Document:

EXHIBIT 10.16

 

CLOSING AND ESCROW AGREEMENT

 

 

THIS CLOSING AND ESCROW AGREEMENT
(this “Agreement”), is effective as of December 30, 2021 (the “Effective Date”), by and among
WestFREIT Corp. (“Westridge Owner”), Damascus Centre, LLC (“Damascus Owner”), and Grande Rotunda,
LLC (“Rotunda Owner”; each also individually and collectively “Seller”; and MCB Acquisition Company
LLC (“Purchaser”).

 

WITNESSETH:

 

A.       Seller
and Purchaser entered into that certain Purchase and Sale Agreement dated November 22, 2021 (the “Original Agreement”),
as amended by First Amendment to Purchase and Sale Agreement dated December 22, 2021 (the “First Amendment”),
by Second Amendment to Purchase and Sale Agreement dated as of December 23, 2021 (the Second Amendment”), and by Third
Amendment to Purchase and Sale Agreement dated as of December 28, 2021 (the Third Amendment”) (such Original Agreement,
First Amendment, Second Amendment, Third Amendment and this Agreement hereinafter collectively the “Agreement”),
pertaining to the purchase and sale of three (3) properties located in Maryland and described in the Agreement as the Westridge Property,
the Damascus Property and the Rotunda Property, all as more particularly described in the Agreement.

 

B.       Seller
and Purchaser have agreed, among other things, to bifurcate settlement of the transaction into more than one closing and to provide for
an escrow of certain funds to address a certain tenant issue at one of the Properties, all as set forth hereinbelow.

 

NOW, THEREFORE, in consideration
of the mutual covenants of Seller and Purchaser set forth below, and for other good and valuable consideration the receipt and sufficiency
of which is hereby acknowledged, Seller and Purchaser agree as follows:

 

1.       Incorporation
of Recitals. The recitals set forth above are hereby incorporated into and made a part of this Agreement.

 

2.       Definitions.
Unless otherwise expressly provided herein, all capitalized terms not expressly defined herein shall have the meanings ascribed to such
terms in the Agreement.

 

3.       Amendment
to Closing Date. The Closing Date, as established in the Original Agreement and amended in the Third Amendment, is hereby further
amended to occur (i) with regard to the Rotunda Property and, if mutually agreed by the Seller and Purchaser, the Westridge Property (in
either case, the “First Closing Property”), on December 30, 2021 (the “First Closing Date”),
and (ii) with regard to the remaining Property beyond the First Closing Property which is not closed on the First Closing Date (the “Second
Closing Property”), on that date established as the Closing Date in Section 4 of the Third Amendment (the “Second
Closing Date”).

 

4.      Application of the Purchase
Price. The portions of the Purchase Price (modified and set forth in Section 3 of the Third Amendment) to apply to the First Closing
Property on the First Closing Date, and to apply to the Second Closing Property on the Second Closing Date, shall be in 

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accordance with
the allocations of the Purchase Price set forth in such Section 3 of the Third Amendment (amending Section 2.1(a) of the Original Agreement).

 

5.       Application of the Deposit. Notwithstanding
anything to the contrary in the Agreement, the Deposit under the Agreement (posted as contemplated in Section 4 of the Second Amendment)
shall not be applied and credited toward the portion of the Purchase Price for the First Closing Property on the First Closing Date, but
shall rather remain in escrow in full, according to the terms of the Agreement, to be applied and credited toward the portion of the Purchase
Price for the Second Closing Property on the Second Closing Date. All other provisions regarding the application, payment, return and/or
forfeiture of the Deposit in the Agreement shall be remain unchanged.

 

6.       Application
of Agreement to Closings. All terms, covenants, conditions and liabilities of the Seller and the Purchaser under the Agreement (collectively
the “Obligations”) shall apply to all of the Property under the Agreement in the same manner as set forth prior
to the effectiveness of this Agreement (and notwithstanding the bifurcation of the Closing Date provided herein). Notwithstanding the
foregoing, those portions of the Obligations set forth in the Agreement as applicable after the Closing Date (including but not limited
to representations and warranties set forth in Sections 6.1 and 6.2 of the Original Agreement, the apportionments described in Section
8.1 of the Original Agreement, the Survival Period and Cap set forth in Section 10.1 of the Original Agreement, and the like) shall be
applied and applicable, with regard to the First Closing Property, after the First Closing Date, and shall be applied and applicable,
with regard to the Second Closing Property, after the Second Closing Date.

 

7.      Escrow Funds. The parties acknowledge
that a tenant at the Rotunda Property, the Association of Universities for Research in Astronomy (the “Space
Telescope Tenant”), under Lease dated 6/1/2015 and amended 7/19/2016, 3/30/2017, 4/23/2019 and 5/31/20 (the “Space
Telescope Lease”), has raised a claim for certain reimbursements of space improvement costs that are in dispute by the Rotunda
Owner as landlord under the Space Telescope Lease. As security for resolution of such dispute, the Seller has agreed to place in escrow
with the Escrow Agent a portion of the proceeds of the Purchase Price in the amount of $90,000.00 (the “STT Escrow
Funds”) as security for resolution of such dispute with the Space Telescope Tenant. The parties agree to cooperate together
and work in good faith to resolve such dispute, to the reasonable satisfaction of the Seller and the Purchaser, as promptly as possible
after closing on the purchase and sale of the Rotunda Property on the First Closing Date. In the event that such dispute is not resolved
within sixty (60) days after the First Closing Date, the Purchaser shall be entitled to receipt of such escrowed funds and to apply such
funds toward resolution of the dispute. Any such application of any portion of the funds by the Purchaser towards resolution of the dispute
shall be subject to the approval of the Seller (such approval not to be unreasonably withheld, conditioned or delayed). The Seller shall
be entitled to (i) return of any of the STT Escrow Funds which are ultimately not applied toward final resolution of the dispute which
is effectuated with the Space Telescope Tenant, and (ii) in all events, a return of any STT Escrow Funds which remain in escrow with the
Escrow Agent one hundred and eighty (180) days after the First Closing Date. The parties agree, promptly after the First Closing Date,
to enter into any reasonable separate agreement covering such holding and disbursement of the STT Escrow Funds that may be required by
the Escrow Agent. 

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8.       Required
Estoppels. The parties acknowledge that one or more of the Required Estoppel Certificates from certain Required Tenants may not have
been delivered in connection with the First Closing Property on the First Closing Date as required by Section 7.9 of the Original Agreement.
In such event, the Seller agrees that (i) the Seller’s Obligations regarding the delivery of such Required Estoppel Certificates
(including Seller’s obligation to use good faith and commercially reasonable efforts to obtain them) shall continue after the First
Closing Date, and (ii) until actual delivery of such Required Estoppels, the Seller shall be deemed to have made such Required Estoppel
Certificates, in the form most recently requested from the applicable Required Tenants, as additional representations and warranties under
Section 6.1 of the Original Agreement, but as qualified to the Seller’s knowledge in all respects. For purposes of clarification
of the foregoing clause (i) in this provision, the parties acknowledge and agree that an estoppel certificate has been delivered from
the Required Tenant known as “Brick Bodies”, but such estoppel certificate has not yet satisfied the requirements of a Required
Estoppel Certificate from such Required Tenant. In addition, for purposes of clarification of clause (ii) above in this provision, the
representations and warranties of the Seller with regard to the Required Tenant Estoppels shall be treated as Guaranteed Obligations under
Section 10.1(b) of the Original Agreement and subject to the Basket, Cap and Survival Period under Section 10.1(a) of the Original Agreement.
Upon delivery of the Required Tenant Estoppels as executed by the Required Tenants, and in all events upon expiration of the Survival
Period (regardless of whether or not the Required Estoppel Certificates as executed by the Required Tenants have been delivered at such
time), the additional representations and warranties created by this provision shall have expired and been extinguished, with any further
Obligations of the Seller with respect thereto being deemed waived and released.

 

9.       Full
Force and Effect. Except as amended hereby, the Agreement remains unmodified and in full force and effect, binding on the parties
according to its terms.

 

10.       Counterparts.
This Agreement may be executed in any number of counterparts, and each such counterpart shall be deemed to be an original instrument,
but all such counterparts together shall constitute a single agreement. A signature delivered via facsimile, email, or attachment to email
shall be equally as effective as an original signature delivered in-person, via mail, or via any other means.

 

[SIGNATURE PAGES FOLLOW]

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

	 	SELLER:	 
	 	 	 	 
	 	WestFREIT Corp.,	 
	 	a Maryland corporation	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Robert S. Hekemian, Jr.	 
	 	Name: Robert S. Hekemian, Jr.	 
	 	Title: CEO and President	 
	 	 	 	 
	 	 	 	 
	 	Damascus Centre, LLC,	 
	 	a New Jersey limited liability company	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Robert S. Hekemian, Jr.	 
	 	Name: Robert S. Hekemian, Jr.	 
	 	Title: CEO and President	 
	 	 	 	 
	 	 	 	 
	 	Grande Rotunda, LLC,	 
	 	a Maryland limited liability company	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Robert S. Hekemian, Jr.	 
	 	Name: Robert S. Hekemian, Jr.	 
	 	Title: CEO and President	 

 

 

 

 

 

 

 

[Signatures Continue on Following Page]

 

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	 	PURCHASER:	 
	 	 	 	 
	 	MCB Acquisition Company, LLC,	 
	 	a Maryland limited liability company	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ P. David Bramble	 
	 	 	P. David Bramble	 
	 	 	Executive Manager	 

 

 

    5EXHIBIT 10.17

 

CLOSING AGREEMENT

 

THIS CLOSING AGREEMENT
(this “Agreement”), is effective as of January 7, 2022 (the “Effective Date”), by
and among WestFREIT Corp. (“Westridge Owner”), Damascus Centre, LLC (“Damascus Owner”),
and Grande Rotunda, LLC (“Rotunda Owner”; each also individually and collectively “Seller”;
and MCB Acquisition Company LLC (“MCB”), MCB Westridge LLC (“MCB Westridge”), MCB
Damascus LLC (“MCB Damascus”), and MCB Rotunda Owner LLC (“MCB Rotunda”; also individually
and collectively, “Purchaser”).

 

WITNESSETH:

 

A.       Seller
and MCB entered into that certain Purchase and Sale Agreement dated November 22, 2021 (the “Original Agreement”),
as amended by First Amendment to Purchase and Sale Agreement dated December 22, 2021 (the “First Amendment”),
by Second Amendment to Purchase and Sale Agreement dated as of December 23, 2021 (the Second Amendment”), by Third
Amendment to Purchase and Sale Agreement dated as of December 28, 2021 (the Third Amendment”), by Closing and Escrow
Agreement dated as of December 30, 2021 (the “Closing Agreement”), and as assigned in part to each of MCB Westridge,
MCB Rotunda and MCB Westridge pursuant to that certain Assignment of Purchase and Sale Agreement as of December 30, 2021 (the “Assignment”;
such Original Agreement, First Amendment, Second Amendment, Third Amendment, Closing Agreement, Assignment and this Agreement hereinafter
collectively the “Purchase Agreement”), pertaining to the purchase and sale of three (3) properties located
in Maryland and described in the Purchase Agreement as the Westridge Property, the Damascus Property and the Rotunda Property, all as
more particularly described in the Purchase Agreement.

 

B.       Seller
and Purchaser agreed in the Closing Agreement, among other things, to bifurcate settlement of the transaction into more than one closing.

 

C.       The
Closing for the First Closing Property (the Rotunda Property) occurred on December 30, 2021.

 

D.       The
parties are contemplating closing on the Westridge Property and possibly the Damascus Property on the Effective Date, subject to the terms
and provisions of this Agreement.

 

NOW, THEREFORE, in consideration
of the mutual covenants of Seller and Purchaser set forth below, and for other good and valuable consideration the receipt and sufficiency
of which is hereby acknowledged, Seller and Purchaser agree as follows:

 

1.       Incorporation
of Recitals. The recitals set forth above are hereby incorporated into and made a part of this Agreement.

 

2.       Definitions.
Unless otherwise expressly provided herein, all capitalized terms not expressly defined herein shall have the meanings ascribed to such
terms in the Purchase Agreement.

 

3.       Amendment
to Closing Date. The Closing Date for the Westridge Property and the 

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Damascus Property shall be the Effective Date; provided, however
in the event the Closing for the Damascus Property shall not have occurred on the Effective Date because of the failure to receive a Tenant
Estoppel Certificate from Safeway, then the Closing Date for the Damascus Property (the “Third Closing Property”
shall be that date as established in Section 4 of the Third Amendment (hereinafter, the “Third Closing Date”).

 

4.       Application
of the Purchase Price. The portions of the Purchase Price (modified and set forth in Section 3 of the Third Amendment) to apply to
the Second Closing Property on the Second Closing Date, and to apply to the Third Closing Property on the Third Closing Date, shall be
in accordance with the allocations of the Purchase Price set forth in such Section 3 of the Third Amendment (amending Section 2.1(a)
of the Original Agreement).        

 

5.       Application
of the Deposit. In the event the Closing on the Damascus Property is deferred until the Third Closing Date, then an amount equal
to $2,500,000 of the Deposit under the Purchase Agreement (posted as contemplated in Section 4 of the Second Amendment) shall continue
to be held in escrow by the Escrow Agent to be applied and credited toward the portion of the Purchase Price for the Closing on the Damascus
Property. All other provisions regarding the application, payment, return and/or forfeiture of the Deposit in the Agreement shall be
remain unchanged.

 

6.       Application
of Agreement to Closings. All terms, covenants, conditions and liabilities of the Seller and the Purchaser under the Agreement (collectively
the “Obligations”) shall apply to all of the Property under the Agreement in the same manner as set forth prior
to the effectiveness of this Agreement (and notwithstanding the bifurcation of the Closing Date provided in the Closing Agreement and
herein). Notwithstanding the foregoing, those portions of the Obligations set forth in the Purchase Agreement as applicable after the
Closing Date (including but not limited to representations and warranties set forth in Sections 6.1 and 6.2 of the Original Agreement,
the apportionments described in Section 8.1 of the Original Agreement, the Survival Period and Cap set forth in Section 10.1 of the Original
Agreement, and the like) shall be applied and applicable, with regard to the First Closing Property, after the First Closing Date, with
regard to the Second Closing Property, after the Second Closing Date, and with regard to the Third Closing Property after the Third Closing
Date.

 

7.       Required
Estoppels; CAM, Tax and Insurance Reconciliations. The parties acknowledge that one or more of the Required Estoppel Certificates
from certain Required Tenants and the Remaining Estoppel Certificates have not been delivered of the Effective Date as required by Section
7.9 of the Original Agreement. Seller agrees that (i) the Seller’s Obligations regarding the delivery of such Required Estoppel
Certificates (including Seller’s obligation to use good faith and commercially reasonable efforts to obtain them) shall continue
after the Second Closing Date and/or the Third Closing Date, if applicable, and (ii) until actual delivery of such Required Estoppel Certificates,
Seller shall be deemed to have made such Required Estoppel Certificates, in the form most recently requested from the applicable Required
Tenants and with respect to the Remaining Estoppel Certificates, as additional representations and warranties under Section 6.1 of the
Original Agreement, but as qualified to the Seller’s knowledge in all respects. In addition, for purposes of clarification of clause
(ii) above in this provision, the representations and warranties of the Seller with regard to the Required Tenant Estoppel Certificates
shall be treated as Guaranteed Obligations 

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under Section 10.1(b) of the Original Agreement and subject to the Basket, Cap and Survival
Period under Section 10.1(a) of the Original Agreement. Upon delivery of the Required Tenant Estoppel Certificates as executed by the
Required Tenants, and in all events upon expiration of the Survival Period (regardless of whether or not the Required Estoppel Certificates
have been delivered at such time), the additional representations and warranties created by this provision shall have expired and been
extinguished, with any further Obligations of the Seller with respect thereto being deemed waived and released. Seller further acknowledges
and agrees that United Bank shall be entitled to rely on the provisions of this Section 5 with respect to and only to the Damascus Property.

 

For purposes of clarification
of the foregoing clause (i) in this provision, the parties acknowledge and agree that an estoppel certificate has been delivered from
the Required Tenant known as “Advance Auto Parts” with respect to the Damascus Property, which notes that the 2019 and 2020
common area maintenance, tax and insurance reconciliations remain outstanding. Seller covenants and agrees to provide any and all such
reconciliations, together with the 2021 reconciliation, to Advance Auto and all other tenants for all Properties, to the extent the same
have not yet been provided, within not more than ninety (90) days from and after the applicable Closing Date for each Property. Seller
further covenants and agrees that Seller shall remain responsible for the payment of any overpayments due to any tenant and for any audit
costs incurred by Purchaser with respect to such matters, which obligations shall survive Closing.

 

8.       Full
Force and Effect. Except as amended hereby, the Purchase Agreement remains unmodified and in full force and effect, binding on the
parties according to its terms.

 

9.       Counterparts.
This Agreement may be executed in any number of counterparts, and each such counterpart shall be deemed to be an original instrument,
but all such counterparts together shall constitute a single agreement. A signature delivered via facsimile, email, or attachment to email
shall be equally as effective as an original signature delivered in-person, via mail, or via any other means.

 

[SIGNATURE PAGES FOLLOW]

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

	 	SELLER:	 
	 	 	 	 
	 	WestFREIT Corp.,	 
	 	a Maryland corporation	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Robert S. Hekemian, Jr.	 
	 	Name: Robert S. Hekemian, Jr.	 
	 	Title: CEO and President	 
	 	 	 	 
	 	 	 	 
	 	Damascus Centre, LLC,	 
	 	a New Jersey limited liability company	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Robert S. Hekemian, Jr.	 
	 	Name: Robert S. Hekemian, Jr.	 
	 	Title: CEO and President	 
	 	 	 	 
	 	 	 	 
	 	Grande Rotunda, LLC,	 
	 	a Maryland limited liability company	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Robert S. Hekemian, Jr.	 
	 	Name: Robert S. Hekemian, Jr.	 
	 	Title: CEO and President	 

 

 

 

 

 

[Signatures Continue on Following Page]

 

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	 	PURCHASER:	 
	 	 	 	 
	 	MCB Acquisition Company, LLC,	 
	 	a Maryland limited liability company	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ P. David Bramble	 
	 	 	P. David Bramble	 
	 	 	Executive Manager	 
	 	 	 
	 	 	 	 
	 	MCB Westridge LLC,	 
	 	a Maryland limited liability company	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ P. David Bramble	 
	 	 	P. David Bramble	 
	 	 	President	 
	 	 	 
	 	 	 	 
	 	MCB Damascus LLC,	 
	 	a Maryland limited liability company	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ P. David Bramble	 
	 	 	P. David Bramble	 
	 	 	President	 
	 	 	 
	 	 	 	 
	 	MCB Rotunda Owner LLC,	 
	 	a  Delaware limited liability company	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ P. David Bramble	 
	 	 	P. David Bramble	 
	 	 	President	 

 

 

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