Exhibit 10.16



 Exhibit 10.16 
 ESCROW AGREEMENT 
 This Escrow Agreement (this
“Agreement”) is made and entered into as of the      day of                     , 2012, by and among WELLINGTON
SHIELDS & CO., LLC, a          limited liability company and CAPITOL SECURITIES MANAGEMENT, INC., a          corporation (individually and collectively, the
“Placement Agent”), WHEELER REAL ESTATE INVESTMENT TRUST, INC., a Maryland corporation (the “Company”), and SUNTRUST BANK, a Georgia banking corporation (the “Escrow Agent”). 

R E C I T A L S: 
 A. The Company proposes to sell a minimum of 3,000,000 and a maximum of 4,000,000 shares of its common stock, par value $0.01 (the “Shares”). 

B. The Company has retained the Placement Agent, as agent for the Company on a best efforts, minimum-maximum basis, to sell the Shares in
a public offering (the “Offering”), and the Placement Agent has agreed to sell the Shares in the Offering as the Company’s agent on a best efforts, minimum-maximum basis. 

C. The Escrow Agent is willing to hold the proceeds of the Offering in escrow pursuant to this Agreement. 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements contained in this Agreement, it is
hereby agreed as follows: 
 1. Establishment of the Escrow Account. Contemporaneously herewith, the parties have
established a non-interest-bearing account with the Escrow Agent, which escrow account is entitled “Wheeler REIT Offering Escrow Account” (the “Escrow Account”). The Placement Agent will transfer funds directly to the
Escrow Agent as directed by its customers and will instruct other purchasers of the Shares to make checks payable to “SunTrust Bank.” 
 2. Escrow Period. The escrow period (the “Escrow Period”) shall begin with the commencement of the Offering and shall terminate upon the earlier to occur of the following
dates: 
 (a) the date on which the Escrow Agent confirms that it has received in the Escrow Account gross proceeds for the sale
of 3,000,000 Shares; 
 (b) December 22, 2012; or 
 (c) the date on which the Placement Agent and the Company notify the Escrow Agent in writing that the Offering has been terminated. 

The Company is aware and understands that, during the Escrow Period, it is not entitled to any funds received into escrow and no amounts
deposited in the Escrow Account shall 







 
become the property of the Company or any other entity or be subject to the debts of the Company or any other entity. 
 3. Deposits into the Escrow Account. The Placement Agent agrees that it shall deliver to the Escrow Agent for deposit in the Escrow Account all monies received from purchasers of the Shares
by noon of the next business day after receipt together with a written account of each sale, which account shall set forth, among other things, (a) the purchaser’s name and address, (b) the number of Shares purchased by the purchaser,
(c) the amount paid therefor by the purchaser, (d) whether the consideration received from the purchaser was in the form of a check, draft or money order, and (e) the purchaser’s social security or tax identification number. The
Escrow Agent agrees to hold all monies so deposited in the Escrow Account (the “Escrow Amount”) for the benefit of the parties hereto until authorized to disburse such monies under the terms of this Agreement. 

4. Disbursements from the Escrow Account. In the event that the Escrow Agent does not receive deposits for the sale
of 3,000,000 Shares prior to the termination of the Escrow Period, or if the Placement Agent and the Company notify the Escrow Agent that the Offering has been terminated, the Escrow Agent shall promptly refund to each purchaser the amount received
from the purchaser, without deduction, penalty, or expense to the purchaser, and the Escrow Agent shall notify the Company and the Placement Agent of its distribution of the funds. The purchase money returned to each purchaser shall be free and
clear of any and all claims of the Company or any of its creditors. 
 In the event that the Escrow Agent does receive minimum
deposits for the sale of 3,000,000 Shares prior to the termination of the Escrow Period, on the date of Closing (as defined below), the Escrow Agent shall disburse the Escrow Amount pursuant to the provisions of Section 6; provided,
however, that in no event will the Escrow Amount be released to the Company until such amount is received by the Escrow Agent in collected funds. For purposes of this Agreement, the term “collected funds” shall mean all funds,
including fed funds, received by the Escrow Agent which have cleared normal banking channels. 
  

	 	5.	Collection Procedure. 

 (a) The Escrow Agent is hereby authorized to deposit each check in the Escrow Account. 
 (b) In the event that any check paid by a purchaser and deposited in the Escrow Account shall be returned, the Escrow Agent shall notify the Placement Agent by telephone of such occurrence and advise it
of the name of the purchaser, the amount of the check returned, and any other pertinent information. The Escrow Agent shall then transmit the returned check directly to the purchaser and shall transmit the statement previously delivered by the
Placement Agent relating to such purchase to the Placement Agent. 
 (c) If the Company rejects any purchase of Shares for which
the Escrow Agent has already collected funds, the Escrow Agent shall promptly issue a refund check to the rejected purchaser. If the Placement Agent rejects any purchase for which the Escrow Agent has


  
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not yet collected funds but has submitted the purchaser’s check for collection, the Escrow Agent shall promptly issue a check in the amount of the purchaser’s check to the rejected
purchaser after the Escrow Agent has cleared such funds. If the Escrow Agent has not yet submitted a rejected purchaser’s check for collection, the Escrow Agent shall promptly remit the purchaser’s check directly to the purchaser.

  

	 	6.	Delivery of Escrow Account. 

 (a) Prior to the Closing (as defined in Section 8 of this Agreement), the Placement Agent and the Company shall provide the Escrow Agent with a statement, executed by each party, containing the
following information: 
 (i) The total number of Shares sold by the Placement Agent directly to purchasers and a list
containing the name of each purchaser, the number of Shares purchased by each purchaser, and a specification of the manner in which the Shares should be issued; and 
 (ii) A calculation by the Placement Agent and the Company as to the manner in which the Escrow Account should be distributed to the Company and the Placement Agent and, in the event of oversubscription or
rejection of certain purchasers, the aggregate amount to be returned to individual purchasers and a listing of the exact amount to be returned to each such purchaser. 
 The Escrow Agent shall hold the Escrow Amount and distribute it in accordance with the above-described statement on the date of Closing or such later date that it receives the above-described statement.

 (b) Upon termination of the Offering by the Company or the Placement Agent for any reason, the Escrow Agent shall return to
the purchasers who contributed to the Escrow Account the exact amount contributed by them. 
 7. Investment of Escrow
Account. The Escrow Agent shall deposit funds received from purchasers in the Escrow Account, which shall be a non-interest-bearing bank account at the Escrow Agent. 

8. Closing Date. The “Closing” shall be the date of closing of the Offering, and the “Closing
Date” shall be the date on or subsequent to the date on which the Escrow Agent has received minimum deposits for at least 3,000,000 Shares that is designated to the Escrow Agent by the Placement Agent and the Company as the Closing Date.

 9. Compensation of Escrow Agent. The Company shall pay the Escrow Agent a fee for its services hereunder in an
amount equal to                              Dollars
($            ), which amount shall be paid on the Closing Date. In the event the Offering is cancelled for any reason, the Company shall pay the Escrow Agent its fee within ten
(10) days after the Escrow Amount is refunded to purchasers. No such fee or any other monies whatsoever shall be paid out of or chargeable to the funds on deposit in the Escrow Account. 

  
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 10. Disbursement into Court. If, at any time, there shall exist any dispute
between the Company, the Placement Agent and/or the purchasers with respect to the holding or disposition of any portion of the Escrow Amount or any other obligations of the Escrow Agent hereunder, or if at any time the Escrow Agent is unable to
determine, to the Escrow Agent’s sole satisfaction, the proper disposition of any portion of the Escrow Amount or the Escrow Agent’s proper actions with respect to its obligations hereunder, or if the Company and the Placement Agent have
not within thirty (30) days of the furnishing by the Escrow Agent of a notice of resignation appointed a successor Escrow Agent to act hereunder, then the Escrow Agent may, in its sole discretion, take either or both of the following actions:

 (a) suspend the performance of any of its obligations under this Agreement until such dispute or uncertainty shall be
resolved to the sole satisfaction of the Escrow Agent or until a successor Escrow Agent shall have been appointed (as the case may be); provided, however, that the Escrow Agent shall continue to hold the Escrow Amount in accordance with
Section 7 hereof; and/or 
 (b) petition (by means of an interpleader action or any other appropriate method) any court of
competent jurisdiction in Richmond, Virginia, for instructions with respect to such dispute or uncertainty, and pay into court all funds held by it in the Escrow Account for holding and disposition in accordance with the instructions of such court.

 The Escrow Agent shall have no liability to the Company, the Placement Agent or any other person with respect to any such
suspension of performance or disbursement into court, specifically including any liability or claimed liability that may arise, or be alleged to have arisen, out of or as a result of any delay in the disbursement of funds held in the Escrow Account
or any delay in or with respect to any other action required or requested of the Escrow Agent. 
 11. Duties and Rights of
the Escrow Agent. The foregoing agreements and obligations of the Escrow Agent are subject to the following provisions: 

(a) The Escrow Agent’s duties hereunder are limited solely to the safekeeping and disposition of the Escrow Account in accordance
with the terms of this Agreement. It is agreed that the duties of the Escrow Agent are only such as herein specifically provided, being purely of a ministerial nature, and the Escrow Agent shall incur no liability whatsoever except for negligence,
willful misconduct or bad faith. 
 (b) The Escrow Agent is authorized to rely on any document believed by the Escrow Agent to
be authentic in making any delivery of the Escrow Amount. It shall have no responsibility for the genuineness or the validity of any document or any other item deposited with it and it shall be fully protected in acting in accordance with this
Agreement or instructions received. 
 (c) The Company and the Placement Agent hereby waive any suit, claim, demand or cause of
action of any kind which they may have or may assert against the Escrow Agent arising out of or relating to the execution or performance by the Escrow Agent of this 

  
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Agreement, unless such suit, claim, demand or cause of action is based upon the gross negligence, willful misconduct, or bad faith of the Escrow Agent. 

12. Notices. All notices given hereunder will be in writing and delivered by registered or certified mail, return receipt
requested, postage prepaid, hand-delivery, overnight courier, or confirmed facsimile or electronic mail transmission to the parties at the following addresses, or such other address as a party may specify by proper notice: 

To the Company: 

Wheeler Real Estate Investment Trust, Inc., 
 Riversedge North 
 2529 Virginia Beach Blvd., Suite 200, 

Virginia Beach, Virginia 23452 
 Attention: Jon S. Wheeler 
 Facsimile: (757) 627-9081 

E-mail: jon@wheelerint.com 
 With a copy to: 
 Kaufman & Canoles, P.C. 

Two James Center 

1021 East Cary Street, Suite 1400 
 Richmond, Virginia 23219 
 Attention: Bradley A. Haneberg, Esq. and Zachary B.
Ring, Esq. 
 Facsimile: (804) 771-5777 
 Email: bahaneberg@kaufcan.com 
 To the Placement Agent: 

Wellington Shields & Co., LLC 
 140 Broadway, 44th Floor 
 NY, NY 10005 

Attention: Edward Cabrera 
 Facsimile: (212) 320-3056 
 E-mail: ecabrera@wellingtonshields.com 

and 

  
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 Capitol Securities Management, Inc. 

100 Concourse Blvd., Suite 101 
 Glen Allen, Virginia 23059 
 Attention: L. McCarthy Downs III 

Facsimile: (804) 527-1104 
 E-mail: mdowns@capitolsecurities.com 
 With a copy to: 

McCarter & English, LLP 
 265 Franklin Street 
 Boston, MA 02110 

Attention: Theodore M. Grannatt, Esq. 
 Facsimile: (617) 607-6026 
 Email: tgrannatt@mccarter.com 

To the Escrow Agent: 
 SunTrust Bank 
 919 East Main Street, 7th Floor 

Richmond, Virginia 23219 
 Attention:                        

Facsimile:
                       
 E-mail:                              

Any notice delivered to the Escrow Agent by Wellington Shields & Co. LLC in accordance with this Section 12 shall be deemed to have been
delivered by both Placement Agents. The Placement Agent may also deliver a Joint Notice, all other notifications are ineffective 
  

	 	13.	Miscellaneous. 


(a) This Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective
successors and assigns. 
 (b) If any provision of this Agreement shall be held invalid by any court of competent jurisdiction,
such holding shall not invalidate any other provision hereof. 
 (c) This Agreement shall be governed by the applicable laws of
the Commonwealth of Virginia. 
 (d) This Agreement may not be modified except in writing signed by the parties hereto.

 (e) All demands, notices, approvals, consents, requests and other communications hereunder shall be given in the manner
provided in this Agreement. 

  
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 (f) This Agreement may be executed in one or more counterparts, and if executed in more than
one counterpart, the executed counterparts shall together constitute a single instrument. 
 [Remainder of this page
intentionally left blank; signature page following] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in
their respective names, all as of the date first above written. 
  

			
	WELLINGTON SHIELDS & CO., LLC,
		
	By:	 	  

	Name:	 	Edward Cabrera
	Title:	 	Head of Investment Banking
	
	CAPITOL SECURITIES MANAGEMENT, INC.
		
	By:	 	  

	Name:	 	L. McCarthy Downs III
	Title:	 	Managing Director – Investment Banking
	
	WHEELER REAL ESTATE INVESTMENT TRUST, INC.
		
	By:	 	  

	Name:	 	Jon S. Wheeler
	Title:	 	President, Chairman
	
	SUNTRUST BANK
		
	By:	 	  

	Name:	 	
	Title: