Document:

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                      SELECTED INVESTMENT ADVISOR AGREEMENT
                  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED

         THIS SELECTED INVESTMENT ADVISOR AGREEMENT (the "Agreement") is made
and entered into as of the day indicated on Exhibit A attached hereto and by
this reference incorporated herein, between , CORPORATE PROPERTY ASSOCIATES 15
INCORPORATED, a Maryland corporation (the "Company"), and the selected
investment advisor (the "SIA") identified in Exhibit A hereto.

         WHEREAS, the Company is offering shares of the Company (the "Shares")
to the general public, pursuant to a public offering (the "Offering") of the
Shares pursuant to a Prospectus (as defined below) filed with the Securities and
Exchange Commission (the "SEC"); and

         WHEREAS, the SIA is an entity, as designated in Exhibit A hereto,
organized and presently in good standing in the state or states designated in
Exhibit A hereto, presently registered as an investment advisor under the
Investment Advisers Act of 1940, as amended, and presently registered or
licensed as an investment advisor by the appropriate regulatory agency of each
state in which the SIA has clients, or exempt from such registration
requirements; and

         WHEREAS, the Company has a currently effective registration statement
on Form S-11 (File No. 333-xxxxx), including a final prospectus, for the
registration of the Shares under the Securities Act of 1933, as amended (such
registration statement, as it may be amended, and the prospectus and exhibits on
file with the SEC, as well as any post-effective amendments or supplements to
such registration statement and any related registration statement filed under
Rule 462(b) of the Securities Act, and any prospectus relating to such
registration statements, being herein respectively referred to as the
"Registration Statement" and the "Prospectus"); and

         WHEREAS, the offer and sale of the Shares shall be made pursuant to the
terms and conditions of the Registration Statement and the Prospectus and,
further, pursuant to the terms and conditions of all applicable federal
securities laws and the applicable securities laws of all states in which the
Shares are offered and sold; and

         WHEREAS, the Company desires to give the clients of the SIA the
opportunity to purchase the Shares, and the SIA is willing and desires to
provide its clients with information concerning the Shares and the procedures
for subscribing for the Shares upon the following terms and conditions;

         NOW, THEREFORE, in consideration of the premises and terms and
conditions thereof, it is agreed between the Company and the SIA as follows.

1.       Purchase of Shares.
         ------------------

         (a) Subject to the terms and conditions herein set forth, the Company
hereby makes available for purchase by the clients of the SIA a portion of the
Shares described in the Registration Statement. The SIA hereby covenants,
warrants and agrees that, in regard to any purchase of the Shares by its
clients, it will comply with all of the terms and conditions of the Registration
Statement and the Prospectus, all applicable state and federal laws, including
the

<PAGE>

Securities Act of 1933, as amended, the Investment Advisers Act of 1940, as
amended, and any and all regulations and rules pertaining thereto, heretofore or
hereafter issued by the SEC. Neither the SIA nor any other person shall have any
authority to give any information or make any representations in connection with
the Shares other than as contained in the Registration Statement and Prospectus,
as amended and supplemented, and as is otherwise expressly authorized in writing
by the Company.

         (b) Clients of the SIA may, following receipt of written notice by the
SIA from the Company of the effective date of the Registration Statement,
purchase the Shares according to all such terms as are contained in the
Registration Statement and the Prospectus. The SIA shall comply with all
requirements set forth in the Registration Statement and the Prospectus. The SIA
shall use and distribute, in connection with the Shares, only the Prospectus
and, if necessary, any separate prospectus relating solely to the DRIP, and such
sales literature and advertising materials which shall conform in all respects
to any restrictions of local law and the applicable requirements of the
Securities Act of 1933, as amended, and which has been approved in writing by
the Company. The Company reserves the right to establish such additional
procedures as it may deem necessary to ensure compliance with the requirements
of the Registration Statement, and the SIA shall comply with all such additional
procedures to the extent that it has received written notice thereof.

         (c) All monies received for purchase of any of the Shares shall be
forwarded by the SIA to the Company for delivery to The Bank of New York (the
"Escrow Agent"), where such monies will be deposited in an escrow account
established by the Company solely for such subscriptions, except that, until
such time (if any) that such monies are deliverable to the Company pursuant to
the Escrow Agreement between the Company and the Escrow Agent, the SIA shall
return any check not made payable "The Bank of New York, Escrow Agent" directly
to the subscriber who submitted the check. Subscriptions will be executed as
described in the Registration Statement or as directed by the Company. Each SIA
receiving a subscriber's check will deliver such check to the Escrow Agent no
later than the close of business of the first business day after receipt of the
subscription documents by the SIA.

         (d) During the full term of this Agreement the Company shall have full
authority to take such action as it may deem advisable in respect to all matters
pertaining to the performance of the SIA under this Agreement.

         (e) The Shares may be purchased by clients of the SIA only where the
Shares may be legally offered and sold, only by such persons in such states who
shall be legally qualified to purchase the Shares, and only by such persons in
such states in which the SIA is registered as an investment advisor or exempt
from any applicable registration requirements.

        (f) The SIA shall have no obligation under this Agreement to advise its
clients to purchase any of the Shares.

         (g) The SIA will use every reasonable effort to assure that Shares are
purchased only by investors who:

                                      -2-
<PAGE>

                  (1) meet the investor suitability standards, including the
         minimum income and net worth standards established by the Company and
         set forth in the Prospectus, and minimum purchase requirements set
         forth in the Registration Statement;

                  (2) can reasonably benefit from an investment in the Company
         based on each prospective investor's overall investment objectives and
         portfolio structure;

                  (3) are able to bear the economic risk of the investment based
         on each prospective investor's overall financial situation; and

                  (4) have apparent understanding of: (a) the fundamental risks
         of the investment; (b) the risk that the prospective investor may lose
         the entire investment; (c) the lack of liquidity of the Shares; (d) the
         restrictions on transferability of the Shares; (e) the background and
         qualifications of the employees and agents of Carey Asset Management
         Corp., the advisor to the Company; and (f) the tax consequences of an
         investment in the Shares.

                  (5) The SIA will make the determinations required to be made
         by it pursuant to subparagraph (g) based on information it has obtained
         from each prospective investor, including, at a minimum, but not
         limited to, the prospective investor's age, investment objectives,
         investment experience, income, net worth, financial situation, other
         investments of the prospective investor, as well as any other pertinent
         factors deemed by the SIA to be relevant.

         (h) In addition to complying with the provisions of subparagraph (g)
above, and not in limitation of any other obligations of the SIA to determine
suitability imposed by state or federal law, the SIA agrees that it will comply
fully with the following provisions:

                  (1) The SIA shall have reasonable grounds to believe, based
         upon information provided by the investor concerning, his investment
         objectives, other investments, financial situation and needs, and upon
         any other information known by the SIA, that (A) each client of the SIA
         that purchases Shares is or will be in a financial position appropriate
         to enable him to realize to a significant extent the benefits
         (including tax benefits) of an investment in the Shares, (B) each
         client of the SIA that purchases Shares has a fair market net worth
         sufficient to sustain the risks inherent in an investment in the Shares
         (including potential loss and lack of liquidity), and (C) the Shares
         otherwise are or will be a suitable investment for each client of the
         SIA that purchases Shares, and the SIA shall maintain files disclosing,
         the basis upon which the determination of suitability was made;

                  (2) The SIA shall not execute any transaction involving the
         purchase of Shares in a discretionary account without prior written
         approval of the transactions by the investor;

                  (3) The SIA shall have reasonable grounds to believe, based
         upon the information made available to it, that all material facts are
         adequately and accurately disclosed in the Registration Statement and
         provide a basis for evaluating the Shares;

                                      -3-

<PAGE>

                  (4) In making the determination set forth in subparagraph (3)
         above, the SIA shall evaluate items of compensation, physical
         properties, tax aspects, financial stability and experience of the
         sponsor, conflicts of interest and risk factors, appraisals, as well as
         any other information deemed pertinent by it;

                  (5) The SIA shall inform each prospective investor of all
         pertinent facts relating to the liquidity and marketability of the
         Shares.

         (i) The SIA agrees to retain in its files, for a period of at least six
years, information which will establish that each purchaser of Shares falls
within the permitted class of investors.

         (j) The SIA either (i) shall not purchase shares for its own account or
(ii) shall hold for investment any Shares purchased for its own account.

         (k) The SIA hereby confirms that it is familiar with Securities Act
Release No. 4968 and Rule 15c2-8 under the Securities Exchange Act of 1934, as
amended, relating to the distribution of preliminary and final prospectuses, and
confirms that it has complied and will comply therewith.

         (1) The SIA shall deliver a copy of Section 260.141.11 of the
California Corporate Securities Law of 1968 to each client of the SIA that
purchases Shares and resides in California.

         (m) A sale of Shares shall be deemed to be completed only after the
Company receives a properly completed subscription agreement for Shares from the
SIA evidencing the fact that the investor had received a final Prospectus for a
period of not less than five full business days, together with payment of the
full purchase price of each purchased Share from a buyer who satisfies each of
the terms and conditions of the Registration Statement and Prospectus, and only
after such subscription agreement has been accepted in writing by the Company.

         (n) Clients of an SIA who have been advised by such SIA on an ongoing
basis regarding investments other than in the Company, and who are not being
charged by such SIA, through the payment of commissions or otherwise, direct
transaction based fees in connection with the purchase of the Shares, shall
purchase the Shares net of 6.5% commissions and 0.5% marketing fee, at a per
Share purchase price of $9.35.

2.       Compensation to SIA.
         -------------------

         The Company shall pay no fees, commissions, or other compensation to
the SIA.

                                      -4-
<PAGE>

3.       Association of the Company with Other Advisors and Dealers.
         ----------------------------------------------------------

         It is expressly understood between the Company and the SIA that the
Company may cooperate with broker-dealers who are registered as broker-dealers
with the National Association of Securities Dealers, Inc. (the "NASD") or with
other investment advisors registered under the Investment Advisers Act of 1940,
as amended. Such broker-dealers and investment advisors may enter into
agreements with the Company on terms and conditions identical or similar to this
Agreement and shall receive such rates of commission or other fees as are agreed
to between the Company and the respective broker-dealers and investment advisors
and as are in accordance with the terms of the Registration Statement.

4.       Conditions of the SIA's Obligations.
         -----------------------------------

         The SIA's obligations hereunder are subject, during the full term of
this Agreement and the Offering, to (a) the performance by the Company of its
obligations hereunder and compliance by the Company with the covenants set forth
in Section 7 hereof; and (b) the conditions that: (i) the Registration Statement
shall become and remain effective; and (ii) no stop order shall have been issued
suspending the effectiveness of the Offering.

5.       Conditions to the Company's Obligations.
         ---------------------------------------

         The obligations of the Company hereunder are subject, during the full
term of this Agreement and the Offering, to the conditions that: (a) at the
effective date of the Registration Statement and thereafter during the term of
this Agreement while any Shares remain unsold, the Registration Statement shall
remain in full force and effect authorizing the offer and sale of the Shares;
(b) no stop order suspending the effectiveness of the Offering or other order
restraining the offer or sale of the Shares shall have been issued nor
proceedings therefor initiated or threatened by any state regulatory agency or
the SEC; and (c) the SIA shall have satisfactorily performed all of its
obligations hereunder and complied with the covenants set forth in Section 6
hereof.

6.       Covenants of the SIA.
         --------------------

         The SIA covenants, warrants and represents, during the full term of
this Agreement, that:

         (a) The SIA is registered as an investment advisor under the Investment
Advisers Act of 1940, as amended, and registered or licensed as an investment
advisor by the appropriate regulatory agency of each state in which the advisor
has clients, or exempt from such registration requirements.

         (b)      Neither the SIA nor any person associated with the SIA is
registered as a broker-dealer or registered representative with the NASD.

         (c) The SIA shall comply with all applicable federal and state
securities laws, including, without limitation, the disclosure requirements of
the Investment Advisers Act of 1940, as amended, and the provisions thereof
requiring disclosure of the existence of this Agreement and the compensation to
be paid to the SIA hereunder.

                                      -5-

<PAGE>

         (d) The SIA shall maintain the records required by Section 204 of the
Investment Advisers Act of 1940, as amended, and Rule 204-2 thereunder in the
form and for the periods required thereby.

7.       Covenants of the Company.
         ------------------------

         The Company covenants, warrants and represents, during the full term of
this Agreement, that:

         (a) It shall use its best efforts to maintain the effectiveness of the
Registration Statement and to file such applications or amendments to the
Registration Statement as may be reasonably necessary for that purpose.

         (b) It shall inform the SIA whenever and as soon as it receives or
learns of any order issued by the SEC, any state regulatory agency or any other
regulatory agency which suspends the effectiveness of the Registration Statement
or prevents the use of the Prospectus or which otherwise prevents or suspends
the offering or sale of the Shares, or receives notice of any proceedings
regarding any such order.

         (c) It shall use its best efforts to prevent the issuance of any order
described herein at subparagraph (b) hereof and to obtain the lifting of any
such order if issued.

         (d) It shall give the SIA written notice when the Registration
Statement becomes effective and shall deliver to the SIA such number of copies
of the Prospectus, and any supplements and amendments thereto, which are finally
approved by the SEC, as the SIA may reasonably request for sale of the Shares.

         (e) It shall promptly notify the SIA of any post-effective amendments
or supplements to the Registration Statement or Prospectus, and shall furnish
the SIA with copies of any revised Prospectus and/or supplements and amendments
to the Prospectus and/or any prospectus relating solely to the DRIP.

         (f) It shall keep the SIA fully informed of any material development to
which the Company is a party or which concerns the business and condition of the
Company.

         (g) It shall use its best efforts to cause, at or prior to the time the
Registration Statement becomes effective, the qualification of the Shares for
offering and sale under the securities laws of such states as the Company shall
elect.

         (h) The SIA and any person associated with the SIA has complied, in all
material respects, with the identification, verification, and documentation
sections of the Patriot Act..

8.       Payment of Costs and Expenses.
         -----------------------------

         The SIA shall pay all costs and expenses incident to the performance of
its obligations under this Agreement.

                                      -6-
<PAGE>

9.       Indemnification.
         ---------------

         (a) The SIA agrees to indemnify, defend and hold harmless the Company,
its affiliates and their or its officers, directors, trustees, employees and
agents, against all losses, claims, demands, liabilities and expenses, joint or
several, including reasonable legal and other expenses incurred in defending
such claims or liabilities, whether or not resulting in any liability to the
Company, its affiliates and their or its officers, directors, trustees,
employees or agents, which they or any of them may incur arising out of (i) the
offer or sale (as such term is defined in the Securities Act of 1933, as
amended) by the SIA, or any person acting on its behalf, of any Shares pursuant
to this Agreement, if such loss, claim, demand, liability, or expense arises out
of or is based upon an untrue statement or alleged untrue statement of a
material fact, or any omission or alleged omission of a material fact, other
than a statement, omission, or alleged omission by the SIA which is also, as the
case may be, contained in or omitted from the Prospectus or the Registration
Statement and which statement or omission was not based on information supplied
to the Company by such SIA; (ii) the breach by the SIA, or any person acting on
its behalf, of any of the terms and conditions of this Agreement; or (iii) the
negligence, malpractice or malfeasance of the SIA. This indemnity provision
shall survive the termination of this Agreement.

         (b) The Company agrees to indemnify, defend and hold harmless the SIA,
its officers, directors, employees and agents, against all losses, claims,
demands, liabilities and expenses, including reasonable legal and other expenses
incurred in defending such claims or liabilities, which they or any of them may
incur, including, but not limited to, alleged violations of the Securities Act
of 1933, as amended, but only to the extent that such losses, claims, demands,
liabilities and expenses shall arise out of or be based upon (i) any untrue
statement of a material fact contained in the Prospectus or the Registration
Statement, as filed and in effect with the SEC, or in any amendment or
supplement thereto, or in any application prepared or approved in writing by
counsel to the Company and filed with any state regulatory agency in order to
register or qualify the Shares under the securities laws thereof (the "Blue Sky
applications"), or (ii) any omission or alleged omission to state therein a
material fact required to be stated in the Prospectus or the Registration
Statement or the Blue Sky applications, or necessary to make such statements,
and any part thereof, not misleading; provided, further, that any such untrue
statement, omission or alleged omission is not based on information included in
any such document which was supplied to the Company, or any officer of the
Company by such SIA; provided in each case that such claims or liabilities did
not arise from SIA's own negligence, malpractice or malfeasance. This indemnity
provision shall survive the termination of this Agreement.

         (c) No indemnifying party shall be liable under the indemnity
agreements contained in subparagraphs (a) and (b) above unless the party to be
indemnified shall have notified such indemnifying party in writing promptly
after the summons or other first legal process giving information of the nature
of the claim served upon the party to be indemnified, but failure to notify an
indemnifying party of any such claim shall not relieve it from any liabilities
which it may have to the indemnified party against whom action is brought other
than on account of its indemnity agreement contained in subparagraphs (a) and
(b) above. In the case of any such claim, if the party to be indemnified
notified the indemnifying party of the commencement

                                      -7-
<PAGE>

thereof as aforesaid, the indemnifying party shall be entitled to participate at
its own expense in the defense of such claim. If it so elects, in accordance
with arrangements satisfactory to any other indemnifying party or parties
similarly notified, the indemnifying party has the option to assume the entire
defense of the claim, with counsel who shall be satisfactory to such indemnified
party and all other indemnified parties who are defendants in such action; and
after notice from the indemnifying party of its election so to assume the
defense thereof and the retaining of such counsel by the indemnifying party, the
indemnifying party shall not be liable to such indemnified party under
subparagraphs (a) and (b) above for any legal or other expenses subsequently
incurred by such indemnified party in connection with the defense thereof, other
than for the reasonable costs of investigation.

10.      Term of Agreement.
         -----------------

         This Agreement shall become effective on the date on which this
Agreement is executed by the Company and the SIA. The SIA and the Company may
each prevent this Agreement from becoming effective, without liability to the
other, by written notice before the time this Agreement otherwise would become
effective. After this Agreement becomes effective, either party may terminate it
at any time for any reason by giving thirty (30) days' written notice to the
other party; provided, however, that this Agreement shall in any event
automatically terminate at the first occurrence of any of the following events:
(a) the Registration Statement for offer and sale of the Shares shall cease to
be effective; (b) the Offering shall be terminated; or (c) the SIA's license or
registration to act as an investment advisor shall be revoked or suspended by
any federal, self-regulatory or state agency and such revocation or suspension
is not cured within ten (10) days from the date of such occurrence. In any
event, this Agreement shall be deemed suspended during any period for which such
license is revoked or suspended.

11.      Notices.
         -------

         All notices and communications hereunder shall be in writing and shall
be deemed to have been given and delivered when deposited in the United States
mail, postage prepaid, registered or certified mail, to the applicable address
set forth below.

         IF SENT TO THE COMPANY:

                  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED
                  50 Rockefeller Plaza
                  New York, NY  10020
                  Attention: Louisa H. Quarto

         IF SENT TO THE SIA: to the person whose name and address are identified
in Exhibit A hereto.

12.      Successors.
         ----------

        This Agreement shall be binding upon and inure to the benefit of the
parties hereto, and shall not be assigned or transferred by the SIA by operation
of law or otherwise.

                                      -8-
<PAGE>

13.      Miscellaneous.
         -------------

         (a)      This Agreement shall be construed in accordance with the
applicable laws of the State of New York.

         (b)      Nothing in this Agreement shall constitute the SIA as in
association with or in partnership with the Company.

         (c) This Agreement, including Exhibit A hereto, embodies the entire
understanding, between the parties to the Agreement, and no variation,
modification or amendment to this Agreement shall be deemed valid or effective
unless it is in writing and signed by both parties hereto.

         (d) If any provision of this Agreement shall be deemed void, invalid or
ineffective for any reason, the remainder of the Agreement shall remain in full
force and effect.

         (e) This Agreement may be executed in counterpart copies, each of which
shall be deemed an original but all of which together shall constitute one and
the same instrument comprising this Agreement.

         IN WITNESS WHEREOF, the parties have executed this Agreement on the
date and year indicated on Exhibit A hereto.

<TABLE>
<S>                                                         <C>

SELECTED INVESTMENT ADVISOR                                 COMPANY

                                                            CORPORATE PROPERTY ASSOCIATES 15
        ---------------------------------------------       INCORPORATED
(Name of SIA)

By:                                                         By:
   --------------------------------------------------          ----------------------------------------------------
     Print Name:                                                Print Name:
                -------------------------------------                      ----------------------------------------
     Title:                                                     Title:
           ------------------------------------------                 ---------------------------------------------

Witness:                                                    Witness:
        ---------------------------------------------               -----------------------------------------------

</TABLE>

                                      -9-
<PAGE>

                                    EXHIBIT A
                                       TO
                      SELECTED INVESTMENT ADVISOR AGREEMENT
                                       OF
                  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED

         This Exhibit A is attached to and made a part of that certain Selected
Investment Advisor Agreement, dated as of the ______ day of _______,_____, by
and between Corporate Property Associates 15 Incorporated, as Company, and
____________________________, as Advisor.

1.       Date of Agreement:
                           -----------------------------------------------------

2.       Identity of Advisor:
                             ---------------------------------------------------

         Name:
              ------------------------------------------------------------------

         Type of Entity:
                        --------------------------------------------------------
                           (To be completed by the advisor, e.g., corporation,
                                  partnership or sole proprietorship.)

         State Organized in:
                            ----------------------------------------------------
                                        (To be completed by Advisor.)

Qualified To Do Business and in Good Standing in the Following Jurisdictions
(INCLUDING YOUR STATE OF ORGANIZATION). (NOTE: QUALIFICATION TO DO BUSINESS IN
ANY JURISDICTION IS GENERALLY A REQUIREMENT IMPOSED BY THE SECRETARY OF STATE OR
OTHER AUTHORITY OF JURISDICTIONS IN WHICH YOU DO BUSINESS, AND IS NOT RELATED TO
YOUR HOLDING A LICENSE AS AN INVESTMENT ADVISOR IN SUCH JURISDICTIONS.
QUESTIONS CONCERNING THIS MATTER SHOULD BE DIRECTED TO YOU YOUR LEGAL COUNSEL)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

(To be completed by the advisor)

Registered as an Investment Advisor in The Following States:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

(To be completed by the advisor)

                                      A-1
<PAGE>

3.   Name and Address for Notice Purposes (see Paragraph 11 of Agreement):

     Name:
          ------------------------------------------------------------------
     Title:
           -----------------------------------------------------------------
     Company:
             ---------------------------------------------------------------
     Address:
             ---------------------------------------------------------------
     City, State and Zip Code:
                              ----------------------------------------------
     Telephone Number (including area code):
                                            --------------------------------

4.   Please complete the following for our records:

     (a)      How many registered investment advisors are with your
              firm?
                    --------------------------------------------------------
              PLEASE ENCLOSE A CURRENT LIST.  ALL INFORMATION WILL BE
              HELD IN CONFIDENCE.

     (b)      Does your firm publish a newsletter?  Yes           No
                                                        -----        -----

              What is/are the frequency of the publication(s)?
                   Weekly                 Monthly                 Quarterly
              -----                  -----                   -----
                   Bi-weekly              Bi-monthly              Other (please
              -----                  -----                   -----      specify)

             PLEASE PLACE CPA(R):15 ON YOUR MAILING LIST AND PROVIDE A
             SAMPLE OF THE PUBLICATION IF AVAILABLE.

     (c)     Does your firm have regular internal mailings, or bulk package
             mailings to its registered investment advisors?

             Yes            No
                ------        ------

            PLEASE PLACE CPA(R):15 ON YOUR MAILING LIST AND PROVIDE A SAMPLE OF
            THE PUBLICATION IF AVAILABLE.

     (d)    Does your firm have a computerized electronic mail (E-Mail) system
            for your registered investment advisors?

            Yes            No
                ------        ------

            If so, please provide e-mail address:
                                                  ------------------------------
     (e)    Website address:
                            ----------------------------------------------------
            Person responsible:
                                 -----------------------------------------------

                                      A-2<PAGE>
                                                                    Exhibit 10.4
                 CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED

                              50 ROCKEFELLER PLAZA
                               NEW YORK, NY 10020
                             SALES AGENCY AGREEMENT

                                                              October ____, 2002

Carey Financial Corporation
50 Rockefeller Plaza
New York, NY  10020

Ladies and Gentlemen:

         Corporate Property Associates 15 Incorporated, a Maryland corporation
(the "Company"), hereby confirms its agreement with you as follows:

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

         2.  Representations and Warranties of the Company

         The Company represents, warrants and agrees that:

         (a) Registration Statement and Prospectus. The Company has filed with
the Securities and Exchange Commission (the "Commission") a registration
statement on Form S-11 (File No. 333-xxxxx), containing a related preliminary
prospectus, for the registration of the Shares under the Securities Act of 1933,
as amended (the "Securities Act") and the regulations thereunder (the
"Regulations"), and will prepare and file with the Commission any amendments to
the registration statement necessary for them to become effective, including an
amended preliminary prospectus. The registration statement, as amended, and the
amended prospectus on file with the Commission at the time the registration
statement becomes effective (including financial statements, exhibits and all
other documents related thereto filed as a part thereof or incorporated
therein), and any registration statement filed under Rule 462(b) of the
Securities Act, are herein called the "Registration Statement" and the
"Prospectus," respectively, except that if the Registration Statement is amended
by a post-effective amendment, the term "Registration Statement" shall, from and
after the declaration of effectiveness of such post-effective amendment, refer
to the Registration Statement as so amended and the term "Prospectus" shall
refer to the prospectus as so amended, and if the Prospectus filed by the
Company pursuant to
<PAGE>
Rule 424(b) or 424(c) of the Regulations shall differ from the Prospectus on
file at the time the Registration Statement or any post-effective amendment
shall become effective, the term "Prospectus" shall refer to the Prospectus
filed pursuant to either of such Rules from and after the date on which it shall
have been mailed for filing with the Commission. Further, if a separate
prospectus is filed and becomes effective with respect solely to the DRIP (a
"DRIP Prospectus"), the term "Prospectus" shall refer to such DRIP Prospectus
from and after the declaration of effectiveness of such DRIP Prospectus.

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

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

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

         (e) Violations. The Company is not in violation of its Articles of
Incorporation ("Articles") or Bylaws or in default in the performance or
observance of any material obligation, agreement, covenant or condition
contained in any contract, indenture, mortgage, loan agreement, note, lease or
other agreement or instrument to which it is a party or by which it or any of
its properties is bound.

                                       2
<PAGE>
         (f) Taxes. The Company has filed all Federal, state and foreign income
tax returns which have been required to be filed on or before the due date
(taking into account all extensions of time to file) and has paid or provided
for the payment of all taxes indicated by said returns and all assessments
received by the Company to the extent that such taxes or assessment have become
due.

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

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

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

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

         (k) Authorization of Agreement. This Agreement and the Advisory
Agreement (the "Advisory Agreement") between the Company and Carey Asset
Management Corp. (the "Advisor") have been duly and validly authorized, executed
and delivered by the Company and constitute the valid agreements of the Company
enforceable in accordance with their terms. The execution and delivery of this
Agreement and the Advisory Agreement, the consummation of the transactions
herein and therein contemplated and the compliance with the terms of this
Agreement and the Advisory Agreement by the Company will not conflict with or
constitute a default under the Articles or bylaws or any indenture, mortgage,
deed of trust, lease or other agreement or instrument to which the Company is a
party, or any law, order, rule or regulation, writ, injunction or decree of any
government, governmental instrumentality or court, domestic or foreign, having
jurisdiction over the Company, or any of its property, except to the extent that
the enforceability of the indemnity and/or contribution provisions contained in
Section 8 of this Agreement may be limited under applicable securities law; and
no consent, approval,

                                       3
<PAGE>
authorization or order of any court or other governmental agency or body has
been or is required for the performance of this Agreement or the Advisory
Agreement by the Company, or for the consummation of the transactions
contemplated hereby and thereby (except such as have been obtained under the Act
or as may be required under state securities or "blue sky" laws in connection
with the distribution of the Shares).

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

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

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

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

         3. Sales of Shares. On the basis of the representations, warranties and
covenants herein contained, but subject to the terms and conditions herein set
forth, the Company hereby appoints you as its sales agent ("Sales Agent") to
solicit purchasers, along with the Selected Dealers and Selected Investment
Advisors (as defined in Section 3(c)), for the Shares during the period (the
"Effective Term") from the Effective Date to the Termination Date, including the
Shares pursuant to the DRIP (registered on Form S-11, Registration No.
333-5584), each in the manner described in the Registration Statement. Subject
to the performance by the Company of all obligations to be performed by it
hereunder and the completeness and accuracy of all of its representations and
warranties, you agree to use your best efforts as Sales Agent, promptly
following written or telegraphic receipt of notice of the Effective Date from
the Company, to offer and sell such number of Shares as contemplated by this
Agreement at the price stated in the Prospectus.

         (a) Purchase of Shares. The purchase of Shares must be made during the
offering period described in the Prospectus, or after such offering period in
the case of purchases made pursuant to the DRIP (each such purchase hereinafter
defined as an "Order"). Persons desiring to

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       7
<PAGE>
pay you a one-half percent marketing fee, which you may reallow, in your sole
discretion, to the Selected Dealers based on such factors as volume of Shares
sold, marketing support and bona fide conference fees incurred. Purchases of
Shares by the Advisor, its Affiliates (as defined in the Prospectus), any
Selected Dealer, any Selected Investment Advisor or any employee of any Selected
Dealer or Investment Advisor shall be net of Selling Commissions and the Company
will pay no Selling Commissions on such Orders. Selling Commissions will be paid
on any Closing Date with respect to the Shares sold to purchasers whose Shares
are issued on such Closing Date. The Company will not pay a Selected Dealer Fee
or Marketing Fee for Shares sold through the DRIP.

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

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

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

         (a) Commission Orders. Use its best efforts to cause the Registration
Statement and any subsequent amendments thereto, to become effective as promptly
as possible, and will notify you immediately, and confirm the notice in writing,
(i) when the Registration Statement and any post-effective amendment thereto
become effective, (ii) of the issuance by the Commission of any stop order or of
the initiation, or the threatening, of any proceedings for that purpose or of
the suspension of the qualification of the Shares for offering or sale in any
jurisdiction or of the institution or threatening of any proceedings for any of
such purposes, (iii) of the receipt of any comments from the Commission with
respect to the Registration Statement, and (iv) of any request by the Commission
for any amendment to the Registration Statement as filed or any amendment or
supplement to the Prospectus or for additional information relating thereto. The
Company will make every reasonable effort to prevent the issuance by the
Commission of a stop order or a suspension order and if the Commission shall
enter a stop order or suspension order at any time, the Company will make every
reasonable effort to obtain the lifting of such order at the earliest possible
moment.

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

                                       8
<PAGE>
the Selected Dealers and Selected Investment Advisors both in connection with
the Offering and for such period of time thereafter as the Prospectus is
required to be delivered in connection therewith.

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

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

         (e) Copies of Reports. During the period the Shares remain outstanding,
furnish you the following:

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

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

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

                                       9
<PAGE>
         (f) Sales Material. Will deliver to you from time to time, all
advertising and supplemental sales material (whether designated solely for
broker-dealer use or otherwise) proposed to be used or delivered in connection
with the Offering, prior to the use or delivery to third parties of such
material, and will not so use or deliver, in connection with the Offering, any
such material to which you or your counsel shall reasonably object or disapprove
within seven days of delivery of such material to you or which shall be
reasonably disapproved by your counsel within such seven-day period.

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

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

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

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

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

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

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

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

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

                                       10
<PAGE>
you, the soliciting Selected Dealer or Selected Investment Advisor, as the
case may be, are qualified to so act.

         6.  Payment of Expenses.

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

         (b) Annual Monitoring Fee. The Company will pay you an annual
monitoring fee of 0.15% of the gross offering proceeds. The Annual Monitoring
Fee will be paid to compensate you for your continuing due diligence, for
expenses incurred in maintaining and providing information about the Company to
your representatives and clients, and for the cost incurred in maintaining the
Company's investor accounts. No portion of the annual Monitoring Fee for any
year shall accrue in or be payable for such years in which we are liquidated or
in which the shares become publicly traded. You may, in your sole discretion,
reallow all or any part of the Monitoring Fee to the Selected Dealers.
Notwithstanding the foregoing, the Company will not pay the portion of the
annual Monitoring Fee for any year which if paid would cause the total
underwriting compensation paid to you in connection with this Offering,
including selling commissions, expense reimbursements and the annual Monitoring
Fee, to exceed 10% of the Gross Offering Proceeds.

                                       11
<PAGE>
         (c) Sales Incentive Programs. Subject to the satisfactory completion of
any regulatory reviews and examinations which may be required, the prior review
and approval and the rules of the NASD (including Rule 2710(c)(6)(B)(xii)) and
approval by the Company or the Advisor, the Company, the Advisor and Affiliates
of the Advisor may establish sales incentive programs for your associated
persons or the associated persons of Selected Dealers only. Sales incentives
will be deemed to be additional underwriting compensation. The aggregate value
of incentives paid directly to an individual associated person during the
Offering will not exceed $100 in any given year.

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

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

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

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

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

             (ii) the Shares have been duly authorized and, after being duly
             issued and sold in accordance with the terms set forth in the
             Registration Statement, will be validly issued, fully paid and
             non-assessable Shares; and no holder thereof is or will be subject
             to personal liability for the obligations of the Company solely by
             reason of being such a holder; such Shares are not subject to the
             preemptive rights of any

                                       12
<PAGE>
             stockholder of the Company, and all corporate action required to be
             taken for the authorization, issue and sale of such Shares has been
             validly and sufficiently taken;

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

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

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

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

             (vii) neither the execution and delivery of this Agreement or the
             Advisory Agreement nor compliance with the terms and provisions
             hereof or thereof will, and consummation of the transactions
             contemplated herein and in the Prospectus do not and will not,
             result in any violation of the Articles or bylaws, conflict with or
             result in a breach of or default (or an event which with the giving
             of notice or lapse of time or both would constitute a default)
             under, any of the terms, provisions or conditions of any statute,
             order, judgment, writ, injunction, decree, agreement, rule,
             regulation, instrument or organizational document known to such
             counsel, to which the

                                       13
<PAGE>
             Company is a party or, to the best of such counsel's knowledge and
             information, by which the Company is bound;

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

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

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

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

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

         (c) Accountant's Letter. On the Effective Date you shall have received
from PricewaterhouseCoopers LLP a letter, in form and substance satisfactory to
you in all respects

                                       14
<PAGE>
(including the nonmaterial nature of the changes and decreases, if any, referred
to in clause (iii) herein), advising that:

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

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

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

             (iv) based on procedures consisting of a reading of the percentages
             and dollar amounts and related text set forth in the Prospectus and
             the Registration Statement under the captions "Prior Offerings by
             Affiliates" and "Prior Performance Tables" (including Table VI
             included as an exhibit to the Registration Statement), and all
             dollar amounts in the related notes referenced therein, inquiry of
             officers and other employees of the corporate general partner of
             Corporate Property Associates, Corporate Property Associates 2,
             Corporate Property Associates 3, Corporate Property Associates 4, a
             California limited partnership, Corporate Property Associates 5,
             Corporate Property Associates 6 - a California limited partnership,
             Corporate Property Associates 7 - a California limited partnership,
             Corporate Property Associates 8, L.P., and Corporate Property
             Associates 9, L.P., (collectively the "CPA(R) Partnerships") and
             the officers and other employees of Corporate Property Associates
             10 Incorporated, Carey Institutional Properties Incorporated,
             Corporate Property Associates 12 Incorporated, and Corporate
             Property Associates 14, Incorporated (collectively the "CPA(R)
             REITs"), and counsel for the CPA(R) Partnerships and the CPA(R)
             REITs, they have found such percentages and dollar amounts to be in
             agreement with the respective relevant accounting and financial
             records of the CPA(R) Partnerships and CPA(R) REITs; and

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

         (d) Stop Orders. On the Effective Date and during the Effective Term no
order suspending the sale of the Shares in any jurisdiction (except the
Designated Jurisdictions) nor

                                       15
<PAGE>
any stop order issued by the Commission shall have been issued, and on the
Effective Date and during the Effective Term no proceedings relating to any such
suspension or stop orders shall have been instituted, or to the knowledge of the
Company, shall be contemplated.

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

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

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

         8.  Indemnification.

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

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

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

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

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

         (d) Contribution. Subject to the limitations set forth in Section 8(a)
hereof and in order to provide for just and equitable contribution where the
indemnification provided for in this Section 8 is unavailable to or insufficient
to hold harmless an indemnified party under subsection (a) or (b) above in
respect of any losses, liabilities, claims, damages or expenses (or actions in
respect thereof) referred to therein, except by reason of the terms thereof, the
Company on the one hand and you on the other shall contribute to the amount paid
or payable by such indemnified party as a result of such losses, liabilities,
claims, damages or expenses (or actions in respect thereof) in such proportion
as is appropriate to reflect the relative benefits received by the Company on
the one hand and you on the other from the Offering based on the public offering
price of the Shares sold and the Selling Commissions received by you with
respect to such Shares sold. If, however, the allocation provided by the
immediately preceding sentence is not permitted by applicable law, then each
applicable indemnifying party, in lieu of indemnifying such indemnified party,
shall contribute to the amount paid or payable by such indemnified party in such
proportion as is appropriate to reflect not only such relative benefits referred
to above but also the relative fault of the Company on the one hand and you on
the other in connection with the statements or omissions which resulted in such
losses, liabilities, claims, damages or expenses (or actions in respect
thereof), as well as any other relevant equitable considerations. The relative
benefits received by the Company on the one hand and you on the other shall be
deemed to be in the same proportion as the total proceeds from the Offering (net
of underwriting commissions but before deducting expenses) received by the
Company bear to the total underwriting commissions received by you. The relative
fault shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission to state a
material fact relates to information supplied by the Company on the one hand or
you on the other. The Company agrees with you that it would not be just and
equitable if contribution pursuant to this subsection (d) were determined by pro
rata allocation, or by any other method of allocation which does not take
account of the equitable considerations referred to above in this subsection
(d). The amount paid or payable by an indemnified party as a result of the
losses, liabilities, claims, damages or expenses (or action in respect thereof)
referred to above in this subsection (d) shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this subsection (d), you shall not be required to contribute any
amount in excess of the amount by which the total price of the Shares sold by
you to the public exceeds the amount of any damages which you have otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No person

                                       18
<PAGE>
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Act or Section 10(b) of the Securities Exchange Act of 1934, as amended)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section, any person that
controls you within the meaning of Section 15 of the Act shall have the same
right to contribution as you, and each person who controls the Company within
the meaning of Section 15 of the Act shall have the same right to contribution
as the Company.

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

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

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

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

         (c) If this Agreement shall be terminated for reason of any failure on
the part of the Company to perform any undertaking or satisfy any condition of
this Agreement to be performed or satisfied by them pursuant to Section 7
hereof, you may elect to terminate this Agreement without liability of any party
to any other party except as provided in Section 10(e) hereof.

                                       19
<PAGE>
         (d) The Company shall have the right to terminate this Agreement
without cause on 60 days' notice in writing to you without penalty, subject to
liability as provided in Section 10(e) hereof.

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

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

         11.  Notices.

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

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

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

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

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

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

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

                                         CORPORATE PROPERTY ASSOCIATES

                                         15 INCORPORATED

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

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

Accepted as of the date first above written:

CAREY FINANCIAL CORPORATION

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

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

Exhibit Index

Exhibit A - Selected Dealer Agreement
Exhibit B - Selected Investment Advisor Agreement

                                       21

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