Document:

exhibit104

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    SNAP2
      CORPORATION AND SUBSIDIARIES

    UNAUDITED
      PRO FORMA CONDENSED CONSOLIDATED

    FINANCIAL
      STATEMENTS

    MARCH
      31, 2004

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    SNAP2
      CORPORATION AND SUBSIDIARIES

    INDEX
      TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED

    FINANCIAL
      STATEMENTS

    

    
 

    

    

    PAGE(S)

    

    

    Introduction
      to Unaudited Pro Forma Condensed Consolidated 

    Financial
      Statements                                                                                                                                                                           
1

    

    Balance
      Sheet -
      March
      31,
      2004                                                                                                                                                                        
      2

    

    Statement
      of Operations for the six months ended 

    March
      31,
      2004                                                                                                                                                                                    
3

    

    Statement
      of Operations for the year ended September 30,
      2003                                                                                                               
      4

    

    Notes
      to
      Financial
      Statements                                                                                                                                                                         
5

    

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      SNAP2
        CORPORATION AND SUBSIDIARIES

      
        INTRODUCTION
          TO UNAUDITIED PRO FORMA CONDENSED

        CONSOLIDATED
          FINANCIAL STATEMENTS

        

        On
          April
          19th
          2004 The
          Company (the Purchaser) acquired the assets of Call Now America Prepaid
          LLC (the
          Seller) in a stock-for-assets acquisition. As part of the Asset Purchase
          Agreement (the Agreement) The Purchaser acquired all assets of The Seller
          including (1) all contracts and purchase orders entered into by the Seller
          as of
          the Agreement date, (2) all contracts and purchase orders entered into
          by the
          Seller prior to the closing date, and (3) the Seller’s distribution channel. The
          distribution channel was purported at the time of sale to possess existing
          business relationships with more than 300,000 retail locations.

        

        In
          exchange for all the assets of the Seller, the Purchaser conveyed 3,000,000
          shares of its common stock worth $1,620,000. As part of The Agreement,
          the
          Seller was granted the right to purchase an additional 2,000,000 shares
          of the
          Purchaser in two separate transactions of 1,000,000 shares each, governed
          as
          follows, per the language of the Agreement:

        

        Seller
          shall have the right to purchase 1,000,000 shares of Snap2 Corporation’s
          restricted common stock at $0.25 per share upon the Purchaser successfully
          acquiring 25,000 sales locations utilizing the assets purchased in this
          agreement. Additionally, Seller shall have the right to purchase an additional
          1,000,000 shares of Snap2 Corporation’s restricted common stock at $0.25 per
          share upon the Purchaser successfully acquiring an additional 25,000 sales
          locations (total of 50,000) utilizing the assets purchased in this
          agreement.

        

        

        The
          accompanying unaudited pro forma condensed consolidated balance sheet as
          of
          March 31, 2004 has been presented with its consolidated subsidiaries at
          March
          31, 2004. The unaudited pro forma condensed consolidated statements of
          operations for the six months ended March 31, 2004 purport what the acquisition
          would look like. The year ended September 30, 2003 has been presented as
          if the
          acquisition had occurred October 1, 2002.

        

        The
          unaudited pro forma condensed consolidated statements do not necessarily
          represent the actual results that would have been achieved had the companies
          been combined at the beginning of the year, nor may they be indicative
          of future
          operations. These unaudited pro forma condensed financial statements should
          be
          read in conjunction with the companies’ respective historical financial
          statements and notes included thereto.

        

        

        

         

        
          
             

          

          
            1

            
              

            

          

          
             

          

        

      

    

     

    
 

    
      SNAP
        2 CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
        (UNAUDITED)

        YEAR
          ENDED SEPTEMBER 30, 2003

      

    

      
        	 	 	 	 	 	 	 	 
	 	 	
                Snap2

              	 	
                Call
                  Now America

              	 	
                 

              	 
	
                 

              	 	
                Corporation

              	 	
                Prepaid
                  Company LLC

              	 	
                Pro
                  Forma

              	 
	
                 

              	 	 	 	 	 	 	 
	
                OPERATING
                  REVENUE

              	 	
                $

              	
                -

              	 	
                $

              	
                149,162

              	 	
                $

              	
                149,162

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                COST
                  OF OPERATIONS

              	 	 	
                -
                  

              	 	 	
                137,139
                  

              	 	 	
                137,139
                  

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                GROSS
                  PROFIT

              	 	 	
                -
                  

              	 	 	
                12,023
                  

              	 	 	
                12,023
                  

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                OPERATING
                  EXPENSES

              	 	 	 	 	 	 	 	 	 	 
	
                Consulting
                  fees

              	 	 	
                230,000
                  

              	 	 	
                -
                  

              	 	 	
                230,000
                  

              	 
	
                General
                  and administrative

              	 	 	
                6,000
                  

              	 	 	
                10,123
                  

              	 	 	
                16,123
                  

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                Total
                  operating expenses

              	 	 	
                236,000
                  

              	 	 	
                10,123
                  

              	 	 	
                246,123
                  

              	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                OPERATING
                  INCOME (LOSS)

              	 	 	
                (236,000

              	
                )

              	 	
                1,900
                  

              	 	 	
                (234,100

              	
                )

              
	 	 	 	 	 	 	 	 	 	 	 
	
                OTHER
                  INCOME (EXPENSE)

              	 	 	 	 	 	 	 	 	 	 
	
                Interest
                  expense

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 
	
                Impairment

              	 	 	 	 	 	
                -
                  

              	 	 	
                -
                  

              	 
	
                Total
                  other income (expense)

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                INCOME
                  (LOSS) BEFORE INCOME TAXES

              	 	 	
                (236,000

              	
                )

              	 	
                1,900
                  

              	 	 	
                (234,100

              	
                )

              
	
                Provision
                  for income taxes

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                LOSS
                  FROM CONTINUING OPERATIONS

              	 	 	
                (236,000

              	
                )

              	 	
                1,900
                  

              	 	 	
                (234,100

              	
                )

              
	 	 	 	 	 	 	 	 	 	 	 
	
                DISCONTINUED
                  OPERATIONS

              	 	 	 	 	 	 	 	 	 	 
	
                Income
                  (loss) from discontinued operatons (net)

              	 	 	
                218,925
                  

              	 	 	
                -
                  

              	 	 	
                218,925
                  

              	 
	
                Gain
                  (loss) on disposal of business

              	 	 	
                (128,549

              	
                )

              	 	
                -
                  

              	 	 	
                (128,549

              	
                )

              
	
                Net
                  Income (loss) before provisions income taxes

              	 	 	
                (145,624

              	
                )

              	 	
                1,900
                  

              	 	 	
                (143,724

              	
                )

              
	 	 	 	 	 	 	 	 	 	 	 
	
                Provision
                  for income taxes

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                NET
                  INCOME (LOSS)

              	 	
                $

              	
                (145,624

              	
                )

              	
                $

              	
                1,900

              	 	
                $

              	
                (143,724

              	
                )

              
	 	 	 	 	 	 	 	 	 	 	 
	
                BASIC
                  AND DILUTED INCOME (LOSS) PER SHARE

              	 	 	 	 	 	 	 	 	 	 
	
                Basic
                  from continuing operations

              	 	
                $

              	
                (0.09

              	
                )

              	 	 	 	
                $

              	
                (0.09

              	
                )

              
	
                Diluted
                  from continuing operations

              	 	
                $

              	
                (0.09

              	
                )

              	 	 	 	
                $

              	
                (0.09

              	
                )

              
	
                Basic
                  from discontinued operations

              	 	
                $

              	
                0.08

              	 	 	 	 	
                $

              	
                0.08

              	 
	
                Diluted
                  from discontinued operations

              	 	
                $

              	
                0.08

              	 	 	 	 	
                $

              	
                0.08

              	 
	
                Basic
                  from disposal

              	 	
                $

              	
                (0.05

              	
                )

              	 	 	 	
                $

              	
                (0.05

              	
                )

              
	
                Diluted
                  from disposal

              	 	
                $

              	
                (0.05

              	
                )

              	 	 	 	
                $

              	
                (0.05

              	
                )

              
	 	 	 	 	 	 	 	 	 	 	 
	
                WEIGHTED
                  AVERAGE NUMBER OF BASIC

              	 	 	
                2,661,395
                  

              	 	 	 	 	 	
                2,661,395
                  

              	 
	
                COMMON
                  SHARES OUTSTANDING

              	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                WEIGHTED
                  AVERAGE NUMBER OF DILUTED

              	 	 	
                2,661,395
                  

              	 	 	 	 	 	
                2,661,395
                  

              	 
	
                COMMON
                  SHARES OUTSTANDING

              	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                The
                  accompanying notes are an integral part of the condensed consolidated
                  financial statements.

              

      

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      
        SNAP
          2 CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
          (UNAUDITED)

          FOR
            THE SIX MONTHS ENDED MARCH 31,
            2004

        

      

    

    

      
        	 	 	
                Snap2

              	 	
                Call
                  Now America

              	 	
                 

              	 
	
                 

              	 	
                Corporation

              	 	
                Prepaid
                  Company LLC

              	 	
                Pro
                  Forma

              	 
	 	 	 	 	 	 	 	 
	
                OPERATING
                  REVENUE

              	 	
                $

              	
                -

              	 	
                $

              	
                97,863

              	 	
                $

              	
                97,863

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                COST
                  OF OPERATIONS

              	 	 	
                -
                  

              	 	 	
                67,870
                  

              	 	 	
                67,870
                  

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                GROSS
                  PROFIT

              	 	 	
                -
                  

              	 	 	
                29,993
                  

              	 	 	
                29,993
                  

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                OPERATING
                  EXPENSES

              	 	 	 	 	 	 	 	 	 	 
	
                Consulting
                  fees

              	 	 	
                840,000
                  

              	 	 	
                17,267
                  

              	 	 	
                857,267
                  

              	 
	
                General
                  and administrative

              	 	 	
                80
                  

              	 	 	
                11,982
                  

              	 	 	
                12,062
                  

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                Total
                  operating expenses

              	 	 	
                840,080
                  

              	 	 	
                29,249
                  

              	 	 	
                869,329
                  

              	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                OPERATING
                  INCOME (LOSS)

              	 	 	
                (840,080

              	
                )

              	 	
                744
                  

              	 	 	
                (839,336

              	
                )

              
	 	 	 	 	 	 	 	 	 	 	 
	
                OTHER
                  INCOME (EXPENSE)

              	 	 	 	 	 	 	 	 	 	 
	
                Interest
                  expense

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 
	
                Impairment

              	 	 	
                (3,200,000

              	
                )

              	 	
                -
                  

              	 	 	
                (3,200,000

              	
                )

              
	
                Total
                  other income (expense)

              	 	 	
                (3,200,000

              	
                )

              	 	
                -
                  

              	 	 	
                (3,200,000

              	
                )

              
	 	 	 	 	 	 	 	 	 	 	 
	
                INCOME
                  (LOSS) BEFORE INCOME TAXES

              	 	 	
                (4,040,080

              	
                )

              	 	
                744
                  

              	 	 	
                (4,039,336

              	
                )

              
	
                Provision
                  for income taxes

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                LOSS
                  FROM CONTINUING OPERATIONS

              	 	 	
                (4,040,080

              	
                )

              	 	
                744
                  

              	 	 	
                (4,039,336

              	
                )

              
	 	 	 	 	 	 	 	 	 	 	 
	
                DISCONTINUED
                  OPERATIONS

              	 	 	 	 	 	 	 	 	 	 
	
                Income
                  (loss) from discontinued operatons (net)

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 
	
                Gain
                  (loss) on disposal of business

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 
	
                Net
                  Income (loss) before provisions income taxes

              	 	 	
                (4,040,080

              	
                )

              	 	
                744
                  

              	 	 	
                (4,039,336

              	
                )

              
	 	 	 	 	 	 	 	 	 	 	 
	
                Provision
                  for income taxes

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 	 	
                -
                  

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                NET
                  INCOME (LOSS)

              	 	
                $

              	
                (4,040,080

              	
                )

              	
                $

              	
                744

              	 	
                $

              	
                (4,039,336

              	
                )

              
	 	 	 	 	 	 	 	 	 	 	 
	
                BASIC
                  AND DILUTED INCOME (LOSS) PER SHARE

              	 	 	 	 	 	 	 	 	 	 
	
                Basic
                  from continuing operations

              	 	
                $

              	
                (0.02

              	
                )

              	 	 	 	
                $

              	
                (0.02

              	
                )

              
	
                Diluted
                  from continuing operations

              	 	
                $

              	
                (0.02

              	
                )

              	 	 	 	
                $

              	
                (0.02

              	
                )

              
	
                Basic
                  from discontinued operations

              	 	
                $

              	
                -

              	 	 	 	 	
                $

              	
                -

              	 
	
                Diluted
                  from discontinued operations

              	 	
                $

              	
                -

              	 	 	 	 	
                $

              	
                -

              	 
	
                Basic
                  from disposal

              	 	
                $

              	
                -

              	 	 	 	 	
                $

              	
                -

              	 
	
                Diluted
                  from disposal

              	 	
                $

              	
                -

              	 	 	 	 	
                $

              	
                -

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                WEIGHTED
                  AVERAGE NUMBER OF BASIC

              	 	 	
                43,261,283
                  

              	 	 	 	 	 	
                43,261,283
                  

              	 
	
                COMMON
                  SHARES OUTSTANDING

              	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                WEIGHTED
                  AVERAGE NUMBER OF DILUTED

              	 	 	
                43,261,283
                  

              	 	 	 	 	 	
                43,261,283
                  

              	 
	
                COMMON
                  SHARES OUTSTANDING

              	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                The
                  accompanying notes are an integral part of the condensed consolidated
                  financial statements.

              

      

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    SNAP
      2 CORPORATION AND
      SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
      (UNAUDITED)

      FOR
        THE SIX MONTHS ENDED MARCH 31, 2004

      

        
          	 	 	
                  Snap2
                    

                	 	
                  Call
                    Now America 

                	 	
                   

                	 	
                  Pro
                    Forma 

                	 
	
                   

                	 	
                  Corporation
                    

                	 	
                  Prepaid
                    Company LLC 

                	 	
                  Adjustment
                    

                	 	 	 
	
                  ASSETS

                	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  CURRENT
                    ASSETS

                	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Cash
                    and cash equivalents

                	 	
                  $

                	
                  7,020

                	 	
                  $

                	
                  12,800

                	 	
                  $

                	
                  -

                	 	
                  $

                	
                  19,820

                	 
	
                  Accounts
                    Receivable

                	 	 	 	 	 	
                  8,325
                    

                	 	 	 	 	 	
                  8,325
                    

                	 
	
                  Inventory

                	 	 	 	 	 	
                  15,440
                    

                	 	 	 	 	 	
                  15,440
                    

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Total
                    Current Assets

                	 	 	
                  7,020
                    

                	 	 	
                  36,565
                    

                	 	 	
                  -
                    

                	 	 	
                  43,585
                    

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  OTHER
                    ASSETS

                	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Goodwill

                	 	 	
                  -
                    

                	 	 	
                  -
                    

                	 	 	
                  1,619,350
                    

                	 	 	
                  1,619,350
                    

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Total
                    Other Assets

                	 	 	
                  -
                    

                	 	 	
                  -
                    

                	 	 	
                  1,619,350
                    

                	 	 	
                  1,619,350
                    

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  TOTAL
                    ASSETS

                	 	
                  $

                	
                  7,020

                	 	
                  $

                	
                  36,565

                	 	
                  $

                	
                  1,619,350

                	 	
                  $

                	
                  1,662,935

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  LIABILITIES
                    AND STOCKHOLDERS' EQUITY (DEFICIT)

                	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  CURRENT
                    LIABILITIES

                	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Note
                    payable

                	 	
                  $

                	
                  84,000

                	 	
                  $

                	
                  -

                	 	
                  $

                	
                  -

                	 	
                  $

                	
                  84,000

                	 
	
                  Officer
                    loan

                	 	 	
                  12,000
                    

                	 	 	 	 	 	 	 	 	
                  12,000
                    

                	 
	
                  Accounts
                    payable and accrued liabilities

                	 	 	
                  31,000
                    

                	 	 	
                  35,915
                    

                	 	 	 	 	 	
                  66,915
                    

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Total
                    Current Liabilities

                	 	 	
                  127,000
                    

                	 	 	
                  35,915
                    

                	 	 	
                  -
                    

                	 	 	
                  162,915
                    

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  LONG
                    TERM LIABILITIES

                	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Commitments

                	 	 	
                  631,556
                    

                	 	 	 	 	 	 	 	 	
                  631,556
                    

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Total
                    Long Term Liabilities

                	 	 	
                  631,556
                    

                	 	 	
                  -
                    

                	 	 	
                  -
                    

                	 	 	
                  631,556
                    

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  STOCKHOLDERS'
                    EQUITY (DEFICIT)

                	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Preferred
                    stock, $.001 par value; 20,000,000 shares

                	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  authorized;
                    0 shares issued and outstanding

                	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Common
                    stock, $.001 par value; 50,000,000 shares

                	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  authorized;
                    45,094,250 shares issued and outstanding

                	 	 	
                  45,094
                    

                	 	 	 	 	 	
                  3,000
                    

                	 	 	
                  48,094
                    

                	 
	
                  Additional
                    paid-in capital

                	 	 	
                  6,050,863
                    

                	 	 	 	 	 	
                  1,616,350
                    

                	 	 	
                  7,667,213
                    

                	 
	
                  Accumulated
                    earnings (deficit)

                	 	 	
                  (6,847,493

                	
                  )

                	 	
                  650
                    

                	 	 	 	 	 	
                  (6,846,843

                	
                  )

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Total
                    stockholders' equity (deficit)

                	 	 	
                  (751,536

                	
                  )

                	 	
                  650
                    

                	 	 	
                  1,619,350
                    

                	 	 	
                  868,464
                    

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  TOTAL
                    LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

                	 	
                  $

                	
                  7,020

                	 	
                  $

                	
                  36,565

                	 	
                  $

                	
                  1,619,350

                	 	
                  $

                	
                  1,662,935

                	 

        

    

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
 

    
      SNAP2
        CORPORATION AND SUBSIDIARIES

      NOTES
        TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED

      FINANCIAL
        STATEMENTS

      

      

      

      The
        following unaudited pro forma adjustments are included in the accompanying
        unaudited pro forma condensed consolidated balance sheet as of March 31,
        2004
        and the unaudited pro forma condensed consolidated statements of operations
        for
        the six months ended March 31, 2004 and for the year ended September 30,
        2003,
        to reflect the combination of Snap2 Corporation and Call Now America Prepaid
        Company, L.L.C.

      

      	A.  	
              To
                record the issuance of stock and purchase of the Company’s
                assets.

            

      

     

     

    
 

    
      
         

      

      
        5Severance Benefits Agreement

    SEVERANCE
      BENEFITS AGREEMENT

    

    AGREEMENT,
      dated as of August 17, 2005, by and among GLIMCHER REALTY TRUST, a Maryland
      real
      estate investment trust, with offices at 150 East Gay Street, Columbus, Ohio
      43215 (“GRT”), GLIMCHER PROPERTIES LIMITED PARTNERSHIP, a Delaware limited
      partnership, with offices at 150 East Gay Street, Columbus, Ohio 43215 (“GPLP”),
      and Robert F. Beffa (the “Executive”).

    

    WHEREAS,
      GRT, GPLP and/or their subsidiaries and affiliates, including entities in which
      GRT or GPLP own a majority of any non-voting stock (collectively, the
“Company”), have employed, or may employ in the future, the Executive as an
      employee of the Company to perform certain services for and on behalf of the
      Company upon terms and conditions upon which the Company and the Executive
      have
      previously agreed, or may in the future agree (the “Services”);

    

    WHEREAS,
      the Company recognizes that the Executive’s contributions to the future growth
      of the Company will be substantial; and

    

    WHEREAS,
      to induce the Executive to remain in the employ of the Company, the parties
      hereto desire to set forth certain severance benefits which GPLP will pay to
      the
      Executive in the event of a Change in Control of GRT (as defined in Section
      2
      hereof).

    

    IT
      IS
      AGREED:

    

    1. TERM.
      This
      Agreement shall commence on the date hereof and shall terminate upon the earlier
      of (a) the date on which GPLP and GRT have satisfied all of their obligations
      hereunder or (b) the date on which the Executive is no longer an employee of
      the
      Company for any reason whatsoever including, without limitation, termination
      without cause. Notwithstanding the termination of this Agreement subsequent
      to a
      Change in Control of GRT, in the event that the Executive is an employee of
      the
      Company at the moment immediately prior to a Change in Control of GRT, the
      Executive shall be entitled to receive all benefits described hereunder and
      the
      provisions hereof related thereto shall survive such termination.

    

    2. CHANGE
      IN CONTROL OF GRT.
      For
      purposes of this Agreement, a “Change in Control of GRT” shall be deemed to
      occur if:

    

    (i) there
      shall have occurred a change in control of a nature that would be required
      to be
      reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated
      under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as
      in effect on the date hereof, whether or not GRT is then subject to such
      reporting requirement; provided,
      however,
      that
      there shall not be deemed to be a Change in Control of GRT if immediately prior
      to the occurrence of what would otherwise be a Change in Control of GRT (a)
      the
      Executive is the other party to the transaction (a “Control of GRT Event”) that
      would otherwise result in a Change in Control of GRT or
      (b) the
      Executive is an executive officer, trustee, director or more than 5% equity
      holder of the other party to the Control of GRT Event or of any entity, directly
      or indirectly, controlling such other party;

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (ii) GRT
      merges or consolidates with, or sells all or substantially all of its assets
      to,
      another company (each, a “Transaction”); provided,
      however,
      that a
      Transaction shall not be deemed to result in a Change in Control of GRT if
      (a)
      immediately prior thereto the circumstances in (i)(a) or (i)(b) above exist
      or
      (b) (1) the shareholders of GRT, immediately before such transaction, own,
      directly or indirectly, immediately following such Transaction in excess of
      fifty percent (50%) of the combined voting power of the outstanding voting
      securities of the corporation or other entity resulting from such Transaction
      (the “Surviving Corporation”) in substantially the same proportion as their
      ownership of the voting securities of GRT immediately before such Transaction
      and (2) the individuals who were members of GRT’s Board of Trustees immediately
      prior to the execution of the agreement providing for such Transaction
      constitute at least a majority of the members of the board of directors or
      the
      board of trustees, as the case may be, of the Surviving Corporation, or of
      a
      corporation or other entity beneficially, directly or indirectly, owning a
      majority of the outstanding voting securities of the Surviving Corporation;
      or

     

    (iii) GRT
      acquires assets of another company or a subsidiary of GRT merges or consolidates
      with another company (each an “Other Transaction”) and (a) the shareholders of
      GRT, immediately before such Other Transaction own, directly of indirectly,
      immediately following such Other Transaction fifty percent (50%) or less of
      the
      combined voting power of the outstanding voting securities of the corporation
      or
      other entity resulting from such Other Transaction (the “Other Surviving
      Corporation”) in substantially the same proportion as their ownership of the
      voting securities of GRT immediately before such Other Transaction or (b) the
      individuals who were members of GRT’s Board of Trustees immediately prior to the
      execution of the agreement providing for such Other Transaction constitute
      less
      than a majority of the members of the board of directors or board of trustees,
      as the case may be, of the Other Surviving Corporation, or of a corporation
      or
      other entity beneficially, directly or indirectly, owing a majority of the
      outstanding voting securities of the Other Surviving Corporation; provided,
      however,
      that an
      Other Transaction shall not be deemed to result in a Change in Control of GRT
      if
      immediately prior thereto the circumstances in (i)(a) or (i)(b) above
      exist.

     

    3. COMPENSATION
      UPON A CHANGE IN CONTROL OF GRT.
      If the
      Executive is an employee of the Company at the moment immediately prior to
      a
      Change in Control of GRT, the Executive shall be entitled to receive the
      compensation and benefits set forth below.

     

    (a) GPLP
      shall pay to the Executive, not later than the date of any Change in Control
      of
      GRT, unless otherwise agreed to in writing, a lump sum severance payment (the
      “Severance Payment”) equal to two (2) times the Base Amount (as defined below).
      For purposes of the Section 3(a), the Base Amount shall mean the Executive’s
      annual compensation during the calendar year period preceding the calendar
      year
      in which the Change in Control of GRT occurs. For purposes of determining annual
      compensation in this Section 3(a), there shall be included (i) all base salary
      and bonuses paid or payable to the Executive by the Company with respect to
      the
      preceding calendar year; (ii) all grants of restricted common shares of
      beneficial interest of GRT (the “Shares”), if any, with respect to such
      preceding calendar year, which Shares shall be valued based on their date of
      grant at the then Fair Market Value (as defined in Section of 2.15 of GRT’s 2004
      Incentive Compensation Plan or any other plan or agreement pursuant to which
      they are issued) and (iii) the fair market value of any other property or rights
      given or awarded to the Executive by the Company with respect to such preceding
      calendar year, or partial first year of employment.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) Any
      Shares now or hereafter issued to the Executive pursuant to any restricted
      Share
      grant shall vest on the day immediately prior to the date of a Change in Control
      of GRT and no longer be subject to repurchase or any other forfeiture
      restrictions.

     

    (c) GRT
      and
      GPLP shall cause the Company to maintain in full force and effect for the
      Executive’s continued benefit for eighteen (18) months following a Change in
      Control of GRT, all life, accident, medical and dental insurance benefit plans
      and programs or arrangements in which the Executive was entitled to participate
      immediately prior to the date of a Change in Control of GRT, provided that
      the
      Executive’s continued participation is allowable under the general terms and
      provisions of such plans and programs and provided, further, that in the event
      that the Executive becomes employed by any third party during such 18-month
      period, then upon the date of such employment the Executive shall no longer
      be
      entitled to any accident, medical or dental insurance benefits described in
      the
      preceding clause. Subject to the preceding sentence, in the event that the
      Executive’s participation in any such plan or program is barred, GRT and GPLP
      shall arrange to cause the Company to provide the Executive with benefits
      substantially similar to those which the Executive was entitled to receive
      under
      such plans and programs. Subject to the first sentence of this paragraph, at
      the
      end of the period of coverage, the Executive shall have the option to have
      assigned to him at no cost to the Executive and with no apportionment of prepaid
      premiums, any assignable insurance policy owned by the Company and relating
      specifically to the Executive.

     

    (d) All
      options to purchase Shares now or hereafter granted to the Executive shall
      vest
      on the day immediately prior to the date of a Change in Control of GRT and
      become fully exercisable in accordance with their terms.

     

    (e) The
      Executive shall not be required to mitigate the amount of any payment provided
      for in this Section 3 by seeking other employment or otherwise, nor shall the
      amount of any payment or benefit provided for in this Section 3 be reduced
      by
      any compensation earned by him as the result of employment by another employer
      or by retirement benefits after the date of termination, or otherwise, except
      as
      specifically provided in this Section 3.

     

    4. ADDITIONAL
      AMOUNT.
      Whether
      or not Section 3 hereof is applicable, if in the opinion of tax counsel selected
      by the Executive and reasonably acceptable to the Company, the Executive has
      or
      will receive any compensation or recognize any income (whether or not pursuant
      to this Agreement or any plan or other arrangement of the Company and whether
      or
      not the Executive’s employment with the Company has terminated) which
      constitutes an “excess of parachute payment” within the meaning of Section
      280G(b)(1) of the Internal Revenue Code of 1986, as amended (the “Code”) (or for
      which a tax is otherwise payable under Section 4999 of the Code), then GPLP
      shall pay the Executive an additional amount (the “Additional Amount”) equal to
      the sum of (i) all taxes payable by the Executive under Section 4999 of the
      Code
      with respect to all such excess parachute payments (or otherwise) including,
      without limitation, the Additional Amount, plus (ii) all Federal, state and
      local income taxes for which the Executive may be liable with respect to the
      Additional Amount. The amounts payable pursuant to this Section 4 shall be
      paid
      by GPLP to the Executive not later than the date of any Change in Control of
      GRT, unless otherwise agreed to in writing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5. EXPENSES.
      GPLP
      shall pay or reimburse the Executive, as the case may be, for all legal fees
      and
      related expenses (including the costs of experts, evidence and counsel) paid
      by
      the Executive as a result of (i) the Executive seeking to obtain or enforce
      any
      right or benefit provided by this Agreement or (ii) any action taken by the
      Company against the Executive in enforcing its rights hereunder; provided,
      however, that GPLP shall reimburse the legal fees and related expenses described
      in Section 5 only if and when a final judgment has been rendered in favor of
      the
      Executive and all appeals related to any such action have been
      exhausted.

     

    6. NO
      EMPLOYMENT RIGHTS OR OBLIGATIONS.
      Nothing
      contained herein shall confer upon the Executive the right to continue in the
      employment or service of the Company or affect any right that the Company may
      have to terminate the employment or service of the Executive at any time for
      any
      reason.

     

    7. GRT
      GUARANTY.
      GRT
      guarantees the satisfaction of all obligations of, and the full and prompt
      payment of all amounts payable by GPLP hereunder. In addition, GRT guarantees
      the satisfaction of all obligations of the Company hereunder. 

     

    8. GOVERNING
      LAW; ARBITRATION.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of Maryland, without regard to Maryland’s conflicts of law
      principles. Any dispute or controversy arising under this Agreement, or out
      of
      the interpretation hereof, or based upon the breach hereof, shall be resolved
      by
      arbitration held at the offices of the American Arbitration Association in
      The
      Commonwealth of Pennsylvania, in the City of Philadelphia, in accordance with
      the rules and regulations of such association prevailing at the time of the
      demand for arbitration by either party hereto; provided, however, that the
      arbitrator or arbitrators shall only have the power and authority to interpret,
      and not modify or amend, the terms and provisions hereof. Judgment upon an
      award
      rendered by the arbitrator or arbitrators may be entered in any court having
      jurisdiction thereof. Notwithstanding anything contained in this Section 8,
      either party shall have the right to seek preliminary injunctive relief in
      any
      court in the City of Philadelphia in aid of (and pending the final decision)
      the
      arbitration proceeding.

     

    9. ENTIRE
      AGREEMENT.
      This
      Agreement sets forth the entire agreement of the parties and is intended to
      supersede all prior negotiations, understandings and agreements with respect
      to
      the subject matter hereof. No provision of this Agreement may be waived or
      changed, except by a writing signed by the party to be charged with such waiver
      or change.

     

    10. SUCCESSORS;
      BINDING AGREEMENT.
      This
      shall inure to the benefit of, be binding upon and enforceable by GRT and GPLP,
      their successors and assigns, and the Executive and the Executive’s personal or
      legal representatives, executors, administrators, successors, heirs,
      distributees, devisees and legatees.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11. NOTICES.
      All
      notices provided for in this Agreement shall be in writing, and shall be deemed
      to have been duly given when delivered personally to the party to receive the
      same, when given by telex, telegram or mailgram, or when mailed first class
      postage prepaid, by registered or certified mail, return receipt requested,
      addressed to the party to receive the same. All notices shall be deemed to
      have
      been given as of the date of personal delivery, transmittal or mailing
      thereof.

     

    12. SEVERABILITY.
      If any
      provision in this Agreement is determined to be invalid, it shall not affect
      the
      validity or enforceability of any of the other remaining provisions
      hereof.

     

    13. GRT
      EXCULPATION.
      This
      Agreement and all documents, agreements, understandings and arrangements
      relating to the matters described herein have been executed by the undersigned
      representative of GRT in his/her capacity as an officer or trustee of GRT which
      has been formed as a Maryland real estate investment trust pursuant to the
      Amended and Restated Declaration of Trust of GRT, as amended, and not
      individually, and neither the trustees, officers or shareholders of GRT shall
      be
      bound or have any personal liability hereunder or thereunder. The Executive
      shall look solely to the assets of GRT for satisfaction of any liability of
      GRT
      in respect to this Agreement and all documents, agreements, understandings
      and
      arrangements relating to this transaction and will not seek recourse or commence
      any action against any of the trustees, officers or shareholders or GRT or
      any
      of their personal assets for the performance or payment of any obligation
      hereunder or thereunder. The foregoing shall also apply to any future documents,
      agreements, understandings, arrangements and transactions between the parties
      hereto.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    

    GLIMCHER
      REALTY TRUST

     

    

    By: 
      /s/
      Michael P.
      Glimcher                              
      

    Michael
      P. Glimcher, President & Chief Executive

    Officer

    

    GLIMCHER
      PROPERTIES LIMITED PARTNERSHIP

    

    BY:
      GLIMCHER PROPERTIES CORPORATION, its General
      Partner

    

    

    By: 
       /s/
      Michael P.
      Glimcher                
      

    Michael
      P. Glimcher, President & Chief Executive 

    Officer

    

    

    EXECUTIVE:

    

     

    

    /s/
      Robert F.
      Beffa                    
      

    Robert
      F.
      Beffa

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