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                                                                    Exhibit 10.7

                  CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED
                              50 ROCKEFELLER PLAZA
                               NEW YORK, NY 10020

                              AMENDED AND RESTATED
                             SALES AGENCY AGREEMENT

                                          February 26, 2002

Carey Financial Corporation
50 Rockefeller Plaza
New York, NY  10020

Ladies and Gentlemen:

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

      1. Introduction. This Amended and Restated Sales Agency Agreement,
amending the Sales Agency Agreement dated November 7, 2001 (the "Agreement")
sets forth the understandings and agreements between the Company and you whereby
you will offer and sell on a best efforts basis for the account and risk of the
Company, along with a group of selected dealers (the "Selected Dealers") and
registered investment advisors (the "Selected Investment Advisors") to be formed
with your assistance, 50,000,000 shares of common stock of the Company (the
"Shares") at $10 per share (subject to certain volume discounts), 10,000,000 of
which will be offered and sold pursuant to the Company's 2001 Dividend
Reinvestment and Share Purchase Plan (the "DRIP").

      2. Representations and Warranties of the Company

      The Company represents, warrants and agrees that:

      (a) Registration Statement and Prospectus. The Company has filed with the
Securities and Exchange Commission (the "Commission") a registration statement
and amendments on Form S-11 (No. 333-58854), each containing a related
preliminary prospectus, for the registration of the Shares under the Securities
Act of 1933, as amended (the "Securities Act") and the regulations thereunder
(the "Regulations"), and will prepare and file with the Commission any
amendments to the registration statement necessary for it to become effective,
including an amended preliminary prospectus. The registration statement, as
amended, and the amended prospectus on file with the Commission at the time the
registration statement becomes effective (including financial statements,
exhibits and all other documents filed as a part thereof or incorporated
therein), are herein called the "Registration Statement" and the "Prospectus,"
respectively, except that if the Registration Statement is amended by a
post-effective amendment, the term "Registration Statement" shall, from and
after the declaration of
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effectiveness of such post-effective amendment, refer to the Registration
Statement as so amended and the term "Prospectus" shall refer to the prospectus
as so amended, and if the Prospectus filed by the Company pursuant to Rule
424(b) or 424(c) of the Regulations shall differ from the Prospectus on file at
the time the Registration Statement or any post-effective amendment shall become
effective, the term "Prospectus" shall refer to the Prospectus filed pursuant to
either of such Rules from and after the date on which it shall have been mailed
for filing with the Commission. Further, if a separate prospectus is filed and
becomes effective with respect solely to the DRIP (a "DRIP Prospectus"), the
term "Prospectus" shall refer to such DRIP Prospectus from and after the
declaration of effectiveness of such DRIP Prospectus.

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

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

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

      (e) Violations. The Company is not in violation of its Articles of
Incorporation ("Articles") or Bylaws or in default in the performance or
observance of any material obligation, agreement, covenant or condition
contained in any contract, indenture, mortgage, loan

                                      -2-
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agreement, note, lease or other agreement or instrument to which it is a party
or by which it or any of its properties is bound.

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

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

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

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

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

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

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

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

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

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

      3. Sales of Shares. On the basis of the representations, warranties and
covenants herein contained, but subject to the terms and conditions herein set
forth, the Company hereby appoints you as its sales agent ("Sales Agent") to
solicit purchasers, along with the Selected Dealers and Selected Investment
Advisors (as defined in Section 3(c)), for up to 40,000,000 Shares during the
period (the "Effective Term") from the Effective Date to the Termination Date,
and up to an additional 10,000,000 Shares pursuant to the DRIP, each in the
manner described in the Registration Statement. Subject to the performance by
the Company of all obligations to be performed by it hereunder and the
completeness and accuracy of all of its representations and warranties, you
agree to use your best efforts as Sales Agent, promptly following written or
telegraphic receipt of notice of the Effective Date from the Company, to offer
and sell such number of Shares as contemplated by this Agreement at the price
stated in the Prospectus.

      (a) Purchase of Shares. The purchase of Shares must be made during the
offering period described in the Prospectus, or after such offering period in
the case of purchases made pursuant to the DRIP (each such purchase hereinafter
defined as an "Order"). Persons desiring to purchase Shares are required to (i)
deliver to you, the appropriate Selected Dealer or Selected Investment Advisor a
check in the amount of $10 per Share purchased (subject to certain volume
discounts or other discounts as described in the prospectus, or such other per
share price as may

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

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

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

                                      -5-
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funds in an amount equal to the Escrow Funds on deposit in the Escrow Account
prior to the date specified by the Company. The Initial Closing Date and each
Additional Closing Date are each herein referred to as a "Closing Date." Closing
dates for purchases made pursuant to the DRIP will be as set forth in the DRIP.

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

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

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

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      As an example, a single purchaser would receive 50,380 Shares rather than
50,000 Shares for his/her or its investment of $500,000 and the Selling
Commission would be $28,940. A refund will be made to the purchaser for any
fractional Shares based on the public offering price if such refund is in excess
of $1.00. In the foregoing example, $7.00 would be refunded for the fractional
Share.

      Selling Commissions for purchases of $5,000,000 or more are negotiable but
in no event will the proceeds to the Company be less than $9.30 per Share.
Selling Commissions paid will in all cases be the same for the same level of
sales.

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

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

      From your total commissions, you agree to reallow to each Selected Dealer
with whom you have entered into a Selected Dealer Agreement (no such reallowance
will be made for Selected Investment Advisors) an amount of up to $0.65
commission per Share (except in the case of Shares purchased under the DRIP in
which case the commission reallowance will be an amount up to $0.50 per Share)
for Shares sold by the Company pursuant to Orders solicited by such Selected
Dealer and the full amount of any Selected Dealer Fee paid to you by the Company
on behalf of any Selected Dealer. The Company will also reimburse you for the
amount of the Selected Dealer Fee paid to Selected Dealers, which fee will be
one percent of the price of each Share sold by the Selected Dealer.
Additionally, the Company will pay to you the Selected Dealer Fee of one percent
for Shares sold directly by you. No payment of commissions will be made by the
Company with respect to Orders placed by the Selected Investment Advisors and
Orders (or portions thereof) which are rejected by the Company. Finally, the
Company will pay you a one-half percent marketing fee, which you may reallow, in
your sole discretion, to the Selected Dealers based on such factors as volume of
Shares sold, marketing support and bona fide conference fees incurred. Purchases
of Shares by the Advisor, its Affiliates (as defined in the Prospectus), any
Selected Dealer, any Selected Investment Advisor or any employee of any Selected
Dealer or Investment Advisor shall be net of Selling Commissions and the Company
will pay no Selling Commissions on such Orders. Selling Commissions will be paid
on any Closing Date with respect to the Shares sold to purchasers whose Shares
are issued on such Closing Date. The Company will not pay a Selected Dealer Fee
or Marketing Fee for Shares sold through the DRIP.

      The Company represents that neither it nor any of its Affiliates have
offered or sold any Shares pursuant to this Offering and agrees that, through
the date on which the Offering is

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terminated (the "Termination Date"), the Company will not offer or sell any
Shares otherwise than through you as herein provided.

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

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

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

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

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

                                      -8-
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time necessary or advisable, file and make such statements or reports as are or
may reasonably be required by the laws of such jurisdiction.

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

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

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

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

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

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

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

                                      -9-
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      (h) Prospectus Delivery. In case you, any Selected Dealer or Selected
Investment Advisor is required to deliver a Prospectus in connection with sales
of any of the Shares at any time nine months or more after the Effective Date,
upon your or such Selected Dealer or Selected Investment Advisor's request, the
Company will, at its expense, prepare and deliver to you, such Selected Dealer
or Selected Investment Advisor as many copies as you may request of an amended
or supplemented Prospectus complying with Section 10(a)(3) of the Act.

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

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

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

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

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

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

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

      6. Payment of Expenses.

      (a) Expenses. Whether or not the transactions contemplated in this
Agreement are consummated or if this Agreement is terminated, the Company will
pay, in addition to the underwriting compensation described in Section 3(d)
(which you may retain up to the point of termination unless this agreement is
terminated without any shares being sold, in which case no such underwriting
compensation shall be paid), all fees and expenses incurred in connection with
the formation, qualification and registration of the Company and in marketing,
distributing and processing the Shares under applicable Federal and state law,
and any other fees and expenses

                                      -10-
<PAGE>
actually incurred and directly related to the offering and sale of the Shares,
including such fees and expenses as: (i) the preparing, printing, filing and
delivering of the Registration Statement (as originally filed and all amendments
thereto) and of any preliminary prospectus and of the Prospectus and any
amendments thereof or supplements thereto and the preparing and printing of the
Selected Dealer Agreements, this Agreement and Order Forms, including the cost
of all copies thereof and any financial statements or exhibits relating to the
foregoing supplied to you, Selected Dealers and Selected Investment Advisors in
quantities reasonably requested by you; (ii) the preparing and printing of the
solicitation material and related documents and the filing and/or recording of
such certified certificates or other documents necessary to comply with the laws
of the State of Maryland for the formation of a corporation and thereafter for
the continued good standing of a Company; (iii) the issuance and delivery of the
Shares, including any transfer or other taxes payable thereon; (iv) any escrow
arrangements in connection with the transactions described herein, including any
compensation or reimbursement to an escrow agent for its services as such; (v)
the qualification or registration of the Shares under state securities or "blue
sky" laws; (vi) the filing fees payable to the Commission and to the NASD; (vii)
the preparation and printing of advertising material in connection with and
relating to the Offering, including the cost of all sales literature and
investor and broker-dealer sales and information meetings; (viii) the cost and
expenses of counsel and accountants of the Company; and (ix) any other expenses
of issuance and distribution of the Shares.

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

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

      (d) Limitation. Notwithstanding the foregoing, the total underwriting
compensation paid to the Sales Agent and Selected Dealers from any source in
connection with the Offering pursuant to Section 3(d) hereof and this Section 6
shall not exceed 10% of the gross proceeds of the sale of the Shares, plus
one-half of one percent of such gross proceeds for bona fide due

                                      -11-
<PAGE>
diligence expenses. The Company and you agree to monitor the payment of all fees
and expense reimbursements to assure that this limit is not exceeded.

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

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

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

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

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

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

                                      -12-
<PAGE>
            (iv) the Registration Statement is effective under the Act and, to
            the best of such counsel's knowledge, no stop order has been issued
            nor are proceedings for a stop order pending or threatened under the
            Act;

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

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

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

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

            (ix) Carey Financial Corporation has been duly incorporated and is
            validly existing as a corporation in good standing under the laws of
            the Commonwealth of Pennsylvania with full power and authority to
            conduct the business in which it

                                      -13-
<PAGE>
            engages as described in the Prospectus. Carey Financial Corporation
            is duly qualified to do business as a foreign corporation and is in
            good standing in each other jurisdiction in which it owns or leases
            property of the nature or transacts business of a type, that would
            make such qualification necessary;

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

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

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

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

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

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

                                      -14-
<PAGE>
            (iii) based on the limited review set forth in detail in such
            letter, nothing came to their attention that caused them to believe
            that during the period from the date of the balance sheet of the
            Company contained in the Prospectus to a specified date not more
            than five (5) days prior to the date on which the Registration
            Statement initially becomes effective, there was any change in the
            stockholder's equity, liabilities or net assets of the Company as
            compared with the amounts shown in such balance sheet other than as
            such change may have been contemplated by or set forth in the
            Registration Statement or Prospectus;

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

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

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

      (e) Information Concerning the Advisor. On the Effective Date, you shall
receive a letter dated the Effective Date from the Advisor, confirming that: (1)
the Advisory Agreement has been duly and validly authorized, executed and
delivered by the Advisor and constitutes a valid agreement of the Advisor
enforceable in accordance with its terms; (2) the execution and delivery of the
Advisory Agreement, the consummation of the transactions therein contemplated
and compliance with the terms of the Advisory Agreement by the Advisor will not
conflict with or constitute a default under its partnership agreement or any
indenture, mortgage, deed of trust, lease or other agreement or instrument to
which the Advisor is a party, or any law, order, rule or regulation, writ,
injunction or decree of any government, governmental instrumentality or court,

                                      -15-
<PAGE>
domestic or foreign, having jurisdiction over the Advisor, or any of its
property; (3) no consent, approval, authorization or order of any court or other
governmental agency or body has been or is required for the performance of the
Advisory Agreement by the Advisor, or for the consummation of the transactions
contemplated thereby; and (4) the Advisor is a corporation duly formed, validly
existing and in good standing under the laws of the State of Delaware and is
duly qualified to do business as a foreign corporation in each other
jurisdiction in which the nature of its business would make such qualification
necessary.

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

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

      8. Indemnification.

      (a) Indemnification by the Company. Subject to the conditions set forth
below and those included in the Articles and bylaws, the Company agrees to
indemnify and hold harmless you, each Selected Dealer, each Selected Investment
Advisor and each person, if any, who controls you, any such Selected Dealer or
Selected Investment Advisor within the meaning of Section 15 of the Act, from
and against any and all loss, liability, claim, damage and expense whatsoever
(including but not limited to any and all expenses whatsoever reasonably
incurred in investigating, preparing for, defending against or settling any
litigation, commenced or threatened, or any claim whatsoever) arising out of or
based upon: (1) any untrue or alleged untrue statement of a material fact
contained (i) in the Registration Statement or the Prospectus (as from time to
time amended or supplemented) or any related preliminary prospectus; or (ii) in
any application or other document (in this Section 8 collectively called
"application") executed by the Company or based upon information furnished by
the Company and filed in any jurisdiction in order to qualify the Shares under
the securities laws thereof; or (2) the omission or alleged omission therefrom
of a material fact required to be stated therein or necessary to make the
statements therein in light of the circumstances under which they were made not
misleading, unless any such statement or omission was made in reliance upon and
in conformity with written information furnished to the Company by you expressly
for use in the Registration Statement or related preliminary prospectus or
Prospectus or any amendment or supplement thereof or in any of such applications
or in any such sales as the case may be. Notwithstanding the foregoing, the
Company shall not indemnify the Sales Agent for any losses, liabilities or
expenses arising from or out of an alleged violation of federal or state
securities laws unless: (i) there has been a successful adjudication on the
merits of each count involving alleged securities law violations as to the
particular indemnitee, (ii) such claims have been dismissed with prejudice on
the merits by a court of competent jurisdiction as to the particular indemnitee
or (iii) a court of competent jurisdiction approves a settlement of the claims
against a particular indemnitee and finds that

                                      -16-
<PAGE>
indemnification of the settlement and the related costs should be made, and the
court considering the request for indemnification has been advised of the
position of the Commission and of the published position of any state securities
regulatory authority in which securities of the Company were offered or sold as
to indemnification for violations of Securities laws.

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

      (c) Procedure for Making Claims. Each indemnified party shall give prompt
notice to each indemnifying party of any claim or action (including any
governmental investigation) commenced against it in respect of which indemnity
may be sought hereunder, but failure to so notify any indemnifying party shall
not relieve it from any liability that it may have otherwise than on account of
this indemnity agreement. The indemnifying party, jointly with any other
indemnifying parties receiving such notice, shall assume the defense of such
action with counsel chosen by it and approved by the indemnified parties
defendant in such action, unless such indemnified parties reasonably object to
such assumption on the ground that there may be legal defenses available to them
which are different from or in addition to those available to such indemnifying
party. Any indemnified party shall have the right to employ a separate counsel
in any such action and to participate in the defense thereof but the fees and
expenses of such counsel shall be borne by such party unless such party has
objected in accordance with the preceding sentence, in which event such fees and
expenses shall be borne by the indemnifying parties. Except as set forth in the
preceding sentence, if an indemnifying party assumes the defense of such action,
the indemnifying party shall not be liable for any fees and expenses of separate
counsel for the indemnified parties incurred thereafter in connection with such
action. In no event shall the indemnifying parties be liable for the fees and
expenses of more than one counsel for all indemnified parties in connection with
any one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances. The
indemnity agreements contained in this Section 8 and the warranties and
representations contained in this Agreement shall remain in full force and
effect regardless of any investigation made by or on behalf of the indemnified
party and shall survive any termination of this Agreement. An indemnifying party
shall not be liable to an indemnified party on account of any settlement of any
claim or action effected without the consent of such indemnifying party. The
Company agrees promptly to notify you of the commencement of any litigation or
proceedings against the Company in connection with the issue and sale of the
Shares or in connection with the Registration Statement or Prospectus.

                                      -17-
<PAGE>
      (d) Contribution. Subject to the limitations set forth in Section 8(a)
hereof and in order to provide for just and equitable contribution where the
indemnification provided for in this Section 8 is unavailable to or insufficient
to hold harmless an indemnified party under subsection (a) or (b) above in
respect of any losses, liabilities, claims, damages or expenses (or actions in
respect thereof) referred to therein, except by reason of the terms thereof, the
Company on the one hand and you on the other shall contribute to the amount paid
or payable by such indemnified party as a result of such losses, liabilities,
claims, damages or expenses (or actions in respect thereof) in such proportion
as is appropriate to reflect the relative benefits received by the Company on
the one hand and you on the other from the Offering based on the public offering
price of the Shares sold and the Selling Commissions received by you with
respect to such Shares sold. If, however, the allocation provided by the
immediately preceding sentence is not permitted by applicable law, then each
applicable indemnifying party, in lieu of indemnifying such indemnified party,
shall contribute to the amount paid or payable by such indemnified party in such
proportion as is appropriate to reflect not only such relative benefits referred
to above but also the relative fault of the Company on the one hand and you on
the other in connection with the statements or omissions which resulted in such
losses, liabilities, claims, damages or expenses (or actions in respect
thereof), as well as any other relevant equitable considerations. The relative
benefits received by the Company on the one hand and you on the other shall be
deemed to be in the same proportion as the total proceeds from the Offering (net
of underwriting commissions but before deducting expenses) received by the
Company bear to the total underwriting commissions received by you. The relative
fault shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission to state a
material fact relates to information supplied by the Company on the one hand or
you on the other. The Company agrees with you that it would not be just and
equitable if contribution pursuant to this subsection (d) were determined by pro
rata allocation, or by any other method of allocation which does not take
account of the equitable considerations referred to above in this subsection
(d). The amount paid or payable by an indemnified party as a result of the
losses, liabilities, claims, damages or expenses (or action in respect thereof)
referred to above in this subsection (d) shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this subsection (d), you shall not be required to contribute any
amount in excess of the amount by which the total price of the Shares sold by
you to the public exceeds the amount of any damages which you have otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Act or Section 10(b) of the
Securities Exchange Act of 1934, as amended) shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation. For
purposes of this Section, any person that controls you within the meaning of
Section 15 of the Act shall have the same right to contribution as you, and each
person who controls the Company within the meaning of Section 15 of the Act
shall have the same right to contribution as the Company.

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

                                      -18-
<PAGE>
      10. Effective Date, Term and Termination of this Agreement.

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

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

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

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

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

                                      -19-
<PAGE>
counsel to the Selected Dealers or Selected Investment Advisors. In no event
will the Company be liable to reimburse you for expenses other than your actual
out-of-pocket expenses.

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

      11. Notices.

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

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

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

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

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

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

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

                                      -20-
<PAGE>
                 CPA(R):15 SALES AGENCY AGREEMENT SIGNATURE PAGE

                                        CORPORATE PROPERTY ASSOCIATES
                                        15 INCORPORATED

                                        By:   /s/ Anne R. Coolidge
                                            ------------------------------------

                                        Its:  President
                                             -----------------------------------

Accepted as of the
date first above
written:

CAREY FINANCIAL CORPORATION

By:   /s/ Louisa H. Quarto
    -------------------------------

Its:  First Vice President
     ------------------------------

Exhibit Index

Exhibit A - Selected Dealer Agreement

                                      -21-<PAGE>

                                                                    Exhibit 10.8

                     AMENDED AND RESTATED ADVISORY AGREEMENT

         THIS AMENDED AND RESTATED ADVISORY AGREEMENT, dated as of February 26,
2002, amending the Advisory Agreement dated November 7, 2001 is between
CORPORATE PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (the
"Company"), and CAREY ASSET MANAGEMENT CORP., a Delaware corporation and
wholly-owned subsidiary of W. P. Carey & Co. LLC (the "Advisor").

                              W I T N E S S E T H:

         WHEREAS, the Company has filed with the Securities and Exchange
Commission a Registration Statement (No. 333-58854) on Form S-11 covering shares
of its common stock ("Shares"), par value $.001, to be offered to the public,
and the Company may subsequently issue securities other than such Shares
("Securities") or otherwise raise additional capital;

         WHEREAS, the Company intends to qualify as a REIT (as defined below),
and to invest its funds in investments permitted by the terms of the
Registration Statement and Sections 856 through 860 of the Code (as defined
below);

         WHEREAS, the Company desires to avail itself of the experience, sources
of information, advice and assistance of, and certain facilities available to,
the Advisor and to have the Advisor undertake the duties and responsibilities
hereinafter set forth, on behalf of, and subject to the supervision of the Board
of Directors of the Company, all as provided herein; and

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

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

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

            Acquisition Expenses. Those expenses, including but not limited to
      legal fees and expenses, travel and communications expenses, costs of
      appraisals, nonrefundable option payments on Property not acquired,
      accounting fees and expenses, title insurance and miscellaneous expenses,
      related to selection and acquisition of Properties, whether or not
      acquired. Acquisition Expenses shall not include Acquisition Fees.

            Acquisition Fees. The total of all fees and commissions (including
      any interest thereon) paid by any party to any party in connection with
      the making or investing in mortgage loans or the purchase, development or
      construction of Properties by the Company. A Development Fee or a
      Construction Fee paid to a Person not affiliated with the Sponsor in
      connection with the actual development or construction of a project after
      acquisition of the Property by the Company shall not be deemed an
      Acquisition Fee. Included in the computation of such fees or commissions
      shall be any real estate commission, selection fee, development fee (other
      than as described above) or any fee of a similar nature, however
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      designated. Acquisition Fees include Subordinated Acquisition Fees unless
      the context otherwise requires. Acquisition Fees shall not include
      Acquisition Expenses.

            Adjusted Investor Capital. As of any date, the Initial Investor
      Capital for such date reduced by any distributions on or prior to such
      date deemed by the Board to be from Cash from Sales and Financings, but
      only to the extent such distributions exceed the amount necessary to
      satisfy any accrued but unpaid portion of the Preferred Return not
      satisfied by distributions of cash generated through operations through
      the date Cash from Sales or Financings are distributed by the Company.

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

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

            Agreement. This Advisory Agreement.

            Appraised Value. Value according to an appraisal made by an
      Independent Appraiser.

            Articles of Incorporation. Articles of Incorporation of the Company
      under the General Corporation Law of Maryland, as amended from time to
      time, pursuant to which the Company is organized.

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

            Average Invested Assets. The average of the aggregate book value of
      the assets of the Company invested, directly or indirectly, in Properties
      and in Loans secured by real estate, before reserves for depreciation or
      bad debts or other similar non-cash reserves, computed by taking the
      average of such values at the end of each month during such period.

            Board or Board of Directors. The Board of Directors of the Company.

            Bylaws. The bylaws of the Company.

            Cash from Financings. Net cash proceeds realized by the Company from
      the financing of Properties or the refinancing of any Company
      indebtedness.

                                       -2-
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            Cash from Sales. Net cash proceeds realized by the Company from the
      sale, exchange or other disposition of any of its assets after deduction
      of all expenses incurred in connection therewith. Cash from Sales shall
      not include Cash from Financings.

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

            Cause. With respect to the termination of this Agreement, fraud,
      criminal conduct, willful misconduct or willful or negligent breach of
      fiduciary duty by the Advisor or a breach of this Agreement by the
      Advisor.

            Change of Control. A change of control of the Company of a nature
      that would be required to be reported in response to the disclosure
      requirements of Schedule 14A of Regulation 14A promulgated under the
      Securities Exchange Act of 1934, as amended (the "Exchange Act"), as
      enacted and in force on the date hereof, whether or not the Company is
      then subject to such reporting requirements; provided, however, that,
      without limitation, a Change of Control shall be deemed to have occurred
      if: (i) any "person" (within the meaning of Section 13(d) of the Exchange
      Act, as enacted and in force on the date hereof) is or becomes the
      "beneficial owner" (as that term is defined in Rule 13d-3, as enacted and
      in force on the date hereof, under the Exchange Act) of securities of the
      Company representing 8.5% or more of the combined voting power of the
      Company's securities then outstanding; (ii) there occurs a merger,
      consolidation or other reorganization of the Company which is not approved
      by the Board of Directors; (iii) there occurs a sale, exchange, transfer
      or other disposition of substantially all of the assets of the Company to
      another entity, which disposition is not approved by the Board of
      Directors; or (iv) there occurs a contested proxy solicitation of the
      Shareholders of the Company that results in the contesting party electing
      candidates to a majority of the Board of Directors' positions next up for
      election.

            Code. Internal Revenue Code of 1986, as amended.

            Company. Corporate Property Associates 15 Incorporated, a
      corporation organized under the laws of the State of Maryland.

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

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

            Contract Purchase Price. The amount actually paid for or allocated
      (as of the date of purchase) to the purchase, development, construction or
      improvement of a Property, exclusive of Acquisition Fees and Acquisition
      Expenses.

            Contract Sales Price. The total consideration received by the
      Company for the sale of a Property.

                                      -3-
<PAGE>
            Cumulative Return. For the period for which the calculation is being
      made, the percentage resulting from dividing (A) the total Dividends paid
      on each Dividend payment date during such period (not including Dividends
      paid out of Cash from Sales and Financings), by (B) the product of (i) the
      average Adjusted Investor Capital for such period (calculated on a daily
      basis), and (ii) the number of years (including fractions thereof) elapsed
      during such period.

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

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

            Dividends. Dividends declared by the Board.

            Equity Interest. The stock of or other interests in, or warrants or
      other rights to purchase the stock of or other interests in, any entity
      that has borrowed money from the Company or that is a tenant of the
      Company or that is a parent or controlling Person of any such borrower or
      tenant.

            Final Closing Date. The last date on which purchasers of Shares
      offered pursuant to the Prospectus are issued such Shares.

            Good Reason. With respect to the termination of this Agreement, (i)
      any failure to obtain a satisfactory agreement from any successor to the
      Company to assume and agree to perform the Company's obligations under
      this Agreement; or (ii) any material breach of this Agreement of any
      nature whatsoever by the Company.

            Gross Offering Proceeds. The aggregate purchase price of Shares sold
      pursuant to the Offering.

            Independent Appraiser. A qualified appraiser of real estate as
      determined by the Board, who is not affiliated, directly or indirectly,
      with the Company, the Advisor or their respective Affiliates. Membership
      in a nationally recognized appraisal society such as the American
      Institute of Real Estate Appraisers or the Society of Real Estate
      Appraisers shall be conclusive evidence of such qualification.

            Independent Director. A Director of the Company who is not
      associated and has not been associated within the last two years, directly
      or indirectly, with the Sponsor or the Advisor. A Director shall be deemed
      to be associated with the Sponsor or the Advisor if he or she: (i) owns an
      interest in, is employed by, has any material business or professional
      relationship with, or is an officer or director of, the Sponsor, the
      Advisor, or any of their Affiliates, other than as a director or trustee
      or officer of not more than two other REITs organized by the Sponsor or
      advised by the Advisor; or (ii) performs services, other than as a
      Director, for the Company. An indirect relationship shall include
      circumstances in which a Director's spouse, parents, children, siblings,
      mothers- or fathers-in-law, sons- or

                                      -4-
<PAGE>
      daughters-in-law, or brothers- or sisters-in-law is or has been associated
      with the Sponsor, the Advisor, any of their Affiliates or the Company.

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

            Initial Closing Date. The first date on which purchasers of Shares
      offered pursuant to the Prospectus are issued such Shares.

            Initial Investor Capital. The total amount of capital invested from
      time to time by Shareholders (computed at a rate of $10 per Share for
      every Share including those Shares for which reduced selling commissions
      were paid in connection with their purchase from the Company). Upon
      completion of the Offering, the Initial Investor Capital shall be equal to
      the Gross Offering Proceeds.

            Loan Refinancing Fee. The Loan Refinancing Fee as defined in Section
      9(e) hereof.

            Loans. The notes and other evidences of indebtedness or obligations
      acquired or entered into by the Company as lender which are secured or
      collateralized by personal property, or fee or leasehold interests in real
      estate or other assets, including but not limited to first or subordinate
      mortgage loans, construction loans, development loans, loans secured by
      capital stock or any other assets or form of equity interest and any other
      type of loan or financial arrangement, such as providing or arranging for
      letters of credit, providing guarantees of obligations to third parties,
      or providing commitments for loans. The term "Loans" shall not include
      leases which are not recognized as leases for Federal income tax reporting
      purposes.

            Nasdaq. The national automated quotation system operated by the
      National Association of Securities Dealers, Inc.

            Net Income. For any period, the total revenues applicable to such
      period, less the total expenses applicable to such period excluding
      additions to reserves for depreciation, bad debts or other similar
      non-cash reserves; provided, however, Net Income for purposes of
      calculating total allowable Operating Expenses shall exclude the gain from
      the sale of the Company's assets.

            Offering. The offering of Shares pursuant to the Prospectus.

            Operating Expenses. All operating, general and administrative
      expenses paid or incurred by the Company, as determined under generally
      accepted accounting principles, except the following: (i) interest and
      discounts and other cost of borrowed money; (ii) taxes (including state
      and Federal income tax, property taxes and assessments, franchise taxes
      and taxes of any other nature); (iii) expenses of raising capital,
      including Organization and Offering Expenses, printing, engraving, and
      other expenses, and taxes incurred in connection with the issuance and
      distribution of the Company's Shares and Securities; (iv) expenses
      connected with the acquisition, disposition, ownership and operation of
      real estate interests, mortgage loans, or other property, including the
      costs of foreclosure, insurance premiums, legal services, brokerage and
      sales commissions, maintenance, repair and

                                      -5-
<PAGE>
      improvement of property; (v) the Acquisition Fee or Subordinated
      Disposition Fee payable to the Advisor or any other party; and (vi)
      non-cash items, such as depreciation, amortization, depletion, and
      additions to reserves for depreciation, amortization, depletion, losses
      and bad debts. Notwithstanding anything herein to the contrary, Operating
      Expenses shall include the Asset Management Fee, the Performance Fee and
      the Loan Refinancing Fee.

            Organization and Offering Expenses. Those expenses payable by the
      Company in connection with the formation, qualification and registration
      of the Company and in marketing and distributing Shares, including, but
      not limited to: (i) the preparation, printing, filing and delivery of the
      Registration Statement and the Prospectus (including any amendments
      thereof or supplements thereto) and the preparing and printing of
      contractual agreements between the Company and the Sales Agent and the
      Selected Dealers (including copies thereof); (ii) the preparing and
      printing of the Articles of Incorporation and Bylaws, solicitation
      material and related documents and the filing and/or recording of such
      documents necessary to comply with the laws of the State of Maryland for
      the formation of a corporation and thereafter for the continued good
      standing of a corporation; (iii) the qualification or registration of the
      Shares under state securities or "Blue Sky" laws; (iv) any escrow
      arrangements, including any compensation to an escrow agent; (v) the
      filing fees payable to the SEC and to the National Association of
      Securities Dealers, Inc.; (vi) reimbursement for the reasonable and
      identifiable out-of-pocket expenses of the Sales Agent and the Selected
      Dealers, including the cost of their counsel; (vii) the fees of the
      Company's counsel; (viii) all advertising expenses incurred in connection
      with the Offering, including the cost of all sales literature and the
      costs related to investor and broker-dealer sales and information meetings
      and marketing incentive programs; and (ix) selling commissions, certain
      annual monitoring fees paid to the Sales Agent with respect to Shares sold
      to clients of the Sales Agent or Selected Dealers, marketing fees,
      incentive fees, due diligence fees and wholesaling fees and expenses
      incurred in connection with the sale of the Shares.

            Performance Fee. The Performance Fee as defined in Section 9(b).

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

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

            Property or Properties. The Company's partial or entire interest in
      real property (including leasehold interests) and personal or mixed
      property connected therewith.

            Property Management Fee. The Property Management Fee as defined in
      Section 9(f) hereof.

            Prospectus. The final prospectus of the Company pursuant to which
      the Company will offer up to 50,000,000 Shares, as the same may at any
      time and from time to time be amended or supplemented after the effective
      date of the Registration Statement.

                                      -6-
<PAGE>
            Registration Statement. The Registration Statement on Form S-11 of
      which the Prospectus is a part.

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

            Sales Agent. Carey Financial Corporation.

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

            Selected Dealer Fee. A due diligence and management fee payable to
      Selected Dealers by the Company (through the Sales Agent) of up to one
      percent of the price of each Share sold by those Selected Dealers to which
      the Sales Agent agrees to pay such due diligence and management fee.

            Selected Dealers. Broker-dealers who are members of the National
      Association of Securities Dealers, Inc. and who have executed an agreement
      with the Sales Agent in which the Selected Dealers agree to participate
      with the Sales Agent in the Offering.

            Selected Investment Advisors. An investment advisor under the
      Investment Advisers Act of 1940, as amended, and presently registered or
      licensed as an investment advisor by the appropriate regulatory agency of
      each state in which the advisor has clients, or exempt from each state's
      registration requirements. The advisor is not a registered broker-dealer
      or registered representative with the NASD. The advisor is in compliance
      with all applicable federal and state securities laws. The advisor
      maintains the records, required by Section 204 of the Investment Advisers
      Act of 1940, as amended, and rule 204-2 thereunder, in the form and for
      the periods required thereby.

            Shareholders. Those Persons who at any particular time are shown as
      holders of record of Shares on the books and records of the Company.

            Shares. All of the shares of common stock of the Company, $.001 par
      value, and all other shares of common stock of the Company issued in the
      Offering or any subsequent offering.

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

                                      -7-
<PAGE>
            Subordinated Acquisition Fee. The Subordinated Acquisition Fee as
      defined in Section 9(d).

            Subordinated Disposition Fee. The Subordinated Disposition Fee as
      defined in Section 9(g) hereof.

            Subordinated Incentive Fee. The Subordinated Incentive Fee as
      defined in Section 9(h) hereof.

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

            Termination Fee. An amount equal to 15% of the amount, if any, by
      which (1) the Appraised Value of the Properties on the Termination Date,
      less the amount of all indebtedness secured by such Properties, exceeds
      (2) the total of the Initial Investor Capital on the Final Closing Date
      plus an amount equal to the Preferred Return through the Termination Date
      reduced by the total Dividends paid by the Company from its inception
      through the Termination Date.

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

            2%/25% Guidelines. The requirement that, in any 12-month period, the
      Operating Expenses not exceed the greater of two percent of the Company's
      Average Invested Assets during such 12-month period or 25% of the
      Company's Net Income over the same 12-month period.

            Underlying Real Property. Property serving as collateral for any
      Loan.

            Valuation. An estimate of value of the assets of the Company as
      determined by a Person approved by the Independent Directors, which Person
      shall be independent of the Company and the Advisor.

         2. APPOINTMENT. The Company hereby appoints the Advisor to serve as its
advisor on the terms and conditions set forth in this Agreement, and the Advisor
hereby accepts such appointment.

         3. DUTIES OF THE ADVISOR. The Advisor undertakes to use its best
efforts to present to the Company potential investment opportunities and to
provide a continuing and suitable investment program consistent with the
investment objectives and policies of the Company as determined and adopted from
time to time by the Directors. In performance of this undertaking, subject to
the supervision of the Directors and consistent with the provisions of the
Registration Statement, Articles of Incorporation and Bylaws of the Company, the
Advisor shall, either directly or by engaging an Affiliate:

                                      -8-
<PAGE>
            (a) serve as the Company's investment and financial advisor and
provide research and economic and statistical data in connection with the
Company's assets and investment policies;

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

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

            (d) consult with the officers and Directors of the Company and
assist the Directors in the formulation and implementation of the Company's
financial policies, and, as necessary, furnish the Directors with advice and
recommendations with respect to the making of investments consistent with the
investment objectives and policies of the Company and in connection with any
borrowings proposed to be undertaken by the Company;

            (e) subject to the provisions of Sections 3(g) and 4 hereof: (i)
locate, analyze and select potential investments in Property and Loans; (ii)
structure and negotiate the terms and conditions of transactions pursuant to
which investments in Properties and Loans will be made, purchased or acquired by
the Company; (iii) make investments in Property on behalf of the Company in
compliance with the investment objectives and policies of the Company; (iv)
arrange for financing, and refinancing and make other changes in the asset or
capital structure of, and dispose of, reinvest the proceeds from the sale of or
otherwise deal with the investments in Property and Loans; and (v) enter into
leases and service contracts for Properties and, to the extent necessary,
perform all other operational functions for the maintenance and administration
of such Properties;

            (f) provide the Directors with periodic reports regarding
prospective investments in Properties and Loans;

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

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

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<PAGE>
            (i) obtain reports (which may be prepared by the Advisor or its
Affiliates), where appropriate, concerning the value of investments or
contemplated investments of the Company in Property and/or Loans;

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

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

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

            (m) provide or arrange for administrative services and items, legal
and other services, office space, office furnishings, personnel and other
overhead items necessary and incidental to the Company's business and
operations;

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

            (o) maintain the books and records of the Company;

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

            (q) provide the Company with all necessary cash management services;

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

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

            (t) deliver to or maintain on behalf of the Company copies of all
appraisals obtained in connection with investments in Properties and Loans; and

         4. AUTHORITY OF ADVISOR.

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

            (b) Notwithstanding the foregoing, any investment in Property,
including any acquisition of any Property by the Company (as well as any
financing acquired by the Company in connection with such acquisition), will
require the prior approval of the Directors unless, prior to completion of any
such transaction, the Advisor provides the Company with:

                  (i) an appraisal for the Property indicating that the Total
      Property Cost of the Property does not exceed the Appraised Value of the
      Property; and

                  (ii) a representation from the Advisor that the Property, in
      conjunction with the Company's other investments and proposed investments,
      at the time the Company is committed to purchase the Property, is
      reasonably expected to fulfill the Company's investment objectives and
      policies as established by the Directors and then in effect.

            (c) If a transaction requires approval by the Independent Directors,
the Advisor will deliver to the Independent Directors all documents required by
them to properly evaluate the proposed investment in such Property or such Loan.

         Notwithstanding the foregoing, the prior approval of the Directors,
including a majority of the Independent Directors, will be required for
transactions involving: (a) investments in Properties in respect of which all of
the requirements specified in Section 4(b) hereof have not been satisfied; (b)
investments in Properties made through joint venture arrangements with
Affiliates of the Advisor; (c) investments in Properties which are not
contemplated by the terms of the Prospectus; (d) transactions that present
issues which involve conflicts of interest for the Advisor (other than conflicts
involving the payment of fees or the reimbursement of expenses); and (e) the
lease of assets to the Sponsor, any Director or the Advisor.

         The Directors may, at any time upon the giving of notice to the
Advisor, modify or revoke the authority set forth in this Section 4. If and to
the extent the Directors so modify or revoke the authority contained herein, the
Advisor shall henceforth submit to the Directors for prior approval such
proposed transactions involving investments in Property as thereafter require
prior approval, provided however, that such modification or revocation shall be
effective upon receipt by the Advisor and shall not be applicable to investment
transactions to which the Advisor has committed the Company prior to the date of
receipt by the Advisor of such notification.

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

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

         7. LIMITATIONS ON ACTIVITIES. Anything else in this Agreement to the
contrary notwithstanding, the Advisor shall refrain from taking any action
which, in its sole judgment made in good faith, would adversely affect the
status of the Company as a REIT, subject the Company to regulation under the
Investment Company Act of 1940, would violate any law, rule, regulation or
statement of policy of any governmental body or agency having jurisdiction over
the Company, its Shares or its Securities, or otherwise not be permitted by the
Articles of Incorporation or Bylaws, except if such action shall be ordered by
the Directors, in which case the Advisor shall notify promptly the Directors of
the Advisor's judgment of the potential impact of such action and shall refrain
from taking such action until it receives further clarification or instructions
from the Directors. In such event the Advisor shall have no liability for acting
in accordance with the specific instructions of the Directors so given.
Notwithstanding the foregoing, the Advisor, its partners and employees, and
partners, stockholders, directors and officers of the Advisor's partners shall
not be liable to the Company, or to the Directors or Shareholders for any act or
omission by the Advisor, its partners or employees, or partners, stockholders,
directors or officers of the Advisor's partners except as provided in Sections
20 and 22 hereof.

         8. RELATIONSHIP WITH DIRECTORS. Partners and employees of the Advisor
or partners in the Advisor or any corporate parents of a partner, or directors,
officers or stockholders of any partner or corporate parent of a partner may
serve as a Director and as officers of the Company, except that no partner in or
employee of the Advisor or its Affiliates who also is a Director or officer of
the Company shall receive any compensation from the Company for serving as a
Director or officer other than for reasonable reimbursement for travel and
related expenses incurred in attending meetings of the Directors.

         9. FEES.

            (a) ASSET MANAGEMENT FEE. The Company shall pay to the Advisor as
compensation for the advisory services rendered to the Company hereunder an
amount equal to one half percent per annum of the Average Invested Assets of the
Company (the "Asset Management Fee") calculated as set forth below. The Asset
Management Fee will be calculated monthly, beginning with the month in which the
Company first makes an investment in Properties or Loans, on the basis of
one-twelfth of one half percent of the Average Invested

                                      -12-
<PAGE>
Assets for the preceding month, computed as a daily average. The Asset
Management Fee calculated with respect to each month shall be payable monthly on
the last day of such month, or the first business day following the last day of
such month. If at the end of any fiscal quarter, the Company's Operating
Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months,
payment of the Asset Management Fee will be withheld to the extent necessary to
cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset
Management Fee not paid due to the Company's failure to satisfy the 2%/25%
Guidelines shall be paid at the end of the next fiscal quarter to the extent
such payment would not cause the Company to fail to satisfy the 2%/25%
Guidelines if such payment were to be included in the Company's Operating
Expenses for the 12 months preceding such payment. For purposes of calculating
the value per share of restricted stock given for payment of the Asset
Management Fee, the price per share shall be: (i) the net asset value per share
as determined by the most recent appraisal performed by an independent third
party or, if an appraisal has not yet been performed, (ii) $10 per share. Any
part of the Asset Management Fee that has been subordinated pursuant to this
subsection (a) shall not be deemed earned until such time as payable hereunder.

            (b) PERFORMANCE FEE. In addition to the Asset Management Fee
described in Section 9(a) above, the Company shall also pay to the Advisor as
compensation for the advisory services rendered to the Company hereunder an
amount equal to one half percent per annum of the Average Invested Assets of the
Company (the "Performance Fee") calculated as set forth below. The Performance
Fee will be calculated monthly, beginning with the month in which the Company
first makes an investment in Properties or Loans, on the basis of one-twelfth of
one half percent of the Average Invested Assets during the previous month,
computed as a daily average. The Performance Fee calculated with respect to each
month shall be payable on a quarterly basis on the last day of the first month
of the immediately following fiscal quarter. Payment of this fee for any quarter
shall be payable only if the Shareholders have received a Preferred Return. Any
portion of the Performance Fee not paid due to the Company's failure to pay the
Preferred Return shall be paid by the Company, to the extent it is not
restricted by the 2%/25% Guidelines as described below, at the end of the next
fiscal quarter through which the Company has paid the Preferred Return. If at
the end of any fiscal quarter, the Company's Operating Expenses exceed the
2%/25% Guidelines over the immediately preceding 12 months, payment of the
Performance Fee will be withheld to the extent necessary to cause the Company to
satisfy the 2%/25% Guidelines. Any portion of the Performance Fee not paid due
to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the
end of the next fiscal quarter to the extent such payment would not cause the
Company to fail to satisfy the 2%/25% Guidelines if such payment were to be
included in the Company's Operating Expenses for the 12 months preceding such
payment. For purposes of determining the Performance Fee, the price per share
shall be: (i) the net asset value per share as determined by the most recent
appraisal performed by an independent third party or, if an appraisal has not
yet been performed, (ii) $10 per share. Any part of the Performance Fee that has
been subordinated pursuant to this subsection (b) shall not be deemed earned
until such time as payable hereunder.

            (c) ACQUISITION FEE. The Advisor may receive as compensation for
services rendered in connection with the investigation, selection and
acquisition (by purchase, investment or exchange) of Property an Acquisition Fee
payable by the Company. The total Acquisition Fees (not including Subordinated
Acquisition Fees and any interest thereon) payable to the Advisor may not exceed
two-and-a-half percent of the aggregate Total Property Cost of all Properties
purchased by the Company with proceeds from the Offering (calculated after all
such

                                      -13-
<PAGE>
proceeds are invested) unless a majority of the Directors (including a majority
of the Independent Directors) not otherwise interested in any transaction
approve the excess as being commercially competitive, fair and reasonable to the
Company. The total amount of Acquisition Fees (including Subordinated
Acquisition Fees and any interest thereon) and Acquisition Expenses paid by the
Company may not exceed six percent of the aggregate Contract Purchase Price of
all Properties purchased by the Company unless a majority of the Board
(including a majority of the Independent Directors) not otherwise interested in
any transaction approves fees in excess of this limit as being commercially
competitive, fair and reasonable to the Company.

            (d) SUBORDINATED ACQUISITION FEE. In addition to the Acquisition Fee
described in Section 9(c) above, the Advisor may receive as additional
compensation for services rendered in connection with the investigation,
selection and acquisition (by purchase, investment or exchange) of a Property a
Subordinated Acquisition Fee payable by the seller of such Property or the
Company. The total Subordinated Acquisition Fees payable to the Advisor and its
Affiliates plus Subordinated Acquisition Fees payable by the Company to any
other party may not exceed two percent of the aggregate Total Property Cost of
all Properties purchased by the Company with proceeds from the Offering
(calculated after all such proceeds are invested) unless a majority of the
Directors (including a majority of the Independent Directors) not otherwise
interested in any transaction approve the excess as being commercially
competitive, fair and reasonable to the Company. The unpaid portion of the
Subordinated Acquisition Fee with respect to any Property shall bear interest at
the rate of six percent per annum from the date of acquisition of such Property
until such portion is paid. Subject to the following sentence, the Subordinated
Acquisition Fee with respect to any Property shall be payable in equal annual
installments on January 1 of each of the four calendar years following the first
anniversary of the date such Property was purchased; accrued interest or all
unpaid Subordinated Acquisition Fees shall also be payable on such dates. The
portion of the Subordinated Acquisitions Fees, and accrued interest thereon,
otherwise payable for any year on January 1 of the following year shall be
payable only if the Shareholders have received a Preferred Return. Any portion
of the Subordinated Acquisitions Fees, and accrued interest thereon, not paid
due to the Company's failure to pay the Preferred Return for the most recently
completed fiscal year shall be paid by the Company on January 1 following the
fiscal year through which the Company has paid the Preferred Return. In the
event that the Shares are listed for trading on a national securities exchange
or are included for quotation on Nasdaq, all Subordinated Acquisition Fees, and
accrued interest thereon, shall be due and payable on the date of such listing
or inclusion.

            (e) LOAN REFINANCING FEE. The Company shall pay to the Advisor for
all qualifying loan refinancings of Properties a Loan Refinancing Fee in the
amount up to one percent of the principal amount of any loan secured by a
Property. Any Loan Refinancing Fee shall be due and payable upon the funding of
the related mortgage loan or as soon thereafter as is reasonably practicable. A
refinancing will qualify for a Loan Refinancing Fee only if: the new loan is
approved by a majority of the independent directors and found to be in the best
interest of the Company, the terms of the new loan represent an improvement over
the terms of the refinanced loan, the new loan materially increases the total
debt secured by a particular Property or the maturity date of the refinanced
loan (which must have a term of five years or more) is less than one year from
the date of the refinancing.

            (f) PROPERTY MANAGEMENT FEE. The Advisor may cause the Company to
pay Property Management Fees for property management services rendered by the
Advisor or its

                                      -14-
<PAGE>
Affiliates in connection with Properties acquired directly or through
foreclosure. The Advisor or an Affiliate will provide property management
services only if a Property becomes vacant or requires more active management
than contemplated at the time such Property is acquired. In either event, the
Company, by approval of the Directors (including a majority of the Independent
Directors), may engage the Advisor or an Affiliate, subject to such Advisor's or
such Affiliate's qualifying as an "independent contractor" pursuant to Section
856(d)(3) of the Code, to provide property management services. If such services
are rendered by the Advisor or an Affiliate, the maximum Property Management
Fees which may be paid to the Advisor or an Affiliate will be six percent of
gross revenues from commercial Properties and five percent of gross revenues
from residential Properties, plus reimbursed expenses, paid monthly, where such
entity performs property management and leasing, re-leasing and leasing related
services, or three percent of the gross revenues of the Property if only
property management services are performed by such entity. Property Management
Fees payable to the Advisor or an Affiliate for an industrial or commercial
Property leased on a long-term (defined as at least ten years, excluding
renewals) triple net basis, may not exceed one percent of the gross revenues
from such Property, except for a one-time initial leasing fee equal to three
percent of total base rents payable for the first five years of the lease,
payable in five equal annual installments. Such fees to the Advisor or its
Affiliate cannot exceed the usual and customary amounts charged for similar
services in the same geographic area.

            (g) SUBORDINATED DISPOSITION FEE. If the Advisor or an Affiliate
provides a substantial amount of the services (as determined by a majority of
the Independent Directors) in the sale of a Property, the Advisor or an
Affiliate shall receive a Subordinated Disposition Fee equal to the lesser of:
(i) 50% of the Competitive Real Estate Commission and (ii) three percent of the
Contract Sales Price of such Property. The Subordinated Disposition Fee will be
paid only if Shareholders have received a return of 100% of Initial Investor
Capital (through liquidity or distributions) plus an annual Cumulative Return of
six percent from the date shares were purchased from the Company through the
date payment is made. The return requirement will be deemed satisfied if the
total distributions paid by CPA(R):15 satisfy the six percent annual Cumulative
Return requirement and the market value of CPA(R):15 equals or exceeds 100% of
the capital raised by CPA(R):15 (less any amounts distributed from the sale of
refinancing of any property). To the extent that Subordinated Disposition Fees
are not paid by the Company on a current basis due to the foregoing limitation,
the unpaid fees will be accrued and paid at such time as the limitation has been
satisfied. The Subordinated Disposition Fee may be paid in addition to real
estate commissions paid to non-Affiliates, provided that the total real estate
commissions paid to all Persons by the Company shall not exceed an amount equal
to the lesser of: (i) six percent of the Contract Sales Price of a Property or
(ii) the Competitive Real Estate Commission. In the event this Agreement is
terminated prior to such time as the Shareholders have received a return of 100%
of Initial Investor Capital plus an amount sufficient to pay a Cumulative Return
of six percent from the date shares were purchased from the Company through the
date of termination of this Agreement, an appraisal of the Properties then owned
by the Company shall be made and the Subordinated Disposition Fee on Properties
previously sold will be deemed earned if the Appraised Value of the Properties
then owned by the Company plus return to Shareholders received prior to the date
of termination of this Agreement is equal to 100% of Initial Investor Capital
(through liquidity or distributions) plus an amount sufficient to pay a
Cumulative Return of six percent from the date shares were purchased from the
Company through the date of termination of this Agreement. In the event the
Company's Shares are listed on a national securities exchange or included for
quotation on Nasdaq and, at the time of such

                                      -15-
<PAGE>
listing, the Advisor has accrued a Subordinated Disposition Fee which has not
been paid, for purposes of determining whether the subordination conditions have
been satisfied, Shareholders will be deemed to have received a Dividend in an
amount equal to the product of the total number of outstanding Shares and the
average of the closing prices (or average bid and asked quotes) of the Shares
over a period, beginning 180 days after listing of the Shares, of 30 days during
which the Shares are traded.

            (h) SUBORDINATED INCENTIVE FEE. The Subordinated Incentive Fee shall
be payable to the Advisor in an amount equal to 15% of Cash from Sales and
Financings distributed to the Shareholders after the Shareholders have received
a return of 100% of Initial Investor Capital (through liquidity or
distributions) plus an annual Cumulative Return of six percent from the date
shares were purchased from the Company through date payment is made. Once
Shareholders have been provided with liquidity the Advisor will be paid any
Subordinated Incentive Fee and any Subordinated Disposition Fee it has earned
and does earn if the return requirements are satisfied. For these purposes
Shareholder will be deemed to have been provided liquidity if the Shares are
listed on a national security exchange or over-the-counter market, included for
quotation on Nasdaq, if shares can be redeemed through the CPA(R):15 redemption
plan on a quarterly basis without delay or some other liquidity terms has been
provided which enables Shareholders to receive cash or marketable securities for
their Shares no less frequently than quarterly. The return requirement will be
deemed satisfied if the total distributions paid by CPA(R):15 satisfy the six
percent annual Cumulative Return requirement and the market value of CPA(R):15
equals or exceeds 100% of the capital raised by CPA(R):15 (less any amounts
distributed from the sale of refinancing of any property). The market value will
be calculated on the basis of the average market value of the Shares over the 30
trading days beginning 180 days after the Shares are first listed on a stock
exchange if the Shares are listed or included for quotation. If liquidity is
provided through the redemption plan, the value of CPA(R):15 will be the
redemption price, net of any surrender fee, multiplied by the total number of
outstanding Shares. A similar measurement will be used for other forms of
liquidity. The Company shall have the option to pay such fee in the form of
cash, a promissory note or any combination thereof. The promissory note shall be
fully amortizing over five years, provide for quarterly payments and bear
interest at the prime rate announced from time to time in The Wall Street
Journal.

            (i) LOANS FROM AFFILIATES. If any loans are made to the Company by
the Advisor or an Affiliate of the Advisor, the maximum amount of interest that
may be charged by such Affiliate shall be the lesser of (i) one percent above
the prime rate of interest published in The Wall Street Journal and (ii) the
rate that would be charged to the Company by unrelated lending institutions on
comparable loans for the same purpose in the locality of the Property. The terms
of any such loans shall be no less favorable than the terms available between
non-Affiliated Persons for similar commercial loans.

            (j) CHANGES TO FEE STRUCTURE. In the event the Shares are listed on
a national securities exchange or are included for quotation on Nasdaq, the
Company and the Advisor shall negotiate in good faith to establish a fee
structure appropriate for a entity with a perpetual life. A majority of the
Independent Directors must approve the new fee structure negotiated with the
Advisor. In negotiating a new fee structure, the Independent Directors shall
consider all of the factors they deem relevant, including but not limited to:
(a) the size of the Advisory Fee in relation to the size, composition and
profitability of the Company's portfolio; (b) the success of

                                      -16-
<PAGE>
the Advisor in generating opportunities that meet the investment objectives of
the Company; (c) the rates charged to other REITs and to investors other than
REITs by Advisors performing similar services; (d) additional revenues realized
by the Advisor and its Affiliates through their relationship with the Company,
including loan administration, underwriting or broker commissions, servicing,
engineering, inspection and other fees, whether paid by the Company or by others
with whom the Company does business; (e) the quality and extent of service and
advice furnished by the Advisor; (f) the performance of the investment portfolio
of the Company, including income, conversion or appreciation of capital,
frequency of problem investments and competence in dealing with distress
situations; and (g) the quality of the portfolio of the Company in relationship
to the investments generated by the Advisor for its own account. The new fee
structure can be no more favorable to the Advisor than the current fee
structure.

            (k) PAYMENT. Compensation payable to the Advisor pursuant to this
Section 9 shall be paid in cash; provided, however, that the Asset Management
Fees, Performance Fee and Property management Fee payable pursuant to Section
9(a),(b) and (f) may be paid, at the option of the Advisor, in the form of: (i)
cash, (ii) common stock of the Company, or (iii) a combination of cash and
common stock. The Advisor shall notify the Company in writing of the form in
which the fee shall be paid. Such notice shall be provided no later than January
15 of each year. If no such notice is provided, the fee shall be paid in cash.
For purposes of the payment of compensation to the Advisor in the form of stock,
the value of each share of common stock shall be: (i) the Net Asset Value per
Share as determined by the most recent appraisal of the Company's assets
performed as of the end of the immediately preceding year by an Independent
Appraiser, or (ii) if an appraisal has not yet been performed, $10 per share.
The Net Asset Value determined on the basis of such appraisal may be adjusted on
a quarterly basis by the Board of Directors of the Company to account for
significant capital transactions. Fees paid in the form of stock shall be paid
pursuant to the terms of the form of the Restricted Stock Agreement attached
hereto as Exhibit A or such other terms as the Advisor and the Company may from
time to time agree.

         10. EXPENSES. In addition to the compensation paid to the Advisor
pursuant to Section 9 hereof, the Company shall pay directly or reimburse the
Advisor for the following expenses:

                  (i) the Company's Organizational and Offering Expenses;
         provided however, that within 60 days after the end of the month in
         which the Offering terminates, the Advisor shall reimburse the Company
         for any Organizational and Offering Expense reimbursements received by
         the Advisor pursuant to this Section 10 to the extent that such
         reimbursements, when added to the balance of the Organizational and
         Offering Expenses (excluding selling commissions, and fees paid and
         expenses reimbursed to the Selected Dealers) paid directly by the
         Company, exceed four percent of the Gross Offering Proceeds; provided
         further, however, that the Advisor shall be responsible for the payment
         of all Organizational and Offering Expenses (excluding such commissions
         and such fees and expense reimbursements) in excess of four percent of
         the Gross Offering Proceeds;

                  (ii) Acquisition Expenses incurred in connection with the
         initial investment of the funds of the Company;

                                      -17-
<PAGE>
                  (iii) expenses other than Acquisition Expenses incurred in
         connection with the investment of the funds of the Company;

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

                  (v) taxes and assessments on income or Property and taxes as
         an expense of doing business;

                  (vi) costs associated with insurance required in connection
         with the business of the Company or by the Directors;

                  (vii) expenses of managing and operating Properties owned by
         the Company, whether payable to an Affiliate of the Company or a
         non-affiliated Person;

                  (viii) fees and expenses of legal counsel for the Company;

                  (ix) fees and expense of non-affiliated auditors and
         accountants for the Company;

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

                  (xi) expenses associated with listing the Shares and
         Securities on a securities exchange or Nasdaq if requested by the
         Directors or with the issuance and distribution of Shares and
         Securities, such as selling commissions and fees, taxes, legal and
         accounting fees, listing and registration fees, and other Organization
         and Offering Expenses;

                  (xii) expenses connected with payments of Dividends in cash or
         otherwise made or caused to be made by the Directors to the
         Shareholders;

                  (xiii) expenses of organizing, revising, amending, converting,
         modifying, or terminating the Company or the Articles of Incorporation;

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

                  (xv) expenses related to the Properties and Loans and other
         fees relating to making investments including personnel and other costs
         incurred in Property or Loan transactions where a fee is not payable to
         the Advisor; and

                  (xvi) all other expenses the Advisor incurs in connection with
         providing services to the Company including reimbursement to the
         Advisor or its Affiliates

                                      -18-
<PAGE>
         for the cost of rent, goods, materials and personnel incurred by them
         based upon the compensation of the Persons involved and an appropriate
         share of overhead allocable to those Persons.

         No reimbursement shall be made for the cost of personnel to the extent
that such personnel are used in transactions for which the Advisor receives a
separate fee.

         Expenses incurred by the Advisor on behalf of the Company and payable
pursuant to this Section 10 shall be reimbursed quarterly to the Advisor within
60 days after the end of each quarter. The Advisor shall prepare a statement
documenting the expenses of the Company during each quarter, and shall deliver
such statement to the Company within 45 days after the end of each quarter.

         11. OTHER SERVICES. Should the Directors request that the Advisor or
any partner or employee thereof render services for the Company other than set
forth in Section 3 hereof, such services shall be separately compensated and
shall not be deemed to be services pursuant to the terms of this Agreement.

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

         13. REFUND BY ADVISOR. (a) Within 60 days after the end of any fiscal
quarter of the Company which begins following the date the Company first
commences operations, if Operating Expenses of the Company during the fiscal
year, ending at the end of such quarter exceed the greater of (a) two percent of
the Average Invested Assets or (b) 25% of the Net Income of the Company during
that fiscal year and a majority of the Independent Directors find this excess
amount justified based on such unusual and non-recurring factors which they deem
sufficient, the Advisor may be reimbursed in future years for the full amount of
such excess expenses, or any portion thereof, but only to the extent such
reimbursement would not cause the Company's Operating Expenses to exceed the
2%/25% Guidelines in any such year. In no event shall the Operating Expenses
paid by the Company in any twelve month period ending at the end of a fiscal
quarter exceed the 2%/25% Guidelines. All figures used in the foregoing
computation shall be determined in accordance with generally accepted accounting
principles applied on a consistent basis. If the Advisor receives an incentive
fee for the sale of Property, Net Income, for purposes of calculating the
Operating Expenses, shall exclude the gain from the sale of such Property.

            (b) To the extent Organizational and Offering Expenses payable by
the Company exceeds 10.5% of the Gross Offering Proceeds, the excess will be
paid by the Advisor.

         14. OTHER ACTIVITIES OF THE ADVISOR. Nothing herein contained shall
prevent the Advisor from engaging in other activities, including without
limitation the rendering of advice to other investors (including other REITs)
and the management of other programs advised, sponsored or organized by the
Advisor or its Affiliates; nor shall this Agreement limit or restrict the right
of any director, officer, employee, partner or shareholder of the Advisor or its
Affiliates to engage in any other business or to render services of any kind to
any other partnership,

                                      -19-
<PAGE>
corporation, firm, individual, trust or association. The Advisor may, with
respect to any investment in which the Company is a participant, also render
advice and service to each and every other participant therein. The Advisor
shall report to the Directors the existence of any condition or circumstance,
existing or anticipated, of which it has knowledge, which creates or could
create a conflict of interest between the Advisor's obligations to the Company
and its obligations to or its interest in any other partnership, corporation,
firm, individual, trust or association. The Advisor or its Affiliates shall
promptly disclose to the Directors knowledge of such condition or circumstance.
If the Sponsor, Advisor, Director or Affiliates thereof have sponsored other
investment programs with similar investment objectives which have investment
funds available at the same time as the Company, it shall be the duty of the
Directors (including the Independent Directors) to adopt the method set forth in
the Registration Statement or another reasonable method by which properties are
to be allocated to the competing investment entities and to use their best
efforts to apply such method fairly to the Company.

         The Advisor shall be required to use its best efforts to present a
continuing and suitable investment program to the Company which is consistent
with the investment policies and objectives of the Company, but neither the
Advisor nor any Affiliate of the Advisor shall be obligated generally to present
any particular investment opportunity to the Company even if the opportunity is
of character which, if presented to the Company, could be taken by the Company.

         In the event that the Advisor or its Affiliates is presented with a
potential investment which might be made by the Company and by another
investment entity which the Advisor or its Affiliates advises or manages, the
Advisor shall consider the investment portfolio of each entity, cash flow of
each entity, the effect of the acquisition on the diversification of each
entity's portfolio, rental payments during any renewal period, the estimated
income tax effects of the purchase on each entity, the policies of each entity
relating to leverage, the funds of each entity available for investment, the
amount of equity required to make the investment and the length of time such
funds have been available for investment. To the extent that a Property might be
suitable for the Company and for another investment entity which is advised or
managed by the Advisor, the Advisor shall give priority to the investment
entity, including the Company, which has uninvested funds for the longest period
of time. The Advisor may consider the Property for private placement only if
such Property is deemed inappropriate for any investment entity which is advised
or managed by the Advisor, including the Company.

         15. RELATIONSHIP OF ADVISOR AND COMPANY. The Company and the Advisor
agree that they have not created and do not intend to create by this Agreement a
joint venture or partnership relationship between them and nothing in this
Agreement shall be construed to make them partners or joint venturers or impose
any liability as partners or joint venturers on either of them.

         16. TERM; TERMINATION OF AGREEMENT. This Agreement shall continue in
force until December 31, 2002 and thereafter shall be automatically renewed from
year to year, unless either party shall give notice in writing of non-renewal to
the other party not less than 60 days before the end of any such year.

         17. TERMINATION BY COMPANY. At the sole option of a majority of the
Independent Directors, this Agreement may be terminated immediately by written
notice of termination from

                                      -20-
<PAGE>
the Company to the Advisor upon the occurrence of events which would constitute
Cause or if any of the following events occur:

         (a) If the Advisor shall violate any material provision of this
         Agreement, and after written notice of such violation, shall not cure
         such default within 30 days or have begun action within 30 days to cure
         the default which shall be completed with reasonable diligence; or

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

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

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

         18. TERMINATION BY EITHER PARTY. This Agreement may be terminated
immediately without penalty (but subject to the requirements of Section 20
hereof) by the Advisor by written notice of termination to the Company upon the
occurrence of events which would constitute Good Reason or by the Company
without cause or penalty (but subject to the requirements of Section 20 hereof)
by action of the Directors, the Independent Directors or by action of a majority
of the Shareholders, in either case upon 60 days' written notice.

         19. ASSIGNMENT PROHIBITION. This Agreement may not be assigned by the
Advisor without the approval of a majority of the Directors (including a
majority of the Independent Directors); provided, however, that such approval
shall not be required in the case of an assignment to a corporation,
partnership, association, trust or organization which may take over the assets
and carry on the affairs of the Advisor, provided: (i) that at the time of such
assignment, such successor organization shall be owned substantially by the then
partners of the Advisor or their Affiliates and only if such entity has a net
worth of at least $5,000,000, and (ii) that a general partner of the Advisor
shall deliver to the Directors a statement in writing indicating the ownership
structure and net worth of the successor organization and a certification from
the new Advisor as to its net worth. Such an assignment shall bind the assignees
hereunder in the same manner as the Advisor is bound by this Agreement. The
Advisor may assign any rights to receive fees or other payments under this
Agreement without obtaining the approval of the Directors. This Agreement shall
not be assigned by the Company without the consent of the

                                      -21-
<PAGE>
Advisor, except in the case of an assignment by the Company to a corporation or
other organization which is a successor to the Company, in which case such
successor organization shall be bound hereunder and by the terms of said
assignment in the same manner as the Company is bound by this Agreement.

         20. PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION.

            (a) After the Termination Date, the Advisor shall not be entitled to
compensation for further services hereunder except it shall be entitled to
receive from the Company within 30 days after the effective date of such
termination the following:

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

                  (ii) all earned but unpaid Asset Management Fees and
         Performance Fees payable to the Advisor prior to the termination of
         this Agreement;

                  (iii) all earned but unpaid Subordinated Acquisition Fees and
         all unaccrued Subordinated Acquisition Fees, in each case payable to
         the Advisor relating to the acquisition of any Property prior to the
         termination of this Agreement;

                  (iv) all earned but unpaid Subordinated Disposition Fees
         payable to the Advisor relating to the sale of any Property prior to
         the termination of this Agreement;

                  (v) all earned but unpaid Loan Refinancing Fees payable to the
         Advisor relating to the financing or refinancing of any Property prior
         to the termination of this Agreement; and

                  (vi) all earned but unpaid Property Management Fees payable to
         the Advisor or its Affiliates relating to the management of any
         property prior to the termination of this Agreement.

         Notwithstanding the foregoing, in the event this Agreement is
terminated by the Company for Cause or by the Advisor for other than Good
Reason, the Advisor will not be entitled to receive the sums in subparagraphs
20(a)(i)-(vi), above. All amounts payable to the Advisor in the event of a
termination shall be evidenced by a non-interest bearing promissory note (the
"Note") having a principal amount of the unpaid amount payable to the Advisor.

         (b) If this Agreement is terminated by the Company for any reason other
than Cause, by either party in connection with a Change of Control, or by the
Advisor for Good Reason, the Advisor shall be entitled to payment of the
Termination Fee.

         (c) The Termination Fee shall be paid in a manner determined by the
Directors, but in no event shall any portion of the Termination Fee remain
unpaid three years after the termination, non-renewal or substantial
modification of this Agreement, nor shall the Termination Fee be paid in less
than 12 equal quarterly installments, with interest, on the unpaid

                                      -22-
<PAGE>
balance at the prime rate of interest then in effect as announced by The Bank of
New York. Notwithstanding the preceding sentence, any amounts which may be
deemed payable at the date the obligation to pay the Termination Fee is incurred
(i) shall be an amount which provides compensation to the Advisor only for that
portion of the holding period for the respective Properties during which the
Advisor provided services to the Company, (ii) shall not be due and payable
until the Property to which such fees relate is sold or refinanced, and (iii)
shall not bear interest until the Property to which such fees relate is sold or
refinanced. A portion of the Termination Fee shall be paid as each Property
owned by the Company on the Termination Date is sold. The portion of the
Termination Fee payable upon each such sale shall be equal to (i) the
Termination Fee multiplied by (ii) the percentage calculated by dividing the
Appraised Value (at the Termination Date) of the Property sold by the Company
divided by the total Appraised Value (at the Termination Date) of all Properties
owned by the Company on the Termination Date.

         The Note for amounts payable as described above shall mature upon the
liquidation of the Company (or ten years from date of issuance whichever is
earlier) and shall be payable at any time prior to maturity. The compensation
payable under this Subsection shall be paid or delivered to the Advisor within
30 days after funds shall become available to the Company for the making of such
payments.

         (d) Notwithstanding the foregoing, the Advisor shall not be entitled to
payment of the Termination Fee in the event this Agreement is terminated because
of failure of the Company and the Advisor to establish, pursuant to Section 9(j)
hereof, a fee structure appropriate for an entity with a perpetual life in the
event the Shares are listed on a national securities exchange or are included
for quotation on Nasdaq.

         (e) The Advisor shall promptly upon termination:

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

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

                  (iii) deliver to the Directors all assets, including
         Properties and Loans, and documents of the Company then in the custody
         of the Advisor; and

                  (iv) cooperate with the Company to provide an orderly
         management transition.

         21. INDEMNIFICATION BY THE COMPANY. The Company shall indemnify and
hold harmless the Advisor and its Affiliates, including their respective
officers, directors, partners and employees, from all liability, claims, damages
or losses arising in the performance of their duties hereunder, and related
expenses, including reasonable attorneys' fees, to the extent such liability,
claims, damages or losses and related expenses are not fully reimbursed by
insurance, subject to any limitations imposed by the laws of the State of
Maryland, the Articles of Incorporation or the

                                      -23-
<PAGE>
Bylaws of the Company. Notwithstanding the foregoing, the Advisor shall not be
entitled to indemnification or be held harmless pursuant to this Section 21 for
any activity which the Advisor shall be required to indemnify or hold harmless
the Company pursuant to Section 22.

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

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

              To the Directors      Corporate Property Associates 15
              and to the Company:   Incorporated
                                    50 Rockefeller Plaza
                                    New York, NY  10020

              To the Advisor:       Carey Asset Management Corp.
                                    50 Rockefeller Plaza
                                    New York, NY  10020

         Either party may at any time give notice in writing to the other party
of a change in its address for the purposes of this Section 23.

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

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

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

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

                                      -24-
<PAGE>
         28. INDULGENCES, NOT WAIVERS. Neither the failure nor any delay on the
part of a party to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of such right, remedy, power or privilege
with respect to any other occurrence. No waiver shall be effective unless it is
in writing and is signed by the party asserted to have granted such waiver.

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

         30. TITLES NOT TO AFFECT INTERPRETATION. The titles of Sections and
subsections contained in this Agreement are for convenience only, and they
neither form a part of this Agreement nor are they to be used in the
construction or interpretation hereof.

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

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

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

                                      -25-
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have executed this Advisory
Agreement as of the day and year first above written.

                                        CORPORATE PROPERTY ASSOCIATES 15
                                        INCORPORATED

                                        By:  /s/ Anne R. Coolidge
                                            ------------------------------------
                                        Name:  Anne R. Coolidge
                                        Title: President

                                        CAREY ASSET MANAGEMENT CORP.

                                        By:  /s/ Louisa H. Quarto
                                            ------------------------------------
                                        Name:  Louisa H. Quarto
                                        Title: Vice President

                                      -26-
<PAGE>
                                    EXHIBIT A

                           RESTRICTED STOCK AGREEMENT

         This RESTRICTED STOCK AGREEMENT dated       , by and between Corporate
Property Associates 15 Incorporated ("CPA(R):15"), a Maryland corporation and
Carey Asset Management Corp., a Delaware corporation and wholly-owned subsidiary
of W.P. Carey & Co. LLC (the "Advisor").

                                   WITNESSETH

         WHEREAS, CPA(R):15 and Advisor entered into an Advisory Agreement (the
"Advisory Agreement") pursuant to which Advisor provides various services to
CPA(R):15;

         WHEREAS, pursuant to the Advisory Agreement, CPA(R):15 is required to
pay certain fees to the Advisor and the Advisor may request that certain fees be
paid with common stock of the Company; and

         WHEREAS, the Advisor has requested that CPA(R):15 pay a portion of the
fees due to Advisor in the form of shares of common stock of CPA(R):15.

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

                  1. Payment of Fees with Stock. CPA(R):15 hereby grants to
Advisor          shares of common stock of CPA(R):15 (the "Shares").

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

                  3. Immediate Vesting. Upon the expiration of the Advisory
Agreement for any reason other than a termination for Cause under paragraph 17
of the Advisory Agreement or upon a "Change of Control" of CPA(R):15 (as defined
below), all Shares granted to the Advisor hereunder shall vest immediately and
all restrictions shall lapse. For purposes of this Agreement, a "Change of
Control" of the Company shall be deemed to have occurred if there has been a
<PAGE>
change in the ownership of the Company of a nature that would be required to be
reported in response to the disclosure requirements of Schedule 14A of
Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), as enacted and in force on the date hereof, whether or not
the Company is then subject to such reporting requirements; provided, however,
that, without limitation, a Change of Control shall be deemed to have occurred
if:

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

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

                           (iii) the stockholders of the Company shall approve
(A) any consolidation or merger of the Company or any subsidiary where the
stockholders of the Company, immediately prior to the consolidation or merger,
would not, immediately after the consolidation or merger,

                                       A-2
<PAGE>
beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, shares representing in the aggregate 50% or more of the
voting equity of the entity issuing cash or securities in the consolidation or
merger (or of its ultimate parent entity, if any), (B) any sale, lease, exchange
or other transfer (in one transaction or a series of transactions contemplated
or arranged by any party as a single plan) of all or substantially all of the
assets of the Company or (C) any plan or proposal for the liquidation or
dissolution of the Company.

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

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

                                        CORPORATE PROPERTY ASSOCIATES 15
                                        INCORPORATED

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

                                        CAREY ASSET MANAGEMENT CORP.

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

                                       A-3

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