 	META (CA) QRS 14-6, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	METAL (DE) QRS 14-67, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

15

 

	 	 	 	 	 	 	 

	 	 	MORE APPLIED FOUR (DE) LLC	 	 
	 
	 	 	 	 	 	 
	 	 	By: APPLIED FOUR (DE) QRS 14-75, INC., as its
managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christopher Hayes 	 	 
	 

	 	 	 	 

Name: Christopher Hayes
	 	 
	 

	 	 	 	Title: Vice President	 	 

	 	 	 	 	 	 	 

	 	 	MORE APPLIED UTAH (UT) LLC	 	 
	 
	 	 	 	 	 	 
	 	 	By: APPLIED UTAH (UT) QRS 14-76, INC., as its
managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christopher Hayes 	 	 
	 

	 	 	 	 

Name: Christopher Hayes
	 	 
	 

	 	 	 	Title: Vice President	 	 

	 	 	 	 	 	 	 

	 	 	NETWORK (UT) LLC	 	 
	 
	 	 	 	 	 	 
	 	 	By: BANDWIDTH (UT) QRS 14-58, INC., as its
managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christopher Hayes 	 	 
	 

	 	 	 	 

Name: Christopher Hayes
	 	 
	 

	 	 	 	Title: Vice President	 	 

	 	 	 	 	 
	 	PLATES (DE) QRS 14-63, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

16

 

	 	 	 	 	 	 	 

	 	 	POLD (GER) QRS 16-133 LLC	 	 
	 
	 	 	 	 	 	 
	 	 	By: CPA16 GERMAN (DE) LIMITED PARTNERSHIP, as
its managing member	 	 
	 
	 	 	 	 	 	 
	 	 	By: CPA16 GERMAN GP (DE) QRS 16-155, Inc., as
its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christopher Hayes 	 	 
	 

	 	 	 	 

Name: Christopher Hayes
	 	 
	 

	 	 	 	Title: Vice President	 	 

	 	 	 	 	 
	 	POPCORN (TX) QRS 14-43, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	PRINT (WI) QRS 12-40, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	PWE (MULTI) QRS 14-85, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	SHO LANDLORD (FL) QRS 16-104, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

17

 

	 	 	 	 	 
	 	STORAGE (DE) QRS 14-23, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	TEL (VA) QRS 12-15, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	URSA (VT) QRS 12-30, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	VINYL (DE) QRS 14-71, INC.

 	 
	 	By:  	/s/ Christopher Hayes 	 
	 	 	Name:  	Christopher Hayes 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 	 	 

	 	 	WINDOUGH (DE) LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: DOUGH (DE) QRS 14-77, INC., as its general
partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Brooks G. Gordon 	 	 
	 

	 	 	 	 

Name: Brooks G. Gordon
	 	 
	 

	 	 	 	Title: Director	 	 

18

 

	 	 	 	 	 	 

	 	 	CRATE (GER) QRS 16-142 LLC	 
	 
	 	 	 	 	 

	 	 	By: CPA16 GERMAN (DE) LIMITED PARTNERSHIP, as
managing member	 
	 
	 	 	 	 	 

	 	 	By: CPA16 GERMAN GP (DE) QRS 16-155, Inc., its
general partner	 
	 
	 	 	 	 	 

	 

	 	By:	 	/s/ Brooks G. Gordon	 

	 

	 	 	 	 	 

	 

	 	 	 	Name: Brooks G. Gordon	 

	 

	 	 	 	Title: Director	 

	 	 	 	 	 	 	 

	 	 	BEVERAGE (GER) QRS 16-141 LLC	 	 
	 
	 	 	 	 	 	 
	 	 	By: CRATE (GER) QRS 16-142 LLC, as its
managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Brooks G. Gordon	 	 
	 

	 	 	 	 

Name: Brooks G. Gordon
	 	 
	 

	 	 	 	Title: Director	 	 

19

 

	 	 	 	 	 

	Accepted and Agreed to:	 	 
	 
	 	 	 	 
	BANK OF AMERICA, N.A.,
as Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	/s/ Eyal Namordi 	 	 
	 

	 	 

Name: Eyal Namordi
	 	 
	 

	 	Title: Senior Vice President	 	 

20exv10w4

EXHIBIT
10.4

EXECUTION VERSION

AMENDED AND RESTATED ADVISORY AGREEMENT

     THIS AMENDED AND RESTATED ADVISORY AGREEMENT, dated as of May 2, 2011, is among CORPORATE
PROPERTY ASSOCIATES 16 — GLOBAL INCORPORATED, a Maryland corporation (“CPA: 16”), CPA 16
LLC, a Delaware limited liability company of which CPA: 16 is a manage member (the “Operating
LLC”), and CAREY ASSET MANAGEMENT CORP., a Delaware corporation and wholly-owned subsidiary of
W. P. Carey & Co. LLC (the “Advisor”).

W I T N E S S E T H:

     WHEREAS, CPA: 16 intends to continue to qualify as a REIT (as defined below) for U.S. federal
income tax purposes;

     WHEREAS, CPA: 16 and the Advisor are parties to an existing advisory agreement, most recently
renewed as of October 1, 2010, which the parties desire to amend and restate;

     WHEREAS, CPA: 16 and its subsidiaries, including the Operating LLC, desire to continue to
avail themselves of the experience, sources of information, advice and assistance of, and certain
facilities available to, the Advisor and to have the Advisor undertake the duties and
responsibilities hereinafter set forth, on behalf of, and subject to the supervision of the Board
of Directors of CPA: 16, all as provided herein; and

     WHEREAS, the Advisor is willing to continue to render such services, subject to the
supervision of the Board of Directors, on the terms and conditions hereinafter set forth;

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
contained herein, the parties hereto agree as follows:

     1. Definitions. As used in this Agreement, the following terms have the
definitions hereinafter indicated:

     “2%/25% Guidelines.” The requirement, as provided for in Section 13 hereof, that, in
the 12-month period ending on the last day of any fiscal quarter, Operating Expenses under this
Agreement and the Management Agreement not exceed the greater of two percent of Average Invested
Assets during such 12-month period or 25% of CPA: 16’s Adjusted Net Income over the same 12-month
period.

     “Acquisition Expenses.” To the extent not paid or to be paid by the seller, lessee,
borrower or any other party involved in the transaction, those expenses, including but not limited
to travel and communications expenses, the cost of appraisals, title insurance, nonrefundable
option payments on Investments not acquired, legal fees and expenses, accounting fees and expenses
and miscellaneous expenses, related to selection, acquisition and origination of Investments,
whether or not a particular Investment ultimately is made. Acquisition Expenses shall not include
Acquisition Fees.

     “Acquisition Fees.” Any fee or commission paid by CPA: 16 or its subsidiaries to the
Advisor, or, with respect to Section 9(d), by CPA: 16 or its subsidiaries to any party, in
connection with the making of Investments, including, without limitation, the purchase, development
or construction of Properties. A Development Fee or Construction Fee paid to a Person not
affiliated with the Sponsor in connection with the actual development or construction of a project
after acquisition of the Property by CPA: 16 shall not be deemed an Acquisition Fee. Included in
the computation of such fees or commissions shall be any real estate commission, selection fee,
Development Fee or Construction Fee

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(other than as described above), non-recurring management fees,
loan fees, points or any fee of a similar nature, however designated. Acquisition Fees shall not
include Acquisition Expenses.

     “Adjusted Invested Assets.” The average during any period of the aggregate historical
cost, or to the extent available for a particular asset, the most recent Appraised Value, of the
Investments of CPA:16, before accumulated reserves for depreciation or bad debt allowances or other
similar non-cash reserves, computed (unless otherwise specified) by taking the average of such
values at the end of each month during such period.

     “Adjusted Investor Capital.” As of any date, the Initial Investor Capital reduced by
any Redemptions, other than Redemptions intended to qualify as a liquidity event for purposes of
this Agreement, and by any other Distributions on or prior to such date determined by the Board to
be from Cash from Sales and Financings.

     “Adjusted Net Income.” For any period, the total consolidated revenues recognized in
such period by CPA: 16, less the total consolidated expenses of CPA: 16 recognized in such period,
excluding additions to reserves for depreciation and amortization, bad debts or other similar
non-cash reserves; provided, however, that Adjusted Net Income for purposes of calculating total
allowable Operating Expenses under the 2%/25% Guidelines shall exclude any gain, losses or
writedowns from the sale of CPA: 16’s assets.

     “Advisor.” Carey Asset Management Corp, a corporation organized under the laws of the
State of Delaware and wholly-owned by W. P. Carey & Co. LLC.

     “Affiliate.” An Affiliate of another Person shall include any of the following:
(i) any Person directly or indirectly owning, controlling, or holding, with power to vote ten
percent or more of the outstanding voting securities of such other Person; (ii) any Person ten
percent or more of whose outstanding voting securities are directly or indirectly owned,
controlled, or held, with power to vote, by such other Person; (iii) any Person directly or
indirectly controlling, controlled by, or under common control with such other Person; (iv) any
executive officer, director, trustee or general partner of such other Person; or (v) any legal
entity for which such Person acts as an executive officer, director, trustee or general partner.

     “Agreement.” This Advisory Agreement.

     “Appraised Value.” Value according to an appraisal made by an Independent Appraiser,
which may take into consideration any factor deemed appropriate by such Independent Appraiser,
including, but not limited to, current market and property conditions, any unique attributes of the
Investment units operations, current and anticipated income and expense trends, the terms and
conditions of any lease of a relevant property, the quality of any lessee’s, borrower’s or other
counter-party’s credit and the conditions of the credit markets. The Appraised Value of a Property
may be greater than the construction cost or the replacement cost of the Property.

     “Articles of Incorporation.” Articles of Incorporation of CPA: 16 under the General
Corporation Law of Maryland, as amended from time to time, pursuant to which CPA: 16 is organized.

     “Asset Management Fee.” The Asset Management Fee as defined in Section 9(a) hereof.

     “Average Invested Assets.” The average during any period of the aggregate book value
of CPA: 16’s Investments, before deducting reserves for depreciation, bad debts, impairments,
amortization and all

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other non-cash reserves, computed by taking the average of such values at the
end of each month during such period.

     “Average Market Value.” The Total Investment Cost paid by CPA: 16 for an Investment,
less Acquisition Fees, provided that, if a later Appraised Value is obtained for the Investment,
that later Appraised Value, adjusted for other net assets and liabilities that have economic value
and are associated with that Investment, shall become the Average Market Value for the Investment.

     “Board or Board of Directors.” The Board of Directors of CPA: 16.

     “Bylaws.” The bylaws of CPA: 16, as amended from time to time.

     “Cash from Financings.” Net cash proceeds realized by CPA: 16 from the financing of
Investments or the refinancing of indebtedness from time to time.

     “Cash from Sales.” Net cash proceeds realized by CPA: 16 from the sale, exchange or
other disposition of any of its Investments after deduction of all expenses incurred in connection
therewith. Cash from Sales shall not include Cash from Financings.

     “Cash from Sales and Financings.” The total sum of Cash from Sales and Cash from
Financings.

     “Cause.” With respect to the termination of this Agreement, fraud, criminal conduct,
willful misconduct or willful or negligent breach of fiduciary duty by the Advisor that, in each
case, is determined by a majority of the Independent Directors to be materially adverse to CPA: 16,
or a breach of a material term or condition of this Agreement by the Advisor and the Advisor has
not cured such breach within 30 days of written notice thereof or, in the case of any breach that
cannot be cured within 30 days by reasonable effort, has not taken all necessary action within a
reasonable time period to cure such breach.

     “Closing Date.” The first date on which Shares were issued pursuant to an Offering.

     “Code.” Internal Revenue Code of 1986, as amended.

     “Competitive Real Estate Commission.” The real estate or brokerage commission paid
for the purchase or sale of a Property that is reasonable, customary and competitive in light of
the size, type and location of the Property.

     “Construction Fee.” A fee or other remuneration for acting as general contractor
and/or construction manager to construct improvements, supervise and coordinate projects or to
provide major repairs or rehabilitation on a Property.

     “Contract Purchase Price.” The amount actually paid for, or allocated to, the
purchase, development, construction or improvement of an Investment or, in the case of an
originated Loan, the principal amount of such Loan, exclusive, in each case, of Acquisition Fees
and Acquisition Expenses.

     “Contract Sales Price.” The total consideration received by CPA: 16 for the sale of
Investments.

     “CPA: 16.” Corporate Property Associates 16 — Global Incorporated together with its
consolidated subsidiaries, including the Operating LLC, unless in the context of a particular
reference, it is clear that such reference refers to Corporate Property Associates 16 – Global
Incorporated excluding its consolidated subsidiaries. Unless the context otherwise requires, any
reference to financial measures of

3

 

CPA: 16 shall be calculated by reference to the consolidated
financial statements of CPA: 16 and its subsidiaries, including, without limitation, the Operating
LLC, prepared in accordance with GAAP.

     “Cumulative Return.” For the period for which the calculation is being made, the
percentage resulting from dividing (A) the total Distributions for such period (not including
Distributions out of Cash from Sales and Financings), by (B) the product of (i) the average
Adjusted Investor Capital for such period (calculated on a daily basis), and (ii) the numbered of
years (including fraction thereof) elapsed during such period. Notwithstanding the foregoing,
neither the Shares received by the Advisor or its Affiliates for any consideration other than cash,
nor the Distributions in respect of such Shares, shall be included in the foregoing calculation.

     “Development Fee.” A fee for the packaging of a Property including negotiating and
approving plans, and undertaking to assist in obtaining zoning and necessary variances and
necessary financing for the specific Property, either initially or at a later date.

     “Directors.” The persons holding such office, as of any particular time, under the
Articles of Incorporation, whether they be the directors named therein or additional or successor
directors.

     “Distributions.” Distributions declared by the Board.

     “GAAP.” Generally accepted accounting principles in the United States.

     “Good Reason.” With respect to the termination of this Agreement, (i) any failure to
obtain a satisfactory agreement from any successor to CPA: 16 or the Operating LLC to assume and
agree to perform CPA: 16’s or the Operating LLC’s, as applicable, obligations under this Agreement;
or (ii) any material breach of this Agreement of any nature whatsoever by CPA: 16 or the Operating
LLC; provided that (a) such breach is of a material term or condition of this Agreement and
(b) CPA: 16 or the Operating LLC, as applicable, has not cured such breach within 30 days of
written notice thereof or, in the case of any breach that cannot be cured within 30 days by
reasonable effort, has not taken all necessary action within a reasonable time period to cure such
breach.

     “Gross Offering Proceeds.” The aggregate purchase price of Shares sold in any
Offering.

     “Independent Appraiser.” A qualified appraiser of real estate as determined by the
Board, who has no material current or prior business or personal relationship with, the Advisor or
the Directors and who is engaged to a substantial extent in the business of rendering opinions
regarding the value of real estate related investments. Membership in a nationally recognized
appraisal society such as the American Institute of Real Estate Appraisers or the Society of Real
Estate Appraisers shall be conclusive evidence of such qualification (but not of independence).

     “Independent Director.” A Director of CPA: 16 who meets the criteria for an
Independent Director specified in the Bylaws.

     “Individual.” Any natural person and those organizations treated as natural persons
in Section 542(a) of the Code.

     “Initial Acquisition Fee.” Any fee or commission (including any interest thereon)
paid by the Operating LLC to the Advisor or, with respect to Section 9(c) or 9(a), by the Operating
LLC to any party, in connection with the making of an Investment or the development or construction
of Properties by CPA: 16. A Development Fee or a Construction Fee paid to a Person not affiliated
with the Sponsor in connection with the actual development or construction of a project after
acquisition of the Property by

4

 

CPA: 16 shall not be deemed an Initial Acquisition Fee. Initial
Acquisition Fees include, but are not limited to, any real estate commission, selection fee,
development fee or construction fee (other than as described above), non-recurring management fees,
loan fees, points or any fee of a similar nature, however designated. Initial Acquisition Fees
include Subordinated Acquisition Fees unless the context otherwise requires. Initial Acquisition
Fees shall not include Acquisition Expenses.

     “Initial Investor Capital.” The total amount of capital invested from time to time by
Shareholders (computed at the Original Issue Price per Share), excluding any Shares received by the
Advisor or its Affiliates for any consideration other than cash.

     “Investment.” means an investment made by CPA: 16, directly or indirectly, in a
Property, Loan or Other Permitted Investment Asset.

     “Loans.” The notes and other evidences of indebtedness or obligations acquired,
originated or entered into, directly or indirectly, by CPA: 16 as lender, noteholder, participant,
note purchaser or other capacity, including but not limited to first or subordinate mortgage loans,
construction loans, development loans, loan participations, B notes, loans secured by capital stock
or any other assets or form of equity interest and any other type of loan or financial arrangement,
such as providing or arranging for letters of credit, providing guarantees of obligations to third
parties, or providing commitments for loans. The term “Loans” shall not include leases which are
not recognized as leases for Federal income tax reporting purposes.

     “Manager.” W. P. Carey & Co. B.V., a Netherlands company.

     “Management Agreement.” The Asset Management Agreement, dated as of July 1, 2008,
between CPA: 16 and the Manager, as the same may be amended from time to time.

     “Market Value.” The value calculated by multiplying the total number of outstanding
Shares by the average closing price of the Shares over the 30 trading days beginning 180 calendar
days after the Shares are first listed on a national securities exchange or included for quotation
in an electronic trading system.

     “Nasdaq.” The Nasdaq stock market.

     “Offering.” The offering of Shares pursuant to a Prospectus.

     “Operating Expenses.” All consolidated operating, general and administrative expenses
paid or incurred by CPA: 16, as determined under GAAP, except the following (insofar as they would
otherwise be considered operating, general and administrative expenses under GAAP): (i) interest
and discounts and other cost of borrowed money; (ii) taxes (including state, Federal and foreign
income tax, property taxes and assessments, franchise taxes and taxes of any other nature);
(iii) expenses of raising capital, including Organization and Offering Expenses, printing,
engraving, and other expenses, and taxes incurred in connection with the issuance and distribution
of CPA: 16’s Shares and Securities; (iv) Acquisition Expenses, real estate commissions on resale of
property and other expenses connected with the acquisition, disposition, origination, ownership and
operation of Investments, including the costs of foreclosure, insurance premiums, legal services,
brokerage and sales commissions, and the maintenance, repair and improvement of property;
(v) Acquisition Fees or Subordinated Disposition Fees payable to the Advisor under this Agreement
and the corresponding fees payable to the Manager under the Management Agreement, or any other
party; (vi) distributions paid by the Operating LLC to the Special General Partner under the
agreement of limited partnership of the Operating LLC in respect of gains realized on dispositions
of Investments; (vii) amounts paid to effect a redemption or repurchase of

5

 

the special general
partner interest held by the Special General Partner pursuant to the agreement of limited
partnership of the Operating LLC; and (viii) non-cash items, such as depreciation, amortization,
depletion, and additions to reserves for depreciation, amortization, depletion, losses and bad
debts. Notwithstanding anything herein to the contrary, Operating Expenses shall include the Asset
Management Fee and any Loan Refinancing Fee and, solely for the purposes of determining compliance
with the 2%/25% Guidelines, distributions of profits and cash flow made by the Operating LLC to the
Special Member pursuant to the agreement of limited partnership of the Operating LLC, other than
distributions described in clauses (vi) and (vii) of this definition.

     “Operating LLC.” CPA 16 LLC, a Delaware limited liability company.

     “Organization and Offering Expenses.” Those expenses payable by CPA: 16 and the
Operating LLC in connection with the formation, qualification and registration of CPA: 16 and in
marketing and distributing Shares, including, but not limited to: (i) the preparation, printing,
filing and delivery of any registration statement or Prospectus and the preparing and printing of
contractual agreements among CPA: 16, the Operating LLC and the Sales Agent and the Selected
Dealers (including copies thereof); (ii) the preparing and printing of the Articles of
Incorporation and Bylaws, solicitation material and related documents and the filing and/or
recording of such 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 corporation;
(iii) the qualification or registration of the Shares under state securities or “Blue Sky” laws;
(iv) any escrow arrangements, including any compensation to an escrow agent; (v) the filing fees
payable to the Securities and Exchange Commission and to the Financial Industry Regulatory
Authority; (vi) reimbursement for the reasonable and identifiable out-of-pocket expenses of the
Sales Agent and the Selected Dealers, including the cost of their counsel; (vii) the fees of CPA:
16’s counsel and accountants; (viii) all advertising expenses incurred in connection with an
Offering, including the cost of all sales literature and the costs related to investor and
broker-dealer sales and information meetings and marketing incentive programs; and (ix) selling
commissions, selected dealer fees, marketing fees, incentive fees, due diligence fees and
wholesaling fees incurred in connection with the sale of the Shares.

     “Original Issue Price.” For any Share issued in an Offering, the price at which such
Share was initially offered to the public by CPA: 16, regardless of whether selling commissions
were paid in connection with the purchase of such Share from CPA: 16.

     “Other Permitted Investment Asset.” An asset, other than cash, cash equivalents,
short term bonds, auction rate securities and similar short term investments, acquired by CPA: 16
for investment purposes that is not a Loan or a Property and is consistent with the investment
objectives and policies of CPA: 16.

     “Person.” An Individual, corporation, partnership, joint venture, association,
company, trust, bank, or other entity, or government or any agency or political subdivision of a
government.

     “Preferred Return.” A Cumulative Return of six percent computed from the Closing Date
through the date as of which such amount is being calculated.

     “Property or Properties.” CPA: 16’s partial or entire interest in real property
(including leasehold interests) and personal or mixed property connected therewith. An Investment
which obligates CPA: 16 to acquire a Property will be treated as a Property for purposes of this
Agreement.

     “Property Management Fee.” A fee for property management services rendered by the
Advisor or its Affiliates in connection with Properties acquired directly or through foreclosure.

6

 

     “Prospectus.” Any prospectus pursuant to which CPA: 16 offers Shares in a public
offering, as the same may at any time and from time to time be amended or supplemented after the
effective date of the registration statement in which it is included.

     “Redemptions.” An amount determined by multiplying the number of Shares redeemed by
the Original Issue Price.

     “REIT.” A real estate investment trust, as defined in Sections 856-860 of the Code.

     “Sales Agent.” Carey Financial Corporation.

     “Securities.” Any stock, shares (other than currently outstanding Shares and
subsequently issued Shares), other equity interests, voting trust certificates, bonds, debentures,
notes or other evidences of indebtedness, secured or unsecured, convertible, subordinated or
otherwise or in general any instruments commonly known as “securities” or any certificate of
interest, shares or participation in temporary or interim certificates for receipts (or, guarantees
of, or warrants, options or rights to subscribe to, purchase or acquire any of the foregoing).

     “Selected Dealers.” Broker-dealers who are members of the Financial Industry
Regulatory Authority and who have executed an agreement with the Sales Agent in which the Selected
Dealers agree to participate with the Sales Agent in the Offering.

     “Shareholders.” Those Persons who, at the time any calculation hereunder is to be
made, are shown as holders of record of Shares on the books and records of CPA: 16.

     “Shares.” All of the shares of common stock of CPA: 16, $.001 par value, and any
other shares of common stock of CPA: 16.

     “Special Member.” Carey REIT III, Inc. and any permitted transferee of the special
membership interest under the operating agreement of the Operating LLC.

     “Sponsor.” W.P. Carey & Co. LLC and any other Person directly or indirectly
instrumental in organizing, wholly or in part, CPA: 16 or any person who will control, manage or
participate in the management of CPA: 16, and any Affiliate of any such person. Sponsor does not
include a person whose only relationship to CPA: 16 is that of an independent property manager and
whose only compensation is as such. Sponsor also does not include wholly independent third parties
such as attorneys, accountants and underwriters whose only compensation is for professional
services.

     “Subordinated Acquisition Fee.” The Subordinated Acquisition Fee as defined in
Section 9(c) hereof.

     “Subordinated Disposition Fee.” The Subordinated Disposition Fee as defined in
Section 9(f) hereof.

     “Termination Date.” The effective date of any termination of this Agreement.

     “Total Investment Cost.” With regard to any Investment, an amount equal to the sum of
the Contract Purchase Price of such Investment plus the Acquisition Fees and Acquisition Expenses
paid in connection with such Investment.

7

 

     “Triggering Event.” With regard to any Investment, the occurrence of any of the
following during the six months after the closing date of the Investment: (a) the failure by an
obligor on an Investment to pay rent, interest or principal, or other material payment, to CPA: 16
when due (after giving effect to all applicable grace periods) or (b) the obligor on an Investment
(including a guarantor) (1) commences a voluntary case or proceeding under applicable bankruptcy or
reorganization law, (2) consents to the entry of a decree or order for relief in an involuntary
proceeding under applicable bankruptcy law, (3) consents to the filing of a petition or the
appointment of a custodian, receiver or liquidator, (4) makes an assignment for the benefit of
creditors, (5) admits in writing its inability to pay its debts as they come due; or (6) is the
subject of a decree or order for relief entered by a court of competent jurisdiction in respect of
such obligor in an involuntary bankruptcy case or proceeding, or a decree or order adjudging such
obligor bankrupt or insolvent or appointing a custodian, receiver or liquidator for the obligor.

     2. Appointment. CPA: 16 hereby appoints the Advisor to serve as its advisor on
the terms and conditions set forth in this Agreement, and the Advisor hereby accepts such
appointment.

     3. Duties of the Advisor. The Advisor undertakes to use its best efforts to
present to CPA: 16 potential investment opportunities and to provide a continuing and suitable
investment program consistent with the investment objectives and policies of CPA: 16 as determined
and adopted from time to time by the Board. In performance of this undertaking, subject to the
supervision of the Board and consistent with the provisions of the Articles of Incorporation and
Bylaws of CPA: 16 and any Prospectus pursuant to which Shares are offered, the Advisor shall,
either directly or by engaging an Affiliate:

     (a) serve as CPA: 16’s investment and financial advisor and provide research and
economic and statistical data in connection with CPA: 16’s assets and investment policies;

     (b) provide the daily management of CPA: 16 and perform and supervise the various
administrative functions reasonably necessary for the management of CPA: 16;

     (c) investigate, select, and, on behalf of CPA: 16, engage and conduct business
with such Persons as the Advisor deems necessary to the proper performance of its
obligations hereunder, including but not limited to consultants, accountants,
correspondents, lenders, technical advisors, attorneys, brokers, underwriters, corporate
fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers,
insurance agents, banks, builders, developers, property owners, mortgagors, and any and all
agents for any of the foregoing, including Affiliates of the Advisor, and Persons acting in
any other capacity deemed by the Advisor necessary or desirable for the performance of any
of the foregoing services, including but not limited to entering into contracts in the name
of CPA: 16 with any of the foregoing;

     (d) consult with Directors of CPA: 16 and assist the Board in the formulation and
implementation of CPA: 16’s policies, and furnish the Board with such information, advice
and recommendations as they may request or as otherwise may be necessary to enable them to
discharge their fiduciary duties with respect to matters coming before the Board;

     (e) subject to the provisions of Sections 3(g) and 4 hereof: (1) locate, analyze
and select potential Investments; (2) structure and negotiate the terms and conditions of
transactions pursuant to which Investments will be made, purchased or acquired by CPA: 16;
(3) make Investments on behalf of CPA: 16; (4) arrange for financing and refinancing of,
make other changes in the asset or capital structure of, dispose of, reinvest the proceeds
from the sale of, or otherwise deal with the Investments; and (5) enter into leases and
service contracts for Properties

8

 

and, to the extent necessary, perform all other operational
functions for the maintenance and administration of such Properties;

     (f) provide the Board with periodic reports regarding prospective Investments and
with periodic reports, no less than quarterly, of (1) the occurrence of any Triggering Event
during the prior fiscal quarter; and (2) the amounts of “dead deal” costs incurred by CPA:
16 during the prior fiscal quarter;

     (g) obtain the prior approval of the Board (including a majority of the Independent
Directors) for any and all investments in Property which do not meet all of the requirements
set forth in Section 4(b) hereof;

     (h) negotiate on behalf of CPA: 16 with banks or lenders for loans to be made to
CPA: 16, and negotiate on behalf of CPA: 16 with investment banking firms and broker-dealers
or negotiate private sales of Shares and Securities or obtain loans for CPA: 16, but in no
event in such a way so that the Advisor shall be acting as broker-dealer or underwriter; and
provided, further, that any fees and costs payable to third parties incurred by the Advisor
in connection with the foregoing shall be the responsibility of CPA: 16;

     (i) obtain reports (which may be prepared by the Advisor or its Affiliates), where
appropriate, concerning the value of Investments or contemplated Investments;

     (j) obtain for, or provide to, CPA: 16 such services as may be required in
acquiring, managing and disposing of Investments, including, but not limited to: (i) the
negotiation, making and servicing of Investments; (ii) the disbursement and collection of
monies; (iii) the payment of debts of and fulfillment of the obligations of CPA: 16; and
(iv) the handling, prosecuting and settling of any claims of or against CPA: 16, including,
but not limited to, foreclosing and otherwise enforcing mortgages and other liens securing
Loans;

     (k) from time to time, or at any time reasonably requested by the Board, make
reports to the Board of its performance of services to CPA: 16 under this Agreement;

     (l) communicate on behalf of CPA: 16 with Shareholders as required to satisfy the
reporting and other requirements of any governmental bodies or agencies to Shareholders and
third parties and otherwise as requested by CPA: 16;

     (m) provide or arrange for administrative services and items, legal and other
services, office space, office furnishings, personnel and other overhead items necessary and
incidental to CPA: 16’s business and operations;

     (n) provide CPA: 16 with such accounting data and any other information requested
by CPA: 16 concerning the investment activities of CPA: 16 as shall be required to prepare
and to file all periodic financial reports and returns required to be filed with the
Securities and Exchange Commission and any other regulatory agency, including annual
financial statements;

     (o) maintain the books and records of CPA: 16;

     (p) supervise the performance of such ministerial and administrative functions as
may be necessary in connection with the daily operations of the Investments;

     (q) provide CPA: 16 with all necessary cash management services;

9

 

     (r) do all things necessary to assure its ability to render the services described
in this Agreement;

     (s) perform such other services as may be required from time to time for management
and other activities relating to the assets of CPA: 16 as the Advisor shall deem advisable
under the particular circumstances;

     (t) arrange to obtain on behalf of CPA: 16 as requested by the Board, and deliver
to or maintain on behalf of CPA: 16 copies of, all appraisals obtained in connection with
investments in Properties and Loans;

     (u) if a transaction, proposed transaction or other matter requires approval by the
Board or by the Independent Directors, deliver to the Board or the Independent Directors, as
the case may be, all documentation reasonably requested by them to properly evaluate such
transaction, proposed transaction or other matter;

     (v) monitor the performance by the Manager of its duties under the Management
Agreement; and

     (w) on an annual basis, no later than 90 days prior to the end of each term of this
Agreement, provide the Independent Directors with a report on (1) the Advisor’s performance
during the past year, (2) the compensation paid to the Advisor during such year and (3) any
proposed changes to the compensation to be paid to the Advisor during the upcoming year if
the Agreement is renewed. The Advisor’s report shall address, among other things, (a) those
matters identified in CPA: 16’s organizational documents as matters which the Independent
Directors must review each year with respect to the Advisor’s performance and compensation;
(b) whether any Triggering Event occurred with respect to an Investment made during the past
year; and (c) the “dead deal” costs incurred by CPA: 16 during the past year. If a
Triggering Event has occurred, the Independent Directors may consider whether, after taking
account of the overall performance of the Advisor during the past year, they wish to request
that the Advisor refund all or a portion of the Initial Acquisition Fee paid by CPA: 16 in
respect of such Investment, and if the Independent Directors make that request, the Advisor
shall refund such amount to CPA: 16 within 60 days after receipt of such request. In
addition, the Independent Directors may request that the Advisor refund certain of the dead
deal costs incurred by CPA: 16 if, in light of the circumstances under which such costs were
incurred, the Independent Directors determine that CPA: 16 should not bear such costs.

     4. Authority of Advisor.

     (a) Pursuant to the terms of this Agreement (and subject to the restrictions
included in Paragraphs (b), (c) and (d) of this Section 4 and in Section 7 hereof), and
subject to the continuing and exclusive authority of the Board over the management of CPA:
16, the Board hereby delegates to the Advisor the authority to: (1) locate, analyze and
select Investment opportunities; (2) structure the terms and conditions of transactions
pursuant to which Investments will be made or acquired for CPA: 16; (3) make or acquire
Investments in compliance with the investment objectives and policies of CPA: 16;
(4) arrange for financing or refinancing, or make changes in the asset or capital structure
of, and dispose of or otherwise deal with, Investments; (5) enter into leases and service
contracts for Properties, and perform other property level operations; (6) oversee
non-affiliated property managers and other non-affiliated Persons who perform services for
CPA: 16; and (7) undertake accounting and other record-keeping functions at the Investment
level.

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     (b) The consideration paid for an Investment acquired by CPA: 16 shall ordinarily
be based on the fair market value thereof. Consistent with the foregoing provision, the
Advisor may, without further approval by the Board (except with respect to transactions
subject to paragraphs (c) and (d)) invest on behalf of CPA: 16 in an Investment so long as,
in the Advisor’s good faith judgment, (i) the Total Investment Cost of such Investment does
not exceed the fair market value thereof, and in the case of an Investment that is a
Property, shall in no event exceed the Appraised Value of such Property and (ii) the
Investment, in conjunction with CPA: 16’s other investments and proposed investments, at the
time CPA: 16 is committed to purchase or originate the Investment, is reasonably expected to
fulfill CPA: 16’s investment objectives and policies as established by the Board and then in
effect. For purposes of the foregoing, Total Investment Cost shall be measured at the date
the Investment is made and shall exclude future commitments to fund improvements.
Investments not meeting the foregoing criteria must be approved in advance by the Board.

     (c) Notwithstanding anything to the contrary contained in this Agreement, the
Advisor shall not cause CPA: 16 to make Investments that do not comply with Article VIII
(Restrictions on Investments and Activities) and related sections of the Bylaws.

     (d) The prior approval of the Board, including a majority of the Independent
Directors and a majority of the Directors not interested in the transaction, will be
required for: (i) Investments made through co-investment or joint venture arrangements with
the Sponsor, the Advisor or any of their Affiliates; (ii) Investments which are not
contemplated by the terms of a Prospectus; (iii) transactions that present issues which
involve conflicts of interest for the Advisor or an Affiliate (other than conflicts
involving the payment of fees or the reimbursement of expenses); (iv) the lease of assets to
the Sponsor, any Director, the Advisor or any Affiliate of the
Advisor; (v) any purchase or
sale of an Investment from or to the Advisor or an Affiliate; and (vi) the retention of any
Affiliate of the Advisor to provide services to CPA: 16 not expressly contemplated by this
Agreement and the terms of such services by such Affiliate. In addition, the Advisor shall
comply with any further approval requirements set forth in the Bylaws.

     (e) The Board may, at any time upon the giving of notice to the Advisor, modify or
revoke the authority set forth in this Section 4. If and to the extent the Board so
modifies or revokes the authority contained herein, the Advisor shall henceforth comply with
such modification or revocation, provided however, that such modification or revocation
shall be effective upon receipt by the Advisor and shall not be applicable to investment
transactions to which the Advisor has committed CPA: 16 prior to the date of receipt by the
Advisor of such notification.

     5. Bank Accounts. The Advisor may establish and maintain one or more bank
accounts in its own name for the account of CPA: 16 or in the name of CPA: 16 and may collect and
deposit into any such account or accounts, and disburse from any such account or accounts, any
money on behalf of CPA: 16, provided that no funds shall be commingled with the funds of the
Advisor; and the Advisor shall from time to time render appropriate accountings of such collections
and payments to the Board and to the auditors of CPA: 16.

     6. Records; Access. The Advisor shall maintain appropriate records of all its
activities hereunder and make such records available for inspection by the Board and by counsel,
auditors and authorized agents of CPA: 16, at any time or from time to time during normal business
hours. The Advisor shall at all reasonable times have access to the books and records of CPA: 16.

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     7. Limitations on Activities. Anything else in this Agreement to the contrary
notwithstanding, the Advisor shall refrain from taking any action which, in its sole judgment made
in good faith, would adversely affect the status of CPA: 16 as a REIT or of the Operating LLC as a
partnership for Federal income tax purposes, subject CPA: 16 or the Operating LLC to regulation
under the Investment Company Act of 1940, would violate any law, rule, regulation or statement of
policy of any governmental body or agency having jurisdiction over CPA: 16, its Shares or its
Securities, or otherwise not be permitted by the Articles of Incorporation or Bylaws or agreement
of limited partnership of the Operating LLC, except if such action shall be ordered by the Board,
in which case the Advisor shall notify promptly the Board of the Advisor’s judgment of the
potential impact of such action and shall refrain from taking such action until it receives further
clarification or instructions from the Board. In such event the Advisor shall have no liability
for acting in accordance with the specific instructions of the Board so given.

     (a) Notwithstanding the foregoing, CPA: 16 shall indemnify and hold nameless the
Advisor, its shareholders, members, directors, officers and employees, and partners,
shareholders, directors and officers of the Advisor’s shareholders and Affiliates of any of
them, for any loss or liability suffered by them, and none of the foregoing shall be liable
to CPA: 16, the Operating LLC or to the Directors or Shareholders for any act or omission by
the Advisor, its shareholders, directors, officers and employees, or partners, shareholders,
directors or officers of the Advisor’s shareholders and Affiliates of any of them, in each
case if the following conditions are met:

     (i) The Advisor, its shareholders, members, directors, officers and
employees, and partners, shareholders, directors and officers of the Advisor’s
shareholders and Affiliates of any of them have determined, in good faith, that the
course of conduct which caused the loss or liability was in the best interests of
CPA: 16;

     (ii) The Advisor, its shareholders, members, directors, officers and
employees, and partners, shareholders, members, directors and officers of the
Advisor’s shareholders and Affiliates of any of them were acting on behalf of or
performing services for CPA: 16; and

     (iii) Such liability or loss was not the result of negligence or misconduct
by the Advisor, its shareholders, directors, officers and employees, and partners,
shareholders, directors and officers of the Advisor’s shareholders or Affiliates of
any of them.

     (b) Notwithstanding the foregoing, the Advisor and its Affiliates shall not be
indemnified by CPA: 16 or the Operating LLC for any losses, liabilities or expenses arising
from or out of the alleged violation of federal or state securities laws unless one or more
of the following conditions are met:

     (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

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has been advised of the position of the Securities and Exchange
Commission and of the published position of any state securities regulatory
authority in which securities of CPA: 16 were offered or sold as to indemnification
for violation of securities laws.

     (c) CPA: 16 and the Operating LLC shall advance funds to the Advisor or its
Affiliates for legal expenses and other costs incurred as a result of any legal action for
which indemnification is being sought only if all of the following conditions are satisfied:

     (i) The legal action relates to acts or omissions with respect to the
performance of duties or services on behalf of CPA: 16;

     (ii) The Advisor or the Affiliate has provided CPA: 16 or the Operating LLC
with a written affirmation of his, her or its good faith belief that the standard of
conduct necessary for indemnification has been met;

     (iii) The legal action is initiated by a third party who is not a
Shareholder or the legal action is initiated by a Shareholder acting in his or her
capacity as such and a court of competent jurisdiction specifically approves such
advancement; and

     (iv) The Advisor or the Affiliate undertakes to repay the advanced funds to
CPA: 16, together with the applicable legal rate of interest thereon, in cases in
which such Advisor or Affiliate is found not to be entitled to indemnification.

     (d) Notwithstanding the foregoing, the Advisor shall not be entitled to
indemnification or be held harmless pursuant to this Section 7 for any activity which the
Advisor shall be required to indemnify or hold harmless CPA: 16 pursuant to Section 22.

     (e) Any amounts paid pursuant to this Section 7 shall be recoverable or paid only
out the net assets of CPA: 16 and not from Shareholders.

     8. Relationship with Directors. There shall be no limitation on any shareholder,
director, officer, employee or Affiliate of the Advisor serving as a Director or an officer of CPA:
16, except that no employee of the Advisor or its Affiliates who also is a Director or officer of
CPA: 16 shall receive any compensation from CPA: 16 for serving as a Director or officer other than
for reasonable reimbursement for travel and related expenses incurred in attending meetings of the
Board; for the avoidance of doubt, the limitations of this Section 8 shall not apply to any
compensation paid by the Advisor or any Affiliate for which CPA: 16 reimbursed the Advisor or
Affiliate in accordance with Section 10 hereof.

     9. Fees.

     (a) Asset Management Fee. (i) The Operating LLC shall pay to the Advisor
as compensation for the advisory services rendered hereunder an annual asset management fee
(the “Asset Management Fee”) in an amount equal to 0.50% of the Adjusted Invested
Assets:

     (ii) The Asset Management Fee will be calculated monthly on the basis of
one twelfth of 0.5% of the Adjusted Invested Assets for that month, and, for
Investments not owned during the entire month, shall be pro rated for the number of
days during a month that CPA: 16 owns such Investments. The aggregate Asset
Management Fees calculated with respect to each month shall be payable on the first
business day following such month.

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     (b) Initial Acquisition Fee. The Advisor may receive as partial
compensation for services rendered in connection with the investigation, selection,
acquisition or origination (by purchase, investment or exchange) of any Investment, an
initial acquisition fee (an “Initial Acquisition Fee”) payable by the Operating LLC
in an amount equal to 2.5% of the aggregate Total Investment Cost of the Investment. The
Initial Acquisition Fee payable to the Advisor in respect of an Investment shall be payable
at the time such Investment is acquired.

     (c) Subordinated Acquisition Fee. (i) In addition to the Initial
Acquisition Fee described in Section 9(b) above, the Advisor may receive additional
compensation in connection with the investigation, selection, acquisition or origination (by
purchase, investment or exchange) of Investments, payable by the Operating LLC to the
Advisor or its Affiliates in an amount equal to 2.0% of the aggregate Total Investment Cost
of the Investment (the “Subordinated Acquisition Fee”).

     (ii) The Subordinated Acquisition Fee shall be payable in three equal annual
installments on the first business day of the fiscal quarter immediately following
the fiscal quarter in which the Investment is made and the first business day of the
corresponding fiscal quarter in each of the subsequent two fiscal years. The unpaid
portion of the Subordinated Acquisition Fee with respect to any Investment will bear
interest at the rate of 5% per annum from the date of acquisition of the Investment
until the portion of the Subordinated Acquisition Fee is paid. The accrued interest
is payable on the date of each annual installment of the fees. The Subordinated
Acquisition Fee payable in any year, and accrued interest thereon, will be
subordinated to the Preferred Return and only paid if the Preferred Return has been
achieved through the end of the prior fiscal quarter. Any portion of the
Subordinated Acquisition Fee, and accrued interest thereon, not paid due to CPA:
16’s failure to meet the Preferred Return through any fiscal quarter end shall be
paid by CPA: 16 on the first business day of the fiscal quarter next following the
fiscal quarter end through which the Preferred Return has been met.

     (d) Six Percent Limitation. The total amount of all Initial Acquisition
Fees plus Subordinated Acquisition Fees, including interest thereon, whether payable to the
Advisor or a third party, and Acquisition Expenses payable by the Operating LLC may not
exceed 6% of the aggregate Contract Purchase Price of all Investments, measured for the
period beginning with the initial acquisition of an Investment and ending on each December
31 thereafter, unless a majority of the Directors (including a majority of the Independent
Directors) not otherwise interested in any transaction approves the excess as being
commercially competitive, fair and reasonable to CPA: 16.

     (e) Loan Refinancing Fee. The Operating LLC shall pay to the Advisor for
all qualifying loan refinancings of Properties a loan refinancing fee in the amount up to
one percent of the principal amount of the refinanced loan (the “Loan Refinancing
Fee”). Any Loan Refinancing Fee shall be due and payable upon the funding of the
related loan or as soon thereafter as is reasonably practicable. A refinancing will qualify
for a Loan Refinancing Fee only if the refinanced loan is secured by Property and (i) the
maturity date of the refinanced loan (which must have a term of five years or more) is less
than one year from the date of the refinancing; or (ii) the terms of the new loan represent,
in the judgment of a majority of the Independent Directors, an improvement over the terms of
the refinanced loan; or (iii) the new loan is approved by the Board, including a majority of
the Independent Directors and, in each case, the Loan Refinancing Fee is found, in the
judgment of a majority of the Independent Directors, to be in the best interest of CPA: 16.

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     (f) Subordinated Disposition Fee. (i) If the Advisor or an Affiliate
provides a substantial amount of services in the sale of an Investment, the Advisor or such
Affiliate shall be entitled to receive a subordinated disposition fee (the “Subordinated
Disposition Fee”) at the time of such disposition, in an amount equal to the lesser of
(1) 50% of the Competitive Real Estate Commission (if applicable) and (2) 3.0% of the
Contract Sales Price of the Investment.

     (ii) The Subordinated Disposition Fee will be paid only if Shareholders
have received in the aggregate a return of 100% of Initial Investor Capital (through
liquidity or Distributions) plus a Preferred Return through the end of the fiscal
quarter immediately preceding the date the Subordination Disposition Fee is paid.
The return requirement will be deemed satisfied if the total Distributions paid by
CPA:16 have satisfied the Preferred Return requirement and the Market Value of
CPA:16 equals or exceeds Adjusted Investor Capital. To the extent that Subordinated
Disposition Fees are not paid by CPA:16 on a current basis due to the foregoing
limitation, the unpaid fees will be due and paid at such time as the limitation has
been satisfied. The Subordinated Disposition Fee may be paid in addition to real
estate commissions paid to non-Affiliates, provided that the total of all real
estate commissions in respect of a Property paid to all Persons by CPA:16 and the
Subordinated Disposition Fee shall not exceed an amount equal to the lesser of:
(i) six percent of the Contract Sales Price of such Property or (ii) the Competitive
Real Estate Commission. The Advisor shall present to the Independent Directors such
information as they may reasonably request to review the level of services provided
by the Advisor in connection with a disposition and the basis for the calculation of
the amount of the accrued Subordinated Disposition Fees on an annual basis. The
amount of any accrued Subordinated Disposition Fee shall be deemed conclusively
established once it has been approved by the Independent Directors, absent a
subsequent finding of error. No payment of Subordinated Disposition Fees shall be
made prior to review and approval of such information by the Independent Directors.
If this Agreement is terminated prior to such time as the Shareholders have received
(through liquidity or Distributions) a return of 100% of Initial Investor Capital
plus a Preferred Return through the date of termination of this Agreement, an
appraisal of the Properties then owned by CPA:16 shall be made and any unpaid
Subordinated Disposition Fee on Properties sold prior to the date of termination
will be payable if the Appraised Value of the Properties then owned by CPA: 16 plus
Distributions to Shareholders prior to the date of termination of this Agreement
(through liquidity or Distributions) is equal to or greater than 100% of Initial
Investor Capital plus an amount sufficient to pay a Preferred Return through the
date of termination of this Agreement. If CPA:16’s Shares are listed on a national
securities exchange or included for quotation in an electronic trading system and,
at the time of such listing, the Advisor has provided a substantial amount of
services in the sale of Property, for purposes of determining whether the
subordination conditions for the payment of the Subordinated Disposition Fee have
been satisfied, Shareholders will be deemed to have received a Distribution in an
amount equal to the Market Value of CPA:16.

     (g) Loans From Affiliates. CPA: 16 shall not borrow funds from the Advisor
or its Affiliates unless (A) the transaction is approved by a majority of the Independent
Directors and a majority of the Directors who are not interested in the transaction as being
fair, competitive and commercially reasonable, (B) the interest and other financing charges
or fees received by the Advisor or its Affiliates do not exceed the amount which would be
charged by non-affiliated lending institutions and (C) the terms are not less favorable than
those prevailing for comparable arm’s-length loans for the same purpose. CPA: 16 will not
borrow on a long-term basis from the Advisor or its Affiliates unless it is to provide the
debt portion of a particular investment and

15

 

CPA: 16 is unable to obtain a permanent loan at
that time or in the judgment of the Board, it is not in CPA: 16’s best interest to obtain a
permanent loan at the interest rates then prevailing and the Board has reason to believe
that CPA: 16 will be able to obtain a permanent loan on or prior to the end of the loan term
provided by the Advisor or its Affiliates.

     (h) Changes To Fee Structure. In the event the Shares are listed on a
national securities exchange or are included for quotation on Nasdaq, CPA: 16 and the
Advisor shall negotiate in good faith to establish a fee structure appropriate for an entity
with a perpetual life. A majority of the Independent Directors must approve the new fee
structure negotiated with the Advisor. In negotiating a new fee structure, the Independent
Directors may consider any of the factors they deem relevant, including but not limited to:
(a) the size of the Advisory Fee in relation to the size, composition and profitability of
CPA: 16’s portfolio; (b) the success of the Advisor in generating opportunities that meet
the investment objectives of CPA: 16; (c) the rates charged to other REITs and to investors
other than REITs by Advisors performing similar services; (d) additional revenues realized
by the Advisor and its Affiliates through their relationship with CPA: 16, including loan
administration, underwriting or broker commissions, servicing, engineering, inspection and
other fees, whether paid by CPA: 16 or by others with whom CPA: 16 does business; (e) the
quality and extent of service and advice furnished by the Advisor; (f) the performance of
the investment portfolio of CPA: 16, including income, conservation or appreciation of
capital, frequency of problem investments and competence in dealing with distress
situations; and (g) the quality of the portfolio of CPA: 16 in relationship to the
investments generated by the Advisor for the account of other clients. The Independent
Directors shall not approve any new fee structure that is in their judgment more favorable
(taken as a whole) to the Advisor than the current fee structure.

     (i) Payment. Compensation payable to the Advisor pursuant to this
Section 9 shall be paid in cash; provided, however, that any fee payable pursuant to
Section 9 may be paid, at the option of the Advisor, in the form of: (i) cash,
(ii) restricted stock of CPA: 16, or (iii) a combination of cash and restricted stock. The
Advisor shall notify CPA: 16 in writing annually of the form in which the fee shall be paid.
Such notice shall be provided no later than January 15 of each year. If no such notice is
provided, the fee shall be paid in cash. For purposes of the payment of compensation to the
Advisor in the form of stock, the value of each share of restricted stock shall be: (i) the
Net Asset Value per Share as determined based on the most recent appraisal of CPA: 16’s
assets performed by an Independent Appraiser, or (ii) if an appraisal has not yet been
performed, $10 per share. If shares are being offered to the public at the time a fee is
paid with stock, the value shall be the price of the stock without commissions. The Net
Asset Value determined on the basis of such appraisal may be adjusted on a quarterly or
other basis by the Board to account for significant capital transactions. Stock issued by
CPA: 16 to the Advisor in payment of fees hereunder shall be governed by the terms set forth
in Schedule A hereto, or such other terms as the Advisor and CPA: 16 may from time to time
agree.

     (j) During the term of the Management Agreement, no Asset Management Fees shall be
paid to the Advisor under Section 9(a) of this Agreement with respect to Properties located
outside the United States and Loans secured by collateral outside the United States.

     (k) During the term of the Management Agreement, no Subordinated Disposition Fees
shall be paid to the Advisor under Section 9(g) of this Agreement with respect to Properties
located outside the United States and Loans secured by collateral outside the United States.

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     10. Expenses.

     (a) Subject to the limitations set forth in Section 9(d), to the extent applicable,
in addition to the compensation paid to the Advisor pursuant to Section 9 hereof, the
Operating LLC shall pay directly or reimburse the Advisor for the following expenses:

     (i) Organization and Offering Expenses; provided however, that within
60 days after the end of the quarter in which any Offering terminates, the Advisor
shall reimburse the Operating LLC for any Organization and Offering Expense
reimbursements received by the Advisor pursuant to this Section 10 to the extent
that such reimbursements, when added to the balance of the Organization and Offering
Expenses (excluding selling commissions, the selected dealer fee and the wholesaling
fee) paid directly by the Operating LLC, exceed four percent of the Gross Offering
Proceeds; provided further, that the Advisor shall be responsible for the payment of
all Organization and Offering Expenses (excluding such commissions and such fees and
expense reimbursements) in excess of four percent of the Gross Offering Proceeds;

     (ii) all Acquisition Expenses;

     (iii) to the extent not included in Acquisition Expenses, all expenses of
whatever nature reasonably incurred and directly connected with the proposed
acquisition of any Investment that does not result in the actual acquisition of the
Investment, including, without limitation, personnel costs;

     (iv) expenses other than Acquisition Expenses incurred in connection with
the investment of the funds of CPA: 16, including, without limitation, costs of
retaining industry or economic consultants and finder’s fees and similar payments,
to the extent not paid by the seller of the Investment or another third party,
regardless of whether such expenses were incurred in transactions where a fee is not
payable to the Advisor;

     (v) interest and other costs for borrowed money, including discounts,
points and other similar fees;

     (vi) taxes and assessments on income of CPA: 16, to the extent paid or
advanced by the Advisor, or on Investments and taxes as an expense of doing
business;

     (vii) costs associated with insurance required in connection with the
business of CPA: 16 or by the Directors;

     (viii) expenses of managing and operating Investments owned by CPA: 16,
whether payable to an Affiliate of the Advisor or a non-affiliated Person;

     (ix) fees and expenses of legal counsel for CPA: 16;

     (x) fees and expense of auditors and accountants for CPA: 16;

     (xi) all expenses in connection with payments to the Directors and meetings
of the Directors and Shareholders;

     (xii) expenses associated with listing the Shares and Securities on a
securities exchange or Nasdaq if requested by the Board;

17

 

     (xiii) expenses connected with payments of Distributions in cash or
otherwise made or caused to be made by the Board to the Shareholders;

     (xiv) expenses of organizing, revising, amending, converting, modifying, or
terminating CPA: 16, the Operating LLC or their respective governing instruments;

     (xv) expenses of maintaining communications with Shareholders, including
the cost of preparation, printing and mailing annual reports and other Shareholder
reports, proxy statements and other reports required by governmental entities; and

     (xvi) all other expenses the Advisor incurs in connection with providing
services to CPA: 16, including reimbursement to the Advisor or its Affiliates for
the cost of rent, goods, materials and personnel incurred by them based upon the
compensation of the Persons involved and an appropriate share of overhead allocable
to those Persons as reasonably determined by the Advisor on a basis approved
annually by the Board (including a majority of the Independent Directors). No
reimbursement shall be made for the cost of personnel to the extent that such
personnel are used in transactions for which the Advisor receives a separate fee.

     (b) Expenses incurred by the Advisor on behalf of CPA: 16 and payable pursuant to
this Section 10 shall be reimbursed quarterly to the Advisor within 60 days after the end of
each quarter, subject to the provisions of Section 13 hereof. The Advisor shall prepare a
statement documenting the Operating Expenses of CPA: 16 within 45 days after the end of each
quarter.

     (c) During the term of the Management Agreement, CPA: 16 shall have no obligation
to reimburse the Advisor under Section 10 of this Agreement for any expenses related to the
management and disposition of Properties located outside the United States and Loans secured
by collateral outside the United States.

     11. Other Services. Should the Board request that the Advisor or any Affiliate,
shareholder or employee thereof render services for CPA: 16 other than as set forth in Section 3
hereof, such services shall be separately compensated and shall not be deemed to be services
pursuant to the terms of this Agreement.

     12. Fidelity Bond. The Advisor shall maintain a fidelity bond for the benefit of
CPA: 16 which bond shall insure CPA: 16 from losses of up to $5,000,000 and shall be of the type
customarily purchased by entities performing services similar to those provided to CPA: 16 by the
Advisor.

     13. Limitation on Expenses.

     (a) If Operating Expenses under this Agreement and the Management Agreement during
the 12-month period ending on the last day of any fiscal quarter of CPA: 16 exceed the
greater of (i) two percent of the Average Invested Assets during the same 12-month period or
(ii) 25% of the Adjusted Net Income of CPA: 16 during the same 12-month period, then subject
to paragraph (b) of this Section 13, such excess amount shall be the sole responsibility of
the Advisor and neither the Operating LLC nor CPA: 16 shall be liable for payment therefor.
CPA: 16 may defer the payment or distribution to the Advisor and the Special General Partner
of fees, expenses and distributions that would, if paid or distributed, cause Operating
Expenses during such 12-month period to exceed the foregoing limitations; provided, however,
that in determining which items shall be paid and which may be deferred, priority will be
given to the payment of

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distributions to the Special General Partner over the payment to the
Advisor of amounts due under this Agreement.

     (b) Notwithstanding the foregoing, to the extent that the Advisor becomes
responsible for any excess amount as provided in paragraph (a), if a majority of the
Independent Directors finds such excess amount or a portion thereof justified based on such
unusual and non-recurring factors as they deem sufficient, the Operating LLC shall reimburse
the Advisor in future quarters for the full amount of such excess, or any portion thereof,
but only to the extent such reimbursement would not cause the Operating Expenses to exceed
the 2%/25% Guidelines in the 12-month period ending on the last day of such quarter. In no
event shall the Operating Expenses payable by the Operating LLC in any 12-month period
ending at the end of a fiscal quarter exceed the 2%/25% Guidelines.

     (c) Within 60 days after the end of any twelve-month period referred to in
paragraph (a), the Advisor shall reimburse CPA: 16 for any amounts expended by CPA: 16 in
such twelve-month period that exceeds the limitations provided in paragraph (a) unless the
Independent Directors determine that such excess expenses are justified, as provided in
paragraph (b), and provided the Operating Expenses under this Agreement and the Management
Agreement for such later quarter would not thereby exceed the 2%/25% Guidelines.

     (d) All computations made under paragraphs (a) and (b) of this Section 13 shall be
determined in accordance with generally accepted accounting principles applied on a
consistent basis.

     (e) If the Special General Partner receives distributions pursuant to the agreement
of limited partnership of the Operating LLC in respect of realized gains on the disposition
of an Investment, Adjusted Net Income, for purposes of calculating the Operating Expenses,
shall exclude the gain from the disposition of such Investment.

     14. Other Activities of the Advisor. Nothing herein contained shall prevent the
Advisor from engaging in other activities, including without limitation direct investment by the
Advisor and its Affiliates in assets that would be suitable for CPA: 16, the rendering of advice to
other investors (including other REITs) and the management of other programs advised, sponsored or
organized by the Advisor or its Affiliates; nor shall this Agreement limit or restrict the right of
the Advisor or any of its Affiliates or of any director, officer, employee or shareholder of the
Advisor or its Affiliates to engage in any other business or to render services of any kind to any
other partnership, corporation, firm, individual, trust or association. The Advisor may, with
respect to any investment in which CPA: 16 is a participant, also render advice and service to each
other participant therein. Without limiting the generality of the foregoing, CPA 16 acknowledges
that the Advisor provides or will provide services to other CPA REIT funds, whether now in
existence or formed hereafter, and that the Advisor and its Affiliates may invest for their own
account. The Advisor shall be responsible for promptly reporting to the Board the existence of any
actual or potential conflict of interest that arises that may affect its performance of its duties
under this Agreement. If the Sponsor, Advisor, Director or Affiliates thereof has or have
sponsored other investment programs with similar investment objectives which have investment funds
available at the same time as CPA: 16, it shall be the duty of the Advisor to adopt a reasonable
method by which properties are to be allocated to the competing investment entities and to use its
best efforts to apply such method fairly to CPA: 16.

     The Advisor shall be required to use its best efforts to present a continuing and suitable
investment program to CPA: 16 that is consistent with the investment policies and objectives of
CPA: 16, but subject to the last sentence of the preceding paragraph, neither the Advisor nor any
Affiliate of the

19

 

Advisor shall be obligated generally to present any particular investment
opportunity to CPA: 16 even if the opportunity is of character which, if presented to CPA: 16,
could be taken by CPA: 16.

     If the Advisor or its Affiliates is presented with a potential investment which might be made
by CPA: 16 and by another investment entity which the Advisor or its Affiliates advises or manages,
the Advisor shall consider, among other things, the investment portfolio of each entity, cash flow
of each entity, the effect of the acquisition on the diversification of each entity’s portfolio,
rental payments during any renewal period, the estimated income tax effects of the purchase on each
entity, the policies of each entity relating to leverage, the funds of each entity available for
investment, the amount of equity required to make the investment and the length of time such funds
have been available for investment and the manner in which the potential investment can be
structured by each entity, and whether a particular entity has been formed specifically for the
purpose of making particular types of investments (in which case it will generally receive
preference in the allocation of those types of investments).

     15. Relationship of Advisor and CPA: 16. CPA: 16 and the Advisor agree that they
have not created and do not intend to create by this Agreement a joint venture or partnership
relationship between them and nothing in this Agreement shall be construed to make them partners or
joint venturers or impose any liability as partners or joint venturers on either of them.

     16. Term; Termination of Agreement. This Agreement, as amended and restated,
shall continue in force until September 30, 2011 or until 60 days after the date on which the
Independent Directors shall have notified the Advisor of their determination either to renew this
Agreement for an additional one-year period or terminate this Agreement, as required by CPA:16’s
Charter.

     17. Termination by CPA: 16. At the sole option of the Board (including a majority
of the Independent Directors), this Agreement may be terminated immediately by written notice of
termination from CPA: 16 to the Advisor upon the occurrence of events which would constitute Cause
or if any of the following events occur:

     (a) If the Advisor shall be adjudged bankrupt or insolvent by a court of competent
jurisdiction, or an order shall be made by a court of competent jurisdiction for the
appointment of a receiver, liquidator, or trustee of the Advisor, for all or substantially
all of its property by reason of the foregoing, or if a court of competent jurisdiction
approves any petition filed against the Advisor for reorganization, and such adjudication or
order shall remain in force or unstayed for a period of 30 days; or

     (b) If the Advisor shall institute proceedings for voluntary bankruptcy or shall
file a petition seeking reorganization under the federal bankruptcy laws, or for relief
under any law for relief of debtors, or shall consent to the appointment of a receiver for
itself or for all or substantially all of its property, or shall make a general assignment
for the benefit of its creditors, or shall admit in writing its inability to pay its debts,
generally, as they become due.

     Any notice of termination under Section 16 or 17 shall be effective on the date specified in
such notice, which may be the day on which such notice is given or any date thereafter. The
Advisor agrees that if any of the events specified in Section 16(b) or (c) shall occur, it shall
give written notice thereof to the Board within 15 days after the occurrence of such event.

     18. Termination by Either Party. This Agreement may be terminated immediately
without penalty (but subject to the requirements of Section 20 hereof) by the Advisor by written
notice of termination to CPA: 16 upon the occurrence of events which would constitute Good Reason
or by CPA: 16 without cause or penalty (but subject to the requirements of Section 20 hereof) by
action of the

20

 

Directors, a majority of the Independent Directors or by action of a majority of the
Shareholders, in each case upon 60 days’ written notice.

     19. Assignment Prohibition. This Agreement may not be assigned by the Advisor
without the approval of the Board (including a majority of the Independent Directors); provided,
however, that such approval shall not be required in the case of an assignment to a corporation,
partnership, association, trust or organization which may take over the assets and carry on the
affairs of the Advisor, provided: (i) that at the time of such assignment, such successor
organization shall be owned substantially by an entity directly or indirectly controlled by the
Sponsor and only if such entity has a net worth of at least $5,000,000, and (ii) that the board of
directors of the Advisor shall deliver to the Board a statement in writing indicating the ownership
structure and net worth of the successor organization and a certification from the new Advisor as
to its net worth. Such an assignment shall bind the assignees hereunder in the same manner as the
Advisor is bound by this Agreement. The Advisor may assign any rights to receive fees or other
payments under this Agreement without obtaining the approval of the Board. This Agreement shall
not be assigned by CPA: 16 or the Operating LLC without the consent of the Advisor, except in the
case of an assignment by CPA: 16 or the Operating LLC to a corporation or other organization which
is a successor to CPA: 16 or the Operating LLC, in which case such successor organization shall be
bound hereunder and by the terms of said assignment in the same manner as CPA: 16 or the Operating
LLC is bound by this Agreement.

     20. Payments to and Duties of Advisor Upon Termination.

     (a) After the Termination Date, the Advisor shall not be entitled to compensation
for further services hereunder but shall be entitled to receive from CPA: 16 the following:

     (i) all unpaid reimbursements of Organization and Offering Expenses and of
Operating Expenses payable to the Advisor;

     (ii) all earned but unpaid Asset Management Fees payable to the Advisor
prior to the Termination Date;

     (iii) all earned but unpaid Acquisition Fees and interest thereon, in each
case payable to the Advisor relating to the acquisition of any Property prior to the
Termination Date;

     (iv) all earned but unpaid Subordinated Disposition Fees and interest
thereon, payable to the Advisor relating to the sale of any Investment prior to the
Termination Date; and

     (v) all earned but unpaid Property Management Fees and Loan Refinancing
Fees, if any, payable to the Advisor or its Affiliates relating to the management of
any property prior to the termination of this Agreement.

     (b) Notwithstanding the foregoing, if this Agreement is terminated by CPA: 16 for
Cause, or by the Advisor for other than Good Reason, the Advisor will not be entitled to
receive the sums in Section 20(a) (ii) through (v).

     (c) Any and all amounts payable to the Advisor pursuant to Section 20(a) that,
irrespective of the termination, were payable on a current basis prior to the Termination
Date either because they were not subordinated or all conditions to their payment had been
satisfied, shall be paid within 90 days after the Termination Date. All other amounts shall
be paid in a

21

 

manner determined by the Board, but in no event on terms less favorable to the
Advisor than those represented by a note (i) maturing upon the liquidation of CPA: 16 or the
Operating LLC or three years from the Termination Date, whichever is earlier, (ii) with no
less than twelve equal quarterly installments and (iii) bearing a fair, competitive and
commercially reasonable interest rate (the “Note”). The Note, if any, may be
prepaid by the Operating LLC at any time prior to maturity with accrued interest to the date
of payment but without premium or penalty. Notwithstanding the foregoing, any amounts that
relate to Investments (i) shall be an amount which provides compensation to the Advisor only
for that portion of the holding period for the respective Investments during which the
Advisor provided services to CPA: 16, (ii) shall not be due and payable until the Investment
to which such amount relates is sold or refinanced, and (iii) shall not bear interest until
the Investment to which such amount relates is sold or refinanced. A portion of the amount
shall be paid as each Investment owned by CPA: 16 on the Termination Date is sold. The
portion of such amount payable upon each such sale shall be equal to (i) such amount
multiplied by (ii) the percentage calculated by dividing the fair value (at the Termination
Date) of the Investment sold by CPA: 16 divided by the total fair value (at the Termination
Date) of all Investments owned by CPA: 16 on the Termination Date.

     (d) The Advisor shall promptly upon termination.

     (i) pay over to the Operating LLC all money collected and held for the
account of CPA: 16 pursuant to this Agreement, after deducting any accrued
compensation and reimbursement for its expenses to which it is then entitled;

     (ii) deliver to the Board a full accounting, including a statement showing
all payments collected by it and a statement of all money held by it, covering the
period following the date of the last accounting furnished to the Board;

     (iii) deliver to the Board all assets, including Properties and Loans, and
documents of CPA: 16 then in the custody of the Advisor; and

     (iv) cooperate with CPA: 16 to provide an orderly management transition.

     21. Indemnification by CPA: 16 and the Operating LLC. Neither CPA: 16 nor the
Operating LLC shall indemnify the Advisor or any of its Affiliates for any loss or liability
suffered by the Advisor or the Affiliate, or hold the Advisor or the Affiliate harmless for any
loss or liability suffered by CPA: 16 or the Operating Partnership, except as permitted under
Section 7.

     22. Indemnification by Advisor. The Advisor shall indemnify and hold harmless
CPA: 16 and the Operating LLC from liability, claims, damages, taxes or losses and related expenses
including attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and
related expenses are not fully reimbursed by insurance and are incurred by reason of the Advisor’s
bad faith, fraud, willful misfeasance, misconduct, negligence or reckless disregard of its duties.

     23. Joint and Several Obligations. Any obligations of CPA: 16 shall be construed
as the joint and several obligations of CPA: 16 and the Operating LLC, unless otherwise
specifically provided in this Agreement.

22

 

     24. Notices. Any notice, report or other communication required or permitted to
be given hereunder shall be in writing unless some other method of giving such notice, report or
other communication is accepted by the party to whom it is given, and shall be given by being
delivered by hand or by overnight mail or other overnight delivery service to the addresses set
forth herein:

	 	 	 

	To the Board
and to CPA: 16:

	 	Corporate Property Associates 16 – Global

Incorporated

50 Rockefeller Plaza

New York, NY 10020
	 
	 	 
	To the Operating LLC:

	 	CPA 16 LLC

c/o Corporate Property Associates 16 — Global

Incorporated

50 Rockefeller Plaza

New York, NY 10020
	 
	 	 
	To the Advisor:

	 	Carey Asset Management Corp.

50 Rockefeller Plaza

New York, NY 10020

     Either party may at any time give notice in writing to the other party of a change in its
address for the purposes of this Section 24.

     25. Modification. This Agreement shall not be changed, modified, terminated, or
discharged, in whole or in part, except by an instrument in writing signed by both parties hereto,
or their respective successors or assignees.

     26. Severability. The provisions of this Agreement are independent of and
severable from each other, and no provision shall be affected or rendered invalid or unenforceable
by virtue of the fact that for any reason any other or others of them may be invalid or
unenforceable in whole or in part.

     27. Construction. This Agreement shall be governed by, construed and enforced in
accordance with the laws of the State of New York.

     28. Entire Agreement. This Agreement contains the entire agreement and
understanding among the parties hereto with respect to the subject matter hereof, and supersedes
all prior and contemporaneous agreements, understandings, inducements and conditions, express or
implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The
express terms hereof control and supersede any course of performance and/or usage of the trade
inconsistent with any of the terms hereof. This Agreement may not be modified or amended other
than by an agreement in writing.

     29. Indulgences, Not Waivers. Neither the failure nor any delay on the part of a
party to exercise any right, remedy, power or privilege under this Agreement shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege
preclude any other or further exercise of the same or of any other right, remedy, power or
privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any
other occurrence. No waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver.

23

 

     30. Gender. Words used herein regardless of the number and gender specifically
used, shall be deemed and construed to include any other number, singular or plural, and any other
gender, masculine, feminine or neuter, as the context requires.

     31. Titles Not to Affect Interpretation. The titles of Sections and subsections
contained in this Agreement are for convenience only, and they neither form a part of this
Agreement nor are they to be used in the construction or interpretation hereof.

     32. Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument. This
Agreement shall become binding when one or more counterparts hereof, individually or taken
together, shall bear the signatures of all of the parties reflected hereon as the signatories.

     33. Name. W.P. Carey & Co. LLC has a proprietary interest in the name “Corporate
Property Associates” and “CPA®.” Accordingly, and in recognition of this right, if at any time
CPA: 16 ceases to retain Carey Asset Management Corp., or an Affiliate thereof to perform the
services of Advisor, CPA: 16 will, promptly after receipt of written request from Carey Asset
Management Corp., cease to conduct business under or use the name “Corporate Property Associates”
or “CPA®” or any diminutive thereof and CPA: 16 shall use its best efforts to change the name of
CPA: 16 to a name that does not contain the name “Corporate Property Associates” or “CPA®” or any
other word or words that might, in the sole discretion of the Advisor, be susceptible of indication
of some form of relationship between CPA: 16 and the Advisor or any Affiliate thereof. Consistent
with the foregoing, it is specifically recognized that the Advisor or one or more of its Affiliates
has in the past and may in the future organize, sponsor or otherwise permit to exist other
investment vehicles (including vehicles for investment in real estate) and financial and service
organizations having “Corporate Property Associates” or “CPA®” as a part of their name, all without
the need for any consent (and without the right to object thereto) by CPA: 16 or its Directors.

     34. Initial Investment. The Advisor has contributed to CPA: 16 $200,000 in
exchange for 20,000 Shares (the “Initial Investment”). The Advisor or its Affiliates may
not sell any of the Shares purchased with the Initial Investment during the term of this Agreement.
The restrictions included above shall not continue to apply to any Shares other than the Share
acquired through the Initial Investment acquired by the Advisor or its Affiliates. The Advisor
shall not vote any Shares it now owns or hereafter acquires in any vote for the election of
Directors or any vote regarding the approval or termination of any contract with the Advisor or any
of its Affiliates.

24

 

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

	 	 	 	 	 
	 	CORPORATE PROPERTY ASSOCIATES 16 -

GLOBAL INCORPORATED

 	 
	 	By:  	/s/ Susan C. Hyde
 	 
	 	 	Name:  	Susan C. Hyde 	 
	 	 	Title:  	Secretary 	 
	 
	 	CAREY ASSET MANAGEMENT CORP.

 	 
	 	By:  	/s/ Trevor P. Bond
 	 
	 	 	Name:  	Trevor P. Bond 	 
	 	 	Title:  	Chief Executive Officer and Director 	 
	 
	 	CPA 16 LLC

 	 
	 	By:  	CORPORATE PROPERTY ASSOCIATES 16 - GLOBAL INCORPORATED, its managing member
 	 
	 	 	 
	 	By:  	/s/ Trevor P. Bond
 	 
	 	 	Name:  	Trevor P. Bond 	 
	 	 	Title:  	Chief Executive Officer 	 

- 25 -

 

	 	 	 	 	 

SCHEDULE A

     This Schedule sets forth the terms governing any Shares issued by CPA: 16 to the Advisor in
payment of advisory fees set forth in the Agreement.

     1. Restrictions. The Shares are subject to vesting over a five-year period. The
Shares shall vest ratably over a five-year period with 20% of the Shares paid in each payment
vesting on each of the first through fifth anniversary of the date hereof. Prior to the vesting of
the ownership of the Shares in the Advisor, the Shares may not be transferred by the Advisor.

     2. Immediate Vesting. Upon the expiration of the Agreement for any reason other
than a termination for Cause under paragraph 16 or upon a “Change of Control” of CPA®:16 (as
defined below), all Shares granted to the Advisor hereunder shall vest immediately and all
restrictions shall lapse. For purposes of this Schedule A, a “Change of Control” of CPA: 16 shall
be deemed to have occurred if there has been a change in the ownership of CPA: 16 of a nature that
would be required to be reported in response to the disclosure requirements of Schedule 14A of
Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), as enacted and in force on the date hereof, whether or not CPA: 16 is then subject to
such reporting requirements; provided, however, that, without limitation, a Change of Control shall
be deemed to have occurred if:

     (i) any “person,” as such term is used in Sections 13(d) and 14(d) of the
Exchange Act (other than CPA: 16, any of its subsidiaries, any trustee, fiduciary or
other person or entity holding securities under any employee benefit plan of CPA: 16
or any of its subsidiaries), together with all “affiliates” and “associates” (as
such terms are defined in Rule 14b-2 under the Exchange Act) of such person, shall
become the “beneficial owner” (as such term is defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of CPA: 16 representing 25% or
more of either (A) the combined voting power of CPA: 16’s then outstanding
securities having the right to vote in an election of the Board (“Voting
Securities”) or (B) the then outstanding common stock of CPA: 16 (in either such
case other than as a result of acquisition of securities directly from CPA: 16);

     (ii) persons who, as of the date hereof, constitute the Board (the
“Incumbent Directors”) cease for any reason, including without limitation,
as a result of a tender offer, proxy contest, merger or similar transaction, to
constitute at least a majority of the Board, provided that any person becoming a
director of CPA: 16 subsequent to the date hereof whose election or nomination for
election was approved by a vote of at least a majority of the Incumbent Directors
shall be considered an Incumbent Director; or

     (iii) the stockholders of CPA: 16 shall approve (A) any consolidation or
merger of CPA: 16 or any subsidiary where the stockholders of CPA: 16, immediately
prior to the consolidation or merger, would not, immediately after the consolidation
or merger, beneficially own (as such term is defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, shares representing in the aggregate 50% or
more of the voting equity of the entity issuing cash or securities in the
consolidation or merger (or of its ultimate parent entity, if any), (B) any sale,
lease, exchange or other transfer (in one transaction or a series of transactions
contemplated or arranged by any party as a single plan) of all or substantially all
of the assets of CPA: 16 or (C) any plan or proposal for the liquidation or
dissolution of CPA: 16.

 

 

     Notwithstanding the foregoing, a “Change of Control” shall not be deemed to have
occurred for purposes of the foregoing clause (i) solely as the result of an acquisition of
securities by CPA: 16 which, by reducing the number of Shares of Common Stock outstanding,
increases (A) the proportionate number of Shares beneficially owned by any person to 25% or more of
the Shares then outstanding, or (B) the proportionate voting power represented by the Shares
beneficially owned by any person to 25% or more of the combined voting power of all then
outstanding voting Securities; provided, however, that if any person referred to in clause (A)
or (B) of this sentence shall thereafter become the beneficial owner of any additional Shares or
other Voting Securities (other than pursuant to a Share split, Share dividend, or similar
transaction), then a “Change of Control” shall be deemed to have occurred for purposes of the
foregoing clause (i).

     3. Exception. Notwithstanding anything else in this Agreement to the contrary, the
Shares shall continue to vest according to the vesting schedule in Section 1 regardless of: (a)
the expiration of the Advisory Agreement for any reason other than a termination by CPA: 16 for
Cause or a resignation by the Advisor for other than Good Reason, (b) the merger of CPA: 16 and an
Affiliate of CPA: 16 or (c) any “Change of Control” of CPA: 16 in connection with a merger with an
Affiliate of CPA: 16.

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