Document:

exv10w2

EXHIBIT 10.2

AGREEMENT FOR SALE AND PURCHASE

          THIS AGREEMENT FOR SALE AND PURCHASE (“Agreement”) made and entered into by and among
CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED, a Maryland corporation (“CPA:14”), whose
address is 50 Rockefeller Plaza, New York City, NY 10020, and W.P. CAREY & CO. LLC, a Delaware
limited liability company, (the “Buyer”) whose address is 50 Rockefeller Plaza, New York
City, NY 10020.

WITNESSETH:

     1.     Subject to the terms and conditions hereinafter set forth, and for good and valuable
consideration, receipt of which is hereby acknowledged, the parties hereto agree that CPA:14 shall
sell, and Buyer shall buy, assume and accept, or cause to be bought, assumed and accepted by CAREY
REIT II, INC., a Maryland corporation (“REIT II”), an affiliate of Buyer, the applicable respective
interest of the CPA:14, directly or indirectly, in and to the respective entities (“Owning
Entities”) which directly or indirectly own the properties, as such properties are described on
Exhibits “A-1” through “A-3” and on Schedule 1 attached hereto and incorporated herein (singularly,
a “Land”, and collectively, the “Lands”), together with CPA:14’s direct and indirect interest in
(i) all buildings and other improvements situated on the Lands (singularly, a “Building”, and
collectively, the “Buildings”), (ii) all right, title and interest of the Owning Entities in and to
all easements, rights of way, reservations, privileges, appurtenances, and other estates pertaining
to the Lands and the Buildings, (iii) all right, title and interest of the Owning Entities, if any,
in and to the fixtures, machinery, equipment, supplies and other articles of personal property
attached or appurtenant to the Lands or the Buildings owned by the Owning Entities and not by
Tenants (collectively, the “Personal Property”), (iv) all right, title and interest of the Owning
Entities, if any, in and to the trade name(s) of the Buildings and all other names, designations,
logos, service marks and the appurtenant goodwill used in connection with the Properties (except
for names and logos registered as CPA and CPA:14), (v) all right, title and interest of the Owning
Entities, if any, in and to all strips and gores, all adjacent streets and alleys adjoining the
Lands to the center line thereof, and all right, title and interest of the Owning Entities, if any,
in and to any award made or to be made in lieu thereof and in and to any unpaid award for any
taking by condemnation or any damages to the Lands or the Buildings by reason of a change of grade
of any street, road or avenue, (vi) all right, title and interest of the Owning Entities, if any,
in and to the leases licenses and other occupancy agreements, together with all amendments,
renewals and modifications thereof for the respective Lands and Buildings, or any portions thereof
(collectively, the “Leases”), together with all rents and other sums due under the Leases and any
security deposits, letters of credit, guaranties, and/or together with any warrants delivered in
connection with any of the Leases, (vii) all right, title and interest of Owning Entities, if any,
in, to and under those purchase orders, equipment leases, and managements, service, advertising,
franchise and license agreements and other contracts and agreements relating to the ownership, use,
operation and maintenance of the applicable Land and Building and Personal Property (collectively,
the “Service Agreements”), (viii) all right, title and interest of the Owning Entities, if any, in,
to and under all guaranties, warranties and agreements (express or implied) from contractors,
subcontractors, vendors and suppliers, if any, regarding their performance, quality of workmanship
and quality of materials supplied in connection with the construction, manufacture, development,
installation and operation of any and all Buildings and Personal Property (collectively, the
“Warranties”), (ix) to the extent transferable, certificates, licenses, permits, authorizations,
consents, authorizations, approvals and variances, if any, by any governmental or
quasi-governmental authority, including, without limitation, a letter or certificate regarding the zoning of each of the
Lands from the applicable local office(s) (collectively, the “Permits”), (x) all right, title and
interest of the Owning Entities in and to any insurance, casualty and/or condemnation proceeds and
awards and any rights or claims thereto relating to any of the Properties and payable or to be
assigned pursuant to Section 19 hereof; (xi) all

 

 

right, title and interest of the Owning Entities
in and to all accounts, accounts receivable and reserve funds held by or for the benefit of CPA:14
or a Subsidiary with respect to the operation of the Properties; and (xii) all of the Owning
Entities’ liabilities and obligations relating to the Land and
items described in clauses (i) – (xi) (the Lands, the Buildings and all of the foregoing items listed
in clauses (i) – (xii) above
being hereinafter sometimes singularly referred to as a “Property”, and collectively referred to as
the “Properties”). The respective interests of CPA:14 in and to the Owning Entities which own the
Properties are collectively referred to as the “Interests”. The transaction contemplated by this
Agreement contemplates the sale and purchase of all, but not less than all, of the Interests.

     2.     PURCHASE PRICE

          (a)     The aggregate purchase price (“Purchase Price”) for the Interests is (i) Thirty Two
Million Eighty Thousand Eight Hundred Ninety-Four and 00/100 Dollars ($32,080,894.00) payable in
cash, which shall be allocated among the Interests and Properties in accordance with the allocation
schedule set forth on Exhibit “B” attached hereto and incorporated herein (“Cash Purchase
Price”) and (ii) by Closing, the acknowledgement and agreement by Buyer that loans encumbering the
applicable Property identified on Exhibit “C” attached hereto and incorporated herein
(“Assumable Loans”) remain outstanding and an obligation of the respective Owning Entities.

          (b)     Buyer acknowledges that following the Closing, the Properties will remain encumbered by the
Assumable Loans and that Buyer shall be obligated to obtain any required approvals from the lenders
of the Assumable Loans to the transfer of the Interests and to pay, in addition to the Purchase
Price, any assumption fees, transfer fees and/or other costs and expenses incurred in connection
with the transfer of the Interests. Buyer and CPA:14 shall exercise good faith reasonable efforts
to obtain lenders’ approvals. Buyer further acknowledges and agrees that the Assumable Loan
encumbering the Federal Express Property identified on Exhibit “C” may be refinanced prior
to the Closing and upon such refinancing, the replacement loan will be substituted for the replaced
loan and for all purposes hereunder shall thereafter be the Assumable Loan with respect to the
Federal Express Property.

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

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

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

     EXCEPT AS SPECIFICALLY SET FORTH IN SECTION 8 HEREOF OR IN THE TRANSFER DOCUMENTS, CPA:14 IS
NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER,
EXPRESS OR IMPLIED, WITH RESPECT TO ANY OF THE PROPERTIES, INCLUDING, BUT NOT LIMITED TO, ANY
WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR

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PURPOSE, TITLE (OTHER THAN THE OWNING ENTITIES’ WARRANTY OF TITLE), ZONING, TAX CONSEQUENCES,
PHYSICAL OR ENVIRONMENTAL CONDITION, OPERATING HISTORY OR PROJECTIONS, VALUATION, GOVERNMENTAL
APPROVALS, GOVERNMENTAL REGULATIONS, THE TRUTH, ACCURACY OR COMPLETENESS OF THE ITEMS OR ANY OTHER
INFORMATION PROVIDED BY OR ON BEHALF OF CPA:14 OR SUCH OWNING ENTITIES TO BUYER OR ANY OTHER MATTER
OR THING REGARDING ANY OF THE PROPERTIES. UPON CLOSING, THE RESPECTIVE PROPERTIES SHALL BE
DELIVERED, AND BUYER (OR REIT II) SHALL ACCEPT DELIVERY OF THE RESPECTIVE PROPERTIES, “AS IS, WHERE
IS, WITH ALL FAULTS.” BUYER HAS NOT RELIED UPON AND WILL NOT RELY UPON EITHER DIRECTLY OR
INDIRECTLY, ANY REPRESENTATION OR WARRANTY OF CPA:14 OR THE OWNING ENTITIES WITH RESPECT TO ANY OF
THE PROPERTIES EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN OR IN ANY TRANSFER DOCUMENTS. BUYER
HAS PREVIOUSLY CONDUCTED SUCH INVESTIGATIONS OF THE PROPERTIES, INCLUDING BUT NOT LIMITED TO, THE
PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AS BUYER DEEMS NECESSARY TO SATISFY ITSELF AS TO THE
CONDITION OF THE PROPERTIES AND WILL RELY SOLELY UPON SAME AND THE REPRESENTATIONS AND WARRANTIES
EXPRESSLY PROVIDED HEREIN OR IN ANY OF THE TRANSFER DOCUMENTS. UPON CLOSING, BUYER SHALL ASSUME
THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE
PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY BUYER’S INVESTIGATIONS.
BUYER, UPON CLOSING, HEREBY WAIVES, RELINQUISHES AND RELEASES CPA:14, FROM AND AGAINST ANY AND ALL
CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION IN TORT [I.E., NEGLIGENCE AND STRICT
LIABILITY]), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES AND COURT
COSTS) (COLLECTIVELY, “CLAIMS”) OF ANY KIND AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN,
WHICH BUYER MIGHT HAVE ASSERTED OR ALLEGED AGAINST CPA:14, AT ANY TIME BY REASON OF OR ARISING OUT
OF ANY CONSTRUCTION DEFECTS, PHYSICAL AND ENVIRONMENTAL CONDITIONS, THE VIOLATION OF ANY APPLICABLE
LAWS AND ANY AND ALL OTHER MATTERS REGARDING THE PROPERTIES, OR ANY OF THEM.

     5.     BUYER AND CPA:14 CONTINGENCY.

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

          (b)     The obligation of CPA:14 to close is subject to satisfaction, (i) as evidenced by a written
confirmation thereof from CPA:16, which written confirmation shall not be unreasonably withheld,
delayed or conditioned, of all conditions precedent to the Merger of

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CPA:14 with and into CPA:16,
other than the closing of the transactions contemplated by this Agreement and other than those
which by their nature, are satisfied at closing of the Merger and (ii) of Buyer’s delivery of the
Transfer Documents that it is required to deliver pursuant to Section 11 hereof. It is understood,
however, that the delivery of certain documents to effectuate the actual Merger of CPA:14 with and
into CPA:16 shall not occur until subsequent to the closing of the transactions contemplated hereby
and is not a contingency to this transaction.

     6.     TITLE COMMITMENTS AND POLICIES. Buyer may order an update of title in order for First
American Title Insurance Company (“Title Company”) to issue title commitments
(collectively, “Commitments”) for the Properties, together with copies of all documents
shown as title exceptions in the Commitments (“Title Documents”). Buyer acknowledges that
it is familiar with the title to the Properties and except for any (i) mortgage, deed of trust,
deed to secure debt, assignment of leases and rents, negative pledge, financing statement and
similar instruments encumbering all or any portion of the Properties (other than first priority
mortgages, deeds of trusts, deeds to secure debt, assignments of leases and rents, negative
pledges, financing statements and similar instruments encumbering all or any portion of the
Properties securing the Assumable Loans), (ii) mechanic’s, materialmen’s, broker’s or similar lien
created or caused by the Owning Entities (unless resulting from any act or omission of Buyer) and
(iii) judgment or other monetary lien filed against the Owning Entities (collectively,
“Liens”), which the Owning Entities shall satisfy at Closing, CPA:14 and the Owning
Entities shall have no obligation to eliminate or cure any other title exceptions, and Buyer will
proceed to Closing subject to all other matters affecting the title to the Properties.

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

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

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

          B.     CPA:14 and each entity wholly owned (directly or indirectly ) by CPA:14 which has an ownership
interest in the Owing Entity owning a Property (a “Subsidiary”) is a duly formed and validly
existing entity in good standing under the laws of its state of organization and is qualified to do
business in the state(s) in which it is legally required to be so qualified.

          C.     CPA:14 has full right, power and authority to execute, deliver and perform its obligations
under this Agreement and has taken or will take all necessary action and obtained all necessary
consents to authorize the execution, delivery and performance of this Agreement and all
documentation required to effectuate the full intent and purposes of this Agreement, and this
Agreement is enforceable against CPA:14 and such Subsidiary.

          D.     The execution and delivery of this Agreement and the Transfer Documents by CPA:14, and the
consummation by CPA:14 of the transaction contemplated hereby and thereby does not and will not,
(i) violate any judgment, order, injunction, decree, regulation or ruling of any court or
governmental authority by which CPA:14 is bound, (ii) subject to receipt of applicable consents, if
any, discussed in the Merger Agreement and Schedule of Disclosures thereunder, conflict with,
result in a breach of, or constitute a default under the organizational documents of CPA:14 or any
note or other evidence of indebtedness, any mortgage, deed of trust or indenture, or any material
agreement or instrument to which CPA:14 is a party or by which it is bound, or (iii) violate any
law, statute, rule or regulation by which CPA:14 is bound.

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

          F.     No petition in bankruptcy (voluntary or otherwise), assignment for the benefit of creditors,
or petition seeking reorganization or arrangement or other action under federal or state bankruptcy
laws is pending against or contemplated by CPA:14 or any Subsidiary or Owning Entity.

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

          H.     CPA:14 and each Subsidiary and each Owning Entity has at all times been in material compliance
with and will continue to be in material compliance through the Closing Date with (a) the Patriot
Act, Pub. L. No. 107-56, the Bank Secrecy Act, 31 U.S.C. § 5311 et seq., the Money Laundering
Control Act of 1986, and laws relating to the prevention and detection of money laundering in 18
U.S.C. §§ 1956 and 1957; (b) the Export Administration Act (50 U.S.C. §§ 2401-2420), the
International Emergency Economic Powers Act (50 U.S.C. § 1701, et seq.), the Arms Export Control
Act (22 U.S.C. §§ 2778-2994), the Trading With The Enemy Act (50 U.S.C. app. §§ 1-44), and 13
U.S.C. Chapter 9 and (c) the Foreign Asset Control Regulations contained in 31 C.F.R., Subtitle B,
Chapter V.

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

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

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

“Environmental Laws” shall mean any law, statute, rule or regulation now or hereafter in
effect pertaining to Hazardous Substances, protection of the environment, or human health and
safety with respect to exposure to any Hazardous Substances, including, but not limited to, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. § 9601 et
seq.), the Hazardous Substances Transportation Act (49 U.S.C. § 1802 et seq.), the Resource
Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), as
amended by the 

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Hazardous and Solid
Wastes Amendments of 1984, the Water Pollution Control Act (33 U.S.C. § 1251 et seq.), the Safe
Drinking Water Act (42 U.S.C. § 300f et seq.), the Clean Water Act (33 U.S.C. § 1321 et seq.), the
Clean Air Act (42 U.S.C. § 7401 et seq.), the Solid Waste Disposal Act (42 U.S.C. § 6901 et seq.),
the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), the Emergency Planning and Community
Right-to-Know Act of 1986 (42 U.S.C. § 11001 et seq.), the Radon Gas and Indoor Air Quality
Research Act of 1986 (42 U.S.C. § 7401 et seq.), the National Environmental Policy Act (42 U.S.C. §
4321 et seq.), the Superfund Amendment Reauthorization Act of 1986 (42 U.S.C. § 9601 et seq.), and
the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.) and any similar state or local any
law, statute, rule or regulation.

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

     All representations and warranties of CPA:14 set forth in this Agreement and the conditions
and circumstances contained herein shall be effective, valid, true and correct on the Closing Date
and the representations and warranties of CPA:14 shall survive the Closing for a period of six (6)
months.

     9.     REPRESENTATIONS AND COVENANTS OF BUYER. Buyer expressly covenants, represents and
warrants to CPA:14, as follows:

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

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

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

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

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

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

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

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

          I.     Buyer does not intend to (a) enter into a definitive agreement within six (6) months after the
Closing Date hereunder to sell any of the Interests or their respective interests in any of the
Interests purchased under this Agreement or (b) otherwise sell and close on the conveyance of a
Property or otherwise transfer the Interests purchased under this Agreement within six (6) months
after the Closing Date.

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

     10.     PERMITTED ENCUMBRANCES. Upon Closing hereunder and transfer of the Interests to Buyer or REIT
II, the respective title of the applicable Owning Entity in and to the applicable Property shall be
subject only to: (i) zoning and/or restrictions and prohibitions imposed by governmental
authorities to which Buyer has not objected; (ii) covenants,
conditions, restrictions, easements and other matters of record or apparent from an inspection of the
Properties or a survey of the Properties, (iii) the Assumable Loans and the documents evidencing or
securing the Assumable Loans; and (iv) taxes and assessments which are a lien, but not yet due and
payable (collectively, the “Permitted Encumbrances”).

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

          (1)     Instruments transferring and conveying to Buyer (or REIT II) the memberships, shareholders
and/or partnership interest of CPA:14 in the applicable Subsidiary wholly owned directly by CPA:14,
which subsidiary owns directly or indirectly an interest in the Owning Entity which own the
respective Properties (“Transfer Documents”).

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

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

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

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

          (1)     Counterparts of the Transfer Documents, including the acceptance of the Interests and
assumptions of all terms, liabilities and obligations thereunder arising and accruing after the
Closing;

          (2)     A resolution from the Board of Directors of Buyer [and REIT II, to the extent REIT II acquires
any Interest] authorizing the purchase of the Interests; and

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

     12.     EXPENSES.

          A.     Buyer shall pay the following costs:

               (1)     The escrow fee;

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

               (3)     Loan assumption fees; and

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

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

     13.     PRORATION
OF RENTS AND INTEREST ON ASSUMABLE LOANS. CPA:14 shall pay or cause to be paid to
Buyer, in cash at Closing, the proportionate share (based on the percentage of ownership interest
in the applicable Owning Entity represented by the Interests; said percentages being hereinafter
collectively called the “Interest Percentages” or individually for each Property, the
“Interest Percentage”) of the amount of any prepaid rents and rents paid for the month in
which Closing occurs paid to each applicable Owning Entity by tenants as of the Proration Date.
The prorations of prepaid rents and rents shall be computed on a monthly basis based upon the
actual number of days in the calendar month. No proration shall be made for rents delinquent as of
the Closing Date (“Delinquent Rents”). Any Rents collected after Closing shall first be
applied to current rent and then to Delinquent Rents. In addition, the applicable Interest
Percentage of interest occurring under the Assumable Loans shall be prorated as of the Proration
Date. Further, at Closing, a credit in the amount of the Interest Percentage of the tenant
improvement allowance outstanding, if any, under the Lease to the tenant at the San Diego,
California Property owned by AMLN Landlord LLC shall be taken by the Buyer against the Cash
Purchase Price.

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

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

If to CPA:14 address as follows:

Corporate Property Associates 14 Incorporated

50 Rockefeller Plaza

New York City, NY 10020

Attn: Director, Asset Management

Fax Number: 212-492-8922

with a copy to:

Reed Smith, LLP

599 Lexington, Avenue

New York, NY 10022-7650

Attn: Ruth S. Perfido, Esq.

Fax Number: 212 521-5450

And to:

Greenberg Traurig, LLP

200 Park Avenue

New York, NY 10166

Attn: Judith D. Fryer, Esq.

Fax Number: 212-805-9330

If to Buyer, to the address as follows:

W.P. Carey & Co. LLC

50 Rockefeller Plaza

New York City, NY 10020

Attn: Director, Asset Management

Fax Number: 212-492-8922

with a copy to:

Reed Smith, LLP

599 Lexington, Avenue

New York, NY 10022-7650

Attn: Ruth S. Perfido, Esq.

Fax Number: 212 521-5450

And to:

Clifford Chance US, LLP

31 West 52nd Street

New York, NY 10019-6131

Attn: Kathleen L. Werner, Esq.

Fax Number: 212-878 8375

9

 

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

     17.     ATTORNEY’S
FEES AND COSTS. In connection with any litigation arising out of this
Agreement, each party shall pay its own legal fees and costs incurred in connection with such
litigation, appellate proceedings and post-judgment proceedings.

     18.     BROKERAGE. Buyer and CPA:14 each represent and warrant to the other that neither has
had any dealings with any person, firm, broker or finder in connection with the negotiations of
this Agreement and/or the consummation of the purchase and sale contemplated hereby, and no broker
or person, firm or entity is entitled to any commission or finder’s fee in connection with this
Agreement or this transaction. Buyer and CPA:14 do each hereby indemnify, defend, protect and hold
the other harmless from and against any costs, expenses or liability for compensation, commission
or charges which may be claimed by any broker, finder or other similar party by reason of any
actions of the indemnifying party.

     19.     CONDEMNATION
AND CASUALTY.

          A.     CONDEMNATION. Buyer hereby agrees to assume the risk during the term of this Agreement for
any threatened or commenced condemnation or eminent domain. CPA:14 shall promptly notify Buyer of
any threatened or commenced condemnation or eminent domain proceedings affecting any Property to
the extent that Buyer, as owner directly or indirectly of an interest in the Owning Entities, has
not otherwise been advised of the same. In the event that all or any portion of a Property shall
be taken in condemnation or by conveyance in lieu thereof or under the right of eminent domain or
formal proceedings have been initiated therefor after the Effective Date and before the Closing
Date, Buyer, nonetheless, shall be obligated to proceed to close the transaction contemplated
herein pursuant to the terms hereof, in which event CPA:14 shall deliver to Buyer or REIT II, as
applicable, at the Closing any proceeds actually received by such CPA:14 attributable to such
Property from such condemnation or eminent domain proceeding or conveyance in lieu thereof and
assign to Buyer or REIT II, as applicable, the rights of CPA:14 to any such proceeds not yet
received by it, and there shall be no reduction in the allocated portion of the Purchase Price for
such Property.

          B.     CASUALTY. Buyer hereby agrees to assume the risk during the term of this Agreement for any
casualty or damage affecting any Property. CPA:14 shall promptly notify Buyer of any casualty
affecting any Property to the extent that Buyer, as owner directly or indirectly of an interest in
the Owning Entities, has not otherwise been advised of the same. In the event that all or any
portion of a Property shall be damaged or destroyed by fire or other casualty after the Effective
Date and before the Closing Date, Buyer, nonetheless, shall be obligated to close the transaction
contemplated herein according to the terms hereof, notwithstanding such casualty loss, and CPA:14
shall either (i) deliver to Buyer or REIT II, as applicable, at the Closing any insurance proceeds
actually received by CPA:14 attributable to the

10

 

Property from such casualty, or (ii) assign to
Buyer or all of the right, title, and interest of CPA:14 in any claim under any applicable
insurance policies in respect of such casualty, together with payment to Buyer of an amount equal
to the Interest Percentage of the deductible(s), if any, applicable to such loss under the
insurance policy(ies), and there shall be no reduction in the allocated portion of the Purchase
Price for such Property.

     20.     DEFAULT.

          A.     CPA:14 DEFAULT; BUYER’S SOLE REMEDIES. If, after written demand, CPA:14 fails to
consummate this Agreement in accordance with its terms (other than by reason of (i) Buyer’s breach
of any of its representations or warranties contained in this Agreement; (ii) Buyer’s continuing
default of any of its material covenants hereunder after ten (10) days’ prior written notice of
such default; (iii) a termination of this Agreement by Sellers or Buyer pursuant to a right to do
so expressly provided for in this Agreement; or (iv) the failure of the satisfaction of any
condition or contingency herein that is within the control of Buyer to satisfy), Buyer may either
(1) terminate this Agreement by written notice to CPA:14, in which event all further rights and
obligations of the parties hereunder will terminate or (2) pursue specific performance of this
Agreement, provided, however, that such action in equity for specific performance is commenced by
Buyer duly and properly filing and serving a complaint within sixty (60) days after the Outside
Closing Date (as hereinafter defined). Notwithstanding anything to the contrary in this Agreement,
the Buyer may not terminate this Agreement or refuse to close the transactions contemplated hereby
unless the breach of a representation, warranty or covenant by CPA:14 has a material adverse effect
on the Properties, taken as a whole. In the event of any continuing default by CPA:14 after
Closing in any of its representations, warranties or covenants in this Agreement which survive
Closing or any documents delivered by CPA:14 at Closing, and such default continues for more than
thirty (30) days after written notice of such default from Buyer, Buyer shall be entitled to pursue
its remedies available at law or in equity.

          B.     BUYER’S DEFAULT; CPA:14’S SOLE REMEDIES. If after written demand, Buyer fails to
consummate this Agreement in accordance with its terms (other than by

reason of (i) breach by CPA:14 of any of its representations or warranties contained in this
Agreement; (ii) the continuing default by CPA:14 of any of its material covenants after ten (10)
days’ prior written notice of such default; (iii) a termination of this Agreement by CPA:14 or
Buyer pursuant to a right to do so expressly provided for in this Agreement; or (iv) the failure of
the satisfaction of any condition or contingency herein that is within the control of CPA:14 to
satisfy), CPA:14 may either terminate this Agreement, in which event all further rights and
obligations of the parties hereunder will terminate, or CPA:14 may also pursue specific performance
of this Agreement; provided, however, that such action in equity for specific performance is
commenced by CPA:14 duly and properly filing a complaint within sixty (60) days after the Outside
Closing Date (as hereinafter defined). Notwithstanding anything to the contrary in this Agreement,
CPA:14 may not terminate this Agreement or refuse to close the transactions contemplated hereby
unless the breach of a representation, warranty or covenant by the Buyer has a material adverse
effect on the Properties, taken as a whole. Buyer acknowledges that monetary damages are not
sufficient to adequately compensate CPA:14 for a default by Buyer hereunder. In the event of
Buyer’s continuing default after Closing in any of its representations, warranties or covenants in
this Agreement which survive Closing or any documents delivered by Buyer at Closing, and such
default continues for more than thirty (30) days after written notice of such default from CPA:14,
CPA:14 shall be entitled to pursue any remedies available at law or in equity.

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

11

 

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

               (b)     by CPA:14, upon a breach of any representation, warranty, covenant or agreement on the part of
Buyer set forth in this Agreement that has a material adverse effect on the Properties, taken as a
whole;

               (c)     by Buyer, upon a breach of any representation, warranty, covenant or agreement on the part of
CPA:14 set forth in this Agreement that has a material adverse effect on the Properties, taken as a
whole;

               (d)     by either Buyer or CPA:14, if any judgment, injunction, order, decree or action by any
governmental entity of competent authority preventing the consummation of the transactions
contemplated hereby shall have become final and non-appealable after the parties have used
reasonable best efforts to have such judgment, injunction, order, decree or action removed,
repealed or overturned;

               (e)     by either Buyer or CPA:14, if the agreement and plan of merger referred to in Section 5 hereof
is terminated prior to the Closing hereunder pursuant to its terms; and

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

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

     22.     PERSONS
BOUND. The benefits and obligations of the covenants herein shall inure to and bind
the respective successors and assigns of the parties hereto. Whenever used, the singular number
shall include the plural, the plural the singular and the use of any gender shall include all
genders.

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

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

     25.     EXECUTION
AND COUNTERPARTS; FACSIMILES. This Agreement may be executed in counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
agreement. This Agreement shall not bind CPA:14 or Buyer as an offer or an agreement unless signed
by the person or party sought to be bound. Facsimile transmissions and other copies of executed
documents shall serve the same purpose as originals in connection with the terms of this Agreement
and any notices required to be or given hereunder may be delivered by facsimile transmission in the
manner provided in Section 15. The transmittal of an unexecuted draft of this document for
purposes of review shall not be considered an offer to enter into an agreement.

12

 

     26.     AMENDMENT. This Agreement may not be modified or amended, except by an agreement in writing
signed by CPA:14 and Buyer. The parties may waive any of the conditions contained herein or any of
the obligations of the other party hereunder, but any such waiver shall be effective only if in
writing and signed by the party waiving such conditions or obligations.

     27.     REASONABLE
BEST EFFORTS. Upon the terms and subject to the conditions set forth in this
Agreement and compliance with applicable law and the other terms of this agreement, each of CPA:14
and the Buyer agrees to use its reasonable best efforts to take, or cause to be taken, all actions
and to do, or cause to be done, and to assist and cooperate with the other in doing, all things
necessary, proper or advisable to fulfill all conditions applicable to such party pursuant to this
Agreement and to consummate and make effective, in the most expeditious manner practicable, the
transactions contemplated by this Agreement, including (i) the obtaining of all necessary actions
or nonactions, waivers, consents and approvals from governmental entities and the making of all
necessary registrations and filings and the taking of all reasonable steps as maybe necessary to
obtain an approval, waiver or exemption from any governmental entity, (ii) the obtaining of all
necessary consents, approvals, waivers or exemption from non-governmental third parties; and (iii)
the execution and delivery of any additional instruments necessary to consummate the transactions
contemplated by, and to fully carry out the purposes of, this Agreement. Nothing herein however,
shall require either CPA:14 or the Buyer to increase any of its respective liabilities or
obligations hereunder.

     28.     EQUITABLE ASSIGNMENT. To the extent the deliverables contemplated by Section 11 are third
party consents or waivers which are required to be obtained under applicable law or the terms of a
governing agreement in order to effect the transactions hereunder with respect to an applicable
Property or Interest, but such consents or waivers have not been obtained at Closing, if the
parties are otherwise required to close under the terms of Section 5, then the parties shall close
the transactions hereunder but with respect to such outstanding deliverables, the parties shall
continue to seek to obtain such consent or waiver, and until such time as it is obtained, the
parties shall not transfer the Interest in breach of the applicable restrictions and
instead shall enter into an equitable arrangement providing the Buyer or REIT II, as
applicable, the benefits and risks of ownership with respect to the Interest for which the consent
or waiver has not been obtained.

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

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

(signature blocks on the following pages)

13

 

	 	 	 	 	 
	 	BUYER: 

W.P. CAREY & CO. LLC,

a Delaware limited liability company

 	 

	 	 	 	 	 
	 	By:  	 	 
	 	 	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/
Thomas Zacharias	 
	 	 	 	 
	 	Its:  	Managing
Director and Chief Operating Officer	 

	 	 	 	 	 
	 	

CPA:14:

CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED,

a Maryland corporation

 	 
	 	By:  	/s/
Susan C. Hyde	 
	 	 	 	 
	 	Its:  	Managing
Director and Secretary	 
	 

15exv10w1

Exhibit 10.1

EXECUTION VERSION

AGREEMENT AND PLAN OF MERGER

Dated as of December 13, 2010

by and among

CORPORATE PROPERTY ASSOCIATES 16 — GLOBAL INCORPORATED,

CPA 16 ACQUISITION INC.,

CPA 16 HOLDINGS INC.,

CPA 16 MERGER SUB INC.,

CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED,

CPA 14 SUB INC.

W. P. CAREY & CO. LLC

and, for the limited purposes set forth in Section 4.3,

CAREY ASSET MANAGEMENT CORP.

and

W. P. CAREY & CO. B.V.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Article I The Merger
	 	 	3	 
	 
	 	 	 	 
	Section 1.1. The Merger
	 	 	3	 
	Section 1.2. Closing
	 	 	3	 
	Section 1.3. Effective Time
	 	 	3	 
	Section 1.4. Charter and Bylaws
	 	 	3	 
	Section 1.5. Directors and Officers of the Surviving Company
	 	 	3	 
	Section 1.6. Merger Consideration
	 	 	3	 
	Section 1.7. Dissenters Rights
	 	 	4	 
	Section 1.8. Adjustments to Merger Consideration
	 	 	5	 
	Section 1.9. Recordation of Exchange; Payment of Merger Consideration
	 	 	5	 
	 
	 	 	 	 
	Article II Representations and Warranties
	 	 	6	 
	 
	 	 	 	 
	Section 2.1. Representations and Warranties of CPA14
	 	 	6	 
	Section 2.2. Representations and Warranties of CPA16 and Merger Sub
	 	 	20	 
	Section 2.3. Representations and Warranties of W. P. Carey
	 	 	34	 
	 
	 	 	 	 
	Article III Covenants Relating to Conduct of Business Pending the Merger
	 	 	35	 
	 
	 	 	 	 
	Section 3.1. Conduct of Business by CPA14
	 	 	35	 
	Section 3.2. Conduct of Business by CPA16
	 	 	38	 
	Section 3.3. No Control of Other Party’s Business
	 	 	41	 
	 
	 	 	 	 
	Article IV Additional Covenants
	 	 	41	 
	 
	 	 	 	 
	Section 4.1. Preparation of the Form S-4 and the Joint Proxy Statement/Prospectus;
Stockholders Meetings
	 	 	41	 
	Section 4.2. Reasonable Best Efforts
	 	 	43	 
	Section 4.3. Financing
	 	 	44	 
	Section 4.4. Tax Treatment
	 	 	46	 
	Section 4.5. No Solicitation of Transactions
	 	 	46	 
	Section 4.6. Public Announcements
	 	 	48	 
	Section 4.7. Transfer and Gains Taxes
	 	 	48	 
	Section 4.8. Indemnification; Directors’ and Officers’ Insurance
	 	 	48	 
	Section 4.9. Purchases and Redemptions of CPA14 Common Stock
	 	 	49	 
	Section 4.10. Access; Confidentiality
	 	 	49	 
	Section 4.11. Sale Agreements
	 	 	49	 
	Section 4.12. Reorganization
	 	 	49	 
	 
	 	 	 	 
	Article V Conditions Precedent
	 	 	50	 
	 
	 	 	 	 
	Section 5.1. Conditions to Each Party’s Obligation to Effect the Merger
	 	 	50	 
	Section 5.2. Conditions to Obligations of CPA16, Holdings, Acquisition and Merger Sub
	 	 	50	 
	Section 5.3. Conditions to Obligations of CPA14
	 	 	52	 

- i -

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Article VI Board Actions
	 	 	53	 
	 
	 	 	 	 
	Section 6.1. Board Actions
	 	 	53	 
	 
	 	 	 	 
	Article VII Termination, Amendment and Waiver
	 	 	53	 
	 
	 	 	 	 
	Section 7.1. Termination
	 	 	53	 
	Section 7.2. Expenses
	 	 	55	 
	Section 7.3. Effect of Termination
	 	 	56	 
	Section 7.4. Amendment
	 	 	56	 
	Section 7.5. Extension; Waiver
	 	 	56	 
	Section 7.6. Payment of Expenses
	 	 	56	 
	 
	 	 	 	 
	Article VIII General Provisions
	 	 	57	 
	 
	 	 	 	 
	Section 8.1. Nonsurvival of Representations and Warranties
	 	 	57	 
	Section 8.2. Notices
	 	 	58	 
	Section 8.3. Interpretation
	 	 	59	 
	Section 8.4. Counterparts
	 	 	59	 
	Section 8.5. Entire Agreement; No Third-Party Beneficiaries
	 	 	59	 
	Section 8.6. Governing Law
	 	 	59	 
	Section 8.7. Assignment
	 	 	59	 
	Section 8.8. Enforcement
	 	 	59	 
	Section 8.9. Waiver of Jury Trial
	 	 	60	 
	Section 8.10. Exhibits; Disclosure Letters
	 	 	60	 
	Section 8.11. Conflict Waiver
	 	 	60	 
	 
	 	 	 	 
	Article IX Certain Definitions
	 	 	60	 
	 
	 	 	 	 
	Section 9.1. Certain Definitions
	 	 	60	 
	 
	 	 	 	 
	Article X Alternate Merger
	 	 	63	 
	 
	 	 	 	 
	Section 10.1. Introduction
	 	 	63	 
	Section 10.2. Alternate Merger and Consideration
	 	 	63	 
	Section 10.3. Transfer Taxes
	 	 	64	 
	Section 10.4. Representations and Warranties of Holdings, Acquisition and CPA14 Sub
	 	 	64	 
	Section 10.5. Guaranty of Obligations of Holdings by CPA16
	 	 	65	 
	Section 10.6. Further Action
	 	 	65	 
	Section 10.7. Conditions Precedent
	 	 	66	 
	Section 10.8. Additional Covenant
	 	 	66	 
	Section 10.9. Dissenters Rights
	 	 	66	 

- ii -

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	EXHIBITS
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Exhibit A

	 	—
	 	Form of CPA17 Sale Agreement
	 	Exh. A-1
	Exhibit B

	 	—
	 	Form of W. P. Carey Sale Agreement
	 	Exh. B-1
	Exhibit C

	 	—
	 	Form of Indemnification Agreement
	 	Exh. C-1
	Exhibit D

	 	—
	 	Form of Letter Agreement
	 	Exh. D-1
	Exhibit E

	 	—
	 	Articles of Merger
	 	Exh. E-1
	Exhibit F

	 	—
	 	Commitment Letters
	 	Exh. F-1
	 
	ANNEXES
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Annex A

	 	—
	 	Post-Merger Reorganized Structure of CPA16
	 	Annex A-1
	 
	 	 	 	 	 	 
	SCHEDULES
	 	 	 	 	 	 
	 
	Schedule 2.2(w)(i)

	 	—
	 	Repayment of Property Indebtedness
	 	Sch. 2.2(w)(i)-1
	Schedule 4.12(b)

	 	—
	 	CPA16 — Revised Advisory Fees and Special
General Partner Distributions after Reorganization
	 	Sch. 4.12(b)-1

- iii -

 

INDEX OF DEFINED TERMS

	 	 	 	 	 

	Acquisition
	 	 	1	 
	Acquisition Common Stock
	 	 	65	 
	Affiliate
	 	 	60	 
	Agreement
	 	 	1	 
	Alternate Financing
	 	 	45	 
	Alternate Merger
	 	 	2	 
	Articles of Merger
	 	 	3	 
	Asset Management Agreement
	 	 	44	 
	Business Day
	 	 	60	 
	CAM
	 	 	1	 
	CAM Fees
	 	 	44	 
	Cash Consideration
	 	 	4	 
	CERCLA
	 	 	15	 
	Claim
	 	 	48	 
	Closing
	 	 	3	 
	Closing Date
	 	 	3	 
	Code
	 	 	1	 
	Commitment
	 	 	36	 
	Commitment Letter
	 	 	33	 
	Competing Transaction
	 	 	47	 
	CPA14
	 	 	1	 
	CPA14 Advisory Agreement
	 	 	36	 
	CPA14 Advisory Agreements
	 	 	44	 
	CPA14 Bylaws
	 	 	7	 
	CPA14 Charter
	 	 	7	 
	CPA14 Common Stock
	 	 	3	 
	CPA14 Disclosure Letter
	 	 	6	 
	CPA14 Expenses
	 	 	55	 
	CPA14 Intangible Property
	 	 	14	 
	CPA14 Leases
	 	 	18	 
	CPA14 Material Adverse Effect
	 	 	60	 
	CPA14 Material Contracts
	 	 	19	 
	CPA14 Permits
	 	 	11	 
	CPA14 Properties
	 	 	16	 
	CPA14 Property
	 	 	16	 
	CPA14 Property Restrictions
	 	 	17	 
	CPA14 Rent Roll
	 	 	18	 
	CPA14 SEC Documents
	 	 	9	 
	CPA14 Special Committee
	 	 	1	 
	CPA14 Special Distribution
	 	 	2	 
	CPA14 Stockholder Approval
	 	 	19	 
	CPA14 Stockholder Meeting
	 	 	8	 
	CPA14 Stockholders
	 	 	3	 
	CPA14 Sub
	 	 	1	 
	CPA14 Sub Common Stock
	 	 	65	 
	CPA14 Subsidiary
	 	 	61	 
	CPA14 Tenant
	 	 	60	 
	CPA16
	 	 	1	 
	CPA16 Advisory Agreement
	 	 	39	 
	CPA16 Bylaws
	 	 	22	 
	CPA16 Capital Increase
	 	 	21	 
	CPA16 Charter
	 	 	21	 
	CPA16 Common Stock
	 	 	3	 
	CPA16 Disclosure Letter
	 	 	20	 
	CPA16 Expenses
	 	 	55	 
	CPA16 Intangible Property
	 	 	27	 
	CPA16 Leases
	 	 	30	 
	CPA16 Material Adverse Effect
	 	 	61	 
	CPA16 Material Contracts
	 	 	32	 
	CPA16 Permits
	 	 	24	 
	CPA16 Properties
	 	 	29	 
	CPA16 Property
	 	 	29	 
	CPA16 Property Restrictions
	 	 	29	 
	CPA16 Rent Roll
	 	 	30	 
	CPA16 SEC Documents
	 	 	23	 
	CPA16 Special Committee
	 	 	1	 
	CPA16 Stockholder Approvals
	 	 	31	 
	CPA16 Stockholder Meeting
	 	 	22	 
	CPA16 Stockholders
	 	 	22	 
	CPA16 Subsidiary
	 	 	62	 
	CPA16 Tenant
	 	 	61	 
	CPA17
	 	 	2	 
	CPA17 Sale Agreement
	 	 	2	 
	CPA17 Sale of Assets
	 	 	2	 
	Debt Financing
	 	 	33	 
	Dissenting Shares
	 	 	4	 
	Dissenting Stockholder
	 	 	4	 
	Effective Time
	 	 	3	 
	Employee Benefit Plans
	 	 	62	 
	Environmental Law
	 	 	15	 
	Equity Financing
	 	 	44	 
	Exchange Act
	 	 	9	 
	Exchange Fund
	 	 	5	 
	Exchange Ratio
	 	 	4	 
	Expense Amount
	 	 	56	 
	Extended Termination Date
	 	 	54	 
	Financing Condition
	 	 	51	 
	Form S-4
	 	 	41	 
	GAAP
	 	 	61, 62	 
	Governmental Entity
	 	 	6	 

- iv -

 

INDEX OF DEFINED TERMS

(continued)

	 	 	 	 	 

	Hazardous Material
	 	 	15	 
	Holdings
	 	 	1	 
	Holdings Common Stock
	 	 	63	 
	indebtedness
	 	 	11	 
	Indemnification Agreement
	 	 	2	 
	Indemnified Parties
	 	 	48	 
	IRS
	 	 	62	 
	Joint Proxy Statement/Prospectus
	 	 	41	 
	Knowledge
	 	 	62	 
	Law
	 	 	62	 
	Letter Agreement
	 	 	2	 
	Lien
	 	 	7	 
	Liens
	 	 	7	 
	Merger
	 	 	1	 
	Merger Consideration
	 	 	4	 
	Merger Sub
	 	 	1	 
	Merger Sub Bylaws
	 	 	3	 
	Merger Sub Charter
	 	 	3	 
	MGCL
	 	 	3	 
	New Commitment Letter
	 	 	45	 
	Operating Partnership
	 	 	2	 
	Paying and Exchange Agent
	 	 	5	 
	PCBs
	 	 	15	 
	Person
	 	 	62	 
	Qualifying Income
	 	 	57	 
	Receiving Party
	 	 	56	 
	REIT
	 	 	13	 
	Release
	 	 	15	 
	Reorganization
	 	 	2	 
	Reorganization Opinions
	 	 	4	 
	Required Cash Amounts
	 	 	34	 
	SDAT
	 	 	3	 
	SEC
	 	 	9	 
	Securities Act
	 	 	9	 
	Senior Credit Facility
	 	 	33	 
	SOX Act
	 	 	9	 
	Stock Consideration
	 	 	4	 
	Subordinated Disposition Fee
	 	 	44	 
	Subsidiary
	 	 	62	 
	Superior Competing Transaction
	 	 	47	 
	Surviving Company
	 	 	3, 63	 
	Takeover Statute
	 	 	20	 
	Tax
	 	 	62	 
	Tax Protection Agreement
	 	 	62	 
	Tax Return
	 	 	63	 
	Taxes
	 	 	62	 
	Termination Date
	 	 	54	 
	Termination Fee
	 	 	44	 
	Transaction Document
	 	 	8	 
	Transaction Documents
	 	 	8	 
	Transfer and Gains Taxes
	 	 	48	 
	Voting Debt
	 	 	63	 
	W. P. Carey
	 	 	1	 
	W. P. Carey B.V.
	 	 	1	 
	W. P. Carey Sale Agreement
	 	 	2	 
	W. P. Carey Sale of Assets
	 	 	2	 

- v -

 

     AGREEMENT AND PLAN OF MERGER (this “Agreement”), dated as of December 13, 2010,
by and among Corporate Property Associates 16 — Global Incorporated, a Maryland corporation
(“CPA16”), CPA 16 Acquisition Inc., a Maryland corporation (“Acquisition”), CPA 16
Holdings Inc., a Maryland corporation (“Holdings”), CPA 16 Merger Sub Inc., a Maryland
corporation (“Merger Sub”), Corporate Property Associates 14 Incorporated, a Maryland
corporation (“CPA14”), CPA 14 Sub Inc., a Maryland corporation (“CPA14 Sub”), W. P.
Carey & Co. LLC, a Delaware limited liability company and the ultimate parent of the external
manager of CPA14 and CPA16 (“W. P. Carey”), and, for the limited purposes set forth in
Section 4.3, Carey Asset Management Corp. (“CAM”) and W. P. Carey & Co. B.V. (“W. P.
Carey B.V.”), each a subsidiary of W. P. Carey.

RECITALS

     A. CPA14, CPA16 and Merger Sub intend, upon the terms and subject to the conditions set forth
in this Agreement, to merge CPA14 with and into Merger Sub (the “Merger”), with Merger Sub
surviving the Merger as an indirect subsidiary of CPA16.

     B. A special committee of independent directors of the Board of Directors of CPA14 (the
“CPA14 Special Committee”) has unanimously (i) determined that this Agreement, and the
transactions contemplated hereby and by the Transaction Documents, including the Merger, are in the
best interests of CPA14 and the CPA14 Stockholders and (ii) recommended to the Board of Directors
of CPA14 that it approve and declare advisable this Agreement, and the transactions contemplated
hereby and by the Transaction Documents, including the Merger, upon the terms and conditions
contained herein and therein.

     C. A special committee of independent directors of the Board of Directors of CPA16 (the
“CPA16 Special Committee”) has unanimously (i) determined that this Agreement, and the
transactions contemplated hereby and by the Transaction Documents, including the Merger, the
Reorganization and the CPA16 Capital Increase, are in the best interests of CPA16 and the CPA16
Stockholders and (ii) recommended to the Board of Directors of CPA16 that it approve and declare
advisable this Agreement, and the transactions contemplated hereby and by the Transaction
Documents, including the Merger, the Reorganization and the CPA16 Capital Increase, upon the terms
and conditions contained herein and therein.

     D. This Agreement, and the transactions contemplated hereby and by the Transaction Documents,
including the Merger, have been approved by (i) the Board of Directors of CPA14, including a
majority of the independent directors and a majority of the directors who are not interested in the
Merger and the other transactions contemplated by the Transaction Documents, following the
recommendation of the CPA14 Special Committee, (ii) the Board of Directors of CPA16, including a
majority of the independent directors and a majority of the directors who are not interested in the
Merger and the other transactions contemplated by the Transaction Documents, following the
recommendation of the CPA16 Special Committee and (iii) the respective boards of directors of
Merger Sub and W. P. Carey and, in the case of the Alternate Merger, the respective boards of
directors of Holdings, Acquisition and CPA14 Sub.

     E. For U.S. federal income Tax purposes, it is intended that (a) the Merger shall qualify as a
reorganization within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as
amended (the “Code”), (b) this Agreement constitutes, and is hereby adopted as, a plan of
reorganization within the meaning of Section 354 of the Code, and (c) CPA14 and Merger Sub will
each be a party to such reorganization within the meaning of Section 368(b) of the Code.

- 1 -

 

     F. In the event CPA14 and Merger Sub do not receive opinions of counsel that the Merger will
qualify as a reorganization under the Code, (i) CPA14 Sub will be merged with and into CPA14
whereupon CPA14 will be the surviving company and CPA14 Sub will cease to exist and (ii)
Acquisition will be merged with and into CPA16, whereupon CPA16 will be the surviving company and
Acquisition will cease to exist (together, the “Alternate Merger”).

     G. In connection with the Merger, or if Article X is applicable, the Alternate Merger, CPA16
will implement an internal reorganization pursuant to which CPA16 will be reorganized as an
umbrella partnership real estate investment trust, or UPREIT (the “Reorganization”), to
hold substantially all of its assets and liabilities in CPA 16 Limited Partnership, a Delaware
limited partnership (the “Operating Partnership”) and (i) CAM will enter into an amended
advisory agreement with CPA16 and the Operating Partnership and (ii) W. P. Carey B.V. will enter
into an amended asset management agreement with CPA16 and the Operating Partnership, each to
reflect the revised fee structure set forth in Schedule 4.12(b) hereto; provided that the CPA16
Stockholders approve the Reorganization at the CPA16 Stockholder Meeting. The structure of CPA16
following the consummation of the Merger, or if Article X is applicable, the Alternate Merger, and
the Reorganization shall be substantially as set forth on Annex A.

     H. In connection with and as a condition to the consummation of the Merger, CPA14 intends to
sell certain of CPA14’s joint venture interests to Corporate Property Associates 17 — Global
Incorporated, a Maryland corporation (“CPA17”), in exchange for cash (the “CPA17 Sale
of Assets”) pursuant to an Agreement for Sale and Purchase among the parties dated as of the
date hereof (the “CPA17 Sale Agreement”), in substantially the form set forth as
Exhibit A.

     I. In connection with and as a condition to the consummation of the Merger, CPA14 also intends
to sell certain of CPA14’s joint venture interests to W. P. Carey in exchange for cash (the “W.
P. Carey Sale of Assets”) pursuant to an Agreement for Sale and Purchase among the parties
dated as of the date hereof (the “W. P. Carey Sale Agreement”), in substantially the form
set forth as Exhibit B.

     J. After the approval of the Merger by the CPA14 Stockholders, or if Article X is applicable,
after the approval of the Alternate Merger by the CPA14 Stockholders and the CPA16 Stockholders,
but prior to the Effective Time, CPA14 intends to make a pro rata special distribution of $1.00 per
share to its stockholders, representing the aggregate net proceeds of the CPA17 Sale of Assets and
the W. P. Carey Sale of Assets plus additional cash amounts (the “CPA14 Special
Distribution”).

     K. Simultaneous with the parties entering into this Agreement, and as a condition and
inducement to the willingness of CPA16 and Merger Sub (or if Article X is applicable, Holdings) to
enter into this Agreement and consummate the transactions contemplated hereby, CPA16, Merger Sub
and Holdings have required (i) CAM to enter into the indemnification agreement (the
“Indemnification Agreement”) set forth as Exhibit C, which, by its terms, will
automatically become effective as of the Effective Time and (ii) CAM and W. P. Carey B. V. to enter
into the letter
agreement (the “Letter Agreement”) set forth as Exhibit D, which, by its
terms, will automatically become effective as of the Effective Time.

     L. The parties desire to make certain representations, warranties, covenants and agreements in
connection with the transactions contemplated by this Agreement.

AGREEMENT

     In consideration of the premises and the mutual representations, warranties, covenants and
agreements contained in this Agreement, the parties hereto hereby agree as follows:

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ARTICLE I

THE MERGER

     Section 1.1. The Merger. Upon the terms and subject to the conditions set forth in this Agreement
and in accordance with Section 3-114 of the Maryland General Corporation Law (the “MGCL”)
and subject to the applicability of Article X, CPA14 shall be merged with and into Merger Sub, with
Merger Sub surviving the Merger as a subsidiary of CPA16. Merger Sub, as the surviving
corporation after the Merger, is sometimes referred to herein as the “Surviving Company”.

     Section 1.2. Closing. The closing (the “Closing”) of the Merger will take place commencing
at 10:00 a.m., local time, on a date to be specified by the parties, which shall be no later than
the third Business Day after satisfaction or waiver of the conditions set forth in
 Article V (other than those conditions that by their nature are to be satisfied at the
Closing, but subject to the satisfaction or waiver of those conditions), at the offices of Clifford
Chance US LLP, 31 West 52nd Street, New York, New York 10019, or at such other time and place as is
agreed to in writing by the parties hereto (the date on which the Closing takes place, the
“Closing Date”).

     Section 1.3. Effective Time. Upon the terms and subject to the conditions set forth herein, as
part of the Closing, CPA14 and Merger Sub shall execute articles of merger (the “Articles of
Merger”) in substantially the form attached hereto as Exhibit E and shall file such
Articles of Merger in accordance with the MGCL with the State Department of Assessments and
Taxation of Maryland (the “SDAT”) and shall make all other filings and recordings required
under the MGCL with respect to the Merger. The Merger shall become effective at such time as CPA14
and CPA16 shall agree should be specified in the Articles of Merger (such time as the Merger
becomes effective, the “Effective Time”); provided that such time does not exceed 30 days
after the Articles of Merger are accepted for record. Unless otherwise agreed, the parties shall
cause the Effective Time to occur on the Closing Date.

     Section 1.4. Charter and Bylaws. The articles of incorporation of Merger Sub (the “Merger Sub
Charter”) and the bylaws of Merger Sub (the “Merger Sub Bylaws”) as in effect
immediately prior to the Effective Time of the Merger, shall, except for any required amendments,
continue in full force and effect after the Merger as the charter and bylaws of the Surviving
Company, until further amended in accordance with the respective terms of such charter and bylaws
and applicable Maryland Law.

     Section 1.5. Directors and Officers of the Surviving Company. Unless otherwise determined by CPA14
and CPA16, from and after the Effective Time (i) the directors of Merger Sub immediately prior to
the Effective Time shall be the directors of the Surviving Company, and (ii) the
officers of Merger Sub immediately prior to the Effective Time shall be the officers of the
Surviving Company, in each case until duly removed or replaced in accordance with the bylaws of the
Surviving Company and the MGCL.

     Section 1.6. Merger Consideration.

     (a) As of the Effective Time, pursuant to this Agreement and by virtue of the Merger and
without any further action on the part of CPA14, CPA16, Merger Sub or any stockholder of CPA14 (the
stockholders of CPA14, the “CPA14 Stockholders”), each share of CPA14’s common stock, $.001
par value per share (“CPA14 Common Stock”), outstanding immediately prior to the Effective
Time shall be cancelled and, in exchange for cancellation of such share, the rights attaching to
such share shall be converted into the right to receive, at the election of each CPA14 Stockholder,
either: (i) subject to the application of Article X, that number of shares of CPA16’s common stock,
$.001 par value per share (“CPA16 Common Stock”), equal to the product of (A) the number of
shares of CPA14 Common Stock

- 3 -

 

owned by such CPA14 Stockholder and (B) 1.1932 (the “Exchange
Ratio,” such product being referred to herein as the “Stock Consideration”), together
with cash in lieu of any fractional shares, or (ii) an amount of cash equal to the product of (A)
the number of shares of CPA14 Common Stock owned by such CPA14 Stockholder and (B) $10.50 (the
“Cash Consideration,” and together with the Stock Consideration, the “Merger
Consideration”). CPA14 Stockholders must make their election at the time they cast their vote
either in favor of or against the Merger and such election may be revoked as set forth in the Joint
Proxy Statement/Prospectus. CPA14 Stockholders who do not vote with respect to the Merger or who
abstain from making any election with respect to the Merger Consideration will be deemed to have
elected to receive the Stock Consideration pursuant to Section 1.6(a)(i) above.

     (b) At the Effective Time, all shares of CPA14 Common Stock shall no longer be outstanding and
shall automatically be canceled and shall cease to exist, and each holder of CPA14 Common Stock
shall cease to have any rights with respect thereto, except the right to receive the Merger
Consideration described above.

     (c) In the event the respective legal counsels to CPA14 and Merger Sub are unable to deliver
the opinions set forth in Sections 5.2(g) and 5.3(f), respectively, that the transaction described
in Sections 1.1 through Section 1.6 will qualify as a reorganization within the meaning of Section
368(a) of the Code (the “Reorganization Opinions”), then, in addition to the transactions
contemplated by Section 1.1 through Section 1.6, the provisions of Article X shall automatically
apply. The provisions of Article X shall apply if and only if the legal counsel to CPA14, and the
legal counsel to CPA16 and Merger Sub are unable to deliver the Reorganization Opinions.

     Section 1.7. Dissenters Rights.

     (a) Notwithstanding any provision of this Agreement to the contrary, to the extent that the
right to demand payment of fair value of the CPA14 Common Stock in connection with the Merger is
available under the MGCL, any outstanding shares of CPA14 Common Stock held by a Dissenting
Stockholder (“Dissenting Shares”) shall not be converted into the Merger Consideration but
shall become the right to receive such consideration as may be determined to be due to such
Dissenting Stockholder pursuant to the MGCL; provided, however, that each share of CPA14 Common
Stock outstanding immediately prior to the Effective Time and held by a Dissenting Stockholder who,
after the Effective Time, withdraws his demand or fails to perfect or otherwise loses his right to
receive payment of fair value, pursuant to the MGCL, shall be deemed to be converted as of the
Effective Time into the right to receive the Merger Consideration, in the form of CPA16 Common
Stock,
without interest. As used in this Agreement, “Dissenting Stockholder” means any
record holder or beneficial owner of shares of CPA14 Common Stock who is entitled to demand and
receive payment of the fair value of such holder’s shares pursuant to Section 3-202 of the MGCL and
who does not vote for the Merger and complies with all provisions of the MGCL (including all
provisions of Section 3-203 of the MGCL) concerning the right of holders of shares of CPA14 Common
Stock to object to the Merger and obtain fair value for their shares.

     (b) CPA14 shall give CPA16 (i) prompt notice of any demands for payment of fair value pursuant
to the applicable provisions of the MGCL received by CPA14, attempted withdrawals of such demands,
and any other instruments served pursuant to the MGCL and received by CPA14 relating to rights of
appraisal and (ii) the opportunity to participate in and direct the conduct of all negotiations and
proceedings with respect to demands for payment of fair value under the MGCL. CPA14 shall not,
except with the prior written consent of CPA16, make any payment with respect to any such demands
for payment of fair value, or settle, or offer to settle, or otherwise negotiate any such demands
for payment of fair value.

- 4 -

 

     Section 1.8. Adjustments to Merger Consideration.

     The Merger Consideration shall be adjusted to reflect fully the effect of any
reclassification, combination, subdivision, stock split, reverse stock split, stock dividend
(including any stock dividend or distribution of securities convertible into CPA14 Common Stock or
CPA16 Common Stock, as applicable), reorganization, recapitalization or other like change with
respect to CPA14 Common Stock (or for which a record date is established) and, as any such change
relates to the Stock Consideration only, with respect to the CPA16 Common Stock (or for which a
record date is established), after the date hereof and prior to the Effective Time; provided that
nothing in this Section 1.8 shall be construed to permit CPA14 or CPA16 to take any
action with respect to their securities that is prohibited by the terms of this Agreement.

     Section 1.9. Recordation of Exchange; Payment of Merger Consideration.

     (a) Delivery of CPA16 Common Stock. As soon as practicable following the Effective Time,
CPA16 shall cause the transfer agent for the CPA16 Common Stock to record the transfer on the stock
records of CPA16 of the amount of CPA16 Common Stock issuable as Merger Consideration to each
holder of CPA14 Common Stock pursuant to proper election made by such holder pursuant to
Section 1.6(a).

     (b) Paying and Exchange Agent. Prior to the Effective Time, CPA16 shall designate a bank or
trust company reasonably acceptable to CPA14 to act as agent for the payment of the Merger
Consideration (the “Paying and Exchange Agent”). CPA16 shall take all steps necessary to
enable, and shall cause, the Surviving Company to provide to the Paying and Exchange Agent
immediately following the Effective Time the aggregate cash portion of the Merger Consideration
payable upon cancellation of the CPA14 Common Stock pursuant to Section 1.6. The funds
deposited with the Paying and Exchange Agent in respect of the Merger Consideration is hereinafter
referred to as the “Exchange Fund.” As soon as practicable after the Effective Time, and in
any event not later than the 10th Business Day thereafter, the Paying and Exchange Agent
shall pay to each holder of CPA14 Common Stock the amount of cash such holder is entitled to
receive pursuant to proper election made by such holder pursuant to Section 1.6(a).

     (c) No Interest. No interest shall be paid or shall accrue on the Merger Consideration, or
unpaid dividends declared in respect of the CPA14 Common Stock and with a record date prior to the
Effective Time and which remain unpaid at the Effective Time.

     (d) No Further Ownership Rights. All Merger Consideration paid by CPA16 in accordance with
the terms of this Article I shall be deemed to have been paid in full satisfaction of
all rights pertaining to the CPA14 Common Stock in respect of which such Merger Consideration was
paid. At the close of business on the day on which the Effective Time occurs, the share transfer
books of CPA14 shall be closed, and there shall be no further registration of transfers on the
share transfer books of the Surviving Company of the shares of CPA14 Common Stock that were
outstanding immediately prior to the Effective Time.

     (e) Termination of Exchange Fund. Any portion of the Exchange Fund that remains undistributed
to the holders of CPA14 Common Stock one year after the Effective Time shall be delivered to CPA16
or its designated Affiliate, upon demand, and any holder of CPA14 Common Stock who has not
theretofore complied with this  Article I shall thereafter look only to CPA16 or its
successor in interest for payment of its claim for Merger Consideration (subject to applicable
abandoned property, escheat and other similar Law).

- 5 -

 

     (f) No Liability. None of CPA16, Merger Sub, the Surviving Company, the Paying and Exchange
Agent or any employee, officer, director, partner, agent or Affiliate of any of them, shall be
liable to any person for any part of the Merger Consideration or for dividends or distributions
with respect thereto delivered to a public official pursuant to any applicable abandoned property,
escheat or similar Law. Any amounts remaining unclaimed by holders of any shares of CPA14 Common
Stock five years after the Effective Time or at such earlier date as is immediately prior to the
time at which such amounts would otherwise escheat to, or become the property of, any federal,
state, local government, or agency or any court, regulatory or administrative agency or commission
or other governmental authority or instrumentality, domestic or foreign (a “Governmental
Entity”), shall, to the extent permitted by applicable Law, become the property of CPA16 or its
designated Affiliate free and clear of any claims or interest of any such holders or their
successors, assigns or personal representatives previously entitled thereto.

     (g) Investment of Exchange Fund. The Paying and Exchange Agent shall invest any cash included
in the Exchange Fund, as directed by CPA16, on a daily basis; provided, however, that such
investments shall be in (i) obligations of or guaranteed by the United States of America or any
agency or instrumentality thereof and backed by the full faith and credit of the United States of
America, (ii) commercial paper obligations rated A-1 or P-1 or better by Moody’s Investors Service,
Inc. or Standard & Poor’s Corporation, respectively, (iii) certificates of deposit maturing not
more than 180 days after the date of purchase issued by a bank organized under the Laws of the
United States or any state thereof having a combined capital and surplus of at least $3,000,000,000
or (iv) a money market fund having assets of at least $1,000,000,000. Any interest and other
income resulting from such investments shall be the property of, and paid to, CPA16 or its
designated Affiliate.

     (h) Withholding Rights. CPA16 or the Paying and Exchange Agent, as applicable, shall be
entitled to deduct and withhold from the consideration otherwise payable pursuant to this Agreement
to any holder of CPA14 Common Stock, such amounts as it is required to deduct and withhold with
respect to such payments under the Code or any other provision of state, local or foreign Tax Law.
Any such amounts so deducted and withheld shall be paid over to the applicable Governmental Entity
in accordance with applicable Law and shall be treated for all purposes of this Agreement as having
been paid to the former holder of CPA14 Common Stock in respect of which such deduction and
withholding was made.

     (i) Fractional Shares. No certificates for fractional shares of CPA16 Common Stock shall be
issued hereunder. To the extent that a holder of CPA14 Common Stock would otherwise be entitled to
receive a fraction of a share of CPA16 Common Stock, computed on the basis of the aggregate number
of
shares of CPA14 Common Stock held by such holder, such holder shall instead receive a cash
payment in an amount equal to such fraction multiplied by 10.50.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

     Section 2.1. Representations and Warranties of CPA14. CPA14 represents and warrants to each of
CPA16 and Merger Sub that, except as disclosed in the CPA14 disclosure letter dated as of the date
of this Agreement and delivered to CPA16 and Merger Sub in connection with the execution hereof
(the “CPA14 Disclosure Letter”):

     (a) Organization, Standing and Corporate Power of CPA14. CPA14 is a corporation duly
organized, validly existing and in good standing under the Laws of the State of Maryland and has
the requisite corporate power and authority to own, lease and operate its properties and to carry
on its business as now being conducted. CPA14 is duly qualified or licensed to do business and is
in good

- 6 -

 

standing in each jurisdiction in which the nature of the business it is conducting, or the
ownership, operation or leasing of its properties or the management of properties for others makes
such qualification or licensing necessary, other than in such jurisdictions where the failure to be
so qualified or licensed, individually or in the aggregate, would not have, or would not be
reasonably likely to have, a CPA14 Material Adverse Effect. CPA14 has heretofore made available to
CPA16 complete and correct copies of its charter, as amended and supplemented to the date hereof
(the “CPA14 Charter”), and its bylaws, as amended to the date hereof (“CPA14
Bylaws”).

     (b) Subsidiaries. Each CPA14 Subsidiary that is a corporation is duly incorporated, validly
existing and in good standing under the Laws of its jurisdiction of incorporation and has the
requisite corporate power and authority to own, lease and operate its properties and to carry on
its business as now being conducted. Each CPA14 Subsidiary that is a partnership, limited
liability company or trust is duly organized, validly existing and in good standing under the Laws
of its jurisdiction of organization and has the requisite power and authority to own, lease and
operate its properties and to carry on its business as now being conducted. Each CPA14 Subsidiary
is duly qualified or licensed to do business and is in good standing in each jurisdiction in which
the nature of its business or the ownership, operation or leasing of its properties or the
management of properties for others makes such qualification or licensing necessary, other than in
such jurisdictions where the failure to be so qualified or licensed, individually or in the
aggregate, would not reasonably be expected to have a CPA14 Material Adverse Effect. Except as
disclosed in Schedule 2.1(b) of the CPA14 Disclosure Letter, all outstanding shares of capital
stock of each CPA14 Subsidiary that is a corporation have been duly authorized, are validly issued,
fully paid and nonassessable, and are not subject to any preemptive right, purchase option, call
option, right of first refusal, subscription or any other similar right, are owned by CPA14 or
another CPA14 Subsidiary, and are so owned free and clear of all pledges, claims, liens, charges,
encumbrances and security interests of any kind or nature whatsoever (each, a “Lien” and
collectively, “Liens”). Except as disclosed in Schedule 2.1(b) of the CPA14 Disclosure
Letter, all equity interests in each CPA14 Subsidiary that is a partnership, limited liability
company, trust or other entity, have been duly authorized, are validly issued, are owned by CPA14
or another CPA14 Subsidiary, and are so owned free and clear of all Liens. Schedule 2.1(b) of the
CPA14 Disclosure Letter sets forth (A) all CPA14 Subsidiaries and their respective jurisdictions of
incorporation or organization and (B) each owner and the respective amount of such owner’s equity
interest in each CPA14 Subsidiary. Except as set forth on Schedule 2.1(b) of the CPA14 Disclosure
Letter, CPA14 does not have any Subsidiaries or any equity investment or other interest in, nor has
CPA14 made advances or loans to, any corporation, association, partnership, joint venture or other
entity.

     (c) Capital Structure.

     (i) As of the date of this Agreement, the authorized capital stock of CPA14 consists of
120,000,000 shares of CPA14 Common Stock, 87,326,105 shares of which are issued and
outstanding. All outstanding shares of CPA14 Common Stock are duly authorized, validly
issued, fully paid and nonassessable and not subject to, or issued in violation of, any
preemptive right, purchase option, call option, right of first refusal, subscription or any
other similar right. All dividends or distributions on securities of CPA14 or any CPA14
Subsidiary that have been declared or authorized prior to the date of this Agreement have
been paid in full.

     (ii) Except as permitted under this Agreement or as set forth in Schedule 2.1(c)(ii) of
the CPA14 Disclosure Letter, there are issued and outstanding or reserved for issuance: (1)
no stock, Voting Debt or other voting securities or equity securities of CPA14; (2) no
securities of CPA14 or any CPA14 Subsidiary or securities or assets of any other entity
convertible into or exchangeable for shares of stock, Voting Debt or other voting securities
or equity securities of CPA14 or any CPA14 Subsidiary; and (3) no subscriptions, options,
warrants, conversion rights,

- 7 -

 

calls, performance stock awards, stock appreciation rights or
phantom stock rights, rights of first refusal, rights (including preemptive rights),
commitments or arrangements or agreements to which CPA14 or any CPA14 Subsidiary is a party
or by which it is bound obligating CPA14 or any CPA14 Subsidiary to issue, deliver, sell,
purchase, redeem or acquire, or cause to be issued, delivered, sold, purchased, redeemed or
acquired, additional shares of stock, Voting Debt or other voting securities of CPA14 or of
any CPA14 Subsidiary, or obligating CPA14 or any CPA14 Subsidiary to grant, extend or enter
into any such subscription, option, warrant, conversion right, call, performance stock
award, stock appreciation right or phantom stock right, right of first refusal, right,
commitment or arrangement or agreement.

     (iii) There are no (x) stockholder agreements, voting trusts or other agreements or
understandings relating to the voting of any shares of capital stock of CPA14 or any
ownership interests in any CPA14 Subsidiary or (y) agreements or understandings relating to
the sale or transfer of any shares of CPA14 or any ownership interests in any CPA14
Subsidiary (other than those listed on Schedule 2.1(g) of the CPA14 Disclosure Letter), in
the case of (x) and (y) to which CPA14 or any CPA14 Subsidiary is a party other than as
listed on Schedule 2.1(c)(iii) of the CPA14 Disclosure Letter.

     (iv) Except as set forth in Schedule 2.1(c)(iv) of the CPA14 Disclosure Letter, no
holder of securities in CPA14 or any CPA14 Subsidiary has any right to have such securities
registered under the Securities Act or under any state securities Laws by CPA14 or any CPA14
Subsidiary, as the case may be. All prior issuances of securities by CPA14 or any CPA14
Subsidiary were, in all respects, made in compliance with all applicable federal and state
securities Laws.

     (d) Authority; No Violations; Consents and Approval.

     (i) The CPA14 Special Committee, at a meeting duly called and held, unanimously (A)
determined that this Agreement, and the transactions contemplated hereby and by the
Transaction Documents, including the Merger and the Alternate Merger, are in the best
interests of CPA14 and the CPA14 Stockholders and (B) recommended to the Board of Directors
of CPA14 that it approve and declare advisable this Agreement, and the transactions
contemplated hereby and by the Transaction Documents, including the Merger and the Alternate
Merger, upon the terms and conditions contained herein and therein. The Board of Directors
of CPA14, including a majority of the independent directors and a majority of the directors
who are not
interested in the Merger and the Alternate Merger and the other transactions
contemplated by the Transaction Documents, has duly approved and declared advisable the
Merger and the Alternate Merger and the other transactions contemplated by the Transaction
Documents and has authorized that the Merger and the Alternate Merger be submitted for
consideration at a special meeting of the CPA14 Stockholders (the “CPA14 Stockholder
Meeting”). CPA14 has all requisite power and authority to enter into this Agreement and
all other documents to be executed in connection with the transactions contemplated hereby
(this Agreement and such other documents each a “Transaction Document” and
collectively, the “Transaction Documents”) and, subject to receipt of the CPA14
Stockholder Approval, to consummate the transactions contemplated thereby. The execution
and delivery of the Transaction Documents and the consummation of the transactions
contemplated thereby have been, or when executed will have been, duly authorized by all
necessary action on the part of CPA14, subject to receipt of the CPA14 Stockholder Approval,
and are enforceable in accordance with their terms, subject to enforceability, to
bankruptcy, insolvency, reorganization, moratorium and other Laws of general applicability
relating to or affecting creditors’ rights and to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at Law).

- 8 -

 

     (ii) Assuming the consents, approvals, authorizations or permits and filings or
notifications referred to in Schedule 2.1(d)(ii) of the CPA14 Disclosure Letter are duly and
timely obtained or made and the CPA14 Stockholder Approval has been obtained, the execution
and delivery of the Transaction Documents by CPA14 do not, and the consummation of the
transactions contemplated thereby, and compliance with the provisions hereof or thereof,
will not, conflict with, or result in any violation of, or default (with or without notice
or lapse of time, or both) under, or give rise to a right of termination, cancellation or
acceleration of any material obligation, or give rise to a right of purchase under, result
in the creation of any Lien upon any of the properties or assets of CPA14 or any of the
CPA14 Subsidiaries under or require the consent or approval of any third party under, any
provision of (A) the CPA14 Charter or the CPA14 Bylaws or any provision of the comparable
charter or organizational documents of any of the CPA14 Subsidiaries, (B) any CPA14 Material
Contract (it being understood that no representation is being given as to whether the
Surviving Company and the CPA14 Subsidiaries will be in compliance with any financial
covenants contained therein following the Merger) or (C) any judgment, order, decree,
statute, Law, ordinance, rule or regulation applicable to CPA14 or any of the CPA14
Subsidiaries, or any of their respective properties or assets, other than, in the case of
clauses (B) or (C), any such conflicts, violations, defaults, rights or Liens that,
individually or in the aggregate, would not reasonably be expected to have a CPA14 Material
Adverse Effect.

     (iii) No consent, approval, order or authorization of, or registration, declaration or
filing with, or permit from any Governmental Entity, is required by or with respect to CPA14
or any of the CPA14 Subsidiaries in connection with the execution and delivery of the
Transaction Documents by CPA14 or the consummation by CPA14 or the applicable CPA14
Subsidiaries of the transactions contemplated thereby, except for: (A) the filing with the
Securities and Exchange Commission (the “SEC”) of (1) (a) the Joint Proxy
Statement/Prospectus or (b) other documents otherwise required in connection with the
transactions contemplated hereby and (2) such reports under Section 13(a) of the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the
“Exchange Act”), and such other compliance with the Exchange Act, as may be required
in connection with the Transaction Documents and the transactions contemplated thereby; (B)
the filing of the Articles of Merger with, and the acceptance for record of the Articles of
Merger by, the SDAT; (C) such filings and approvals as may be required by any applicable
Environmental
Laws, and (D) any such consent, approval, order, authorization, registration,
declaration, filing or permit that the failure to obtain or make individually or in the
aggregate, would not reasonably be expected to have a CPA14 Material Adverse Effect.

     (e) SEC Documents.

     (i) CPA14 has made available to CPA16 (by public filing with the SEC or otherwise) a
true and complete copy of each report, schedule, registration statement and definitive proxy
statement filed by CPA14 with the SEC since January 1, 2007 (the “CPA14 SEC
Documents”) which are all of the documents required to have been filed by CPA14 with the
SEC since that date. As of their respective dates, the CPA14 SEC Documents complied in all
material respects with the requirements of the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder (the “Securities Act”), the Exchange
Act or the Sarbanes-Oxley Act of 2002 (the “SOX Act”), as the case may be, and the
rules and regulations of the SEC thereunder applicable to such CPA14 SEC Documents and none
of the CPA14 SEC Documents 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, except to
the extent such statements

- 9 -

 

have been modified or superseded by later CPA14 SEC Documents
filed and publicly available prior to the date of this Agreement. CPA14 does not have any
outstanding and unresolved comments from the SEC with respect to the CPA14 SEC Documents.
The consolidated financial statements of CPA14 and the CPA14 Subsidiaries included in the
CPA14 SEC Documents complied as to form in all material respects with the applicable
accounting requirements and the published rules and regulations of the SEC with respect
thereto, have been prepared in accordance with GAAP applied on a consistent basis during the
periods involved (except as may be indicated in the notes thereto, or, in the case of the
unaudited statements, as permitted by Rule 10-01 of Regulation S-X under the Exchange Act)
and fairly presented, in accordance with applicable requirements of GAAP and the applicable
rules and regulations of the SEC (subject, in the case of the unaudited statements, to
normal, recurring adjustments, none of which are material), the consolidated financial
position of CPA14 and the CPA14 Subsidiaries, taken as a whole, as of their respective dates
and the consolidated statements of income and the consolidated cash flows of CPA14 and the
CPA14 Subsidiaries for the periods presented therein, in each case, except to the extent
such financial statements have been modified or superseded by later CPA14 SEC Documents
filed and publicly available prior to the date of this Agreement. No CPA14 Subsidiary is
required to make any filing with the SEC.

     (ii) CPA14 maintains a system of internal accounting controls sufficient to provide
reasonable assurance that (A) transactions are executed in accordance with management’s
general or specific authorizations, (B) access to assets is permitted only in accordance
with management’s general or specific authorization and (C) the recorded accountability for
assets is compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

     (iii) CPA14’s “disclosure controls and procedures” (as defined in Rules 13a-15(e) and
15d-15(e) of the Exchange Act) are reasonably designed to ensure that (A) all information
(both financial and non-financial) required to be disclosed by CPA14 in the reports that it
files or submits under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in the rules and forms of the SEC and (B) all such
information is accumulated and communicated to CPA14’s management as appropriate to allow
timely decisions regarding required disclosure and to make the certifications of the
principal executive officer and principal financial officer of CPA14 required under the
Exchange Act with respect to such reports.

     (iv) Since December 31, 2009, CPA14 has not received any notification of (A) a
“significant deficiency” or (B) a “material weakness” in CPA14’s internal controls. For
purposes of this Agreement, the terms “significant deficiency” and “material weakness” shall
have the meanings assigned to them in Release 2004-001 of the Public Company Accounting
Oversight Board, as in effect on the date of this Agreement.

     (f) Absence of Certain Changes or Events. Except as disclosed or reflected in the CPA14 SEC
Documents filed with the SEC prior to the date of this Agreement or as disclosed in Schedule 2.1(f)
of the CPA14 Disclosure Letter, since December 31, 2009 there has not been: (i) (A) any
declaration, setting aside or payment of any dividend or other distribution (whether in cash,
shares or property) with respect to any of CPA14’s capital stock except for regular quarterly
dividends on the CPA14 Common Stock; (B) any amendment of any term of any outstanding equity
security of CPA14 or any CPA14 Subsidiary; (C) any repurchase, redemption or other acquisition by
CPA14 or any CPA14 Subsidiary of any outstanding shares of capital stock or other equity securities
of, or other ownership interests in, CPA14 or any CPA14 Subsidiary, except pursuant to CPA14’s
regular redemption program; (D) any change in any method of accounting or accounting practice or
any Tax method, practice or election by CPA14 or any CPA14 Subsidiary that would materially
adversely affect its assets, liabilities or business,

- 10 -

 

except insofar as may have been required by a
change in applicable Law or GAAP; (E) any CPA14 Material Adverse Effect, or (F) any incurrence,
assumption or guarantee by CPA14 or any CPA14 Subsidiary of any indebtedness for borrowed money
other than in the ordinary course of business consistent with past practices.

     (g) No Undisclosed Material Liabilities. Except as disclosed in the CPA14 SEC Documents, as
set forth in Schedule 2.1(g) of the CPA14 Disclosure Letter or as otherwise would not reasonably be
expected to have a CPA14 Material Adverse Effect, there are no liabilities of CPA14 or any of the
CPA14 Subsidiaries of a nature that would be required under GAAP to be set forth on the financial
statements of CPA14 or the notes thereto, other than: (i) liabilities adequately provided for on
the balance sheet of CPA14 dated as of December 31, 2009 (including the notes thereto) as required
by GAAP, (ii) liabilities incurred in connection with the transactions contemplated by this
Agreement or (iii) liabilities incurred in the ordinary course of business subsequent to December
31, 2009. Schedule 2.1(g) of the CPA14 Disclosure Letter sets forth, with respect to CPA14 and the
CPA14 Subsidiaries, a complete list of all capitalized lease obligations and other indebtedness to
any Person which is outstanding as of November 30, 2010 (or such later dates as may be referenced
in Schedule 2.1(g) of the CPA14 Disclosure Letter), other than individual items of indebtedness in
a principal amount less than $1,000,000. For purposes of this  Section 2.1(g),
“indebtedness” means, with respect to any Person, without duplication (i) all obligations
of such Person for borrowed money or obligations with respect to deposits or advances of any kind
to such Person, (ii) all obligations of such Person evidenced by bonds, debentures, notes or
similar instruments, (iii) all obligations of such Person upon which interest charges are
customarily paid, (iv) all obligations of such Person under conditional sale or other title
retention agreements relating to property purchased by such Person, (v) all obligations of such
Person issued or assumed as the deferred purchase price of property or services (excluding
obligations of such Person to creditors for raw materials, inventory, services and supplies
incurred in the ordinary course of such Person’s business, consistent with past practice), (vi) all
capitalized lease obligations of such Person other than leases for office and computer equipment
incurred in the ordinary course of business, (vii) all obligations of such Person under interest
rate or currency hedging transactions (valued at the termination value thereof), (viii) all letters
of credit issued for the account of such Person, and (ix) all guarantees and arrangements having
the economic effect of a guarantee of such Person of any indebtedness of any other Person.

     (h) No Default. None of CPA14 or any of the CPA14 Subsidiaries is in default or violation
(and no event has occurred which, with notice or the lapse of time or both, would constitute a
default or
violation) of any term, condition or provision of (i) the CPA14 Charter or the CPA14 Bylaws or
the comparable charter or organizational documents of any of the CPA14 Subsidiaries, (ii) any loan
or credit agreement, note, or any bond, mortgage or indenture, to which CPA14 or any of the CPA14
Subsidiaries is a party or by which CPA14, any of the CPA14 Subsidiaries or any of their respective
properties or assets is bound, or (iii) any order, writ, injunction, decree, statute, rule or
regulation applicable to CPA14 or any of the CPA14 Subsidiaries, except in the case of (ii) and
(iii) for defaults or violations which, individually or in the aggregate, would not reasonably be
expected to have a CPA14 Material Adverse Effect.

     (i) Compliance with Applicable Laws; Regulatory Matters. Except for environmental matters,
which are addressed in  Section 2.1(o), CPA14 and the CPA14 Subsidiaries hold all
permits, licenses, variances, exemptions, orders and approvals of all Governmental Entities
necessary for the lawful conduct of their respective businesses (the “CPA14 Permits”),
except where the failure so to hold such CPA14 Permits, individually or in the aggregate, would not
reasonably be expected to have a CPA14 Material Adverse Effect. CPA14 and the CPA14 Subsidiaries
are in compliance with the terms of the CPA14 Permits, except where the failure to so comply,
individually or in the aggregate, would not reasonably be expected to have a CPA14 Material Adverse
Effect. Except as disclosed in the CPA14 SEC Documents, the businesses of CPA14 and the CPA14
Subsidiaries are not being conducted in

- 11 -

 

violation of any Law, except for violations which,
individually or in the aggregate, would not reasonably be expected to have a CPA14 Material Adverse
Effect. No investigation or review by any Governmental Entity with respect to CPA14 or any CPA14
Subsidiary is pending or, to CPA14’s Knowledge, threatened, other than those the outcome of which,
individually or in the aggregate, would not reasonably be expected to have a CPA14 Material Adverse
Effect. Neither CPA14 nor any CPA14 Subsidiary is subject to any order, writ, injunction, decree,
statute, rule or regulation that would, individually or in the aggregate, reasonably be expected to
have a CPA14 Material Adverse Effect. CPA14 is not subject to any judgment, decree, injunction,
rule or order of any Governmental Entity that prohibits or would reasonably be expected to prohibit
any of the transactions contemplated hereby. CPA14 has not taken any action, nor have any other
steps been taken or have any legal proceedings been commenced, nor to the Knowledge of CPA14,
threatened, against CPA14, for the winding up, liquidation or dissolution of CPA14.

     (j) Litigation. Except as disclosed in Schedule 2.1(j) of the CPA14 Disclosure Letter or the
CPA14 SEC Documents, there is no suit, action or proceeding pending or, to the Knowledge of CPA14,
threatened against or affecting CPA14 or any CPA14 Subsidiary or any of their respective properties
or assets that, individually or in the aggregate, would reasonably be expected to have a CPA14
Material Adverse Effect or materially adversely affect the right or ability of CPA16 or its
Affiliates to own and operate the business and assets of CPA14 or any CPA14 Subsidiary, nor is
there any such suit, action or proceeding pending against CPA14 or any CPA14 Subsidiary or any of
their respective properties or assets which in any manner challenges or seeks to prevent or enjoin,
alter or materially delay any of the transactions contemplated hereby.

     (k) Taxes.

     (i) Each of CPA14 and the CPA14 Subsidiaries has timely filed all material Tax Returns
required to be filed by it (after giving effect to any valid extension to file). Each such
Tax Return is true, correct and complete in all material respects. CPA14 and each CPA14
Subsidiary has paid (or CPA14 has paid on its behalf), all material Taxes required to be
paid. All material Taxes which CPA14 or the CPA14 Subsidiaries are required by Law to
withhold or collect, including Taxes required to have been withheld in connection with
amounts paid or owing to any employee, independent contractor, creditor, shareholder or
other third party and sales, gross receipts and use Taxes, have been duly withheld or
collected and, to the extent
required, have been paid over to the proper Governmental Entities within the time
period prescribed by Law. The most recent audited financial statements contained in the
CPA14 SEC Documents filed with the SEC prior to the date of this Agreement reflect an
adequate reserve in accordance with GAAP for all material Taxes payable by CPA14 and the
CPA14 Subsidiaries for all taxable periods and portions thereof through the date of such
financial statements. CPA14 and each CPA14 Subsidiary has established (and until the
Closing Date shall continue to establish and maintain) on its books and records reserves
that are adequate for the payment of all material Taxes not yet due and payable. Since
December 31, 2010, CPA14 has incurred no liability for any material Taxes under Sections
857(b), 860(c) or 4981 of the Code, IRS Notice 88-19, Treasury Regulation Section
1.337(d)-5, or Treasury Regulation Section 1.337(d)-6 including, without limitation, any
material Tax arising from a prohibited transaction described in Section 857(b)(6) of the
Code, and neither CPA14 nor any of the CPA14 Subsidiaries has incurred any material
liability for Taxes other than in the ordinary course of business and other than transfer or
similar Taxes arising in connection with the sales of property. No event has occurred, and
no condition or circumstance exists, which presents a material risk that any material Tax
described in the preceding sentences will be imposed upon CPA14 or any CPA14 Subsidiary.
Neither CPA14 nor any CPA14 Subsidiary is the subject of any audit, examination, or other
proceeding in respect of federal income Taxes; to the Knowledge of CPA14, no audit,
examination or other proceeding in respect of federal income Taxes involving CPA14 or any

- 12 -

 

CPA14 Subsidiary is being considered by any Tax authority; and no audit, examination or
proceeding in respect of federal income Taxes involving CPA14 or any CPA14 Subsidiary has
occurred since December 31, 2005. No deficiencies for any Taxes have been asserted or
assessed in writing (or to the Knowledge of CPA14 or any CPA14 Subsidiary, proposed) against
CPA14 or any of the CPA14 Subsidiaries, including claims by any taxing authority in a
jurisdiction where CPA14 or any CPA14 Subsidiary does not file Tax Returns but in which any
of them is or may be subject to taxation, which individually or in the aggregate would be
material, and no requests for waivers of the time to assess any such Taxes have been granted
and remain in effect or are pending. There are no Liens for Taxes upon the assets of CPA14
or the CPA14 Subsidiaries except for statutory Liens for Taxes not yet due or payable and
for which appropriate reserves have been established on their respective financial
statements in accordance with GAAP.

     (ii) CPA14 (A) for each taxable year beginning with its taxable year ended on December
31, 1998, has been subject to taxation as a real estate investment trust (a “REIT”)
within the meaning of the Code and has satisfied the requirements to qualify as a REIT for
such years, (B) has operated, and intends to continue to operate, consistent with the
requirements for qualification and taxation as a REIT through the Effective Time and (C) has
not taken or omitted to take any action which could reasonably be expected to result in the
loss of its qualification as a REIT, and no such challenge is pending, or to CPA14’s
Knowledge, threatened. Each CPA14 Subsidiary which is a partnership, joint venture or
limited liability company has since its acquisition by CPA14 (A) been classified for federal
income Tax purposes as a partnership or treated as a disregarded entity and not as an
association taxable as a corporation, or a “publicly traded partnership” within the meaning
of Section 7704(b) of the Code, and (B) not owned any assets (including, without limitation,
securities) that would cause CPA14 to violate Section 856(c)(4) of the Code. Each CPA14
Subsidiary which is a corporation, and each other issuer of securities in which CPA14 holds
securities (within the meaning of Section 856(c) of the Code but excluding “straight debt”
of issuers as described in Section 856(m) of the Code) having a value of more than 10
percent of the total value, or more than 10 percent of the total voting power, of the
outstanding securities of such issuer, has since its acquisition by CPA14 been a REIT, a
qualified REIT subsidiary under Section 856(i) of the Code or a taxable REIT subsidiary
under Section 856(l) of the Code or otherwise qualified as a “real estate asset” within the
meaning of Section 856(c)(5)(B) of the Code. Neither CPA14 nor any CPA14 Subsidiary holds
any asset
(x) the disposition of which would be subject to rules similar to Section 1374 of the
Code as announced in IRS Notice 88-19 or Treasury Regulation Section 1.337(d)-5 or Treasury
Regulation Section 1.337(d)-6 or (y) that is subject to a consent filed pursuant to Section
341(f) of the Code and the regulations thereunder.

     (iii) As of the date of this Agreement, CPA14 does not have any earnings and profits
attributable to CPA14 or any other corporation in any non-REIT year within the meaning of
Section 857 of the Code.

     (iv) None of CPA14 or any of the CPA14 Subsidiaries is (A) subject, directly or
indirectly, to any Tax Protection Agreement or (B) in violation of or in default under any
Tax Protection Agreement.

     (v) As of the date hereof, CPA14 is a “domestically-controlled qualified investment
entity” within the meaning of Section 897(h) of the Code.

     (vi) Neither CPA14 nor any CPA14 Subsidiary is a party to any Tax allocation or sharing
agreement or has changed any method of accounting for Tax purposes.

- 13 -

 

     (vii) CPA14 does not have any liability for the Taxes of any person other than CPA14
and the CPA14 Subsidiaries and the CPA14 Subsidiaries do not have any liability for the
Taxes of any person other than CPA14 and the CPA14 Subsidiaries (A) under Treasury
Regulation Section 1.1502-6 (or any similar provision of state, local or foreign Law), (B)
as a transferee or successor, (C) by contract or (D) otherwise.

     (viii) Neither CPA14 nor any CPA14 Subsidiary (x) has requested, received or is subject
to any written ruling of a Governmental Entity related to Taxes or has entered into any
written and legally binding agreement with a Governmental Entity relating to Taxes, (y) has
engaged in any transaction of which it has made (or was required to make) disclosure to any
Governmental Entity to avoid the imposition of any penalties related to Taxes, or (z) has
participated in any transaction that could give rise to a disclosure obligation as a “listed
transaction” under Section 6011 of the Code and the Treasury Regulations thereunder or any
similar provision under applicable Law.

     (l) Pension and Benefit Plans; Employees. Except as set forth in the CPA14 SEC Documents,
neither CPA14 nor any CPA14 Subsidiary maintains or has maintained any Employee Benefit Plans or
has any obligations or liabilities in respect of Employee Benefit Plans. Neither CPA14 nor any
CPA14 Subsidiary has any employees. None of the agreements to which CPA14 or any of the CPA14
Subsidiaries is a party would, individually or in the aggregate, constitute excess parachute
payments (as defined in Section 280G of the Code (without regard to subsection (b)(4) thereof)) or
would exceed the amount deductible pursuant to Section 162(m) of the Code.

     (m) Information Supplied. None of the information supplied or to be supplied by CPA14 in
writing for inclusion or incorporation by reference in the Form S-4, the Joint Proxy
Statement/Prospectus or in any materials to be delivered to potential financing sources in
connection with the transactions contemplated by this Agreement will (a) in the case of the Form
S-4, at the time it becomes effective, contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they are made, not misleading, (b) in the case
of the Joint Proxy Statement/Prospectus, at the time of the mailing thereof or at the time the
CPA14 Stockholder Meeting is to be held, contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary in order to
make the statements therein not misleading, or (c) in the case of any materials to be
delivered to potential financing sources in connection with the transactions contemplated by this
Agreement, at the date such information is delivered, contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary in order to make
the statements therein not misleading. The Form S-4 and the Joint Proxy Statement/Prospectus will
(with respect to CPA14, its officers and directors and the CPA14 Subsidiaries) comply in all
material respects with the applicable requirements of the Securities Act and the Exchange Act;
provided that no representation is made as to statements made or incorporated by reference by CPA16
or Merger Sub.

     (n) Intangible Property. CPA14 and the CPA14 Subsidiaries own, possess or have adequate
rights to use all trademarks, trade names, patents, service marks, brand marks, brand names,
computer programs, databases, industrial designs and copyrights necessary for the operation of the
businesses of each of CPA14 and the CPA14 Subsidiaries (collectively, the “CPA14 Intangible
Property”), except where the failure to possess or have adequate rights to use such properties,
individually or in the aggregate, would not reasonably be expected to have a CPA14 Material Adverse
Effect. All of the CPA14 Intangible Property is owned or licensed by CPA14 or the CPA14
Subsidiaries free and clear of any and all Liens, except those that, individually or in the
aggregate, would not reasonably be expected to have a CPA14 Material Adverse Effect, and neither
CPA14 nor any such CPA14 Subsidiary has forfeited or otherwise relinquished any CPA14 Intangible
Property which forfeiture has resulted in, individually or

- 14 -

 

in the aggregate, or would reasonably be
expected to result in a CPA14 Material Adverse Effect. To the Knowledge of CPA14, the use of CPA14
Intangible Property by CPA14 or the CPA14 Subsidiaries does not, in any material respect, conflict
with, infringe upon, violate or interfere with or constitute an appropriation of any right, title,
interest or goodwill, including, without limitation, any intellectual property right, trademark,
trade name, patent, service mark, brand mark, brand name, computer program, database, industrial
design, copyright or any pending application therefor, of any other Person, and there have been no
claims made, and neither CPA14 nor any of the CPA14 Subsidiaries has received any notice of any
claims or otherwise has Knowledge of any claims that any of the CPA14 Intangible Property is
invalid or conflicts with the asserted rights of any other Person or has not been used or enforced
or has failed to have been used or enforced in a manner that would result in the abandonment,
cancellation or unenforceability of any of the CPA14 Intangible Property, except for any such
conflict, infringement, violation, interference, claim, invalidity, abandonment, cancellation or
unenforceability that, individually or in the aggregate, would not reasonably be expected to have a
CPA14 Material Adverse Effect.

     (o) Environmental Matters. For purposes of this Agreement, (x) “Environmental Law”
means any Law of any Governmental Entity relating to human health, safety or protection of the
environment, including, but not limited to, the Federal Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended (“CERCLA”), and (y) “Hazardous
Material” means (A) any petroleum or petroleum products, regulated radioactive materials,
asbestos-containing materials, urea formaldehyde foam insulation, and transformers and other
equipment that contain dielectric fluid containing greater than 50 parts per million
polychlorinated biphenyls (“PCBs”); or (B) any chemicals, materials, substances or wastes
which are defined as or included in the definition of “hazardous substances,” “hazardous wastes,”
“hazardous materials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic
substances,” “toxic pollutants” or words of similar import, under any applicable Environmental Law.
Except as disclosed in Schedule 2.1(o) of the CPA14 Disclosure Letter, the CPA14 SEC Documents or
in the environmental audits/reports listed therein or except as would not reasonably be expected to
have a CPA14 Material Adverse Effect:

     (i) None of CPA14 or the CPA14 Subsidiaries has received written notice that any
administrative or compliance order has been issued that is still in effect, any complaint
has been
filed that remains unresolved, any penalty has been assessed that has not been paid and
any investigation or review is pending or threatened by any Governmental Entity with respect
to any alleged failure by CPA14 or any CPA14 Subsidiary to have any permit required under
any applicable Environmental Law or with respect to any treatment, storage, recycling,
transportation, disposal or “release” (as defined in 42 U.S.C. (S) 9601(22)
(“Release”)) by CPA14 or any CPA14 Subsidiary of any Hazardous Material in material
violation of any Environmental Law.

     (ii) To the Knowledge of CPA14, except in material compliance with applicable
Environmental Laws, (A) there are no asbestos-containing materials present on any property
owned or operated by CPA14 or any CPA14 Subsidiary, (B) there are no regulated levels of
PCBs present on any property owned or operated by CPA14 or any CPA14 Subsidiary, and (C)
there are no underground storage tanks, active or abandoned, used for the storage of
Hazardous Materials currently present on any property owned or operated by CPA14 or any
CPA14 Subsidiary.

     (iii) None of CPA14 or any CPA14 Subsidiary has received written notice of a claim,
that has not been resolved, to the effect that it is liable to a third party, including a
Governmental Entity, as a result of a Release of a Hazardous Material into the environment
in material violation of any Environmental Law at any property currently or formerly owned,
leased (including ground leases) or operated by CPA14 or a CPA14 Subsidiary.

- 15 -

 

     (iv) None of CPA14 or any CPA14 Subsidiary has received written notice of (A) any Liens
arising under or pursuant to any applicable Environmental Law on any CPA14 Property or (B)
any action taken which could subject any CPA14 Property to such Liens. To the Knowledge of
CPA14, no such action is in process. CPA14 and the CPA14 Subsidiaries currently do not have
any duty under any applicable Environmental Law to place any restriction relating to the
presence of Hazardous Material at any CPA14 Property.

     (v) None of CPA14 or the CPA14 Subsidiaries has transported or arranged for the
transportation of any Hazardous Material to any location which, to the Knowledge of CPA14,
is the subject of any action, suit or proceeding that could be reasonably expected to result
in claims against CPA14 or the CPA14 Subsidiaries related to such Hazardous Material for
clean-up costs, remedial work, damages to natural resources or personal injury claims,
including but not limited to claims under CERCLA and the rules and regulations promulgated
thereunder.

     (vi) CPA14 and the CPA14 Subsidiaries have made notification of Releases of a Hazardous
Material where required by applicable Environmental Law, and no property now or, to the
Knowledge of CPA14, previously owned, leased (including ground leases) or operated by CPA14
or the CPA14 Subsidiaries is listed or, to the Knowledge of CPA14, proposed for listing on
the National Priorities List promulgated pursuant to CERCLA or on any similar list of sites
under any Environmental Law of any other Governmental Entity where such listing requires
active investigation or clean-up.

     (vii) CPA14 and the CPA14 Subsidiaries have not entered into any agreements to provide
indemnification to any third party purchaser pursuant to Environmental Laws in relation to
any property or facility previously owned or operated by CPA14 and the CPA14 Subsidiaries.

     (viii) None of CPA14 or the CPA14 Subsidiaries has in its possession or control any
environmental assessment or investigation reports prepared within the last four years that
(A) have not been provided to CPA16 prior to the execution of this Agreement and (B)
disclose a
material environmental condition with respect to the CPA14 Properties which is not
being addressed or remediated or has not been addressed or remediated or been made the
subject of an environmental insurance policy listed in Schedule 2.1(q) of the CPA14
Disclosure Letter, except for such reports that reflect the results of an asbestos survey
and/or abatement work performed in the ordinary course of renovation or demolition
activities.

     (p) Properties.

     (i) (A) Except as listed in Schedule 2.1(p)(i) of the CPA14 Disclosure Letter, CPA14
or a CPA14 Subsidiary owns fee simple title to or has a valid leasehold interest in, or has
an interest (directly or indirectly) in an entity that owns fee simple title to or has a
valid leasehold interest in, each of the real properties reflected on the most recent
balance sheet of CPA14 included in the CPA14 SEC Documents (each, a “CPA14 Property”
and collectively, the “CPA14 Properties”), which are all of the real estate
properties owned or leased by them, in each case free and clear of Liens except for (1) debt
and other matters identified on Schedule 2.1(p)(i) of the CPA14 Disclosure Letter, (2)
inchoate mechanics’, workmen’s, repairmen’s and other inchoate Liens imposed for
construction work in progress or otherwise incurred in the ordinary course of business, (3)
mechanics’, workmen’s and repairmen’s Liens (other than inchoate Liens for work in progress)
which have heretofore been bonded or insured, and landlord liens, (4) all matters (x)
disclosed on existing title policies or (y) as would be disclosed on current title reports,
legal due diligence reports, landlord waivers, zoning reports or surveys and would not have
a material adverse effect on the value or use of the affected property (excluding
outstanding indebtedness),

- 16 -

 

(5) real estate Taxes and special assessments not yet due and
payable which are being contested in good faith in the ordinary course of business, and (6)
Liens that would not cause a material adverse effect on the value or use of the affected
property;

     (B) except as would not reasonably be expected to have a material adverse
effect on the value or use of the affected property, the CPA14 Properties are not
subject to any rights of way, written agreements, Laws, ordinances and regulations
affecting building use or occupancy, or reservations of an interest in title
(collectively, “CPA14 Property Restrictions”), except for (1) CPA14 Property
Restrictions imposed or promulgated by Law with respect to real property, including
zoning regulations, which would not reasonably be expected to have a material
adverse effect on the value or use of the affected property, (2) CPA14 Leases,
landlord liens, easement agreements and all matters disclosed on existing title
policies, title reports, legal due diligence reports, landlord waivers, zoning
reports or surveys or as would be disclosed on current title policies, title
reports, legal due diligence reports, landlord waivers, zoning reports or surveys
and which would not reasonably be expected to have a material adverse effect on the
value or use of the affected property (excluding outstanding indebtedness) and (3)
real estate Taxes and special assessments;

     (C) except as would not reasonably be expected to have a material adverse
effect on the value or use of the affected property, none of CPA14 or a CPA14
Subsidiary has received written notice to the effect that there are any (1)
condemnation or rezoning proceedings that are pending or, to the Knowledge of CPA14
and the CPA14 Subsidiaries, threatened with respect to any material portion of any
of the CPA14 Properties or (2) zoning, building or similar Laws or orders that are
presently being violated or will be violated by the continued maintenance, operation
or use of any buildings or other improvements on any of the CPA14 Properties or by
the continued maintenance,
operation or use of the parking areas located thereon or appurtenant thereto or
used in connection therewith;

     (D) except as would not reasonably be expected to have a material adverse
effect on the value or use of the affected property, none of CPA14 or any CPA14
Subsidiary has received written notice that it is currently in default or violation
of any CPA14 Property Restrictions;

     (E) except for the owners of the CPA14 Properties in which CPA14, any CPA14
Subsidiary or any joint venture involving CPA14 or the CPA14 Subsidiaries listed on
Schedule 2.1(b) of the CPA14 Disclosure Letter has a leasehold interest, no Person
(other than CPA14, a CPA14 Subsidiary or any joint venture involving CPA14 or the
CPA14 Subsidiaries listed on Schedule 2.1(b) of the CPA14 Disclosure Letter) has any
ownership interest in any of the CPA14 Properties; and

     (F) except as listed on Schedule 2.1(p)(i)(F) of the CPA14 Disclosure Letter,
all equity interests held by CPA14 or a CPA14 Subsidiary in entities which directly
or indirectly own or lease CPA14 Properties are so held free and clear of Liens.

     (ii) Except, individually or in the aggregate, as would not reasonably be expected to
have a CPA14 Material Adverse Effect, all properties currently under development or
construction by CPA14 or the CPA14 Subsidiaries and all properties currently under contract
for acquisition, sale or transfer, development or commencement of construction as of the
date of this

- 17 -

 

Agreement by CPA14 and the CPA14 Subsidiaries are listed as such in Schedule
2.1(p)(ii) of the CPA14 Disclosure Letter.

     (iii) Schedule 2.1(p)(iii) of the CPA14 Disclosure Letter sets forth the rent roll for
each of the CPA14 Properties (the “CPA14 Rent Roll”) as of November 30, 2010,
including any leases which have been executed for which the term has not yet commenced.
Except as disclosed in Schedule 2.1(p)(iii) of the CPA14 Disclosure Letter and for
discrepancies that, either individually or in the aggregate, would not reasonably be
expected to have a CPA14 Material Adverse Effect, (1) the information set forth in the CPA14
Rent Roll is true, correct and complete as of the date thereof; (2) no brokerage fees,
commissions or any similar payments are owed or payable by the lessor under any of the
leases listed on the CPA14 Rent Roll (the “CPA14 Leases”) to any third party in
connection with the existence or execution thereof, or in connection with any renewal,
expansion or extension of any CPA14 Lease which has occurred prior to, or may occur after,
the date hereof; (3) to the Knowledge of CPA14, all work to be performed by any party to any
of the CPA14 Leases has been completed and fully paid for; (4) except in the ordinary course
of business, no tenants under the CPA14 Leases are entitled to any free rent, abatement of
rent or similar concession, nor to CPA14’s Knowledge, to any claim of any offset or defense
against the payment of rent; (5) no person other than those identified on the CPA14 Rent
Roll (and those claiming by, through or under them) is in occupancy of any portion of any
CPA14 Property; (6) each CPA14 Lease is valid, binding and enforceable in accordance with
its terms and is in full force and effect with respect to CPA14 and the CPA14 Subsidiaries,
as applicable, and, to the Knowledge of CPA14, each of the other parties thereto; and (7)
there are no material defaults (nor does there exist any condition which upon the passage of
time or the giving of notice or both would cause a material default) under any CPA14 Lease
by CPA14 or any CPA14 Subsidiary, or, to the Knowledge of CPA14, any of the other parties
thereto.

     (iv) Schedule 2.1(p)(iv) of the CPA14 Disclosure Letter lists (1) all agreements
existing as of the date of this Agreement to which CPA14 or any CPA14 Subsidiary is a party
providing (x) for the sale of, or option to sell, any CPA14 Property or the purchase of, or
option to purchase, by CPA14 or any CPA14 Subsidiary, on the one hand, or the other party
thereto, on the other hand, any real estate not yet consummated as of the date hereof or (y)
all rights of first offer and rights of first refusal with regard to any CPA14 Properties
and (2) all tenants of CPA14 Properties who have been granted early termination rights with
respect to their lease obligations.

     (v) Schedule 2.1(p)(v) of the CPA14 Disclosure Letter contains a list, as of the date
of this Agreement, of (A) all unfunded capital improvements required to have been conducted
by CPA14 or any CPA14 Subsidiary in excess of $750,000 in any instance, (B) all outstanding
leasing commissions in excess of $750,000 in any instance and (C) all committed capital
expenditures in excess of $750,000 in any instance.

     (q) Insurance. Schedule  2.1(q) of the CPA14 Disclosure Letter sets forth a
complete list as of the date of this Agreement of all insurance policies (but excluding title
insurance policies) which CPA14 or any CPA14 Subsidiary maintains with respect to its respective
businesses or properties. CPA14 has not been informed that any such policies are not in full force
and effect in all material respects, as of the date of this Agreement. All premiums due and
payable by CPA14 or any CPA14 Subsidiary thereof under each such policy obtained by CPA14 or any
CPA14 Subsidiary have been paid.

     (r) Opinion of Financial Advisor. The Board of Directors of CPA14 has received the opinion of
Robert A. Stanger & Co., Inc. dated as of the date of this Agreement, to the effect that,
among other things, as of
such date, the Merger Consideration is fair from a financial point of view to the
unaffiliated
holders of CPA14
Common Stock, which opinion will be made available to CPA16 solely for informational purposes as

- 18 -

 

promptly as practicable following receipt thereof by CPA14. CPA14 has been advised that Robert A.
Stanger & Co., Inc. will permit the inclusion of the opinion in its entirety and, subject to prior
review and consent by Robert A. Stanger & Co., Inc., a reference to the opinion in the Form S-4 and
the Joint Proxy Statement/Prospectus.

     (s) Vote Required. The affirmative vote of the holders of a majority of the outstanding
shares of CPA14 Common Stock is the only vote of holders of securities of CPA14 required to approve
the Merger and the other transactions contemplated by the Transaction Documents (the “CPA14
Stockholder Approval”).

     (t) Brokers. Except for the fees and expenses payable to Robert A. Stanger & Co., Inc. (which
fees have been disclosed to CPA16), no broker, investment banker or other Person is entitled to any
broker’s, finder’s or other similar fee or commission in connection with the transactions
contemplated by the Transaction Documents based upon arrangements made by or on behalf of CPA14 or
any CPA14 Subsidiary. CPA14 has previously provided CPA16 with a true and complete copy of the
engagement letter with Robert A. Stanger & Co., Inc. as in effect on the date hereof, pursuant to
which such fees and expenses are payable, and the amounts payable by CPA14 pursuant to such letter
shall not have been increased between the date of this Agreement and the Closing Date.

     (u) Investment Company Act of 1940. Neither CPA14 nor any of the CPA14 Subsidiaries is, or
after giving effect to the transactions contemplated by this Agreement will be, required to be
registered as an investment company under the Investment Company Act of 1940, as amended.

     (v) Contracts.

     (i) Schedule 2.1(v)(i) and Schedule 2.1(g) of the CPA14 Disclosure Letter list all
CPA14 Material Contracts to which CPA14 or any CPA14 Subsidiary is a party that are in
effect as of the date of this Agreement. Except as set forth in Schedule 2.1(v)(i) of the
CPA14 Disclosure Letter or in the CPA14 SEC Documents, each CPA14 Material Contract is
valid, binding and enforceable in accordance with its terms and in full force and effect
with respect to CPA14 and the CPA14 Subsidiaries, as applicable, and, to the Knowledge of
CPA14, each of the other parties thereto, except, in each case, where such failure to be so
valid, binding and enforceable and in full force and effect would not, individually or in
the aggregate, reasonably be expected to have a CPA14 Material Adverse Effect, and there are
no defaults (nor does there exist any condition which upon the passage of time or the giving
of notice or both would cause a default) under any CPA14 Material Contract by CPA14 or any
CPA14 Subsidiary, or, to the Knowledge of CPA14, any of the other parties thereto, except
for those defaults that would not, individually or in the aggregate, reasonably be expected
to have a CPA14 Material Adverse Effect. For purposes of this Agreement, “CPA14 Material
Contracts” shall mean (A) any partnership, limited liability company or joint venture
agreement between CPA14 or any CPA14 Subsidiary, on the one hand, and a third party, on the
other hand, (B) the mortgage loans set forth on Schedule 2.1(g) of the CPA14 Disclosure
Letter, (C) each material commitment, contractual obligation, borrowing, capital expenditure
or transaction entered into by CPA14 or any CPA14 Subsidiary which may result in total
payments by or liability of CPA14 or any CPA14 Subsidiary in excess of $1,000,000, (D) any
other agreements filed or required to be filed as exhibits to the CPA14 SEC Documents
pursuant to Item 601(b)(10) of Regulation S-K of Title 17, Part 229 of the Code of Federal
Regulations, (E) any interest rate cap, interest rate collar, interest rate swap, currency
hedging transaction and any other agreement relating to a similar transaction to which CPA14
or any CPA14 Subsidiary is a party or an obligor with respect thereto, (F) the CPA14 Leases
with respect to the five largest CPA14 Tenants measured by lease revenue, and (G) any
agreement, commitment, instrument or obligation of a type described in Sections
 2.1(v)(ii)

- 19 -

 

through  2.1(v)(iv); in each case including all amendments,
modifications and supplements to such CPA14 Material Contracts and all side letters to which
CPA14 or any CPA14 Subsidiary is a party affecting the obligations of any party thereunder.

     (ii) The Merger and the other transactions contemplated by the Transaction Documents
will not trigger any due-on-sale provision on any mortgages, except as set forth in Schedule
2.1(v)(ii) of the CPA14 Disclosure Letter.

     (iii) Except for those agreements set forth in Schedule 2.1(v)(iii) of the CPA14
Disclosure Letter or agreements in which CPA14 agrees not to sell a CPA14 Property to a
competitor of the CPA14 Property’s current tenant, there are no non-competition agreements
or other contracts or agreements that contain covenants that restrict CPA14’s or any CPA14
Subsidiary’s ability to conduct its business in any location or present a material
restriction on the conduct of the business of CPA14 or the CPA14 Subsidiaries.

     (iv) Except as set forth in Schedule 2.1(v)(iv) of the CPA14 Disclosure Letter, there
are no indemnification agreements entered into by and between CPA14 and any director or
officer of CPA14 or any of the CPA14 Subsidiaries, other than in respect of independent
directors as may be required in connection with financing the CPA14 Properties.

     (w) State Takeover Statutes; Charter Waiver. CPA14 has taken all action necessary to exempt
the transactions contemplated by this Agreement from operation of any “fair price,” “business
combination,” “moratorium,” “control share acquisition” or any other anti-takeover statute or
similar statute enacted under federal or state Laws of the United States or similar statute or
regulation (a “Takeover Statute”). CPA14 and the CPA14 Board of Directors have taken all
appropriate and necessary actions to waive or remove, or to exempt CPA16 and Merger Sub and their
beneficial owners from triggering, any and all limitations on ownership of CPA14 Common Stock
contained in the CPA14 Charter or CPA14 Bylaws by reason of the Merger and the other transactions
contemplated by this Agreement.

     (x) Related Party Transactions. Except as expressly described in the CPA14 SEC Documents or
as set forth in Schedule 2.1(x) of the CPA14 Disclosure Letter, there are no material arrangements,
agreements or contracts entered into by CPA14 or any of the CPA14 Subsidiaries, on the one hand,
and any Person who is an officer, director or Affiliate of CPA14 or any CPA14 Subsidiary, any
relative of the foregoing or an entity of which any of the foregoing is an Affiliate, on the other
hand. Copies of any such documents have been previously provided to CPA16.

Section 2.2. Representations and Warranties of CPA16 and Merger Sub. CPA16 and Merger Sub
represent and warrant to CPA14 that, except as disclosed in the CPA16 / Merger Sub disclosure
letter dated as of the date of this Agreement and delivered to CPA14 in connection with the
execution hereof (the “CPA16 Disclosure Letter”):

     (a) Organization, Standing and Corporate Power. Each of CPA16 and Merger Sub is a corporation
duly organized, validly existing and in good standing under the Laws of the State of Maryland and
has the requisite corporate power and authority to own, lease and operate its properties and to
carry on its business as now being conducted. Each of CPA16 and Merger Sub is duly qualified or
licensed to do business and is in good standing in each jurisdiction in which the nature of the
business it is conducting, or the ownership, operation or leasing of its properties or the
management of properties for others makes such qualification or licensing necessary, other than in
such jurisdictions where the failure to be so qualified or licensed, individually or in the
aggregate, would not have, or would not be reasonably likely to have, a CPA16 Material Adverse
Effect.

- 20 -

 

     (b) Capital Structure.

     (i) As of the date of this Agreement, the authorized capital stock of CPA16 consists of
250,000,000 shares of CPA16 Common Stock, 126,071,731 shares of which are issued and
outstanding. All outstanding shares of CPA16 Common Stock are duly authorized, validly
issued, fully paid and nonassessable and not subject to, or issued in violation of, any
preemptive right, purchase option, call option, right of first refusal, subscription or any
other similar right. All dividends or distributions on securities of CPA16 or any CPA16
Subsidiary that have been declared or authorized prior to the date of this Agreement have
been paid in full.

     (ii) Except as permitted under this Agreement or as set forth in Schedule 2.2(b)(ii) of
the CPA16 Disclosure Letter, there are issued and outstanding or reserved for issuance: (1)
no shares of stock, Voting Debt or other voting securities or equity securities of CPA16 or
Merger Sub; (2) no securities of CPA16 or any CPA16 Subsidiary or securities or assets of
any other entity convertible into or exchangeable for shares of stock, Voting Debt or other
voting securities or equity securities of CPA16 or any CPA16 Subsidiary; and (3) no
subscriptions, options, warrants, conversion rights, calls, performance stock awards, stock
appreciation rights or phantom stock rights, rights of first refusal, rights (including
preemptive rights), commitments or arrangements or agreements to which CPA16 or any CPA16
Subsidiary is a party or by which it is bound obligating CPA16 or any CPA16 Subsidiary to
issue, deliver, sell, purchase, redeem or acquire, or cause to be issued, delivered, sold,
purchased, redeemed or acquired, additional shares of stock, Voting Debt or other voting
securities of CPA16 or of any CPA16 Subsidiary, or obligating CPA16 or any CPA16 Subsidiary
to grant, extend or enter into any such subscription,
option, warrant, conversion right, call, performance stock award, stock appreciation
right or phantom stock right, right of first refusal, right, commitment or arrangement or
agreement.

     (iii) Except as set forth in Schedule 2.2(b)(iii) of the CPA16 Disclosure Letter, no
holder of securities in CPA16 or any CPA16 Subsidiary has any right to have such securities
registered under the Securities Act or under any state securities Laws by CPA16 or any CPA16
Subsidiary, as the case may be. All prior issuances of securities by CPA16 or any CPA16
Subsidiary were, in all respects, made in compliance with all applicable federal and state
securities Laws.

     (iv) As of the date of this Agreement, the authorized capital stock of Merger Sub
consists of 1,000 shares of common stock, par value $0.001 per share, 100 shares of which
are issued and outstanding. All 100 issued and outstanding shares of Merger Sub common
stock are duly authorized, validly issued, fully paid and nonassessable and are owned by
CPA16 free and clear of any Liens.

     (c) Authority; No Violations; Consents and Approval.

     (i) The CPA16 Special Committee, at a meeting duly called and held, unanimously (A)
determined that this Agreement, and the transactions contemplated hereby and by the
Transaction Documents, including the Merger, the Alternate Merger, the Reorganization and an
amendment to the articles of incorporation of CPA16 (“CPA16 Charter”) to increase
the authorized capital stock of CPA16 to 400,000,000 shares of CPA16 Common Stock (the
“CPA16 Capital Increase”) are in the best interests of CPA16 and the stockholders of
CPA16 and (B) recommended to the Board of Directors of CPA16 that it approve and declare
advisable this Agreement, and the transactions contemplated hereby and by the Transaction
Documents, including the Merger, the Alternate Merger, the Reorganization and the CPA16
Capital Increase, upon the terms and conditions contained herein and therein. The Board of
Directors of CPA16,

- 21 -

 

including a majority of the independent directors and a majority of the
directors who are not interested in the Merger, the Alternate Merger and the other
transactions contemplated by the Transaction Documents, has duly approved and declared
advisable the Merger, the Alternate Merger, the Reorganization, the CPA16 Capital Increase
and the other transactions contemplated by the Transaction Documents and has authorized that
the Alternate Merger, the Reorganization and the CPA16 Capital Increase be submitted for
consideration at a special meeting (the “CPA16 Stockholder Meeting”) of the
stockholders of CPA16 (the “CPA16 Stockholders”). Each of the Board of Directors of
Merger Sub and CPA16, as the sole stockholder of Merger Sub, has duly approved the Merger.
Each of CPA16 and Merger Sub has all requisite power and authority to enter into the
Transaction Documents and, subject to receipt of the CPA16 Stockholder Approvals, to
consummate the transactions contemplated thereby. The execution and delivery of the
Transaction Documents and the consummation of the transactions contemplated thereby have
been, or when executed will have been, duly authorized by all necessary action on the part
of CPA16, subject to receipt of the CPA16 Stockholder Approvals, and Merger Sub, and are
enforceable in accordance with their terms, subject to enforceability, to bankruptcy,
insolvency, reorganization, moratorium and other Laws of general applicability relating to
or affecting creditors’ rights and to general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at Law).

     (ii) Assuming the consents, approvals, authorizations or permits and filings or
notifications referred to in Schedule 2.2(c)(ii) of the CPA16 Disclosure Letter are duly and
timely obtained or made and the CPA16 Stockholder Approvals have been obtained, the
execution and
delivery of the Transaction Documents by CPA16 and Merger Sub do not, and the
consummation of the transactions contemplated thereby, and compliance with the provisions
hereof or thereof, will not, conflict with, or result in any violation of, or default (with
or without notice or lapse of time, or both) under, or give rise to a right of termination,
cancellation or acceleration of any material obligation, or give rise to a right of purchase
under, result in the creation of any Lien upon any of the properties or assets of CPA16 or
Merger Sub under or require the consent or approval of any third party under, any provision
of (A) the CPA16 Charter or the bylaws of CPA16 (the “CPA16 Bylaws”) (with respect
to CPA16) or the Merger Sub Charter or the Merger Sub Bylaws (with respect to Merger Sub),
(B) any CPA16 Material Contract or (C) any judgment, order, decree, statute, Law, ordinance,
rule or regulation applicable to CPA16 or Merger Sub, or any of their respective properties
or assets, other than, in the case of clauses (B) or (C), any such conflicts, violations,
defaults, rights or Liens that, individually or in the aggregate, would not reasonably be
expected to have a CPA16 Material Adverse Effect.

     (iii) No consent, approval, order or authorization of, or registration, declaration or
filing with, or permit from any Governmental Entity, is required by or with respect to CPA16
or any of the CPA16 Subsidiaries in connection with the execution and delivery of the
Transaction Documents by CPA16 or Merger Sub or the consummation by CPA16 or Merger Sub or
the applicable CPA16 Subsidiaries of the transactions contemplated thereby, except for: (A)
the filing with the SEC of (1) (a) the Joint Proxy Statement/Prospectus or (b) other
documents otherwise required in connection with the transactions contemplated hereby and (2)
such reports under Section 13(a) of the Exchange Act, and such other compliance with the
Exchange Act, as may be required in connection with the Transaction Documents and the
transactions contemplated thereby; (B) the filing of the Articles of Merger with, and the
acceptance for record of the Articles of Merger by, the SDAT; (C) the filing of articles of
amendment to the CPA16 Charter to effect the CPA16 Capital Increase with, and the acceptance
for record of such articles of amendment by, the SDAT; (D) such filings and approvals as may
be required by any applicable Environmental Laws; and (E) any such consent, approval, order,
authorization, registration, declaration, filing or

- 22 -

 

permit that the failure to obtain or
make individually or in the aggregate, would not reasonably be expected to have a CPA16
Material Adverse Effect.

     (d) SEC Documents.

     (i) CPA16 has made available to CPA14 (by public filing with the SEC or otherwise) a
true and complete copy of each report, schedule, registration statement and definitive proxy
statement filed by CPA16 with the SEC since January 1, 2007 (the “CPA16 SEC
Documents”) which are all of the documents required to have been filed by CPA16 with the
SEC since that date. As of their respective dates, the CPA16 SEC Documents complied in all
material respects with the requirements of the Securities Act, the Exchange Act or the SOX
Act, as the case may be, and the rules and regulations of the SEC thereunder applicable to
such CPA16 SEC Documents and none of the CPA16 SEC Documents 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, except to the extent such statements have been modified or
superseded by later CPA16 SEC Documents filed and publicly available prior to the date of
this Agreement. CPA16 does not have any outstanding and unresolved comments from the SEC
with respect to the CPA16 SEC Documents. The consolidated financial statements of CPA16 and
CPA16 Subsidiaries included in the CPA16 SEC Documents complied as to form in all material
respects with the applicable accounting requirements and the published rules and regulations
of the SEC with respect thereto, have been prepared in accordance with GAAP applied on a
consistent basis during the periods involved (except as may be indicated in the notes
thereto, or,
in the case of the unaudited statements, as permitted by Rule 10-01 of Regulation S-X
under the Exchange Act) and fairly presented, in accordance with applicable requirements of
GAAP and the applicable rules and regulations of the SEC (subject, in the case of the
unaudited statements, to normal, recurring adjustments, none of which are material), the
consolidated financial position of CPA16 and the CPA16 Subsidiaries, taken as a whole, as of
their respective dates and the consolidated statements of income and the consolidated cash
flows of CPA16 and the CPA16 Subsidiaries for the periods presented therein, in each case,
except to the extent such financial statements have been modified or superseded by later
CPA16 SEC Documents filed and publicly available prior to the date of this Agreement. No
CPA16 Subsidiary is required to make any filing with the SEC.

     (ii) CPA16 maintains a system of internal accounting controls sufficient to provide
reasonable assurance that (A) transactions are executed in accordance with management’s
general or specific authorizations, (B) access to assets is permitted only in accordance
with management’s general or specific authorization and (C) the recorded accountability for
assets is compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

     (iii) CPA16’s “disclosure controls and procedures” (as defined in Rules 13a-15(e) and
15d-15(e) of the Exchange Act) are reasonably designed to ensure that (A) all information
(both financial and non-financial) required to be disclosed by CPA16 in the reports that it
files or submits under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in the rules and forms of the SEC and (B) all such
information is accumulated and communicated to CPA16’s management as appropriate to allow
timely decisions regarding required disclosure and to make the certifications of the
principal executive officer and principal financial officer of CPA16 required under the
Exchange Act with respect to such reports.

     (iv) Since December 31, 2009, CPA16 has not received any notification of (A) a
“significant deficiency” or (B) a “material weakness” in CPA16’s internal controls. For
purposes

- 23 -

 

of this Agreement, the terms “significant deficiency” and “material weakness” shall
have the meanings assigned to them in Release 2004-001 of the Public Company Accounting
Oversight Board, as in effect on the date of this Agreement.

     (e) Absence of Certain Changes or Events. Except as disclosed or reflected in the CPA16 SEC
Documents filed with the SEC prior to the date of this Agreement or as disclosed in Schedule 2.2(e)
of the CPA16 Disclosure Letter, since December 31, 2009 there has not been: (i) (A) any
declaration, setting aside or payment of any dividend or other distribution (whether in cash,
shares or property) with respect to any of CPA16’s capital stock except for regular quarterly
dividends on the CPA16 Common Stock; (B) any amendment of any term of any outstanding equity
security of CPA16 or any CPA16 Subsidiary; (C) any repurchase, redemption or other acquisition by
CPA16 or any CPA16 Subsidiary of any outstanding shares of capital stock or other equity securities
of, or other ownership interests in, CPA16 or any CPA16 Subsidiary, except pursuant to CPA16’s
regular redemption program; (D) any change in any method of accounting or accounting practice or
any Tax method, practice or election by CPA16 or any CPA16 Subsidiary that would materially
adversely affect its assets, liabilities or business, except insofar as may have been required by a
change in applicable Law or GAAP; (E) any CPA16 Material Adverse Effect, or (F) any incurrence,
assumption or guarantee by CPA16 or any CPA16 Subsidiary of any indebtedness for borrowed money
other than in the ordinary course of business consistent with past practices.

     (f) No Undisclosed Material Liabilities. Except as disclosed in the CPA16 SEC Documents, as
set forth in Schedule 2.2(f) of the CPA16 Disclosure Letter or as otherwise would not reasonably be
expected to have a CPA16 Material Adverse Effect, there are no liabilities of CPA16 or any
CPA16 Subsidiary of a nature that would be required under GAAP to be set forth on the financial
statements of CPA16 or the notes thereto, other than: (i) liabilities adequately provided for on
the balance sheet of CPA16 dated as of December 31, 2009 (including the notes thereto) as required
by GAAP, (ii) liabilities incurred in connection with the transactions contemplated by this
Agreement or (iii) liabilities incurred in the ordinary course of business subsequent to December
31, 2009.

     (g) No Default. Neither CPA16 nor Merger Sub is in default or violation (and no event has
occurred which, with notice or the lapse of time or both, would constitute a default or violation)
of any term, condition or provision of (i) the CPA16 Charter or the CPA16 Bylaws or the Merger Sub
Charter or the Merger Sub Bylaws, as applicable, (ii) any loan or credit agreement, note, or any
bond, mortgage or indenture, to which CPA16 or Merger Sub is a party or by which CPA16, Merger Sub
or any of their respective properties or assets is bound, or (iii) any order, writ, injunction,
decree, statute, rule or regulation applicable to CPA16 or Merger Sub, except in the case of (ii)
and (iii) for defaults or violations which, individually or in the aggregate, would not reasonably
be expected to have a CPA16 Material Adverse Effect.

     (h) Compliance with Applicable Laws; Regulatory Matters. Except for environmental matters,
which are addressed in Section 2.2(n), CPA16 and the CPA16 Subsidiaries hold all permits, licenses,
variances, exemptions, orders and approvals of all Governmental Entities necessary for the lawful
conduct of their respective businesses (the “CPA16 Permits”), except where the failure so
to hold such CPA16 Permits, individually or in the aggregate, would not reasonably be expected to
have a CPA16 Material Adverse Effect. CPA16 and the CPA16 Subsidiaries are in compliance with the
terms of the CPA16 Permits, except where the failure to so comply, individually or in the
aggregate, would not reasonably be expected to have a CPA16 Material Adverse Effect. Except as
disclosed in the CPA16 SEC Documents, the businesses of CPA16 and the CPA16 Subsidiaries are not
being conducted in violation of any Law, except for violations which, individually or in the
aggregate, would not reasonably be expected to have a CPA16 Material Adverse Effect. No
investigation or review by any Governmental Entity with respect to CPA16 or any CPA16 Subsidiary is
pending or, to CPA16’s Knowledge, threatened,

- 24 -

 

other than those the outcome of which, individually
or in the aggregate, would not reasonably be expected to have a CPA16 Material Adverse Effect.
Neither CPA16 nor any CPA16 Subsidiary is subject to any order, writ, injunction, decree, statute,
rule or regulation that would, individually or in the aggregate, reasonably be expected to have a
CPA16 Material Adverse Effect. Neither CPA16 nor Merger Sub is subject to any judgment, decree,
injunction, rule or order of any Governmental Entity that prohibits or would reasonably be expected
to prohibit any of the transactions contemplated hereby. Neither CPA16 nor Merger Sub has taken any
action, nor have any other steps been taken or have any legal proceedings been commenced, nor to
the Knowledge of CPA16, threatened, against CPA16 or Merger Sub, for the winding up, liquidation or
dissolution of CPA16 or Merger Sub.

     (i) Litigation. Except as disclosed in Schedule 2.2(i) of the CPA16 Disclosure Letter or the
CPA16 SEC Documents, there is no suit, action or proceeding pending or, to the Knowledge of CPA16,
threatened against or affecting CPA16 or any CPA16 Subsidiary or any of their respective properties
or assets that, individually or in the aggregate, would reasonably be expected to have a CPA16
Material Adverse Effect, nor is there any such suit, action or proceeding pending against CPA16 or
any CPA16 Subsidiary or any of their respective properties or assets which in any manner challenges
or seeks to prevent or enjoin, alter or materially delay any of the transactions contemplated
hereby.

     (j) Taxes.

     (i) Each of CPA16 and the CPA16 Subsidiaries has timely filed all material Tax Returns
required to be filed by it (after giving effect to any valid extension to file). Each such
Tax Return is true, correct and complete in all material respects. CPA16 and each
CPA16 Subsidiary has paid (or CPA16 has paid on its behalf), all material Taxes required to
be paid. All material Taxes which CPA16 or the CPA16 Subsidiaries are required by Law to
withhold or collect, including Taxes required to have been withheld in connection with
amounts paid or owing to any employee, independent contractor, creditor, shareholder or
other third party and sales, gross receipts and use Taxes, have been duly withheld or
collected and, to the extent required, have been paid over to the proper Governmental
Entities within the time period prescribed by Law. The most recent audited financial
statements contained in the CPA16 SEC Documents filed with the SEC prior to the date of this
Agreement reflect an adequate reserve in accordance with GAAP for all material Taxes payable
by CPA16 and the CPA16 Subsidiaries for all taxable periods and portions thereof through the
date of such financial statements. CPA16 and each CPA16 Subsidiary has established (and
until the Closing Date shall continue to establish and maintain) on its books and records
reserves that are adequate for the payment of all material Taxes not yet due and payable.
Since December 31, 2010, CPA16 has incurred no liability for any material Taxes under
Sections 857(b), 860(c) or 4981 of the Code, IRS Notice 88-19, Treasury Regulation Section
1.337(d)-5, or Treasury Regulation Section 1.337(d)-6 including, without limitation, any
material Tax arising from a prohibited transaction described in Section 857(b)(6) of the
Code, and neither CPA16 nor any of the CPA16 Subsidiaries has incurred any material
liability for Taxes other than in the ordinary course of business and other than transfer or
similar Taxes arising in connection with the sales of property. No event has occurred, and
no condition or circumstance exists, which presents a material risk that any material Tax
described in the preceding sentences will be imposed upon CPA16 or any CPA16 Subsidiary.
Neither CPA16 nor any CPA16 Subsidiary is the subject of any audit, examination, or other
proceeding in respect of federal income Taxes; to the Knowledge of CPA16, no audit,
examination or other proceeding in respect of federal income Taxes involving CPA16 or any
CPA16 Subsidiary is being considered by any Tax authority; and no audit, examination or
proceeding in respect of federal income Taxes involving CPA16 or any CPA16 Subsidiary has
occurred since December 31, 2005. No deficiencies for any Taxes have been asserted or
assessed in writing (or to the Knowledge of CPA16 or any CPA16 Subsidiary, proposed) against
CPA16

- 25 -

 

or any of the CPA16 Subsidiaries, including claims by any taxing authority in a
jurisdiction where CPA16 or any CPA16 Subsidiary does not file Tax Returns but in which any
of them is or may be subject to taxation, which individually or in the aggregate would be
material, and no requests for waivers of the time to assess any such Taxes have been granted
and remain in effect or are pending. There are no Liens for Taxes upon the assets of CPA16
or the CPA16 Subsidiaries except for statutory Liens for Taxes not yet due or payable and
for which appropriate reserves have been established on their respective financial
statements in accordance with GAAP.

     (ii) CPA16 (A) for each taxable year beginning with its taxable year ended on December
31, 2004, has been subject to taxation as a REIT within the meaning of the Code and has
satisfied the requirements to qualify as a REIT for such years, (B) has operated, and
intends to continue to operate, consistent with the requirements for qualification and
taxation as a REIT through the Effective Time and (C) has not taken or omitted to take any
action which could reasonably be expected to result in the loss of its qualification as a
REIT, and no such challenge is pending, or to CPA16’s Knowledge, threatened. Each CPA16
Subsidiary which is a partnership, joint venture or limited liability company has since its
acquisition by CPA16 (A) been classified for federal income Tax purposes as a partnership or
treated as a disregarded entity and not as an association taxable as a corporation, or a
“publicly traded partnership” within the meaning of Section 7704(b) of the Code, and (B) not
owned any assets (including, without limitation, securities) that would cause CPA16 to
violate Section 856(c)(4) of the Code. Each CPA16 Subsidiary which is a corporation, and
each other issuer of securities in which CPA16 holds securities (within the meaning of
Section 856(c) of the Code but excluding “straight debt” of
issuers as described in Section 856(m) of the Code) having a value of more than 10
percent of the total value, or more than 10 percent of the total voting power, of the
outstanding securities of such issuer, has since its acquisition by CPA16 been a REIT, a
qualified REIT subsidiary under Section 856(i) of the Code or a taxable REIT subsidiary
under Section 856(l) of the Code or otherwise qualified as a “real estate asset” within the
meaning of Section 856(c)(5)(B) of the Code. Neither CPA16 nor any CPA16 Subsidiary holds
any asset (x) the disposition of which would be subject to rules similar to Section 1374 of
the Code as announced in IRS Notice 88-19 or Treasury Regulation Section 1.337(d)-5 or
Treasury Regulation Section 1.337(d)-6 or (y) that is subject to a consent filed pursuant to
Section 341(f) of the Code and the regulations thereunder.

     (iii) As of the date of this Agreement, CPA16 does not have any earnings and profits
attributable to CPA16 or any other corporation in any non-REIT year within the meaning of
Section 857 of the Code.

     (iv) None of CPA16 or any of the CPA16 Subsidiaries is (A) subject, directly or
indirectly, to any Tax Protection Agreement or (B) in violation of or in default under any
Tax Protection Agreement.

     (v) As of the date hereof, CPA16 is a “domestically-controlled qualified investment
entity” within the meaning of Section 897(h) of the Code.

     (vi) Neither CPA16 nor any CPA16 Subsidiary is a party to any Tax allocation or sharing
agreement or has changed any method of accounting for Tax purposes.

     (vii) CPA16 does not have any liability for the Taxes of any person other than CPA16
and the CPA16 Subsidiaries and the CPA16 Subsidiaries do not have any liability for the
Taxes of any person other than CPA16 and the CPA16 Subsidiaries (A) under Treasury
Regulation Section 1.1502-6 (or any similar provision of state, local or foreign Law), (B)
as a transferee or successor, (C) by contract or (D) otherwise.

- 26 -

 

     (viii) Neither CPA16 nor any CPA16 Subsidiary (x) has requested, received or is subject
to any written ruling of a Governmental Entity related to Taxes or has entered into any
written and legally binding agreement with a Governmental Entity relating to Taxes, (y) has
engaged in any transaction of which it has made (or was required to make) disclosure to any
Governmental Entity to avoid the imposition of any penalties related to Taxes, or (z) has
participated in any transaction that could give rise to a disclosure obligation as a “listed
transaction” under Section 6011 of the Code and the Treasury Regulations thereunder or any
similar provision under applicable Law.

     (k) Pension and Benefit Plans; Employees. Except as set forth in the CPA16 SEC Documents,
neither CPA16 nor any CPA16 Subsidiary maintains or has maintained any Employee Benefit Plans or
has any obligations or liabilities in respect of Employee Benefit Plans. Neither CPA16 nor any
CPA16 Subsidiary has any employees. None of the agreements to which CPA16 or any of the CPA16
Subsidiaries is a party would, individually or in the aggregate, constitute excess parachute
payments (as defined in Section 280G of the Code (without regard to subsection (b)(4) thereof)) or
would exceed the amount deductible pursuant to Section 162(m) of the Code.

     (l) Information Supplied. None of the information supplied or to be supplied by CPA16 or
Merger Sub in writing for inclusion or incorporation by reference in the Form S-4, the Joint Proxy
Statement/Prospectus or in any materials to be delivered by CPA16 or Merger Sub to potential
financing sources in connection with the transactions contemplated by this Agreement will (a) in
the case of the
Form S-4, at the time it becomes effective, contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they are made, not misleading, (b) in
the case of the Joint Proxy Statement/Prospectus, at the time of the mailing thereof or at the time
the CPA16 Stockholder Meeting is to be held, contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary in order to make the
statements therein not misleading or (c) in the case of any materials to be delivered to potential
financing sources in connection with the transactions contemplated by this Agreement, at the date
such information is delivered, contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the statements therein
not misleading. The Form S-4 and the Joint Proxy Statement/Prospectus will (with respect to CPA16,
its officers and directors and the CPA16 Subsidiaries) comply in all material respects with the
applicable requirements of the Securities Act and the Exchange Act; provided that no representation
is made as to statements made or incorporated by reference by CPA14.

     (m) Intangible Property. CPA16 and the CPA16 Subsidiaries own, possess or have adequate
rights to use all trademarks, trade names, patents, service marks, brand marks, brand names,
computer programs, databases, industrial designs and copyrights necessary for the operation of the
businesses of each of CPA16 and the CPA16 Subsidiaries (collectively, the “CPA16 Intangible
Property”), except where the failure to possess or have adequate rights to use such properties,
individually or in the aggregate, would not reasonably be expected to have a CPA16 Material Adverse
Effect. All of the CPA16 Intangible Property is owned or licensed by CPA16 or the CPA16
Subsidiaries free and clear of any and all Liens, except those that, individually or in the
aggregate, would not reasonably be expected to have a CPA16 Material Adverse Effect, and neither
CPA16 nor any such CPA16 Subsidiary has forfeited or otherwise relinquished any CPA16 Intangible
Property which forfeiture has resulted in, individually or in the aggregate, or would reasonably be
expected to result in a CPA16 Material Adverse Effect. To the Knowledge of CPA16, the use of CPA16
Intangible Property by CPA16 or the CPA16 Subsidiaries does not, in any material respect, conflict
with, infringe upon, violate or interfere with or constitute an appropriation of any right, title,
interest or goodwill, including, without limitation, any intellectual property right, trademark,
trade name, patent, service mark, brand mark, brand name, computer program, database, industrial
design, copyright or any pending application therefor, of any other Person, and there

- 27 -

 

have been no
claims made, and neither CPA16 nor any of the CPA16 Subsidiaries has received any notice of any
claims or otherwise has Knowledge of any claims that any of the CPA16 Intangible Property is
invalid or conflicts with the asserted rights of any other Person or has not been used or enforced
or has failed to have been used or enforced in a manner that would result in the abandonment,
cancellation or unenforceability of any of the CPA16 Intangible Property, except for any such
conflict, infringement, violation, interference, claim, invalidity, abandonment, cancellation or
unenforceability that, individually or in the aggregate, would not reasonably be expected to have a
CPA16 Material Adverse Effect.

     (n) Environmental Matters. Except as disclosed in Schedule 2.2(n) of the CPA16 Disclosure
Letter, the CPA16 SEC Documents or in the environmental audits/reports listed therein or except as
would not reasonably be expected to have a CPA16 Material Adverse Effect:

     (i) None of CPA16 or the CPA16 Subsidiaries has received written notice that any
administrative or compliance order has been issued that is still in effect, any complaint
has been filed that remains unresolved, any penalty has been assessed that has not been paid
and any investigation or review is pending or threatened by any Governmental Entity with
respect to any alleged failure by CPA16 or any CPA16 Subsidiary to have any permit required
under any applicable Environmental Law or with respect to any Release by CPA16 or any CPA16
Subsidiary of any Hazardous Material in material violation of any Environmental Law.

     (ii) To the Knowledge of CPA16, except in material compliance with applicable
Environmental Laws, (A) there are no asbestos-containing materials present on any property
owned or operated by CPA16 or any CPA16 Subsidiary, (B) there are no regulated levels of
PCBs present on any property owned or operated by CPA16 or any CPA16 Subsidiary, and (C)
there are no underground storage tanks, active or abandoned, used for the storage of
Hazardous Materials currently present on any property owned or operated by CPA16 or any
CPA16 Subsidiary.

     (iii) None of CPA16 or any CPA16 Subsidiary has received written notice of a claim,
that has not been resolved, to the effect that it is liable to a third party, including a
Governmental Entity, as a result of a Release of a Hazardous Material into the environment
in material violation of any Environmental Law at any property currently or formerly owned,
leased (including ground leases) or operated by CPA16 or a CPA16 Subsidiary.

     (iv) None of CPA16 or any CPA16 Subsidiary has received written notice of (A) any Liens
arising under or pursuant to any applicable Environmental Law on any CPA16 Property or (B)
any action taken which could subject any CPA16 Property to such Liens. To the Knowledge of
CPA16, no such action is in process. CPA16 and the CPA16 Subsidiaries currently do not have
any duty under any applicable Environmental Law to place any restriction relating to the
presence of Hazardous Material at any CPA16 Property.

     (v) None of CPA16 or the CPA16 Subsidiaries has transported or arranged for the
transportation of any Hazardous Material to any location which, to the Knowledge of CPA16,
is the subject of any action, suit or proceeding that could be reasonably expected to result
in claims against CPA16 or the CPA16 Subsidiaries related to such Hazardous Material for
clean-up costs, remedial work, damages to natural resources or personal injury claims,
including but not limited to claims under CERCLA and the rules and regulations promulgated
thereunder.

     (vi) CPA16 and the CPA16 Subsidiaries have made notification of Releases of a Hazardous
Material where required by applicable Environmental Law, and no property now or, to the
Knowledge of CPA16, previously owned, leased (including ground leases) or operated by

- 28 -

 

CPA16
or the CPA16 Subsidiaries is listed or, to the Knowledge of CPA16, proposed for listing on
the National Priorities List promulgated pursuant to CERCLA or on any similar list of sites
under any Environmental Law of any other Governmental Entity where such listing requires
active investigation or clean-up.

     (vii) CPA16 and the CPA16 Subsidiaries have not entered into any agreements to provide
indemnification to any third party purchaser pursuant to Environmental Laws in relation to
any property or facility previously owned or operated by CPA16 and the CPA16 Subsidiaries.

     (viii) None of CPA16 or the CPA16 Subsidiaries has in its possession or control any
environmental assessment or investigation reports prepared within the last four years that
(A) have not been provided to CPA14 prior to the execution of this Agreement and (B)
disclose a material environmental condition with respect to the CPA16 Properties which is
not being addressed or remediated or has not been addressed or remediated or been made the
subject of an environmental insurance policy listed in Schedule 2.2(p) of the CPA16
Disclosure Letter, except for such reports that reflect the results of an asbestos survey
and/or abatement work performed in the ordinary course of renovation or demolition
activities.

     (o) Properties.

     (i) (A) Except as listed in Schedule 2.2(o)(i) of the CPA16 Disclosure Letter, CPA16
or a CPA16 Subsidiary owns fee simple title to or has a valid leasehold interest in, or has
an interest (directly or indirectly) in an entity that owns fee simple title to or has a
valid leasehold interest in, each of the real properties reflected on the most recent
balance sheet of CPA16 included in the CPA16 SEC Documents and as identified in Schedule
2.2(o)(i) of the CPA16 Disclosure Letter (each, a “CPA16 Property” and collectively,
the “CPA16 Properties”), which are all of the real estate properties owned or leased
by them, in each case free and clear of Liens except for (1) debt and other matters
identified on Schedule 2.2(o)(i) of the CPA16 Disclosure Letter, (2) inchoate mechanics’,
workmen’s, repairmen’s and other inchoate Liens imposed for construction work in progress or
otherwise incurred in the ordinary course of business, (3) mechanics’, workmen’s and
repairmen’s Liens (other than inchoate Liens for work in progress) which have heretofore
been bonded or insured, and landlord liens, (4) all matters (x) disclosed on existing title
policies or (y) as would be disclosed on current title reports, legal due diligence reports,
landlord waivers, zoning reports or surveys and would not have a material adverse effect on
the value or use of the affected property (excluding outstanding indebtedness), (5) real
estate Taxes and special assessments not yet due and payable which are being contested in
good faith in the ordinary course of business, and (6) Liens that would not cause a material
adverse effect on the value or use of the affected property;

     (B) except as would not reasonably be expected to have a material adverse
effect on the value or use of the affected property, the CPA16 Properties are not
subject to any rights of way, written agreements, Laws, ordinances and regulations
affecting building use or occupancy, or reservations of an interest in title
(collectively, “CPA16 Property Restrictions”), except for (1) CPA16 Property
Restrictions imposed or promulgated by Law with respect to real property, including
zoning regulations, which would not reasonably be expected to have a material
adverse effect on the value or use of the affected property, (2) CPA16 Leases,
landlord liens, easement agreements and all matters disclosed on existing title
policies, title reports, legal due diligence reports, landlord waivers, zoning
reports or surveys or as would be disclosed on current title policies, title
reports, legal due diligence reports, landlord waivers, zoning reports or surveys
and which would not reasonably be expected to have a material adverse effect on

- 29 -

 

the value or use of the affected property (excluding outstanding indebtedness) and (3)
real estate Taxes and special assessments;

     (C) except as would not reasonably be expected to have a material adverse
effect on the value or use of the affected property, none of CPA16 or a CPA16
Subsidiary has received written notice to the effect that there are any (1)
condemnation or rezoning proceedings that are pending or, to the Knowledge of CPA16
and the CPA16 Subsidiaries threatened, with respect to any material portion of any
of the CPA16 Properties or (2) zoning, building or similar Laws or orders that are
presently being violated or will be violated by the continued maintenance, operation
or use of any buildings or other improvements on any of the CPA16 Properties or by
the continued maintenance, operation or use of the parking areas located thereon or
appurtenant thereto or used in connection therewith;

     (D) except as would not reasonably be expected to have a material adverse
effect on the value or use of the affected property, none of CPA16 or any CPA16
Subsidiary has received written notice that it is currently in default or violation
of any CPA16 Property Restrictions;

     (E) except for the owners of the CPA16 Properties in which CPA16, any CPA16
Subsidiary or any joint venture involving CPA16 or the CPA16 Subsidiaries has a
leasehold interest, no Person (other than CPA16, a CPA16 Subsidiary or any joint
venture involving CPA16 or the CPA16 Subsidiaries) has any ownership interest in any
of the CPA16 Properties; and

     (F) except as listed on Schedule 2.2(o)(i)(F) of the CPA16 Disclosure Letter,
all equity interests held by CPA16 or a CPA16 Subsidiary in entities which directly
or indirectly own or lease CPA16 Properties are so held free and clear of Liens.

     (ii) Except, individually or in the aggregate, as would not reasonably be expected to
have a CPA16 Material Adverse Effect, all properties currently under development or
construction by CPA16 or the CPA16 Subsidiaries and all properties currently under contract
for acquisition, sale or transfer, development or commencement of construction as of the
date of this Agreement by CPA16 and the CPA16 Subsidiaries are listed as such in Schedule
2.2(o)(ii) of the CPA16 Disclosure Letter.

     (iii) Schedule 2.2(o)(iii) of the CPA16 Disclosure Letter sets forth the rent roll for
each of the CPA16 Properties (the “CPA16 Rent Roll”) as of November 30, 2010,
including any leases which have been executed for which the term has not yet commenced.
Except as disclosed in Schedule 2.2(o)(iii) of the CPA16 Disclosure Letter and for
discrepancies that, either individually or in the aggregate, would not reasonably be
expected to have a CPA16 Material Adverse Effect, (1) the information set forth in the CPA16
Rent Roll is true, correct and complete as of the date thereof; (2) no brokerage fees,
commissions or any similar payments are owed or payable by the lessor under any of the
leases listed on the CPA16 Rent Roll (the “CPA16 Leases”) to any third party in
connection with the existence or execution thereof, or in connection with any renewal,
expansion or extension of any CPA16 Lease which has occurred prior to, or may occur after,
the date hereof; (3) to the Knowledge of CPA16, all work to be performed by any party to any
of the CPA16 Leases has been completed and fully paid for; (4) except in the ordinary course
of business, no tenants under the CPA16 Leases are entitled to any free rent, abatement of
rent or similar concession, nor to CPA16’s Knowledge, to any claim of any offset or defense
against the payment of rent; (5) no person other than those identified on the CPA16 Rent

- 30 -

 

Roll (and those claiming by, through or under them) is in occupancy of any portion of any
CPA16 Property; (6) each CPA16 Lease is valid, binding and enforceable in accordance with
its terms and is in full force and effect with respect to CPA16 and the CPA16 Subsidiaries,
as applicable, and, to the Knowledge of CPA16, each of the other parties thereto; and (7)
there are no material defaults (nor does there exist any condition which upon the passage of
time or the giving of notice or both would cause a material default) under any CPA16 Lease
by CPA16 or any CPA16 Subsidiary, or, to the Knowledge of CPA16, any of the other parties
thereto.

     (iv) Schedule 2.2(o)(iv) of the CPA16 Disclosure Letter lists (1) all agreements
existing as of the date of this Agreement to which CPA16 or any CPA16 Subsidiary is a party
providing (x) for the sale of, or option to sell, any CPA16 Property or the purchase of, or
option to purchase, by CPA16 or any CPA16 Subsidiary, on the one hand, or the other party
thereto, on the other hand, any real estate not yet consummated as of the date hereof or (y)
all rights of first offer and rights of first refusal with regard to any CPA16 Properties
and (2) all tenants of CPA16 Properties who have been granted early termination rights with
respect to their lease obligations.

     (v) Schedule 2.2(o)(v) of the CPA16 Disclosure Letter contains a list, as of the date
of this Agreement, of (A) all unfunded capital improvements required to have been conducted
by CPA16 or any CPA16 Subsidiary in excess of $750,000 in any instance, (B) all
outstanding leasing commissions in excess of $750,000 in any instance and (C) all committed
capital expenditures in excess of $750,000 in any instance.

     (p) Insurance. Schedule 2.2(p) of the CPA16 Disclosure Letter sets forth a complete list as
of the date of this Agreement of all insurance policies (but excluding title insurance policies)
which CPA16 or any CPA16 Subsidiary maintains with respect to its respective businesses or
properties. CPA16 has not been informed that any such policies are not in full force and effect in
all material respects, as of the date of this Agreement. All premiums due and payable by CPA16 or
any CPA16 Subsidiary thereof under each such policy obtained by CPA16 or any CPA16 Subsidiary have
been paid.

     (q) Opinion of Financial Advisor. The Board of Directors of CPA16 has received the opinion of
Deutsche Bank Securities Inc. dated as of the date of this Agreement, to the effect that,
among other things, as of the
date hereof, the Merger Consideration is fair from a financial point of view to the
unaffiliated
holders of
CPA16 Common Stock, which opinion will be made available to CPA14 solely for informational purposes
as promptly as practicable following receipt thereof by CPA16. CPA16 has been advised that
Deutsche Bank Securities Inc. will permit the inclusion of the opinion in its entirety and, subject
to prior review and consent by Deutsche Bank Securities Inc., a reference to the opinion in the
Form S-4 and the Joint Proxy Statement/Prospectus.

     (r) Vote Required. The affirmative vote of the holders of a majority of the outstanding
shares of CPA16 Common Stock is the only vote of holders of securities of CPA16 required to approve
each of the Alternate Merger, the Reorganization, the CPA16 Capital Increase and the other
transactions contemplated by the Transaction Documents (the “CPA16 Stockholder Approvals”).
The Merger does not require the approval of the CPA16 Stockholders.

     (s) Brokers. Except for the fees and expenses payable to Deutsche Bank Securities Inc. (which
fees have been disclosed to CPA14), no broker, investment banker or other Person is entitled to any
broker’s, finder’s or other similar fee or commission in connection with the transactions
contemplated by the Transaction Documents based upon arrangements made by or on behalf of CPA16 or
any CPA16 Subsidiary. CPA16 has previously provided CPA14 with a true and complete copy of the
engagement letter with Deutsche Bank Securities Inc. as in effect on the date hereof, pursuant to
which such fees and

- 31 -

 

expenses are payable, and the amounts payable by CPA16 pursuant to such letter
shall not have been increased between the date of this Agreement and the Closing Date.

     (t) Investment Company Act of 1940. Neither CPA16 nor any of the CPA16 Subsidiaries is, or
after giving effect to the transactions contemplated by this Agreement will be, required to be
registered as an investment company under the Investment Company Act of 1940, as amended.

     (u) Contracts.

     (i) Except as set forth in Schedule 2.2(u)(i) of the CPA16 Disclosure Letter or in the
CPA16 SEC Documents, each CPA16 Material Contract is valid, binding and enforceable in
accordance with its terms and in full force and effect with respect to CPA16 and the CPA16
Subsidiaries, as applicable, and, to the Knowledge of CPA16, each of the other parties
thereto, except where such failure to be so valid, binding and enforceable and in full force
and effect would not, individually or in the aggregate, reasonably be expected to have a
CPA16 Material Adverse Effect, and there are no defaults (nor does there exist any condition
which upon the passage of time or the giving of notice or both would cause such a violation
of or default under) under any CPA16 Material Contract by CPA16 or any CPA16 Subsidiary,
or, to the Knowledge of CPA16, any of the other parties thereto, except for those defaults
that would not, individually
or in the aggregate, reasonably be expected to have a CPA16 Material Adverse Effect.
For purposes of this Agreement, “CPA16 Material Contracts” shall mean (A) any
partnership, limited liability company or joint venture agreement between CPA16 or any CPA16
Subsidiary, on the one hand, and a third party, on the other hand, (B) any capitalized lease
obligations and other indebtedness to any Person, other than individual items of
indebtedness in a principal amount less than $1,000,000, (C) each material commitment,
contractual obligation, borrowing, capital expenditure or transaction entered into by CPA16
or any CPA16 Subsidiary which may result in total payments by or liability of CPA16 or any
CPA16 Subsidiary in excess of $1,000,000, (D) any other agreements filed or required to be
filed as exhibits to the CPA16 SEC Documents pursuant to Item 601(b)(10) of Regulation S K
of Title 17, Part 229 of the Code of Federal Regulations, (E) any interest rate cap,
interest rate collar, interest rate swap, currency hedging transaction and any other
agreement relating to a similar transaction to which CPA16 or any CPA16 Subsidiary is a
party or an obligor with respect thereto, (F) the CPA16 Leases with respect to the five
largest CPA16 Tenants measured by lease revenue, and (G) any agreement, commitment,
instrument or obligation of a type described in Sections  2.2(u)(ii) through
 2.2(u)(iv); in each case including all amendments, modifications and supplements
to such CPA16 Material Contracts and all side letters to which CPA16 or any CPA16 Subsidiary
is a party affecting the obligations of any party thereunder.

     (ii) The Merger and the other transactions contemplated by the Transaction Documents
will not trigger any due-on-sale provision on any mortgages, except as set forth in Schedule
2.2(u)(ii) of the CPA16 Disclosure Letter.

     (iii) Except for those agreements set forth in Schedule 2.2(u)(iii) of the CPA16
Disclosure Letter or agreements in which CPA16 agrees not to sell a CPA16 Property to a
competitor of the CPA16 Property’s current tenant, there are no non-competition agreements
or other contracts or agreements that contain covenants that restrict CPA16’s or any CPA16
Subsidiary’s ability to conduct its business in any location or present a material
restriction on the conduct of the business of CPA16 or the CPA16 Subsidiaries.

     (iv) Except as set forth in Schedule 2.2(u)(iv) of the CPA16 Disclosure Letter, there
are no indemnification agreements entered into by and between CPA16 and any director or

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officer of CPA16 or any of the CPA16 Subsidiaries, other than in respect of independent
directors as may be required in connection with financing the CPA16 Properties.

     (v) Related Party Transactions. Except as expressly described in the CPA16 SEC Documents or
as set forth in Schedule 2.2(v) of the CPA16 Disclosure Letter, there are no material arrangements,
agreements or contracts entered into by CPA16 or any of the CPA16 Subsidiaries, on the one hand,
and any Person who is an officer, director or Affiliate of CPA16 or any CPA16 Subsidiary, any
relative of the foregoing or an entity of which any of the foregoing is an Affiliate, on the other
hand. Copies of any such documents have been previously provided to CPA14.

     (w) Transaction Financing.

     (i) True, correct and complete copies of the executed debt commitment letters from Bank
of America, N.A., the sole administrative agent and lead arranger for a $300,000,000 Senior
Secured Revolving Credit Facility (the “Senior Credit Facility”), and the other
banks acting as syndicate lenders, are attached hereto as Exhibit F (the
“Commitment Letters”), pursuant to which the financing sources described therein
have agreed to lend to CPA16, on the terms and subject to the conditions set forth therein,
the debt amounts set forth therein. The Senior Credit Facility will be used by
CPA16 (A) to finance a portion of the Cash Consideration (the “Debt
Financing”), (B) to repay certain property level indebtedness as described on Schedule
2.2(w)(i) and (C) for general corporate and working capital purposes, in each case in such
amounts as determined by CPA16 and CAM in their reasonable commercial discretion.

     (ii) The Commitment Letters are in full force and effect and are valid and enforceable
against the parties thereto in accordance with their terms, subject, as to enforceability,
to bankruptcy, insolvency, reorganization, moratorium and other Laws of general
applicability relating to or affecting creditors’ rights and to general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at
Law). The obligations of the financing sources to fund their respective commitments under
the Commitment Letters are not subject to any conditions other than as set forth in the
Commitment Letters. As of the date of this Agreement, to the Knowledge of CPA16, no event
has occurred that (with or without notice, lapse of time, or both) would reasonably be
expected to constitute a breach or default under the Commitment Letters by CPA16. CPA16 has
no Knowledge of any facts or circumstances that are reasonably likely to result in any of
the conditions set forth in the Commitment Letters not being satisfied or the funding
contemplated in the Commitment Letters not being made available to CPA16 on a timely basis
in order to consummate the transactions contemplated by this Agreement. As of the date of
this Agreement, the Commitment Letters have not been amended or modified and the commitments
contained in such letters have not been withdrawn or rescinded in any respect. CPA16 or
Merger Sub has fully paid any and all commitment fees or other fees in connection with the
Commitment Letters that are payable on or prior to the date of this Agreement.

     (iii) The cash on hand and available to CPA14 and CPA16, the Debt Financing and the
Equity Financing (described in Section 4.3(d)), taken together, will be sufficient for CPA16
to pay (A) the aggregate cash portion of the Merger Consideration to CPA14 Stockholders who
elect to receive cash pursuant to Section 1.6(a)(ii) and cash in lieu of fractional shares
pursuant to Section 1.9(i), provided that CPA14 Stockholders holding not more than 50% of
the outstanding CPA14 Common Stock elect to receive Cash Consideration in the Merger in
accordance with this Agreement and the Joint Proxy Statement/Prospectus, (B) any amounts
that may be payable to Dissenting Stockholders, and (C) the fees and expenses of CPA14,
CPA16 and Merger Sub incurred in connection with the transactions contemplated by this
Agreement ((A), (B) and (C)

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being collectively referred to herein as the “Required Cash
Amounts”). As of the date of this Agreement, there are no side letters or other
agreements, arrangements or understandings relating to the Debt Financing to which CPA16 or
any of its Affiliates is a party.

     Section 2.3. Representations and Warranties of W. P. Carey. W. P. Carey represents and warrants to
CPA14, CPA16 and Merger Sub that:

     (a) Organization, Standing and Corporate Power. W. P. Carey is a limited liability company
duly organized, validly existing and in good standing under the Laws of the State of Delaware and
has the requisite power and authority to carry on its business as now being conducted. W. P. Carey
is duly qualified or licensed to do business and is in good standing in each jurisdiction in which
the nature of the business it is conducting makes such qualification or licensing necessary, other
than in such jurisdictions where the failure to be so qualified or licensed, individually or in the
aggregate, would not reasonably be expected to have a material adverse effect on W. P. Carey’s
ability to perform its obligations under this Agreement and the other Transaction Documents to
which it is a party.

     (b) Authority; No Violations; Consents and Approval.

     (i) W. P. Carey has all requisite power and authority to enter into this Agreement and
the other Transaction Documents to which it is a party and to consummate the transactions
contemplated hereby and thereby (including, without limitation, the Equity Financing). The
execution and delivery of this Agreement and the other Transaction Documents to which W. P.
Carey is a party and the consummation of the transactions contemplated hereby and thereby
have been, or when executed will have been, duly authorized by all necessary action on the
part of W. P. Carey and are enforceable in accordance with their terms, subject to
enforceability, to bankruptcy, insolvency, reorganization, moratorium and other Laws of
general applicability relating to or affecting creditors’ rights and to general principles
of equity (regardless of whether such enforceability is considered in a proceeding in equity
or at Law).

     (ii) The execution and delivery of this Agreement and the other Transaction Documents
to which W. P. Carey is a party and the consummation by W. P. Carey of the transactions
contemplated hereby and thereby, and compliance with the provisions thereof, will not
conflict with, or result in any violation of, or default (with or without notice or lapse of
time, or both) under, or give rise to a right of termination, cancellation or acceleration
of any material obligation, or give rise to a right of purchase under, result in the
creation of any Lien upon any of the properties or assets of W. P. Carey under or require
the consent or approval of any third party under, any provision of (A) W. P. Carey’s
certificate of formation, bylaws or limited liability company agreement, (B) any material
contract to which W. P. Carey is a party or (C) any judgment, order, decree, statute, Law,
ordinance, rule or regulation applicable to W. P. Carey, or any of its properties or assets,
other than, in the case of clauses (B) or (C), any such conflicts, violations, defaults,
rights or Liens that, individually or in the aggregate, would not reasonably be expected to
have a material adverse effect on W. P. Carey’s ability to perform its obligations under
this Agreement and the other Transaction Documents to which it is a party.

     (iii) No consent, approval, order or authorization of, or registration, declaration or
filing with, or permit from any Governmental Entity, is required by or with respect to W. P.
Carey or any of its Subsidiaries in connection with the execution and delivery by W. P.
Carey of this Agreement and the other Transaction Documents to which W. P. Carey is a party
or the consummation by W. P. Carey of the transactions contemplated hereby and thereby,
except for: (A) such reports under Section 13(a) of the Exchange Act, and such other
compliance with the Exchange Act, as may be required in connection with this Agreement and
the other Transaction

- 34 -

 

Documents to which W. P. Carey is a party and the transactions
contemplated hereby and thereby; and (B) any such consent, approval, order, authorization,
registration, declaration, filing or permit that the failure to obtain or make individually
or in the aggregate, would not reasonably be expected to have a material adverse effect on
W. P. Carey’s ability to perform its obligations under this Agreement and the other
Transaction Documents to which it is a party.

ARTICLE III

COVENANTS RELATING TO CONDUCT OF BUSINESS PENDING THE MERGER

     Section 3.1. Conduct of Business by CPA14.

     (a) During the period from the date of this Agreement to the Effective Time, CPA14 shall, and
shall cause each of the CPA14 Subsidiaries to, use all commercially reasonable efforts to carry on
its businesses in the usual, regular and ordinary course in substantially the same manner as
heretofore conducted and in compliance in all material respects with applicable Law and, to the
extent consistent herewith, use commercially reasonable efforts to preserve intact in all material
respects its current business organization, goodwill, ongoing businesses and CPA14’s qualification
as a REIT within the
meaning of the Code. CPA14 will promptly notify CPA16 of any litigation involving CPA14
having, to the Knowledge of CPA14, a reasonable likelihood of potential liability to CPA14 or any
of the CPA14 Subsidiaries in excess of $100,000 or any complaint, investigation or hearing, of
which CPA14 has Knowledge, by a Governmental Entity involving CPA14 or any of the CPA14
Subsidiaries.

     (b) Without limiting the generality of the foregoing, during the period from the date of this
Agreement to the earlier of the termination of this Agreement in accordance with  Section
7.1 and the Effective Time, except (i) as disclosed on Schedule  3.1 of the CPA14
Disclosure Letter, (ii) as otherwise contemplated by this Agreement, (iii) in connection with the
steps taken to implement the Reorganization or (iv) to the extent consented to by CPA16, which
consent shall not be unreasonably withheld, conditioned or delayed, CPA14 and any of the CPA14
Subsidiaries shall not engage in, authorize or agree to any of the following:

     (i) (A) declare, set aside or pay any dividends on, or make any other distributions in
respect of, any CPA14 Common Stock or stock or other equity interests in any CPA14
Subsidiary that is not directly or indirectly wholly-owned by CPA14, except (1) the
authorization and payment of regular quarterly dividends with respect to the CPA14 Common
Stock (not to exceed $0.20010 per share per quarter), provided that CPA14 shall notify CPA16
of the proposed record date for any such distribution prior to such date, (2) the
authorization and payment of the CPA14 Special Distribution, or (3) any distribution (or an
increase in a distribution) by CPA14 that is necessary for CPA14 to maintain its REIT
qualification, avoid the incurrence of any Taxes under Section 857 of the Code, avoid the
imposition of any excise Taxes under Section 4981 of the Code, or avoid the need to make one
or more extraordinary or disproportionately larger distributions to meet any of the
objectives in this clause (3), provided that CPA14 shall provide CPA16 with evidence,
reasonably satisfactory to CPA16, that such distribution is necessary, (B) split, combine or
reclassify any CPA14 Common Stock or issue or authorize the issuance of any other securities
in respect of, in lieu of or in substitution for shares of CPA14 Common Stock or (C)
purchase, redeem or otherwise acquire any CPA14 Common Stock or any options, warrants or
rights to acquire, or security convertible into, shares of CPA14 Common Stock other than
qualified redemptions pending as of the date of this Agreement;

     (ii) issue, deliver, sell, grant, pledge or encumber or agree to issue, deliver, sell,
grant, pledge or encumber any stock, Voting Debt or other voting securities or equity
securities of

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CPA14 (including any CPA14 Common Stock) or any CPA14 Subsidiary or any option
or other material right in respect of any CPA14 Common Stock, capital stock, any other
voting or redeemable securities of CPA14 or any securities convertible into, or any rights,
warrants or options to acquire, any such shares, voting securities or convertible or
redeemable securities, except (A) to CPA14 or a wholly-owned CPA14 Subsidiary, (B) pursuant
to CPA14’s distribution reinvestment and share purchase plan; provided that the purchase
price for any shares of CPA14 Common Stock issued pursuant to such distribution reinvestment
and share purchase plan is not less than the Cash Consideration or (C) pursuant to the
advisory agreement between CPA14 and CAM (the “CPA14 Advisory Agreement”);

     (iii) amend the CPA14 Charter or CPA14 Bylaws, except as required by this Agreement or
applicable Law;

     (iv) exempt any Person, other than CPA16 and Merger Sub or any of their Affiliates or
Subsidiaries or, if applicable, any Person that enters into a definitive agreement with
CPA14 or any CPA14 Subsidiary in connection with a Superior Competing Transaction, from any
limits or restrictions contained in the CPA14 Charter or CPA14 Bylaws with respect to the
ownership of any equity securities of CPA14;

     (v) except as set forth on Schedule 3.1(b)(v) of the CPA14 Disclosure Letter, merge,
consolidate or enter into any other similar extraordinary corporate transaction with any
Person; acquire or agree to acquire (by merger, consolidation or acquisition) any
corporation, partnership or other entity; or purchase any equity interest in, or all or
substantially all of the assets of, any Person or any division or business thereof;

     (vi) except for transactions in the ordinary course of business consistent with past
practice and as set forth on Schedule 3.1(b)(vi) of the CPA14 Disclosure Letter, (A) make
any capital expenditures; (B) acquire, enter into any option to acquire, or exercise an
option or other right or election or enter into any other commitment or contractual
obligation (each, a “Commitment”) for the acquisition of any real property or other
transaction involving nonrefundable deposits; (C) commence construction of, or enter into
any Commitment to develop or construct, other real estate projects; (D) incur additional
indebtedness (secured or unsecured); or (E) make any loans, advances, capital contributions
or investments in any other Person;

     (vii) (A) except
for transactions in the ordinary course of business consistent with past practice, (i) mortgage, lease or subject to Lien
any of the CPA14 Properties, (ii) pledge or otherwise encumber CPA14 Common Stock or (iii) sell, lease, mortgage, subject
to Lien or otherwise dispose of any of its personal or intangible property, and (B) except as set forth on Schedule 3.1(b)
(vii) of the CPA14 Disclosure Letter, directly or indirectly, sell or otherwise dispose of any of the CPA14 Properties or
any equity interests in a CPA14 Subsidiary;

     (viii) guarantee the indebtedness of another Person, enter into any “keep well” or
other agreement to maintain any financial statement condition of another Person or enter
into any arrangement having the economic effect of any of the foregoing other than in the
ordinary course of business consistent with past practice;

     (ix) (A) prepay, refinance or amend any existing indebtedness other than, in the case
of refinancings and amendments, on terms more favorable than the terms of the existing
indebtedness other than in the ordinary course of business consistent with past practice or
(B) pay, discharge or satisfy any claims, Liabilities or obligations (absolute, accrued,
asserted or unasserted, contingent or otherwise) other than the payment, discharge or
satisfaction, in the

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ordinary course of business consistent with past practice or in
accordance with their terms, of Liabilities reflected or reserved against in the balance
sheet of CPA14 dated as of December 31, 2009;

     (x) make or rescind any express or deemed election relating to Taxes (unless CPA14
reasonably determines after consultation with CPA16 that such action is required by Law or
necessary to preserve CPA14’s qualification as a REIT or any other CPA14 Subsidiary which
files Tax Returns as a partnership for federal Tax purposes, in which event CPA14 shall make
such election in a timely manner); provided that nothing in this Agreement shall preclude
CPA14 from designating dividends paid by it as “capital gain dividends” within the meaning
of Section 857 of the Code, with the prior written consent of CPA16, which will not be
unreasonably withheld;

     (xi) (A) change in any material respect that is adverse to CPA14 any of its methods,
principles or practices of accounting (including any method of accounting for Tax purposes)
in effect or (B) settle or compromise any claim, action, suit, litigation, proceeding,
arbitration, investigation, audit or controversy relating to Taxes, except in the case of
settlements or compromises relating to Taxes on real property or sales Taxes in an amount
not to exceed,
individually or in the aggregate, $100,000, or change any of its methods of reporting
income or deductions for federal income Tax purposes from those employed in the preparation
of its federal income Tax Return for the taxable year ended December 31, 2009, except as to
clauses (A) and (B) as may be required by the SEC, applicable Law or GAAP;

     (xii) except as set forth on Schedule 3.1(b)(xii) of the CPA14 Disclosure Letter,
waive, release, assign, settle or compromise any pending or threatened litigation, action or
claim, including any shareholder derivative or class action claims other than settlements or
compromises for litigation providing solely for the payment of money damages where the
amount paid (after reduction by any insurance proceeds actually received or appropriate
credits are applied from self-insurance reserves), in settlement or compromise, exceeds,
individually or in the aggregate, $100,000, except where such settlement or compromise
provides for a complete release of CPA14 and each applicable CPA14 Subsidiary for all claims
and which do not provide for any admission of liability by CPA14 or any CPA14 Subsidiary;

     (xiii) adopt any Employee Benefit Plan, incentive plan, severance plan, bonus plan,
change in control, retention, retirement, health, life, disability, compensation or special
remuneration plan, share option or similar plan, program, policy or arrangement, grant new
share options, shares of restricted stock, share appreciation rights or other equity-based
awards, or enter into any employment, severance, change in control, termination or retention
agreement or any similar agreement or arrangement;

     (xiv) enter into or amend or otherwise modify any material agreement or arrangement
with persons that are Affiliates or, as of the date of this Agreement, are officers or
directors of CPA14 or any CPA14 Subsidiary;

     (xv) authorize, recommend, propose or announce an intention to adopt a plan of complete
or partial liquidation or dissolution of CPA14;

     (xvi) except as set forth on Schedule 3.1(b)(xvi) of the CPA14 Disclosure Letter, amend
or terminate, or waive compliance with the terms of, or breaches under, any CPA14 Material
Contract or enter into a new contract, agreement or arrangement that, if entered into prior
to the date of this Agreement, would have been required to have been listed in

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Schedule 2.1(v)(i) of the CPA14 Disclosure Letter and after giving effect to the Merger would have a
CPA14 Material Adverse Effect;

     (xvii) enter into, assume or acquire any asset subject to any Tax Protection Agreement;

     (xviii) take any action or fail to take any action that could reasonably be expected to
prevent, materially delay or materially impede the ability of the parties to consummate the
Merger or that could reasonably be expected to prevent or impede the Merger from qualifying
as a reorganization under Section 368(a) of the Code (other than allowing CPA14 stockholders
to elect the consideration to be received in the Merger) pursuant to this Agreement and the
Joint Proxy Statement/Prospectus; or

     (xix) authorize, commit or agree to take, or take any action inconsistent with any of
the foregoing.

     Section 3.2. Conduct of Business by CPA16.

     (a) During the period from the date of this Agreement to the Effective Time, CPA16 shall, and
shall cause each of the CPA16 Subsidiaries to, use all commercially reasonable efforts to carry on
its businesses in the usual, regular and ordinary course in substantially the same manner as
heretofore conducted and in compliance in all material respects with applicable Law and, to the
extent consistent herewith, use commercially reasonable efforts to preserve intact in all material
respects its current business organization, goodwill, ongoing businesses and CPA16’s qualification
as a REIT within the meaning of the Code. CPA16 will promptly notify CPA14 of any litigation
involving CPA16 having, to the Knowledge of CPA16, a reasonable likelihood of potential liability
to CPA16 or any of the CPA16 Subsidiaries in excess of $100,000 or any complaint, investigation or
hearing, of which CPA16 has Knowledge, by a Governmental Entity involving CPA16 or any of the CPA16
Subsidiaries.

     (b) Without limiting the generality of the foregoing, during the period from the date of this
Agreement to the earlier of the Effective Time and the termination of this Agreement in accordance
with  Section 7.1, except (i) as disclosed on Schedule  3.2 of the CPA16
Disclosure Letter, (ii) as otherwise contemplated by this Agreement, (iii) in connection with the
steps taken to implement the Reorganization or (iv) to the extent consented to by CPA14, which
consent shall not be unreasonably withheld, conditioned or delayed, CPA16 and any of the CPA16
Subsidiaries shall not engage in, authorize or agree to any of the following:

     (i) (A) declare, set aside or pay any dividends on, or make any other distributions in
respect of, any CPA16 Common Stock or stock or other equity interests in any CPA16
Subsidiary that is not directly or indirectly wholly-owned by CPA16, except (1) the
authorization and payment of regular quarterly dividends with respect to the CPA16 Common
Stock (not to exceed $0.16560 per share per quarter), provided that CPA16 shall notify
CPA14 of the proposed record date for any such distribution prior to such date or (2) any
distribution (or an increase in a distribution) by CPA16 that is necessary for CPA16 to
maintain its REIT qualification, avoid the incurrence of any Taxes under Section 857 of the
Code, avoid the imposition of any excise Taxes under Section 4981 of the Code, or avoid the
need to make one or more extraordinary or disproportionately larger distributions to meet
any of the objectives in this clause (2), provided that CPA16 shall provide CPA14 with
evidence, reasonably satisfactory to CPA14, that such distribution is necessary, (B) split,
combine or reclassify any CPA16 Common
Stock or issue or authorize the issuance of any other
securities in respect of, in lieu of or in substitution for shares of CPA16 Common Stock or
(C) purchase, redeem or otherwise acquire any CPA16 Common

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Stock or any options, warrants or
rights to acquire, or security convertible into, shares of CPA16 Common Stock, except
pursuant to CPA16’s existing redemption plan;

     (ii) issue, deliver, sell, grant, pledge or encumber or agree to issue, deliver, sell,
grant, pledge or encumber any stock, Voting Debt or other voting securities or equity
securities of CPA16 (including any CPA16 Common Stock), other than in connection with the
transactions contemplated by this Agreement, or any CPA16 Subsidiary or any option or other
material right in respect of any CPA16 Common Stock, capital stock, any other voting or
redeemable securities of CPA16 or any securities convertible into, or any rights, warrants
or options to acquire, any such shares, voting securities or convertible or redeemable
securities, except (A) to CPA16 or a wholly-owned CPA16 Subsidiary, (B) pursuant to CPA16’s
distribution reinvestment and share purchase plan; provided that the purchase price for any
shares of CPA16 Common Stock issued pursuant to such distribution reinvestment and share
purchase plan is not less than 95% of the most recent estimated net asset value per share of
CPA16 Common Stock approved by the independent directors of CPA16 or (C) pursuant to the
Amended and Restated Advisory
Agreement, dated October 1, 2009, between CPA16 and CAM (the “CPA16 Advisory
Agreement”),;

     (iii) amend the CPA16 Charter or CPA16 Bylaws, except as required by this Agreement or
applicable Law;

     (iv) amend the Merger Sub Charter or Merger Sub Bylaws, except as required by this
Agreement or applicable Law;

     (v) merge, consolidate or enter into any other similar extraordinary corporate
transaction with any Person; acquire or agree to acquire (by merger, consolidation or
acquisition) any corporation, partnership or other entity; or purchase any equity interest
in, or all or substantially all of the assets of, any Person or any division or business
thereof;

     (vi) except for transactions in the ordinary course of business consistent with past
practice, (A) make any capital expenditures; (B) acquire, enter into any option to acquire,
or exercise any Commitment for the acquisition of any real property or other transaction
involving nonrefundable deposits; (C) commence construction of, or enter into any Commitment
to develop or construct, other real estate projects; (D) incur additional indebtedness
(secured or unsecured); or (E) make any loans, advances, capital contributions or
investments in any other Person;

     (vii) (A) except for transactions in the ordinary course of business consistent with past practice,
(i) mortgage, lease or subject to Lien any of the CPA16 Properties, (ii) pledge or otherwise
encumber CPA16 Common Stock or (iii) sell, lease, mortgage, subject to Lien or otherwise dispose of
any of its personal or intangible property, and (B) except as set forth on Schedule 3.2(b) (vii) of
the CPA16 Disclosure Letter, directly or indirectly, sell or otherwise dispose of any of the CPA16
Properties or any equity interests in a CPA16 Subsidiary;

     (viii) guarantee the indebtedness of another Person, enter into any “keep well” or
other agreement to maintain any financial statement condition of another Person or enter
into any arrangement having the economic effect of any of the foregoing other than in the
ordinary course of business consistent with past practice;

     (ix) (A) prepay, refinance or amend any existing indebtedness other than, in the case
of refinancings and amendments, on terms more favorable than the terms of the existing
indebtedness other than in the ordinary course of business consistent with past practice or
(B) pay,

- 39 -

 

discharge or satisfy any claims, Liabilities or obligations (absolute, accrued,
asserted or unasserted, contingent or otherwise) other than the payment, discharge or
satisfaction, in the ordinary course of business consistent with past practice or in
accordance with their terms, of Liabilities reflected or reserved against in the balance
sheet of CPA16 dated as of December 31, 2009;

     (x) make or rescind any express or deemed election relating to Taxes (unless CPA16
reasonably determines after consultation with CPA14 that such action is required by Law or
necessary to preserve CPA16’s qualification as a REIT or any other CPA16 Subsidiary which
files Tax Returns as a partnership for federal Tax purposes, in which event CPA16 shall make
such election in a timely manner); provided that nothing in this Agreement shall preclude
CPA16 from designating dividends paid by it as “capital gain dividends” within the meaning
of Section 857 of the Code, with the prior written consent of CPA14, which will not be
unreasonably withheld;

     (xi) (A) change in any material respect that is adverse to CPA16 any of its methods,
principles or practices of accounting (including any method of accounting for Tax purposes)
in effect or (B) settle or compromise any claim, action, suit, litigation, proceeding,
arbitration, investigation, audit or controversy relating to Taxes, except in the case of
settlements or compromises relating to Taxes on real property or sales Taxes in an amount
not to exceed, individually or in the aggregate, $100,000, or change any of its methods of
reporting income or deductions for federal income Tax purposes from those employed in the
preparation of its federal income Tax Return for the taxable year ended December 31, 2009,
except as to clauses (A) and (B) as may be required by the SEC, applicable Law or GAAP;

     (xii) waive, release, assign, settle or compromise any pending or threatened
litigation, action or claim, including any shareholder derivative or class action claims
other than settlements or compromises for litigation providing solely for the payment of
money damages where the amount paid (after reduction by any insurance proceeds actually
received or appropriate credits are applied from self-insurance reserves), in settlement or
compromise, exceeds, individually or in the aggregate, $100,000, except where such
settlement or compromise provides for a complete release of CPA16 and each applicable CPA16
Subsidiary for all claims and which do not provide for any admission of liability by CPA16
or any CPA16 Subsidiary;

     (xiii) adopt any Employee Benefit Plan, incentive plan, severance plan, bonus plan,
change in control, retention, retirement, health, life, disability, compensation or special
remuneration plan, share option or similar plan, program, policy or arrangement, grant new
share options, shares of restricted stock, share appreciation rights or other equity-based
awards, or enter into any employment, severance, change in control, termination or retention
agreement or any similar agreement or arrangement;

     (xiv) enter into or amend or otherwise modify any material agreement or arrangement
with persons that are Affiliates or, as of the date of this Agreement, are officers or
directors of CPA16 or any CPA16 Subsidiary;

     (xv) authorize, recommend, propose or announce an intention to adopt a plan of complete
or partial liquidation or dissolution of CPA16 or Merger Sub;

     (xvi) amend or terminate, or waive compliance with the terms of, or breaches under, any
CPA16 Material Contract or enter into a new contract, agreement or arrangement that, if
entered into prior to the date of this Agreement, would have been required to have been
listed in

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Schedule 2.2(u)(i) of the CPA16 Disclosure Letter and after giving effect to the
Merger would have a CPA16 Material Adverse Effect;

     (xvii) enter into, assume or acquire any asset subject to any Tax Protection Agreement;

     (xviii) take any action or fail to take any action that could reasonably be expected to
prevent, materially delay or materially impede the ability of the parties to consummate the
Merger or that could reasonably be expected to prevent or impede the Merger from qualifying
as a reorganization under Section 368(a) of the Code pursuant to this Agreement and the
Joint Proxy Statement/Prospectus; or

     (xix) authorize, commit or agree to take, or take any action inconsistent with any of
the foregoing.

     Section 3.3. No Control of Other Party’s Business. Nothing contained in this Agreement shall give
CPA14, directly or indirectly, the right to control or direct CPA16’s or any CPA16 Subsidiary’s
operations prior to the Effective Time, and nothing contained in this Agreement shall give CPA16 or
Merger Sub, directly or indirectly, the right to control or direct CPA14’s or any CPA14
Subsidiary’s operations prior to the Effective Time. Prior to the Effective Time, each of CPA14
and CPA16 shall exercise, consistent with the terms and conditions of this Agreement, complete
control and supervision over its and its Subsidiaries’ respective operations.

ARTICLE IV

ADDITIONAL COVENANTS

     Section 4.1. Preparation of the Form S-4 and the Joint Proxy Statement/Prospectus;
Stockholders Meetings.

     (a) As soon as practicable following the date of this Agreement, CPA14 and CPA16 shall jointly
prepare and file with the SEC mutually acceptable preliminary proxy materials and any amendments or
supplements thereto which shall constitute the Joint Proxy Statement/Prospectus relating to the
matters to be submitted to the CPA14 Stockholders at the CPA14 Stockholder Meeting and the CPA16
Stockholders at the CPA16 Stockholder Meeting (such Joint Proxy Statement/Prospectus, and any
amendments or supplements thereto, the “Joint Proxy Statement/Prospectus”) and CPA16 shall
prepare and file with the SEC the Registration Statement on Form S-4, with respect to the issuance
of CPA16 Common Stock in the Merger (the “Form S-4”) in which the Joint Proxy
Statement/Prospectus will be included as a prospectus. The Form S-4 and the Joint Proxy
Statement/Prospectus shall comply in all material respects with the applicable provisions of the
Securities Act and the Exchange Act. The parties shall cooperate fully with each other in the
preparation of the Form S-4 and the Joint Proxy Statement/Prospectus, and shall furnish each other
with all information reasonably requested by the other for inclusion therein or otherwise in
respect thereof. Each of CPA14 and CPA16 shall use all reasonable best efforts to have the Joint
Proxy Statement/Prospectus cleared by the SEC and the Form S-4 declared effective under the
Securities Act as promptly as practicable after filing it with the SEC and to keep the Form S-4
effective as long as necessary to consummate the Merger. The parties shall promptly provide copies
to each other, consult with each other and jointly prepare written responses with respect to any
written comments received from the SEC with respect to the Form S-4 and the Joint Proxy
Statement/Prospectus and promptly advise the other party of any oral comments received from the
SEC. The parties shall cooperate and provide each other with a reasonable opportunity to review
and comment on any amendment or supplement to the Joint Proxy Statement/Prospectus and Form S-4
prior to filing such with the SEC and will provide each other a copy of all such filings made with
the SEC.

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Notwithstanding any other provision herein to the contrary, no amendment or supplement
(including by incorporation by reference) to the Joint Proxy Statement/Prospectus or Form S-4 shall
be made without the approval of both parties, which approval shall not be unreasonably withheld,
conditioned or delayed. The parties shall use all reasonable best efforts to cause the Joint Proxy
Statement/Prospectus and all other customary proxy or other materials for meetings such as the
CPA14 Stockholder Meeting and the CPA16 Stockholder Meeting to be mailed to their respective
stockholders as promptly as practicable after the Form S-4 is declared effective under the
Securities Act. Each of CPA14 and CPA16 shall comply in all respects with the requirements of the
Exchange Act and the Securities Act applicable to the Joint Proxy Statement/Prospectus and the
solicitation of proxies for their respective meetings of stockholders. CPA16 shall also take any
action required to be taken under any applicable state securities Laws in connection with the
issuance of the CPA16 Common Stock in the Merger (other than qualifying to do business in any
jurisdiction in which it is not now so qualified or to file a general consent to service of
process) and CPA14 shall furnish all
information concerning CPA14 and the CPA14 Stockholders as may be reasonably requested by
CPA16 in connection with any such action.

     (b) CPA14 shall, in accordance with applicable Law, the CPA14 Charter and the CPA14 Bylaws, as
soon as practicable following the date of this Agreement, establish a record date for, duly call,
give notice of, convene and hold the CPA14 Stockholder Meeting solely for the purposes of obtaining
the CPA14 Stockholder Approval and, subject to the provisions of  Section 4.5 and
 Article VI, shall, through its Board of Directors, recommend to the CPA14 Stockholders
the approval of the Merger. Subject to the foregoing, CPA14 shall use its reasonable best efforts
to obtain the CPA14 Stockholder Approval as promptly as practicable.

     (c) CPA16 shall, in accordance with applicable Law, the CPA16 Charter and the CPA16 Bylaws, as
soon as practicable following the date of this Agreement, establish a record date for, duly call,
give notice of, convene and hold the CPA16 Stockholder Meeting solely for the purposes of obtaining
the CPA16 Stockholder Approvals and shall, through its Board of Directors, recommend to the CPA16
Stockholders the approval of the Alternate Merger, the Reorganization and the CPA16 Capital
Increase. Subject to the foregoing, CPA16 shall use its reasonable best efforts to obtain the
CPA16 Stockholder Approvals as promptly as practicable.

     (d) The CPA14 Stockholder Meeting and the CPA16 Stockholder Meeting shall take place on the
same date to the extent practicable.

     (e) If at any time prior to the Effective Time any information with respect to CPA16
(including its officers and directors and CPA16 Subsidiaries) shall be discovered or any event
shall occur that in the determination of CPA16 is required to be described in an amendment of, or a
supplement to, the Joint Proxy Statement/Prospectus or the Form S-4, CPA16 shall notify CPA14
thereof and such event shall be so described. Any such amendment or supplement shall be promptly
filed with the SEC and, as and to the extent required by Law, disseminated to the stockholders of
CPA16, and such amendment or supplement shall comply in all material respects with all provisions
of applicable Law.

     (f) If at any time prior to the Effective Time any information with respect to CPA14
(including its officers and directors and CPA14 Subsidiaries) shall be discovered or any event
shall occur that in the determination of CPA14 is required to be described in an amendment of, or a
supplement to, the Joint Proxy Statement/Prospectus or the Form S-4, CPA14 shall notify CPA16
thereof and such event shall be so described. Any such amendment or supplement shall be promptly
filed with the SEC and, as and to the extent required by Law, disseminated to the CPA14
Stockholders, and such amendment or supplement shall comply in all material respects with all
provisions of applicable Law.

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     (g) The foregoing actions are subject to compliance with applicable Law and the other terms of
this Agreement.

     (h) If, on the date of the CPA14 Stockholder Meeting, CPA14 has not received proxies
representing a sufficient number of shares of CPA14 Common Stock to approve the Merger, CPA14 shall
adjourn the CPA14 Stockholder Meeting until such date as shall be mutually agreed upon by CPA14 and
CPA16, which date shall not be less than five days nor more than ten days after the date of
adjournment, and subject to the terms and conditions of this Agreement shall continue to use its
reasonable best efforts, together with its proxy solicitor, to assist in the solicitation of
proxies from stockholders relating to the CPA14 Stockholder Approval.

     (i) If, on the date of the CPA16 Stockholder Meeting, CPA16 has not received proxies
representing a sufficient number of shares of CPA16 Common Stock to approve the Alternate Merger
and
the CPA16 Capital Increase, CPA16 shall adjourn the CPA16 Stockholder Meeting until such date
as shall be mutually agreed upon by CPA16 and CPA14, which date shall not be less than five days
nor more than ten days after the date of adjournment, and subject to the terms and conditions of
this Agreement shall continue to use its reasonable best efforts, together with its proxy
solicitor, to assist in the solicitation of proxies from stockholders relating to the CPA16
Stockholder Approvals.

     Section 4.2. Reasonable Best Efforts.

     (a) Upon the terms and subject to the conditions set forth in this Agreement and compliance
with applicable Law and the other terms of this Agreement, each of CPA16, Merger Sub, CPA14 and W.
P. Carey agrees to use its reasonable best efforts to take, or cause to be taken, all actions and
to do, or cause to be done, and to assist and cooperate with the other in doing, all things
necessary, proper or advisable to fulfill all conditions applicable to such party pursuant to this
Agreement and to consummate and make effective, in the most expeditious manner practicable, the
Merger and the other transactions contemplated by the Transaction Documents, including (i) the
obtaining of all necessary actions or nonactions, waivers, consents and approvals from Governmental
Entities and the making of all necessary registrations and filings and the taking of all reasonable
steps as may be necessary to obtain an approval, waiver or exemption from any Governmental Entity,
(ii) the obtaining of all necessary consents, approvals, waivers or exemptions from
non-governmental third parties, and (iii) the execution and delivery of any additional instruments
necessary to consummate the transactions contemplated by, and to fully carry out the purposes of,
this Agreement. In addition, each of CPA16, Merger Sub, CPA14 and W. P. Carey agrees to use its
reasonable best efforts to defend any lawsuits or other legal proceedings, whether judicial or
administrative, challenging the Merger, this Agreement or the transactions contemplated by the
Transaction Documents, including seeking to have any stay, temporary restraining order, injunction,
or restraining order or other order adversely affecting the ability of the parties to consummate
the transactions contemplated by the Transaction Documents entered by any court or other
Governmental Entity vacated or reversed. If, at any time after the Effective Time, any further
action is necessary or desirable to carry out the purpose of this Agreement, the proper officers
and directors of CPA14, CPA16, Merger Sub and W. P. Carey shall take all such necessary action.
From the date of this Agreement through the Effective Time, CPA14 shall timely file, or cause to be
filed, with the SEC all CPA14 SEC Documents required to be so filed.

     (b) Each of CPA14, CPA16, Merger Sub and W. P. Carey shall give prompt notice to each other
party if (i) any representation or warranty made by it contained in this Agreement that is
qualified as to materiality becomes untrue or inaccurate in any respect or any such representation
or warranty that is not so qualified becomes untrue or inaccurate in any material respect or (ii)
it fails to comply with or satisfy in any material respect any covenant, condition or agreement to
be complied with or satisfied by it under this Agreement; provided that the delivery of any notice
pursuant to this Section shall not limit or

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otherwise affect the remedies available hereunder to
the party receiving such notice; and, provided further that failure to give such notice shall not
be treated as a breach of covenant for the purposes of Sections  5.2(b) or
 5.3(b), as the case may be.

     Section 4.3. Financing.

     (a) Fees Payable to CAM and its Affiliates. As a condition and inducement to the willingness
of CPA16 and Merger Sub to enter into this Agreement and to consummate the transactions
contemplated hereby, each of CPA14, CAM and W. P. Carey B.V. agree that, concurrently with and
conditioned on the closing of the transactions contemplated by this Agreement, the CPA14 Advisory
Agreement and the Asset Management Agreement, dated as of September 2, 2008, between CPA14 and W.
P. Carey B.V. (the “Asset Management Agreement,” and together with the CPA14 Advisory
Agreement, the “CPA14 Advisory Agreements”), shall automatically terminate without any
action by any of the parties thereto and, as a result of such termination and in connection with
the Merger, CPA14, CAM and W. P. Carey B.V. agree that CPA14 shall pay to CAM (i) a Termination Fee
(as such term is defined in the CPA14 Advisory Agreements) in the amount of $31,237,704 (the
“Termination Fee”), (ii) a Subordinated Disposition Fee (as such term is defined in the
CPA14 Advisory Agreements) in the amount of $15,200,000 (the “Subordinated Disposition
Fee”), and (iii) $6,069,823 in fees that have accrued but have not been paid under the CPA14
Advisory Agreements (the fee specified in this clause (iii), together with the Termination Fee and
the Subordinated Disposition Fee, the “CAM Fees”). Notwithstanding anything to the
contrary set forth herein or in the CPA14 Advisory Agreements, other than the CAM Fees, CAM and W.
P. Carey B.V. each agrees that neither it nor any of their respective Affiliates shall receive or
be entitled to receive any other fees, costs, expenses or other payments under the CPA14 Advisory
Agreements.

     (b) Reinvestment in CPA14 Common Stock. Conditioned on the closing of the transactions
contemplated by this Agreement, prior to the Effective Time, CAM has elected to receive the entire
amount of the Termination Fee (less any required Taxes) in the form of restricted shares of CPA14
Common Stock at a price per share equal to $10.50, and CAM agrees to do all things necessary and
advisable, including taking all actions and executing such documents as CPA14 shall reasonably
request, in connection with such election and receipt of CPA14 Common Stock.

     (c) Share Conversion. Prior to the closing of the transactions contemplated by this
Agreement, W. P. Carey and CAM, each in their respective capacity as a CPA14 Stockholder, shall
elect to convert all of the CPA14 Common Stock beneficially owned by each of them, including any
shares of restricted CPA14 Common Stock received pursuant to Section 4.3(b), into shares of CPA16
Common Stock pursuant to Section 1.6(a)(i); provided, however, that any shares of restricted CPA14
Common Stock received pursuant to Section 4.3(b) shall continue to be subject to the same
restrictions after the Effective Time as they were subject to immediately prior to the Effective
Time

     (d) Equity Financing. If the cash on hand and available to CPA14 and CPA16 and the Debt
Financing, taken together, are not sufficient to enable CPA16 to pay the Required Cash Amounts,
then, subject to Section 5.1(b), CPA16 agrees to sell and issue to W. P. Carey, and W. P. Carey
agrees to purchase from CPA16, at or prior to the Closing, that number of authorized but unissued
shares of CPA16 Common Stock at a purchase price per share equal to $8.80 that will enable CPA16 to
pay from the proceeds received from such sale of shares, and CPA16 agrees to use such proceeds to
pay, the remaining cash portion of the Required Cash Amounts (the “Equity Financing”);
provided, however, that notwithstanding anything in this Agreement to the contrary and without
prejudice to any of its rights under Section 5.1, the obligation of W. P. Carey to provide the
Equity Financing shall be contingent upon (i) holders of not more than 50% of the outstanding CPA14
Common Stock electing to receive Cash Consideration in the Merger pursuant to  Section
1.6(a) and (ii) CPA16 having drawn and received an

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amount equal to the amount of the Debt Financing disclosed to CPA14 and W. P. Carey
pursuant to Section 4.3(g).

     (e) Debt Financing. CPA16 shall use its reasonable best efforts to take, or cause to be
taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to
arrange, consummate and obtain the Senior Credit Facility on the terms and conditions set forth in
the Commitment Letters, including (i) using reasonable best efforts to (A) enter into definitive
agreements with respect to the Senior Credit Facility consistent with the terms and conditions
contained in the Commitment Letters, (B) satisfy on a timely basis all terms, covenants and
conditions set forth in the Commitment Letters the satisfaction of which are within the control of
CPA16, and (C) consummate and obtain the Senior Credit Facility at or prior to the Closing, and
(ii) seeking to enforce its rights under the Commitment Letters. CPA16 shall, and shall cause the
CPA16 Subsidiaries to, refrain from taking, directly or indirectly, any action that would
reasonably be expected to result in the failure of any of the conditions contained in the
Commitment Letters or in any of the definitive agreements related to the Senior Credit Facility.
CPA16 will furnish correct and complete copies of all definitive agreements related to the Senior
Credit Facility to CPA14 promptly upon their execution.

     (f) CPA16 shall keep CPA14 informed with respect to all material activity concerning the
status of the Senior Credit Facility and the Equity Financing and shall give CPA14 prompt notice of
any material changes with respect thereto. Without limiting the foregoing, CPA16 agrees to notify
CPA14 promptly, and in any event within two Business Days, if at any time (i) the Commitment
Letters shall expire or be terminated for any reason, (ii) any financing source that is a party to
the Commitment Letters notifies CPA16 that it no longer intends to provide financing to CPA16 on
the terms set forth therein, or (iii) for any reason CPA16 no longer believes in good faith that it
will be able to obtain all or any portion of the Senior Credit Facility on the terms described in
the Commitment Letters. CPA16 shall not, without the prior written consent of CPA14 (not to be
unreasonably withheld), permit any amendment or modification to, or any waiver of any material
provision or remedy under, the Commitment Letters, or the terms of the Equity Financing described
herein, if such amendment, modification or waiver materially increases the conditionality of or
materially delays the consummation of the Senior Credit Facility or the Equity Financing, as
applicable.

     (g) If any portion of the Senior Credit Facility becomes unavailable on the terms and
conditions contemplated in the Commitment Letters or the Commitment Letters shall be terminated or
modified in a manner materially adverse to CPA16 for any reason, CPA16 shall use its reasonable
best efforts to arrange to obtain alternative financing from alternative sources in an amount
sufficient to pay the Required Cash Amounts (“Alternate Financing”) and to obtain, and, if
obtained, will provide CPA14 with true and complete copies of, a new financing commitment that
provide for financing sufficient for CPA16 to fund the Required Cash Amounts (the “New
Commitment Letter”), and on terms and conditions no less favorable to CPA16 in all material
respects than those included in the Commitment Letters. To the extent applicable, CPA16 shall use
its reasonable best efforts to take, or cause to be taken, all things necessary, proper or
advisable to arrange promptly and consummate the Alternate Financing on the terms and conditions
described in any New Commitment Letter, including (i) using reasonable best efforts to (A) enter
into definitive agreements with respect to the Alternative Financing consistent with the terms and
conditions contained in any New Commitment Letter, (B) satisfy on a timely basis all terms,
covenants and conditions set forth in any New Commitment Letter the satisfaction of which are
within the control of CPA16, and (C) consummate the Alternate Financing at or prior to the Closing,
and (ii) seeking to enforce its rights under any New Commitment Letter. If Alternate Financing is
obtained and a New Commitment Letter is entered into in place of the Senior Credit Facility,
references in this Agreement to (i) the Senior Credit Facility and the Debt Financing shall be
deemed to refer to the Alternate Financing and (ii) Commitment Letters shall be deemed to refer to
the New Commitment Letter. Not fewer than two Business Days prior to the Closing, CPA16 shall
disclose in writing to CPA14 and W. P. Carey the

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amount of the Debt Financing CPA16 will use to pay a portion of the Cash Consideration in the
Merger. At the Effective Time, CPA16 shall draw upon the Senior Credit Facility in an aggregate
amount equal to such amount of the Debt Financing.

     (h) W. P. Carey and CPA14 each agree to provide, and each will cause its Subsidiaries and
its and their officers, employees and representatives to provide, at CPA16’s sole cost and expense,
all cooperation reasonably requested by CPA16 upon reasonable notice in connection with the
arrangement and consummation of the Senior Credit Facility, including, without limitation, any
actions contemplated by the Commitment Letters and the syndication of the Senior Credit Facility;
provided that nothing contained in this  Section 4.3(h) shall require (i) such cooperation to the
extent that it would interfere unreasonably with W. P. Carey’s or CPA14’s business or the
businesses of any of their Subsidiaries, or (ii) (A) W. P. Carey or any of its Subsidiaries to pay
any commitment or other similar fee or incur any other liability in connection with the Senior
Credit Facility or (B) CPA14 or any CPA14 Subsidiary to pay any commitment or other similar fee or
incur any other liability in connection with the Senior Credit Facility prior to the Effective
Time. CPA16 shall indemnify and hold harmless W. P. Carey, CPA14 and their respective Subsidiaries
and their respective officers, directors and other representatives from and against any and all
losses or damages suffered or incurred by them in connection with the arrangement of the Senior
Credit Facility and any information utilized in connection therewith except (x) with respect to
information supplied by W. P. Carey, CPA14, any of their Subsidiaries and any of their
representatives specifically for inclusion or incorporation by reference therein and/or (y) to the
extent such losses and damages arise from the willful misconduct or gross negligence of W. P.
Carey, CPA14, any of their Subsidiaries or any of their officers, directors, employees or
representatives.

     Section 4.4. Tax Treatment.

     (a) CPA14 shall prepare or cause to be prepared and file or cause to be filed on a timely
basis all Tax Returns and amendments thereto required to be filed by CPA14 or any of the CPA14
Subsidiaries in a manner consistent with past practice (unless an alternative manner is required by
applicable Law) prior to the Closing Date (after electing all available extensions of time to file
such Tax Returns). Prior to filing any such Tax Returns, CPA14 shall deliver draft copies
(together with supporting documentation, including Tax Return work papers) to CPA16 for CPA16’s
review and comment, and CPA14 shall accept all reasonable comments of CPA16 with respect to such
Tax Returns. CPA14 shall pay all Taxes required to be paid by CPA14 prior to the Effective Time.
CPA16 shall have a reasonable period of time (but in no event less than 30 days) to review and
comment on such Tax Returns and amendments prior to filing. If the parties do not agree on the
draft Tax Returns or amendments, the parties shall hire a nationally recognized accounting firm
reasonably acceptable to CPA14 and CPA16 to prepare the contested Tax Returns or amendments.

     (b) CPA14 will take all necessary actions, including but not limited to making sufficient
distributions prior to Closing, to assure that CPA14 will qualify as a REIT for its Tax year ending
on the Closing Date. During the period from the date of this Agreement to the Effective Time,
CPA14 shall, and shall cause each CPA14 Subsidiary to, facilitate all reasonable requests of CPA16
with respect to the maintenance of CPA14’s REIT qualification.

     (c) Merger Sub and CPA14 shall report the Merger as a “reorganization” under
Section 368(a) of the Code, unless otherwise required by Law or administrative action, and shall
comply with any applicable Tax reporting requirements, including Treasury Regulation
Section 1.368-3, as necessary.

     Section 4.5. No Solicitation of Transactions.

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     (a) Subject to  Section 6.1, none of CPA14 or any CPA14 Subsidiary shall, nor shall it
authorize or permit, directly or indirectly, any officer, director, investment advisor, agent,
investment banker, financial advisor, attorney, accountant, broker, finder or other agent,
representative or controlled Affiliate of CPA14 or any CPA14 Subsidiary to initiate, solicit,
encourage or facilitate (including by way of furnishing nonpublic information or assistance) any
inquiries or the making of any proposal or other action that constitutes, or may reasonably be
expected to lead to, any Competing Transaction, or enter into discussions or negotiate with any
Person in furtherance of such inquiries or to obtain a Competing Transaction. CPA14 shall, and
shall cause the CPA14 Subsidiaries to, take all actions reasonably necessary to cause their
respective officers, directors, investment advisors, investment bankers, financial advisors,
attorneys, accountants, brokers, finders and any other agents, representatives or controlled
Affiliates to, immediately cease any discussions, negotiations or communications with any party or
parties with respect to any Competing Transaction. CPA14 shall be responsible for (x) any failure
on the part of it, any of the CPA14 Subsidiaries or any of their respective officers and directors
to comply with this  Section 4.5(a) and (y) any material failure by their respective employees,
agents, investment bankers, financial advisors, attorneys, accountants, brokers, finders or other
representatives or controlled Affiliates to comply with this  Section 4.5(a). CPA14 shall promptly
request each person that has heretofore executed a confidentiality agreement in connection with its
consideration of acquiring (whether by merger, acquisition, stock sale, asset sale or otherwise)
CPA14 or any CPA14 Subsidiary, if any, to return or destroy all confidential information heretofore
furnished to such person by or on behalf of CPA14 or any CPA14 Subsidiary.

     (b) CPA14 shall notify CPA16 in writing (as promptly as practicable but in any event
within 24 hours of receipt) of the relevant details relating to all inquiries and proposals
(including the identity of the parties, price and other material terms thereof) which it or any of
the CPA14 Subsidiaries or any of their respective officers, directors, employees, agents,
investment bankers, financial advisors, attorneys, accountants, brokers, finders or other
representatives or controlled Affiliates may receive after the date hereof relating to any of such
matters and shall promptly inform CPA16 in writing with respect to any such inquiry or proposal
that becomes reasonably likely to lead to a proposal for a Competing Transaction, regardless of
whether or not such proposal is likely to lead to a Superior Competing Transaction.

     (c) For purposes of this Agreement, a “Competing Transaction” shall mean any of
the following (other than the transactions expressly provided for in this Agreement): (i) any
merger, consolidation, share exchange, business combination or similar transaction involving CPA14
(or any of the material CPA14 Subsidiaries); (ii) any sale, lease, exchange, mortgage, pledge,
transfer or other disposition of 50% or more of the assets of CPA14 and the CPA14 Subsidiaries,
taken as a whole, in a single transaction or series of related transactions, excluding any bona
fide financing transactions which do not, individually or in the aggregate, have as a purpose or
effect the sale or transfer of control of such assets; or (iii) any tender offer or exchange offer
for 50% or more of the voting power in the election of directors exercisable by the holders of
outstanding CPA14 Common Stock (or any of the CPA14 Subsidiaries).

     (d) For purposes of this Agreement, a “Superior Competing Transaction” means a
bona fide proposal for a Competing Transaction made by a third party which the Board of Directors
of CPA14 determines (after taking into account any amendment of the terms of the Merger by CPA16
and/or any proposal by CPA16 to amend the terms of the Transaction Documents or the Merger), in
good faith and after consultation with its financial and legal advisors, (i) is on terms which are
more favorable from a financial point of view to the CPA14 Stockholders than the Merger and the
other transactions contemplated by this Agreement, (ii) would result in such third party owning,
directly or indirectly, all or substantially all of the CPA14 Common Stock then outstanding (or all
or substantially all of the equity of the surviving entity in a merger) or all or substantially all
of the assets of CPA14 and the CPA14 Subsidiaries taken as a whole, (iii) is reasonably capable of
being consummated and (iv) was not solicited

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by CPA14, any CPA14 Subsidiary or any of their respective officers, directors, investment
advisors, investment bankers, financial advisors, attorneys, accountants, brokers, finders and any
other agents, representatives or controlled Affiliates in breach of this  Section 4.5.

     Section 4.6. Public Announcements. CPA14 and CPA16 shall consult with each other before
issuing any press release or otherwise making any public statements with respect to this Agreement
or any of the transactions contemplated by the Transaction Documents, except as otherwise required
by Law in a manner which makes consultation impracticable.

     Section 4.7. Transfer and Gains Taxes. CPA16 or Merger Sub shall, with CPA14’s good faith
cooperation and assistance, prepare, execute and file, or cause to be prepared, executed and filed,
all returns, questionnaires, applications or other documents regarding any real property transfer
or gains, sales, use, transfer, value added stock transfer and stamp Taxes, any transfer,
recording, registration and other fees and any similar Taxes which become payable in connection
with the transactions contemplated by this Agreement (together, with any related interest,
penalties or additions to Tax, “Transfer and Gains Taxes”). From and after the Effective
Time, CPA16 or Merger Sub shall pay or cause to be paid all Transfer and Gains Taxes without
deductions withheld from any amounts payable to the holders of the CPA14 Common Stock.

     Section 4.8. Indemnification; Directors’ and Officers’ Insurance.

     (a) It is understood and agreed that CPA14 shall indemnify and hold harmless, and, after
the Effective Time, the Surviving Company and CPA16 shall indemnify and hold harmless, each
director and officer of CPA14 or any of the CPA14 Subsidiaries (the “Indemnified Parties”),
as and to the same extent as such Indemnified Parties are indemnified by CPA14 or the CPA14
Subsidiaries as of the date hereof. Any Indemnified Party wishing to claim indemnification under
this  Section 4.8, upon learning of any such claim, action, suit, demand, proceeding or
investigation, shall notify CPA14 and, after the Effective Time, the Surviving Company and CPA16,
promptly thereof; provided that the failure to so notify shall not affect the obligations of CPA14,
the Surviving Company and CPA16 except to the extent such failure to notify materially prejudices
such party.

     (b) CPA16 agrees that it shall maintain in full force and effect for a period of six years
from the Effective Time all rights to indemnification existing in favor of, and all limitations of
the personal liability of, the directors and officers of CPA14 and the CPA14 Subsidiaries provided
for in the CPA14 Charter or CPA14 Bylaws or any provision of the comparable charter or
organizational documents of any of the CPA14 Subsidiaries, as in effect as of the date hereof, with
respect to matters occurring prior to the Effective Time, including the Merger; provided, however,
that all rights to indemnification in respect of any claims (each a “Claim”) asserted or
made within such period shall continue until the disposition of such Claim. Prior to the Effective
Time, CPA16 shall purchase directors’ and officers’ liability insurance coverage for CPA14’s
directors and officers, in a form reasonably acceptable to CPA14, which shall provide such
directors and officers with runoff coverage for six years following the Effective Time of not less
than the existing coverage under, and have other terms not materially less favorable on the whole
to the insured persons than, the directors’ and officers’ liability insurance coverage presently
maintained by CPA14.

     (c) This  Section 4.8 is intended for the irrevocable benefit of, and to grant third party
rights to, the Indemnified Parties and shall be binding on all successors and assigns of CPA16,
CPA14 and the Surviving Company. Each of the Indemnified Parties shall be entitled to enforce the
covenants contained in this  Section 4.8.

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     (d) In the event that CPA16 or the Surviving Company or any of their successors or assigns
(i) consolidates with or merges into any other person or entity and shall not be the continuing or
surviving company or entity of such consolidation or merger or (ii) transfers or conveys all or
substantially all of its properties and assets to any person or entity, then, and in each such
case, proper provision shall be made so that the successors and assigns of CPA16 and the Surviving
Company, as the case may be, assume the obligations set forth in this  Section 4.8.

     Section 4.9. Purchases and Redemptions of CPA14 Common Stock. During the period from the
date of this Agreement to the earlier of the termination of this Agreement in accordance with
 Section 7.1 or the Effective Time of the Merger, each of CPA16 and CPA14 agrees that it will not
purchase, redeem or otherwise acquire any CPA14 Common Stock or stock or other equity interests in
any CPA14 Subsidiary or any options, warrants or rights to acquire, or security convertible into,
shares of CPA14 Common Stock or stock or other equity interests in any CPA14 Subsidiary, except
that CPA14 may complete any qualified redemptions pending as of the date of this Agreement.

     Section 4.10. Access; Confidentiality. To the extent applicable, CPA14 and CPA16 agree
that upon reasonable notice, and except as may otherwise be required or restricted by applicable
Law, each shall (and shall cause its Subsidiaries to) afford the other’s officers, employees,
counsel, accountants and other authorized representatives, and the sources of the Senior Credit
Facility and their authorized representatives, reasonable access, during normal business hours
throughout the period prior to the Effective Time, to its executive officers and to its properties,
books, contracts and records and, during such period, each shall (and each shall cause its
Subsidiaries to) furnish promptly to the other all information concerning its business, properties,
personnel and litigation claims as may reasonably be requested but only to the extent such access
does not unreasonably interfere with the business or operations of such party; provided that no
investigation pursuant to this Section 4.10 shall affect or be deemed to modify any representation
or warranty made in this Agreement; provided further that the parties hereto shall not be required
to provide information (i) in breach of applicable Law or (ii) that is subject to confidentiality
obligations. Unless otherwise required by Law, the parties shall hold all information of the other
party which is confidential and is reasonably identified as such or should reasonably be known to
be confidential in confidence until such time as such information otherwise becomes publicly
available through no wrongful act of the receiving party. If this Agreement is terminated for any
reason, each party shall promptly return to such other party or destroy, providing reasonable
evidence of such destruction, all such confidential information obtained from any other party, and
any copies made of (and other extrapolations from or work product or analyses based on) such
documents.

     Section 4.11. Sale Agreements. During the period from the date of this Agreement to the earlier
of the termination of this Agreement or the Effective Time of the Merger, CPA14 agrees that it will
not amend or terminate the CPA17 Sale Agreement or the W. P. Carey Sale Agreement without the prior
written consent of CPA16, which consent shall not be unreasonably withheld or delayed.

     Section 4.12. Reorganization. If the CPA16 Stockholders approve the Reorganization at the
CPA16 Stockholder Meeting, then, immediately following the Effective Time:

     (a) Reorganization Steps. The Surviving Company shall implement the Reorganization
substantially as set forth on Annex A.

     (b) Advisory Agreement and Asset Management Agreement. The Surviving Company will, and
CPA16 will cause the Operating Partnership to, (i) enter into an amended advisory agreement with
CAM and (ii) enter into an amended asset management agreement with W. P. Carey B.V., each
reflecting the revised fee structure set forth on Schedule 4.12(b) and such other changes as may be
reasonably

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necessary to reflect the Reorganization, and W. P. Carey agrees to cause CAM and W. P. Carey
B.V. to enter into such amended advisory agreement and amended asset management agreement, as
applicable, pursuant to which CAM and W. P. Carey B.V. will externally manage and advise the
Surviving Company and the Operating Partnership and will have responsibility for all aspects of
their respective operations.

ARTICLE V

CONDITIONS PRECEDENT

     Section 5.1. Conditions to Each Party’s Obligation to Effect the Merger. The respective
obligations of the parties to this Agreement to effect the Merger and to consummate the other
transactions contemplated by the Transaction Documents (other than the Reorganization) on the
Closing Date are subject to the satisfaction or waiver on or prior to the Closing Date of the
following conditions:

     (a) Stockholders’ Approvals. The CPA14 Stockholder Approval and the CPA16 Stockholder
Approvals, other than the approval of the Reorganization and the CPA16 Capital Increase, shall have
been obtained.

     (b) Stockholders’ Election. Holders of 50% or less of the outstanding CPA14 Common Stock
shall have elected to receive cash in the Merger in accordance with Section 1.6(a).

     (c) Registration Statement. The Form S-4 shall have become effective in accordance with
the provisions of the Securities Act. No stop order suspending the effectiveness of the Form S-4
shall have been issued by the SEC and remain in effect and no proceeding to that effect shall have
been commenced or threatened. All necessary state securities or blue sky authorizations shall have
been received.

     (d) No Injunctions or Restraints. No temporary restraining order, preliminary or
permanent injunction or other order issued by any court of competent jurisdiction or other legal
restraint or prohibition preventing the consummation of the Merger or any of the other transactions
or agreements contemplated by the Transaction Documents (other than the Reorganization) shall be in
effect.

     (e) Other Approvals. All consents, approvals, permits and authorizations required to be
obtained from any Governmental Entity as indicated in Schedule 2.1(d)(iii) of the CPA14 Disclosure
Letter or Schedule 2.2(c)(iii) of the CPA16 Disclosure Letter in connection with the execution and
delivery of this Agreement and the other Transaction Documents and the consummation of the
transactions contemplated thereby (other than the Reorganization) shall have been made or obtained
(as the case may be).

     (f) Sales of Assets. The closing of the transactions contemplated by the CPA17 Sale of
Assets and the W. P. Carey Sale of Assets shall have occurred.

     Section 5.2. Conditions to Obligations of CPA16, Holdings, Acquisition and Merger Sub. The
obligations of CPA16, Holdings, Acquisition and Merger Sub to effect the Merger and to consummate
the other transactions contemplated by the Transaction Documents on the Closing Date are further
subject to the following conditions, any one or more of which may be waived by CPA16, or if Article
X is applicable, Holdings (it being understood that the rights of Holdings to the benefit of this
Section 5.2 shall apply only in the event that Article X is applicable):

     (a) Representations and Warranties. The representations and warranties of CPA14 set forth
in this Agreement shall be true and correct on and as of the Closing Date, as though made on and as
of the

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Closing Date (except (x) for such changes resulting from actions permitted under  Section 3.1
and (y) to the extent any representation or warranty is expressly limited by its terms to another
date), except where the failure of such representations and warranties to be true and correct
(without giving effect to any materiality, CPA14 Material Adverse Effect or any similar
qualification or limitation), in the aggregate, would not reasonably be likely to have a CPA14
Material Adverse Effect, and CPA16 and Merger Sub, or if Article X is applicable, Holdings, shall
have received a certificate signed on behalf of CPA14 by the Chief Executive Officer and the Chief
Financial Officer of CPA14 to such effect.

     (b) Performance of Covenants and Obligations of CPA14. CPA14 shall have performed in all
material respects all covenants and obligations required to be performed by it under this Agreement
at or prior to the Effective Time, and CPA16 and Merger Sub, or if Article X is applicable,
Holdings, shall have received a certificate signed on behalf of CPA14 by the Chief Executive
Officer and the Chief Financial Officer of CPA14 to such effect.

     (c) Material Adverse Change. Since the date of this Agreement, there shall have occurred
no changes, events or circumstances which, individually or in the aggregate, constitute a CPA14
Material Adverse Effect. CPA16 and Merger Sub, or if Article X is applicable, Holdings, shall have
received a certificate signed on behalf of CPA14 by the Chief Executive Officer and the Chief
Financial Officer of CPA14 to such effect.

     (d) Opinion Relating to REIT Qualification. CPA16 and Merger Sub shall have received an
opinion, dated as of the Closing Date, of Greenberg Traurig, LLP to the effect that, at all times
since its taxable year ended December 31, 2007, CPA14 has been organized and operated in conformity
with the requirements for qualification and taxation as a REIT under the Code. For purposes of
such opinion, which shall be in a form customary for transactions of this nature, Greenberg
Traurig, LLP may rely on customary assumptions and representations of CPA14 reasonably acceptable
to CPA16.

     (e) Consents. All necessary consents and waivers from third parties set forth in
Schedule 2.1(d)(ii) of the CPA14 Disclosure Letter in connection with the consummation of the
Merger and the other transactions contemplated by the Transaction Documents (other than the
Reorganization) shall have been obtained, other than such consents and waivers from third parties,
which, if not obtained, would not reasonably be expected to have, individually or in the aggregate,
a CPA14 Material Adverse Effect.

     (f) Financing. CPA16 (either directly or through the CPA16 Subsidiaries) shall have
obtained and consummated the Senior Credit Facility and received financing pursuant to the Equity
Financing, if applicable, or any Alternate Financing, if applicable, sufficient to pay the cash
portion of the Required Cash Amounts; provided, however, that none of CPA16, Holdings, Acquisition
or Merger Sub may assert or rely on the failure of the condition set forth in this Section 5.2(f)
(the “Financing Condition”) if the actions or inactions of CPA16, Holdings, Acquisition or
Merger Sub are the sole cause of CPA16 (either directly or indirectly through the CPA16
Subsidiaries) failing to obtain the Senior Credit Facility or the Equity Financing.

     (g) Opinion Relating to the Merger. CPA16 and Merger Sub shall have received an opinion
from Clifford Chance US LLP, dated as of the Closing Date, to the effect that (i) the Merger will
qualify as a reorganization within the meaning of Section 368(a) of the Code and (ii) each of CPA14
and Merger Sub will be parties to such reorganization within the meaning of Section 368(b) of the
Code. For purposes of the foregoing opinion, which shall be in a form customary for transactions
of this nature, Clifford Chance US LLP shall be entitled to rely upon customary assumptions and
representations of CPA14, CPA16 and Merger Sub.

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     Section 5.3. Conditions to Obligations of CPA14. The obligations of CPA14 to effect the Merger
and to consummate the other transactions contemplated by the Transaction Documents on the Closing
Date are further subject to the following conditions, any one or more of which may be waived by
CPA14:

     (a) Representations and Warranties. The representations and warranties of CPA16 and
Merger Sub set forth in this Agreement shall be true and correct on and as of the Closing Date, as
though made on and as of the Closing Date (except (x) for such changes resulting from actions
permitted under  Section 3.2 and (y) to the extent any representation or warranty is expressly
limited by its terms to another date), except where the failure of such representations and
warranties to be true and correct (without giving effect to any materiality, CPA16 Material Adverse
Effect or any similar qualification or limitation), in the aggregate, would not reasonably be
likely to have a CPA16 Material Adverse Effect, and CPA14 shall have received a certificate signed
on behalf of CPA16 and Merger Sub by the Chief Executive Officer and the Chief Financial Officer of
CPA16 and Merger Sub to such effect.

     (b) Performance of Covenants or Obligations of CPA16. CPA16 shall have performed in all
material respects all covenants and obligations required to be performed by it under this Agreement
at or prior to the Effective Time, and CPA14 shall have received a certificate signed on behalf of
CPA16 by the Chief Executive Officer and the Chief Financial Officer of CPA16 to such effect.

     (c) Material Adverse Change. Since the date of this Agreement, there shall have occurred
no change, events or circumstances which, individually or in the aggregate, constitute a CPA16
Material Adverse Effect. CPA14 shall have received a certificate signed on behalf of CPA16 by the
Chief Executive Officer and Chief Financial Officer to such effect.

     (d) Opinion Relating to REIT Qualification. CPA14 shall have received an opinion, dated
as of the Closing Date, of Clifford Chance US LLP to the effect that, at all times since its
taxable year ended December 31, 2007, CPA16 has been organized and operated in conformity with the
requirements for qualification and taxation as a REIT under the Code, and its proposed method of
operation as described in the Joint Proxy Statement/Prospectus and Form S-4 will enable CPA16 to
meet the requirements for qualification and taxation as a REIT under the Code. For purposes of
such opinion, Clifford Chance US LLP may rely on customary assumptions and representations of CPA16
reasonably acceptable to CPA14, and the opinion set forth in Section 5.2(d).

     (e) Consents. All necessary consents and waivers from third parties in connection with
the consummation of the Merger and the other transactions contemplated by the Transaction Documents
shall have been obtained, other than such consents and waivers from third parties, which, if not
obtained, would not reasonably be expected to have, individually or in the aggregate, a CPA16
Material Adverse Effect.

     (f) Opinion Relating to the Merger. CPA14 shall have received an opinion of Greenberg
Traurig, LLP, dated as of the Closing Date, to the effect that (i) the Merger will qualify as a
reorganization within the meaning of Section 368(a) of the Code and (ii) each of CPA14 and Merger
Sub will be parties to such reorganization within the meaning of Section 368(b) of the Code. For
purposes of the foregoing opinion, which shall be in a form customary for transactions of this
nature, Greenberg Traurig, LLP shall be entitled to rely upon customary assumptions and
representations of CPA14, CPA16 and Merger Sub.

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ARTICLE VI

BOARD ACTIONS

     Section 6.1. Board Actions. Notwithstanding  Section 4.5 or any other provision of this
Agreement to the contrary, to the extent the Board of Directors of CPA14 determines that the
directors’ duties under Law so require, as determined by such Board in good faith after
consultation with outside counsel, CPA14 may:

     (a) disclose to the CPA14 Stockholders any information required to be disclosed under
applicable Law;

     (b) to the extent applicable, comply with Rule 14e-2(a) or Rule 14(d)-9 promulgated under
the Exchange Act with respect to a Competing Transaction; provided, however, that neither CPA14 nor
its Board of Directors shall be permitted to approve or recommend a Competing Transaction which is
not a Superior Competing Transaction;

     (c) if it receives a proposal for a Competing Transaction (that was not solicited in
violation of  Section 4.5), (x) furnish non-public information with respect to CPA14 and the CPA14
Subsidiaries to the Person who made such proposal (provided that CPA14 (i) has previously or
concurrently furnished such information to CPA16 and (ii) shall furnish such information pursuant
to a confidentiality agreement) and (y) contact such third party and its advisors solely for the
purpose of clarifying the proposal and any material contingencies and the capability of
consummation, so as to determine whether the proposal for a Competing Transaction is reasonably
likely to lead to a Superior Competing Transaction;

     (d) if its Board of Directors determines in good faith (after consulting with its outside
counsel and financial advisors) that a proposal for a Competing Transaction (which proposal was not
solicited in breach of  Section 4.5) is reasonably likely to lead to a Superior Competing
Transaction, continue to furnish non-public information and participate in negotiations regarding
such proposal; provided, however, that not fewer than 24 hours prior to any determination by
CPA14’s Board of Directors that the proposal for a Competing Transaction is reasonably likely to
lead to a Superior Competing Transaction, CPA16 shall be notified orally and in writing of the
CPA14 Board of Directors’ intention to take such action and CPA14 shall negotiate in good faith
with CPA16 concerning any such new proposal by CPA16 prior to the expiration of such 24-hour
period; provided further that CPA14 shall promptly notify CPA16 if the CPA14 Board of Directors
determines that a Competing Transaction is not, and is unlikely to become, a Superior Competing
Transaction; and

     (e) approve or recommend (and in connection therewith withdraw or modify its approval or
recommendation of this Agreement and the Merger) a Superior Competing Transaction or enter into an
agreement with respect to such Superior Competing Transaction.

ARTICLE VII

TERMINATION, AMENDMENT AND WAIVER

     Section 7.1. Termination. This Agreement may be terminated at any time prior to the Effective
Time of the Merger whether before or after the CPA14 Stockholder Approval and the CPA16 Stockholder
Approvals are obtained:

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     (a) by mutual written consent duly authorized by the Boards of Directors of each of CPA14
and CPA16;

     (b) by CPA16, upon a breach of any representation, warranty, covenant or agreement on the
part of CPA14 set forth in this Agreement, or if any representation or warranty of CPA14 shall have
become untrue, in either case such that the conditions set forth in  Section 5.2(a) or  (b), as the
case may be, would be incapable of being satisfied by September 30, 2011 (the “Termination
Date”);

     (c) by CPA14, upon a breach of any representation, warranty, covenant or agreement on the
part of CPA16 or Merger Sub set forth in this Agreement, or if any representation or warranty of
CPA16 or Merger Sub shall have become untrue, in either case such that the conditions set forth in
 Section 5.3(a) or  (b), as the case may be, would be incapable of being satisfied by the
Termination Date;

     (d) by either CPA16 or CPA14, if any judgment, injunction, order, decree or action by any
Governmental Entity of competent authority preventing the consummation of the Merger shall have
become final and nonappealable after the parties have used reasonable best efforts to have such
judgment, injunction, order, decree or action removed, repealed or overturned;

     (e) by either CPA16 or CPA14, if the Merger shall not have been consummated before the
Termination Date; provided, however, that a party that has materially breached a representation,
warranty, covenant or agreement of such party set forth in this Agreement shall not be entitled to
exercise its right to terminate under this  Section 7.1(e); provided further that the Termination
Date shall be automatically extended until December 31, 2011 (the “Extended Termination
Date”), if the condition to Closing set forth in Section 5.1(e) is not capable of being
satisfied as of the Termination Date, but is reasonably likely to be satisfied by the Extended
Termination Date, or if the condition to Closing set forth in Section 5.1(f) is not satisfied as of
the Termination Date;

     (f) by CPA16 or CPA14 if, upon a vote at a duly held CPA14 Stockholder Meeting or any
adjournment thereof, the CPA14 Stockholder Approval shall not have been obtained, as contemplated
by  Section 4.1;

     (g) by CPA14, if the Board of Directors of CPA14 or any committee thereof shall have
withdrawn its recommendation of the Merger or this Agreement in connection with, or approved or
recommended, a Superior Competing Transaction in accordance with the provisions of  Section 6.1
and, subject to the provisions of  Section 7.6 has paid, or has agreed in writing to pay, the CPA16
Expenses in accordance with  Section 7.2 of this Agreement;

     (h) by CPA16, if (i) prior to the CPA14 Stockholder Meeting, the Board of Directors of
CPA14 or any committee thereof shall have withdrawn or modified in any manner adverse to CPA16 its
approval or recommendation of the Merger or this Agreement in connection with, or approved or
recommended, any Superior Competing Transaction or (ii) CPA14 shall have entered into any agreement
with respect to any Superior Competing Transaction;

     (i) by CPA16 or CPA14 if, upon a vote at a duly held CPA16 Stockholder Meeting or any
adjournment thereof, the CPA16 Stockholder Approvals, other than the approval of the Reorganization
and the CPA16 Capital Increase, shall not have been obtained, as contemplated by  Section 4.1; or

     (j) by CPA16 or CPA14, if holders of more than 50% of the outstanding CPA14 Common Stock
shall have elected to receive cash in the Merger.

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     The right of any party hereto to terminate this Agreement pursuant to this  Section 7.1 shall
remain operative and in full force and effect regardless of any investigation made by or on behalf
of any party hereto, any Affiliate of any such party or any of their respective officers or
directors, whether prior to or after the execution of this Agreement. A terminating party shall
provide written notice of termination to the other parties specifying with particularity the reason
for such termination. If more than one provision in this  Section 7.1 is available to a
terminating party in connection with a termination, a terminating party may rely on any and all
available provisions in this  Section 7.1 for any such termination.

     Section 7.2. Expenses.

     (a) Except as otherwise specified in this  Section 7.2 or agreed in writing by the
parties, all out-of-pocket costs and expenses incurred in connection with this Agreement, the
Merger and the other transactions contemplated hereby shall be paid by the party incurring such
cost or expense; provided that CPA14 and CPA16 shall each bear one half of the costs of filing,
printing and mailing the Joint Proxy Statement/Prospectus and the Form S-4.

     (b) CPA14 agrees that if this Agreement shall be terminated pursuant to  Section 7.1(b) or
 (g), then CPA14 will pay to CPA16, or as directed by CPA16, an amount equal to the CPA16 Expenses;
provided that such amount shall, subject to the provisions of  Section 7.6, be paid promptly, but
in no event later than two Business Days after such termination. For purposes of this Agreement,
the “CPA16 Expenses” shall be an amount equal to CPA16’s out-of-pocket expenses incurred in
connection with this Agreement and the other transactions contemplated hereby (including, without
limitation, all attorneys’, accountants’ and investment bankers’ fees and expenses) but in no event
in an amount greater than $5.0 million.

     (c) CPA16 agrees that if this Agreement shall be terminated pursuant to  Section 7.1(c),
then CPA16 will pay to CPA14, or as directed by CPA14, an amount equal to the CPA14 Expenses;
provided that such amount shall, subject to the provisions of  Section 7.6, be paid promptly, but
in no event later than two Business Days after such termination. For purposes of this Agreement,
the “CPA14 Expenses” shall be an amount equal to CPA14’s out-of-pocket expenses incurred in
connection with this Agreement and the other transactions contemplated hereby (including, without
limitation, all attorneys’, accountants’ and investment bankers’ fees and expenses) but in no event
in an amount greater than $4.0 million.

     (d) W. P. Carey agrees that if (i) all of the conditions to the obligations of the parties
to this Agreement to effect the Merger set forth in Article V (other than the Financing Condition)
shall have been satisfied (other than those conditions that by their nature are to be satisfied at
the Closing) or waived as of the Termination Date or, if applicable, the Extended Termination Date,
and (ii) this Agreement shall be terminated pursuant to  Section 7.1(e), then W. P. Carey will pay
(A) to CPA14, or as directed by CPA14, an amount equal to the CPA14 Expenses and (B) to CPA16, or
as directed by CPA16, an amount equal to the CPA16 Expenses; provided that such amounts shall,
subject to the provisions of Section 7.6, be paid promptly, but in no event later than two Business
Days after such termination.

     (e) W. P. Carey agrees that if this Agreement shall be terminated pursuant to Section
7.1(f), then W. P. Carey will pay to CPA14, or as directed by CPA14, an amount equal to the CPA14
Expenses; provided that such amount shall, subject to the provisions of Section 7.6, be paid
promptly, but in no event later than two Business Days after such termination.

     (f) W. P. Carey agrees that if this Agreement shall be terminated pursuant to Section
7.1(j), then W. P. Carey will pay to CPA14, or as directed by CPA14, an amount equal to the CPA14
Expenses; provided that such amount shall, subject to the provisions of Section 7.6, be paid
promptly, but in no event later than two Business Days after such termination.

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     (g) The foregoing provisions of this  Section 7.2 have been agreed to by CPA14, CPA16 and
W. P. Carey in order to induce the other parties to enter into this Agreement and to consummate the
Merger and the other transactions contemplated by this Agreement, it being agreed and acknowledged
by each of them that the execution of this Agreement by them constitutes full and reasonable
consideration for such provisions.

     (h) In the event that either CPA16 or CPA14 is required to file suit to seek all or a
portion of the amounts payable under this  Section 7.2, and such party prevails in such litigation,
such party shall be entitled to all expenses, including reasonable attorneys’ fees and expenses,
which it has incurred in enforcing its rights under this  Section 7.2.

     Section 7.3. Effect of Termination. In the event of termination of this Agreement by either
CPA14 or CPA16 as provided in  Section 7.1, this Agreement shall forthwith become void and have no
effect, without any liability or obligation on the part of CPA16, Merger Sub or CPA14, other than
 Section 7.2, this  Section 7.3 and  Article VIII and except to the extent that such termination
results from a willful breach by a party of any of its representations, warranties, covenants or
agreements set forth in this Agreement or a failure or refusal by such party to consummate the
transactions contemplated hereby when such party was obligated to do so in accordance with the
terms hereof.

     Section 7.4. Amendment. This Agreement may be amended by the parties in writing by action of
their respective Boards of Directors at any time before or after the CPA14 Stockholder Approval is
obtained and prior to the filing of the Articles of Merger for the Merger with, and the acceptance
for record of such Articles of Merger by, the SDAT; provided, however, that, after the CPA14
Stockholder Approval is obtained, no such amendment, modification or supplement shall alter the
amount or change the form of the Merger Consideration to be delivered to the CPA14 Stockholders or
alter or change any of the terms or conditions of this Agreement if such alteration or change would
adversely affect the CPA14 Stockholders.

     Section 7.5. Extension; Waiver. At any time prior to the Effective Time, each of CPA14 and
CPA16 may (a) extend the time for the performance of any of the obligations or other acts of the
other party, (b) waive any inaccuracies in the representations and warranties of the other party
contained in this Agreement or in any document delivered pursuant to this Agreement or (c) subject
to the provisions of  Section 7.4, waive compliance with any of the agreements or conditions of the
other party contained in this Agreement. Any agreement on the part of a party to any such
extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf
of such party. The failure of any party to this Agreement to assert any of its rights under this
Agreement or otherwise shall not constitute a waiver of those rights.

     Section 7.6. Payment of Expenses.

     (a) In the event that CPA14, CPA16 or W. P. Carey becomes obligated to pay any fees or
expenses under Section 7.2 (the “Expense Amount”), CPA14, CPA16 or W. P. Carey, as
applicable, shall pay to the party entitled to receive such payment (the “Receiving Party”)
from the amount deposited into escrow in accordance with the next sentence, an amount equal to the
lesser of (i) the Expense Amount and (ii) the sum of (A) the maximum amount that can be paid to the
Receiving Party without causing the Receiving Party to fail to meet the requirements of
Sections 856(c)(2) and (c)(3) of the Code for the year in which the Expense Amount would otherwise
be payable, for this purpose treating such amount as income that does not qualify for purposes of
Sections 856(c)(2) and (c)(3) of the Code, as determined by the Receiving Party’s independent
certified public accountants, plus (B) if the Receiving Party receives either (1) a letter from the
Receiving Party’s counsel indicating that the Receiving Party has received a

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ruling from the IRS
described in  Section 7.6(b) or (2) an opinion from the Receiving Party’s counsel as
described in  Section 7.6(b), an amount equal to the Expense Amount less the amount payable
under clause (A) above. To the extent the entire Expense Amount is not paid to the Receiving Party
in the year in which such amount would otherwise be payable as a result of the restrictions set
forth in this  Section 7.6(a), the Expense Amount shall be carried forward to the succeeding year
and shall be payable (as described above) in such succeeding year by applying the same formula and
by deeming such Expense Amount as payable in such succeeding year. To the extent the full Expense
Amount has not been paid in the initial and succeeding year, the amount shall similarly be carried
forward for each of the next three taxable years. To the extent that the entire Expense Amount has
not been paid in the initial year, the succeeding year and the three following years, the Expense
Amount shall be forfeited by the Receiving Party. To secure the obligation of CPA14, CPA16 or W.
P. Carey, as applicable, to pay these amounts, CPA14, CPA16 or W. P. Carey, as applicable, shall
deposit into escrow an amount in cash equal to the Expense Amount with an escrow agent selected by
CPA14, CPA16 or W. P. Carey, as applicable, and on such terms (subject to  Section 7.6(b)) as shall
be mutually agreed upon by CPA14, CPA16 or W. P. Carey, as applicable, the Receiving Party and the
escrow agent. The payment or deposit into escrow of the Expense Amount pursuant to this  Section
7.6(a) shall be made at the time CPA14, CPA16 or W. P. Carey, as applicable, would otherwise be
obligated to pay the Receiving Party pursuant to  Section 7.2.

     (b) The escrow agreement shall provide that the Expense Amount in escrow or any portion
thereof shall not be released to the Receiving Party unless the escrow agent receives any of the
following: (i) a letter from the Receiving Party’s independent certified public accountants
indicating the maximum amount that can be paid by the escrow agent to the Receiving Party without
causing the payee to fail to meet the requirements of Sections 856(c)(2) and (c)(3) of the Code
determined as if the payment of such amount did not constitute income that qualifies for purposes
of Sections 856(c)(2) and (c)(3) of the Code (“Qualifying Income”) or a subsequent letter
from the Receiving Party’s accountants revising that amount, in which case the escrow agent shall
release such amount to the Receiving Party, or (ii) a letter from the Receiving Party’s counsel
indicating that the Receiving Party received a ruling from the IRS holding that the receipt by the
Receiving Party of the Expense Amount would either constitute Qualifying Income or would be
excluded from gross income for purposes of Code Sections 856(c)(2) and (3) (or alternatively, the
Receiving Party’s counsel has rendered a legal opinion to the effect that the receipt by the
Receiving Party of the Expense Amount would either constitute Qualifying Income or would be
excluded from gross income for purposes of Sections 856(c)(2) and (c)(3)of the Code), in which case
the escrow agent shall release the remainder of the Expense Amount to the Receiving Party. CPA14,
CPA16 and W. P. Carey each agree to amend this  Section 7.6 at the request of the Receiving Party
in order to (A) maximize the portion of the Expense Amount that may be distributed to the Receiving
Party hereunder without causing the Receiving Party to fail to meet the requirements of
Sections 856(c)(2) and (c)(3) of the Code, (B) improve the likelihood of the Receiving Party
securing a ruling described in this  Section 7.6(b), or (C) assist the Receiving Party in obtaining
a legal opinion from its counsel as described in this  Section 7.6(b). The escrow agreement shall
also provide that any portion of the Expense Amount not paid to the Receiving Party in the initial
year and the four succeeding years shall be released by the escrow agent to CPA14 or W. P. Carey,
as applicable. Unless such party is the Receiving Party, none of CPA14, CPA16 or W. P. Carey shall
be a party to such escrow agreement and neither shall bear any cost of or have liability resulting
from the escrow agreement.

ARTICLE VIII

GENERAL PROVISIONS

     Section 8.1. Nonsurvival of Representations and Warranties. Except as set forth in the
Indemnification Agreement, none of the representations and warranties in this Agreement or in any

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instrument delivered pursuant to this Agreement shall survive the Effective Time. This  Section 8.1 shall
not limit any covenant or agreement of the parties which by its terms contemplates performance
after the Effective Time.

     Section 8.2. Notices. All notices, requests, claims, consents, demands and other
communications under this Agreement shall be in writing and shall be deemed given if delivered
personally, sent by overnight courier (providing proof of delivery) to the parties or sent by
facsimile (providing confirmation of transmission) at the following addresses or facsimile numbers
(or at such other address or facsimile number for a party as shall be specified by like notice):

     (a) if to CPA14 or CPA14 Sub, to:

Corporate Property Associates 14 Incorporated

50 Rockefeller Plaza

New York, New York 10020

Attn: Chairman of the Audit Committee and Chief Legal Officer

Fax: (212) 492-8922

with a copy to:

Greenberg Traurig, LLP

MetLife Building

200 Park Avenue

New York, New York 10166

Attn: Judith Fryer, Esq.

          Michael D. Helsel, Esq.

Fax: (212) 801-6400

     (b) if to CPA16, Holdings, Merger Sub or Acquisition, to:

c/o Corporate Property Associates 16 — Global Incorporated

50 Rockefeller Plaza

New York, New York 10020

Attn: Chairman of the Audit Committee and Chief Legal Officer

Fax: (212) 492-8922

with a copy to:

Clifford Chance US LLP

31 West 52nd Street

New York, New York 10019

Attn: Kathleen L. Werner, Esq.

Fax: (212) 878-8375

     (c) if to W. P. Carey, to:

W. P. Carey & Co. LLC

50 Rockefeller Plaza

New York City, NY 10020

Attn: Chief Legal Officer

Fax: (212) 492-8934

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with a copy to:

DLA Piper LLP (US)

4141 Parklake Avenue

Suite 300

Raleigh, NC 27612

Attn: Robert Bergdolt

Fax: (919) 786-2200

Attn: Christopher P. Giordano

Fax: (212) 884-8522

     Section 8.3. Interpretation. When a reference is made in this Agreement to a Section, such
reference shall be to a Section of this Agreement unless otherwise indicated. The table of
contents and headings contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,”
“includes” or “including” is used in this Agreement, they shall be deemed to be followed by the
words “without limitation.”

     Section 8.4. Counterparts. This Agreement may be executed in counterparts, all of which shall
be considered one and the same agreement and shall become effective when one or more counterparts
have been signed by each of the parties and delivered to the other parties.

     Section 8.5. Entire Agreement; No Third-Party Beneficiaries. This Agreement and the other
agreements entered into in connection with the transactions (i) constitute the entire agreement and
supersede all prior agreements and understandings, both written and oral, between the parties with
respect to the subject matter of this Agreement and, (ii) except for the provisions of Article I
and  Section 4.8 are not intended to confer upon any Person other than the parties hereto any
rights or remedies.

     Section 8.6. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO CONFLICTS OF LAWS PRINCIPLES
THEREOF, EXCEPT TO THE EXTENT THAT THE MERGER, THE ALTERNATE MERGER, THE REORGANIZATION AND THE
OTHER TRANSACTIONS CONTEMPLATED HEREBY ARE REQUIRED TO BE GOVERNED BY THE MGCL.

     Section 8.7. Assignment. Neither this Agreement nor any of the rights, interests or
obligations under this Agreement shall be assigned or delegated, in whole or in part, by operation
of Law or otherwise by any of the parties without the prior written consent of the other parties.
This Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties
and their respective successors and assigns.

     Section 8.8. Enforcement. The parties agree that irreparable damage would occur if any of the
provisions of this Agreement were not performed in accordance with their specific terms or were
otherwise breached, and that monetary damages, even if available, would not be an adequate remedy
therefor. It is accordingly agreed that, prior to the termination of this Agreement pursuant to
Article VII, the parties shall be entitled to an injunction or injunctions to prevent breaches of
this Agreement and to enforce specifically the terms and provisions of this Agreement in any court
of the United States located in the State of Maryland or in any Maryland State court and each party
hereto hereby waives any requirement for the securing or posting of any bond in connection with
such remedy, this being in addition to any other remedy to which they are entitled at Law or in
equity. In addition, each of the parties hereto (i) consents to submit itself (without making such
submission exclusive) to the personal jurisdiction of any federal court located in the State of
Maryland or any Maryland State court if any

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dispute arises out of this Agreement or any of the transactions contemplated by this Agreement and
(ii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or
other request for leave from any such court.

     Section 8.9. Waiver of Jury Trial. Each party hereto hereby waives, to the fullest extent
permitted by applicable Law, any right it may have to a trial by jury in respect of any suit,
action or other proceeding arising out of this Agreement or the transactions contemplated hereby.
Each party hereto (a) certifies that no representative of any other party has represented,
expressly or otherwise, that such party would not, in the event of any action, suit or proceeding,
seek to enforce the foregoing waiver and (b) acknowledges that it and the other parties hereto have
been induced to enter into this Agreement, by, among other things, the mutual waiver and
certifications in this  Section 8.9.

     Section 8.10. Exhibits; Disclosure Letters. All Exhibits referred to herein, in the CPA14
Disclosure Letter and in the CPA16 Disclosure Letter are intended to be and hereby are specifically
made a part of this Agreement.

     Section 8.11. Conflict Waiver. Recognizing that Clifford Chance US LLP
has acted as legal counsel to CPA16, Merger Sub and their Affiliates in connection with the
transactions contemplated by this Agreement, and that Clifford Chance US LLP has represented CPA14
in unrelated matters, CPA14, CPA16 and Merger Sub each hereby waives, on its own behalf and agrees
to cause its Affiliates to waive, any conflicts that may arise in connection with Clifford Chance
US LLP representing CPA16, Merger Sub and their Affiliates. This Section 8.11 shall survive the
consummation of the Merger or the Alternate Merger.

ARTICLE IX

CERTAIN DEFINITIONS

     Section 9.1. Certain Definitions.

     “Affiliate” of any Person means another Person that directly or indirectly, through
one or more intermediaries, controls, is controlled by, or is under common control with, such first
Person.

     “Business Day” means any day other than a Saturday, Sunday or any day on which banks
located in New York, New York are authorized or required to be closed for the conduct of regular
banking business.

     “CPA14 Material Adverse Effect” means (i) a material adverse effect (A) on the
business, properties, financial condition or results of operations of CPA14 and the CPA14
Subsidiaries taken as a whole or (B) that would, or would be reasonably likely to, prevent or
materially delay the performance by CPA14 of its material obligations under this Agreement or the
consummation of the Merger or any other transactions contemplated by this Agreement or (ii) (A) any
uninsured damages or losses to a CPA14 Property that occur as a result of any disaster-type
occurrences (including, without limitation, terrorist activities, floods or earthquakes), (B) the
bankruptcy or insolvency (or comparable event or proceeding) of a tenant on any CPA14 Property (a
“CPA14 Tenant”), (C) a lease payment default by a CPA14 Tenant or (D) the abandonment of
any property by a CPA14 Tenant; provided that, in each of the cases set forth in subsections (A)
though (D) above, such event would result in a decrease in CPA14’s revenues by 9% or more based on
CPA14’s revenues determined in accordance with GAAP for the most recently completed four full
fiscal quarters. Notwithstanding anything to the contrary set forth in this definition, the
parties agree that, unless an effect or event expressly falls within a category of effects or
events enumerated in subsections (A) though (D) above, a CPA14 Material Adverse Effect shall not
include any

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effect or event with respect to CPA14 or any CPA14 Subsidiary to the extent resulting from or
attributable to (a) general national, international or regional economic, financial or political
conditions or events, including, without limitation, the effects of an outbreak or escalation of
hostilities, any acts of war, sabotage or terrorism that do not result in the destruction or
material physical damage of a material portion of the CPA14 Properties, taken as a whole, (b) the
announcement, pendency or consummation of this Agreement or the other Transaction Documents or the
transactions contemplated thereby, (c) conditions generally affecting the securities markets or the
industries in which CPA14 and the CPA14 Subsidiaries operate, except to the extent such conditions
have a materially disproportionate effect on CPA14 and the CPA14 Subsidiaries, taken as a whole,
relative to others in the industries in which CPA14 and the CPA14 Subsidiaries operate, (d) any
failure, in and of itself, by CPA14 or the CPA14 Subsidiaries to meet any internal or published
projections, forecasts, estimates or predictions in respect of revenues, earnings or other
financial or operating metrics for any period (it being understood that the facts or occurrences
giving rise to or contributing to such failure may be deemed to constitute, or be taken into
account in determining whether there has been or will be, a CPA14 Material Adverse Effect), (e) any
change in applicable Law, regulation or U.S. generally accepted accounting principles
(“GAAP”) (or authoritative interpretation thereof), except to the extent such effect has a
materially disproportionate effect on CPA14 and the CPA14 Subsidiaries, taken as a whole, relative
to others in the industries in which CPA14 and the CPA14 Subsidiaries operate or (f) any hurricane,
tornado, flood, earthquake or other natural disaster that does not result in the destruction or
material physical damage of a material portion of the CPA14 Properties, taken as a whole.

     “CPA14 Subsidiary” means each Subsidiary of CPA14, other than Subsidiaries of CPA14
with no assets that are in the process of being dissolved.

     “CPA16 Material Adverse Effect” means (i) a material adverse effect (A) on the
business, properties, financial condition or results of operations of CPA16 and the CPA16
Subsidiaries taken as a whole or (B) that would, or would be reasonably likely to, prevent or
materially delay the performance by CPA16 of its material obligations under this Agreement or the
consummation of the Merger or any other transactions contemplated by this Agreement or (ii) (A) any
uninsured damages or losses to a CPA16 Property that occur as a result of any disaster-type
occurrences (including, without limitation, terrorist activities, floods or earthquakes), (B) the
bankruptcy or insolvency (or comparable event or proceeding) of a tenant on any CPA16 Property (a
“CPA16 Tenant”), (C) a lease payment default by a CPA16 Tenant or (D) the abandonment of
any property by a CPA16 Tenant; provided that, in each of the cases set forth in subsections (A)
though (D) above, such event would result in a decrease in CPA16’s revenues by 9% or more based on
CPA16’s revenues determined in accordance with GAAP for the most recently completed four full
fiscal quarters. Notwithstanding anything to the contrary set forth in this definition, the
parties agree that, unless an effect or event expressly falls within a category of effects or
events enumerated in subsections (A) though (D) above, a CPA16 Material Adverse Effect shall not
include any effect or event with respect to CPA16 or any CPA16 Subsidiary to the extent resulting
from or attributable to (a) general national, international or regional economic, financial or
political conditions or events, including, without limitation, the effects of an outbreak or
escalation of hostilities, any acts of war, sabotage or terrorism that do not result in the
destruction or material physical damage of a material portion of the CPA16 Properties, taken as a
whole, (b) the announcement, pendency or consummation of this Agreement or the other Transaction
Documents or the transactions contemplated thereby, (c) conditions generally affecting the
securities markets or the industries in which CPA16 and the CPA16 Subsidiaries operate, except to
the extent such conditions have a materially disproportionate effect on CPA16 and the CPA16
Subsidiaries, taken as a whole, relative to others in the industries in which CPA16 and the CPA16
Subsidiaries operate, (d) any failure, in and of itself, by CPA16 or the CPA16 Subsidiaries to meet
any internal or published projections, forecasts, estimates or predictions in respect of revenues,
earnings or other financial or operating metrics for any period (it being understood that the facts
or occurrences giving rise to or contributing to such failure may be deemed to constitute, or be
taken into

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account in determining whether there has been or will be, a CPA16 Material Adverse Effect),
(e) any change in applicable Law, regulation or U.S. generally accepted accounting principles
(“GAAP”) (or authoritative interpretation thereof), except to the extent such effect has a
materially disproportionate effect on CPA16 and the CPA16 Subsidiaries, taken as a whole, relative
to others in the industries in which CPA16 and the CPA16 Subsidiaries operate or (f) any hurricane,
tornado, flood, earthquake or other natural disaster that does not result in the destruction or
material physical damage of a material portion of the CPA16 Properties, taken as a whole.

     “CPA16 Subsidiary” means each Subsidiary of CPA16.

     “Employee Benefit Plans” means all “employee benefit plans,” as defined in
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, pension plans and
all other employee compensation and benefit arrangements or payroll practices, including, without
limitation, severance pay, sick leave, vacation pay, salary continuation for disability, consulting
or other compensation agreements, retirement, deferred compensation, bonus (including, without
limitation, any retention bonus plan), long-term incentive, stock option, stock purchase,
hospitalization, medical insurance, life insurance and scholarship programs.

     “IRS” means the United States Internal Revenue Service.

     “Knowledge” (A) where used herein with respect to CPA14 and any CPA14 Subsidiary shall
mean the actual (and not constructive or imputed) knowledge of the persons named in Schedule 9.1 of
the CPA14 Disclosure Letter and (B) where used herein with respect to CPA16 and any CPA16
Subsidiary shall mean the actual (and not constructive or imputed) knowledge of the persons named
in Schedule 9.1 of the CPA16 Disclosure Letter.

     “Law” means any statute, law, common law, regulation, rule, order, decree, code,
judgment, ordinance or any other applicable requirement of any Governmental Entity applicable to
CPA16 or CPA14 or any of their respective Subsidiaries.

     “Person” means an individual, corporation, partnership, limited liability company,
joint venture, association, trust, unincorporated organization or other entity.

     “Subsidiary” of any Person means any corporation, partnership, limited liability
company, joint venture or other legal entity of which such Person (either directly or through or
together with another Subsidiary of such Person) owns either (A) a general partner, managing member
or other similar interest or (B) 50% or more of the voting stock, value of or other equity
interests (voting or non-voting) of such corporation, partnership, limited liability company, joint
venture or other legal entity.

     “Tax” or “Taxes” shall mean any federal, state, local and foreign income,
gross receipts, license, withholding, property, recording, stamp, transfer, sales, use, abandoned
property, escheat, franchise, employment, payroll, excise, environmental and other taxes, tariffs
or governmental charges of any nature whatsoever, together with penalties, interest or additions
thereto.

     “Tax Protection Agreement” shall mean any agreement, oral or written, (i) that has as
one of its purposes to permit a Person to take the position that such Person could defer taxable
income that otherwise might have been recognized upon a transfer of property to any CPA14
Subsidiary that is treated as a partnership for U.S. federal income Tax purposes, and that
(A) prohibits or restricts in any manner the disposition of any assets of CPA14 or any CPA14
Subsidiary, (B) requires that CPA14 or any CPA14 Subsidiary maintain, put in place, or replace
indebtedness, whether or not secured by one or more of the CPA14 Properties, or (C) requires that
CPA14 or any CPA14 Subsidiary offer to any Person at any time

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the opportunity to guarantee or otherwise assume, directly or indirectly (including, without
limitation, through a “deficit restoration obligation,” guarantee (including, without limitation, a
“bottom” guarantee), indemnification agreement or other similar arrangement), the risk of loss for
federal income Tax purposes for indebtedness or other liabilities of CPA14 or any CPA14 Subsidiary,
(ii) that specifies or relates to a method of taking into account book-Tax disparities under
Section 704(c) of the Code with respect to one or more assets of CPA14 or a CPA14 Subsidiary, or
(iii) that requires a particular method for allocating one or more liabilities of CPA14 or any
CPA14 Subsidiary under Section 752 of the Code.

     “Tax Return” shall mean any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any schedule or attachment thereto,
and including any amendment thereof.

     “Voting Debt” shall mean bonds, debentures, notes or other indebtedness having the
right to vote (or convertible into, or exchangeable for, securities having the right to vote) on
any matters on which holders of equity interests in CPA14, any CPA14 Subsidiary or CPA16, as
applicable, may vote.

ARTICLE X

ALTERNATE MERGER

     Section 10.1. Introduction. The provisions of this Article X shall apply if and only if the
Reorganization Opinions are not delivered at Closing. If the Reorganization Opinions are delivered
at Closing, the provisions of this Article X are null and void and none of Holdings, Acquisition or
CPA14 Sub shall have any rights or obligations under this Agreement.

     Section 10.2. Alternate Merger and Consideration.

     (a) In lieu of the merger of CPA14 with and into Merger Sub whereby Merger Sub becomes the
surviving company, at the Effective Time, CPA14 Sub shall be merged with and into CPA14, whereby
the separate corporate existence of CPA14 Sub shall cease and CPA14 shall continue as the surviving
company (and upon the applicability of this Article X, all references in this Agreement to the
“Surviving Company” shall mean CPA14) in accordance with the Laws of the State of Maryland.
At the Effective Time, in lieu of receiving CPA16 Common Stock pursuant to Section 1.6(a)(i), the
CPA14 Stockholders who elect to receive common stock or who are required to receive common stock
pursuant to Section 1.6(a) shall receive that number of shares of Holdings common stock, $.001 par
value per share (“Holdings Common Stock”), equal to the product of (A) the number of shares
of CPA14 Common Stock owned by such CPA14 Stockholder and (B) the Exchange Ratio (as adjusted
pursuant to Section 1.8(b)). Each issued and outstanding share of common stock of CPA14 Sub shall
be converted into and become one fully paid and nonassessable share of common stock of the
Surviving Company. Immediately after the Effective Time, CPA14 as the surviving corporation shall
issue one fully paid and nonassessable share of common stock of CPA14 as the surviving corporation
to Holdings for each share of Holdings Common Stock issued to the CPA14 Stockholders in the
Alternate Merger.

     (b) In addition, at the Effective Time, Acquisition shall be merged with and into CPA16,
whereby the separate corporate existence of Acquisition shall cease and CPA16 shall continue as the
surviving company in accordance with the Laws of the State of Maryland. At the Effective Time and
without any further action on the part of CPA16, Acquisition, Holdings or any CPA16 Stockholder,
each share of CPA16 Common Stock outstanding immediately prior to the Effective Time shall be
cancelled and, in exchange for cancellation of such share, the rights attaching to such share shall
be converted into one share of Holdings Common Stock. Each issued and outstanding share of common
stock of Acquisition shall be converted into and become one fully paid and nonassessable share of
common stock

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of CPA16 as the surviving corporation. Immediately after the Effective Time, CPA16, as the
surviving corporation, shall issue one fully paid and nonassessable share of common stock of CPA16
as the surviving corporation to Holdings for each share of Holding Common Stock issued to the CPA16
Stockholders in the Alternate Merger.

     Section 10.3. Transfer Taxes. Holdings shall pay any stamp Tax or documentary Tax assessed
upon or with respect to the issuance of common stock to be issued in accordance with Section 10.2.

     Section 10.4. Representations and Warranties of Holdings, Acquisition and CPA14 Sub. Holdings,
CPA14 Sub and Acquisition jointly and severally represent and warrant to CPA14 as follows:

     (a) Organization and Standing. Each of Holdings, Acquisition and CPA14 Sub is a
corporation duly organized, validly existing and in good standing under the Laws of the State of
Maryland, and has the full corporate power and authority to own, operate and lease its assets, to
carry on its business as currently conducted, to execute and deliver this Agreement and to carry
out the transactions contemplated hereby. There is no state, country or territory wherein the
absence of licensing or qualification as a foreign corporation by Holdings, Acquisition or CPA14
Sub would have a material adverse effect on any of them. Holdings was incorporated on December 10,
2010, and Acquisition and CPA14 Sub were incorporated on December 9, 2010 and none of Holdings,
Acquisition or CPA14 Sub has had any business operations as of the date hereof. Holdings will use
reasonable best efforts to assure that Holdings will qualify as a REIT following the Closing.

     (b) Subsidiaries. Holdings does not have any Subsidiaries or any equity investment or
other interest in, nor has it made advances or loans to, any corporation, association, partnership,
joint venture or other entity, except for Acquisition. Acquisition does not have any Subsidiaries
or any equity investment or other interest in, nor has it made advances or loans to, any
corporation, association, partnership, joint venture or other entity. CPA14 Sub does not have any
Subsidiaries or any equity investment or other interest in, nor has it made advances or loans to,
any corporation, association, partnership, joint venture or other entity.

     (c) Charter and Bylaws.

     (i) Acquisition and CPA14 Sub have furnished to CPA14
a true and complete copy of each of their charter and bylaws, as currently in effect.

     (ii) Immediately prior to the Effective Time, the charter of Holdings shall be
substantially identical to the CPA16 Charter; provided, however, that Article I shall read
in its entirety: “The name of the Corporation is CPA 16 Holdings Inc.” Immediately prior to
the Effective Time, the Bylaws of Holdings shall be substantially identical to the CPA16 Bylaws.
A copy of Holdings’ charter and bylaws shall be furnished to CPA14 immediately prior to the Effective Time.

     (d) Directors and Officers. Immediately prior to the Effective Time, the directors of
Holdings shall be identical to the directors of CPA16.

     (e) Capitalization.

     (i) The authorized capital stock of Holdings consists of 400,000,000 shares of
Holdings Common Stock, all of which at the Effective Time will have been duly authorized and
validly issued, fully paid, non-assessable and outstanding, of which no shares are issued
and outstanding as of the date of this Agreement. No shares of capital stock of Holdings
have been reserved for any purpose, except pursuant to this Agreement. There are no
outstanding securities

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convertible into or exchangeable for the capital stock of Holdings and no outstanding
options, rights (preemptive or otherwise), or warrants to purchase or to subscribe for any
shares of such stock or other securities of Holdings. There are no outstanding agreements
affecting or relating to the voting, issuance, purchase, redemption, repurchase, transfer or
registration for sale under the Securities Act of the Holdings Common Stock or any other
securities of Holdings, except as contemplated hereunder. The Holdings Common Stock being
issued on the Closing Date has been duly authorized by all necessary corporate action on the
part of Holdings. The Holdings Common Stock, when issued, will be validly issued, fully paid
and nonassessable.

     (ii) As of the date of this Agreement, the authorized shares of common stock of
Acquisition consist of 10,000 shares of common stock (the “Acquisition Common
Stock”). All outstanding shares of Acquisition are duly authorized, validly issued,
fully paid and nonassessable and not subject to, or issued in violation of, any preemptive
right, purchase option, call option, right of first refusal, subscription or any other
similar right. There are (A) no other shares of capital stock or voting securities of
Acquisition, (B) no securities of Acquisition convertible into or exchangeable for shares of
capital stock or voting securities of Acquisition and (C) no options or other rights to
acquire from Acquisition, and no obligations of Acquisition to issue, any capital stock,
voting securities or securities convertible into or exchangeable for capital stock or voting
securities of Acquisition. Acquisition has not conducted any business prior to the date
hereof and has no, and prior to the Effective Time will have no, assets, liabilities or
obligations of any nature other than those incident to its formation and pursuant to this
Agreement and the Alternate Merger and the other transactions contemplated by this
Agreement.

     (iii) As of the date of this Agreement, the authorized shares of common stock of
CPA14 Sub consist of 10,000 shares of common stock (the “CPA14 Sub Common Stock”).
All outstanding shares of CPA14 Sub Common Stock are duly authorized, validly issued, fully
paid and nonassessable and not subject to, or issued in violation of, any preemptive right,
purchase option, call option, right of first refusal, subscription or any other similar
right. There are (A) no other shares of capital stock or voting securities of CPA14 Sub,
(B) no securities of CPA14 Sub convertible into or exchangeable for shares of capital stock
or voting securities of CPA14 Sub and (C) no options or other rights to acquire from CPA14
Sub, and no obligations of CPA14 Sub to issue, any capital stock, voting securities or
securities convertible into or exchangeable for capital stock or voting securities of CPA14
Sub. CPA14 Sub has not conducted any business prior to the date hereof and has no, and
prior to the Effective Time will have no, assets, liabilities or obligations of any nature
other than those incident to its formation and pursuant to this Agreement and the Alternate
Merger and the other transactions contemplated by this Agreement.

     Section 10.5. Guaranty of Obligations of Holdings by CPA16. CPA16 hereby guarantees to CPA14,
as a primary obligor, payment and performance by Holdings of its obligations under this Agreement,
including its obligation to issue Holdings Common Stock to the CPA14 Stockholders and the
stockholders of CPA16 (including without limitation, all amendments hereof), subject to the terms,
conditions and limitations hereof. CPA16 hereby waives suretyship defenses, demand, payment,
protest and notice of dishonor or nonperformance of any such obligations, and CPA14 shall not be
required to make any demand on Holdings for performance of any of its obligations under this
Agreement, nor to exhaust any legal, contractual or equitable remedies against Holdings, prior to
proceeding against CPA16.

     Section 10.6. Further Action. If CPA16 determines any further action is necessary or desirable
to carry out the purposes of the Alternate Merger, the officers and directors of CPA16 shall be
fully authorized (in the name of Holdings and otherwise) to take such action.

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     Section 10.7. Conditions Precedent. The respective obligations of the parties to this
Agreement to effect the Alternate Merger and to consummate the other transactions contemplated by
the Transaction Documents on the Closing Date are subject to the satisfaction or waiver on or prior
to the Closing Date of the conditions set forth in Article V and, in addition, Section 10.7(e);
provided, however, that:

     (a) the first sentence of Section 5.3(f) shall be deleted and replaced with the following:
“CPA14 shall have received an opinion of Greenberg Traurig, LLP, dated as of the Closing Date, to
the effect that the Alternate Merger should qualify under Section 351(a) of the Code as a transfer
of shares of CPA14 Common Stock by the CPA14 Stockholders in exchange for Holdings Common Stock and
cash (and should not be treated to such CPA14 Stockholders as a transfer described in Section
351(e) of the Code)”;

     (b) the first sentence of Section 5.2(g) shall be deleted and replaced with the following:
“Merger Sub shall have received an opinion of Clifford Chance US LLP, dated as of the Closing Date,
to the effect that: (i) the merger of Acquisition with and into CPA16 and the issuance of Holdings
Common Stock to the CPA16 Stockholders in exchange for their shares of CPA16 Common Stock will
qualify as a reorganization within the meaning of Section 368(a) of the Code and (ii) each of
Holdings, Acquisition and CPA16 will be a party to such reorganization within the meaning of
Section 368(b) of the Code”;

     (c) the first sentence of Section 5.2(d) shall be deleted and replaced with the following:
“CPA16 shall have received an opinion, dated as of the Closing Date, of Greenberg Traurig, LLP to
the effect that, at all times since its taxable year ended December 31, 2007, CPA14 has been
organized and operated in conformity with the requirements for qualification and taxation as a REIT
under the Code, and its proposed method of operation as described in the Joint Proxy
Statement/Prospectus and Form S-4 will enable CPA14 to continue to meet the requirements for
qualification and taxation as a REIT under the Code”; and

     (d) the first sentence of Section 5.3(d) shall be deleted and replaced with the following:
“CPA14 shall have received an opinion, dated as of the Closing Date, of Clifford Chance US LLP to
the effect that: (i) at all times since its taxable year ended December 31, 2007, CPA16 has been
organized and operated in conformity with the requirements for qualification and taxation as a REIT
under the Code, and its proposed method of operation as described in the Joint Proxy
Statement/Prospectus and Form S-4 will enable CPA16 to meet the requirements for qualification and
taxation as a REIT under the Code and (ii) commencing with its taxable year ending December 31,
2011, Holdings has been organized in conformity with the requirements for qualification and
taxation as a REIT under the Code, and its proposed method of operation, as described in the Joint
Proxy Statement/Prospectus and Form S-4 will enable it to meet the requirements for qualification
and taxation as a REIT under the Code”; and

     (e) CPA14 Sub and Acquisition shall each have issued 6,250 shares of common stock as
described in Section 10.8.

     Section 10.8. Additional Covenant. In addition to the covenants set forth in Article IV, as
promptly as practicable following the date the parties determine to effect the Alternate Merger but
not less than two days prior to the Closing Date, CPA14 Sub shall issue 6,250 shares of CPA14 Sub
Common Stock to 125 separate persons and Acquisition shall issue 6,250 shares of Acquisition Common
Stock to 125 separate persons (which may be the same persons who purchase the CPA14 Sub Common
Stock).

     Section 10.9. Dissenters Rights.

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     (a) Notwithstanding any provision of this Agreement to the contrary, to the extent that
the right to demand payment of fair value of the CPA14 Common Stock in connection with the
Alternate Merger is available under the MGCL, Dissenting Shares held by a Dissenting Stockholder
shall not be converted into the Merger Consideration but shall become the right to receive such
consideration as may be determined to be due to such Dissenting Stockholder pursuant to the MGCL;
provided, however, that each share of CPA14 Common Stock outstanding immediately prior to the
Effective Time and held by a Dissenting Stockholder who, after the Effective Time, withdraws his
demand or fails to perfect or otherwise loses his right to receive payment of fair value, pursuant
to the MGCL, shall be deemed to be converted as of the Effective Time into the right to receive the
Merger Consideration, in the form of Holdings Common Stock, without interest.

     (b) Notwithstanding any provision of this Agreement to the contrary, to the extent that
the right to demand payment of fair value of the CPA16 Common Stock in connection with the
Alternate Merger is available under the MGCL, any outstanding shares of CPA16 held by a record
holder or beneficial owner of shares of CPA16 Common Stock who is entitled to demand and receive
payment of the fair value of such holder’s shares pursuant to Section 3-202 of the MGCL and who
does not vote for the Merger and complies with all provisions of the MGCL (including all provisions
of Section 3-203 of the MGCL) concerning the right of holders of shares of CPA16 Common Stock to
object to the Merger and obtain fair value for their shares shall not be converted into the Merger
Consideration but shall become the right to receive such consideration as may be determined to be
due to such CPA16 Stockholder pursuant to the MGCL; provided, however, that each share of CPA16
Common Stock outstanding immediately prior to the Effective Time and held by a CPA16 Stockholder
who, after the Effective Time, withdraws his demand or fails to perfect or otherwise loses his
right to receive payment of fair value, pursuant to the MGCL, shall be deemed to be converted as of
the Effective Time into the right to receive the Merger Consideration, in the form of Holdings
Common Stock, without interest.

     (c) CPA14 shall give CPA16 (i) prompt notice of any demands for payment of fair value
pursuant to the applicable provisions of the MGCL received by CPA14, attempted withdrawals of such
demands, and any other instruments served pursuant to the MGCL and received by CPA14 relating to
rights of appraisal and (ii) the opportunity to participate in and direct the conduct of all
negotiations and proceedings with respect to demands for payment of fair value under the MGCL.
CPA14 shall not, except with the prior written consent of CPA16, make any payment with respect to
any such demands for payment of fair value, or settle, or offer to settle, or otherwise negotiate
any such demands for payment of fair value. CPA16 will be responsible for any payment with respect
to any such demands for payment of fair value from CPA16 Stockholders who comply with the
provisions in this Section.

[Signature page follows]

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IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their respective
officers thereunto duly authorized, all as of the date first written above.

	 	 	 	 	 
	 	CORPORATE PROPERTY ASSOCIATES 
16 - GLOBAL INCORPORATED

 	 
	 	By:  	/s/
Mark J. DeCesaris	 
	 	 	Name:  	Mark J. DeCesaris	 
	 	 	Title:  	Managing Director, Chief Financial Officer and
Administrative Officer	 
	 
	 	CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED

 	 
	 	By:  	/s/
Susan C. Hyde	 
	 	 	Name:  	Susan C. Hyde	 
	 	 	Title:  	Managing Director and Secretary	 
	 
	 	CPA 16 ACQUISITION INC.

 	 
	 	By:  	/s/
Thomas Ridings	 
	 	 	Name:  	Thomas Ridings	 
	 	 	Title:  	Executive Director and Chief Accounting Officer	 
	 
	 	CPA 16 HOLDINGS INC.

 	 
	 	By:  	/s/
Thomas E. Zacharias	 
	 	 	Name:  	Thomas E. Zacharias	 
	 	 	Title:  	President	 
	 
	 	CPA 16 MERGER SUB INC.

 	 
	 	By:  	/s/
Mark J. DeCesaris	 
	 	 	Name:  	Mark J. DeCesaris	 
	 	 	Title:  	Chief Financial Officer and Chief Administrative
Officer	 
	 
	 	CPA 14 SUB INC.

 	 
	 	By:  	/s/
Susan C. Hyde	 
	 	 	Name:  	Susan C. Hyde	 
	 	 	Title:  	Secretary	 

[signature page 1 of 2 to the Agreement and Plan of Merger]

 

 

	 	 	 	 	 
	 	W. P. CAREY & CO. LLC

 	 
	 	By:  	/s/
Trevor P. Bond	 
	 	 	Name:  	Trevor P. Bond	 
	 	 	Title:  	President, Chief Executive Officer and Board
Member	 
	 

AND FOR THE LIMITED PURPOSES SET FORTH IN SECTION 4.3:

	 	 	 	 	 
	CAREY ASSET MANAGEMENT CORP.

 	 
	By:  	/s/
Trevor P. Bond	 
	 	Name:  	Trevor P. Bond	 
	 	Title:  	Chief Executive Officer and Board Member	 
	 
	W. P. CAREY & CO. B.V.

 	 
	By:  	/s/
Thomas E. Zacharias	 
	 	Name:  	Thomas E. Zacharias	 
	 	Title:  	Director	 

[signature page 2 of 2 to the Agreement and Plan of Merger]

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