Document:

GEC 2010-2014 Long-Term incentive Compensation Program

  
  

 Exhibit 10.1 

Jones Lang LaSalle Incorporated 

GEC 2010-2014 Long-Term Incentive Compensation Program 

(Effective as of January 1, 2010) 

I.  Objectives 
 Jones Lang
LaSalle Incorporated (the “Company”) has adopted this GEC Long-Term Incentive Compensation Program (the “Plan”) for the five-year period from January 1, 2010 through December 31, 2014 in order to: 

 

	 	(a)	Provide an incentive for certain Company executives and key contributors (the “Participants”) to plan, develop and execute the long-term strategic goals of
the Company, 

	 	(b)	Align the interests of the Participants with the interests of Company shareholders, including a mechanism for delivering direct equity ownership in the Company to the
Participants, and 

	 	(c)	Attract and retain executive talent in a highly competitive labor market. 

II. General Plan Provisions 
  

							
	 Stock Award and

Incentive Plan:
	 	This Plan is intended to be a Variable Compensation Plan under the Company’s Stock Award and Incentive Plan, which has been approved by the Company’s
shareholders, as it may be amended from time to time (the “SAIP”).
		
	Defined Terms:	 	Capitalized terms shall have the respective meanings given to them in the Plan. Any term not specifically defined in the Plan will have the meaning given to it in the
SAIP.
		
	Eligibility:	 	Members of the Company’s Global Executive Committee (the “GEC”) and such other executives and key contributors as the Compensation Committee of the
Company’s Board of Directors (the “Committee”) may designate from time to time will be eligible to participate in the Plan. No individual will have an automatic right to participate in the Plan.
		
	Selection Procedures:	 	Prior to March 31 of each year, the Company’s Chief Executive Officer (the “CEO”) will recommend employees to the Committee for participation in the Plan
and their respective specific levels of proposed participation. If approved by the Committee, the CEO will confirm participation levels to Participants in writing.
		
	Performance Measurement:	 	For purposes of the Plan, performance will be based on the following four Performance Measures as of the end of each calendar year (the “Performance Period”):

			
		 	1.	 	Operating Income (“OI”). As reported in the Company’s consolidated financial statements under generally accepted accounting principles as in effect
from time to time.
			
		 	2.	 	Operating Income Margin (“Margin”). OI divided by the Company’s total revenue, as reported in the Company’s consolidated financial statements.

			
		 	3.	 	Total Shareholder Return (“TSR”). The Company’s TSR will be calculated in the first quarter of the following year by dividing (A) the sum of (i)
the total dividends paid per share to shareholders in the Performance Period plus (ii) the difference between the Final Share Price and the Beginning Share Price, by (B) the Beginning Share Price.
		 		 	
		 		 	Beginning Share Price 	  	Average closing price of the Company’s common stock for
the final 15 trading days of the prior calendar year and the first 15 trading days of the current Performance Period.

 

  

1 

  
  

							
		 		 	  

Final Share  Price
	  	  

Average closing price of the Company’s common stock for the final 15 trading days of the current Performance Period and the first 15 trading days of
the following calendar year.
  

			
	 Performance

Measurement:

(Continued)
	 	4.	 	Strategic Growth Objectives (“G5”). The Company has established its G5 strategy to define its long term priorities and to accomplish certain profit and
growth goals designed to retain its position as the leading real estate services and investment management company. Company-wide and individual objectives designed to accomplish the overall G5 objectives are reviewed and approved by the Committee
and memorialized in the minutes of the Committee’s meetings, which are maintained in the Company’s corporate records, and reflected in the Company’s performance management system. Company-wide and individual G5 objectives may include,
but are not limited to, market share or market penetration by specific designated services or business lines, business segments and/or specific geographic areas, satisfaction of specified business expansion goals, and other specified management
and/or social goals. Each year, based on information and recommendations from the CEO, the Committee determines the extent to which Company-wide and individual objectives have been accomplished, which determination is final.
		
		 	 The calculation of all financial results will conform to the then current Company accounting and financial standards as
reflected in its financial statements under generally accepted accounting principles as in effect from time to time.
  

The Plan seeks to reward all incentive fees, performance fees and equity gains. However, in order to be promote the intent of the Plan, the Committee
reserves the right in its discretion to exclude any income or to include any expense items of a nonrecurring, unusual, or non-operating nature (which shall otherwise be excluded). Examples include the consequences of a significant
acquisition and certain impairment charges.
  
 For purposes of the Plan,
published financial results may be adjusted by the Committee to reflect the results as they would have been without the effect of any significant accounting changes implemented following the adoption of the Plan.

 

  

2 

  
  

 III. Determining Awards Under the Plan 

 

													
	 Establish Annual

Funding Target and

Maximum:
	 	The annual funding target for the Plan will be $5,000,000 (the “GEC LTIP Pool”). The annual funding maximum will be $5,300,000.
		
	 Establish the Relative

Importance of

Performance

Measures:
	 	 To differentiate performance achieved and the value of awards at the end of each annual Performance Period, each
Performance Measure has been assigned a relative importance weighting as shown in Table 1 below (each an “Annual Funding Target”):
  

Table 1: Relative Importance of Performance Measures

to Annual Funding Target

		 		  	Relative Importance to Overall
Award Value
		 		  	 G5

Objectives
	  	Operating Income	  	Operating Income Margin	  	Total Shareholder Return	  	Total
		 		  	40%	  	25%	  	25%	  	10%	  	100%
		 		  	$2,000,000	  	$1,250,000	  	$1,250,000	  	$500,000	  	$5,000,000
		
	 Establish

Performance
 Sharing

Rates to Apply to
 GEC LTIP Pool:

	 	For purposes of determining the value of an award under the Plan (an “Award”), each Participant will share in a specified percentage of the GEC LTIP Pool as
established each year by the Committee and as initially documented in the minutes of its meeting held on May 27, 2010 that are maintained with the corporate records of the Company. The aggregate percentage interests of all Participants shall
not exceed 100%.
		
	 Percentage Interest    

Allocation    

Methodology:    
	 	 The percentage interest of each Participant will reflect the maximum amount that the Participant may receive from the GEC
LTIP Pool following the end of each calendar year.
  
 The percentage
allocated to any Participant for a given year may be modified at the beginning of any year, by
March 31st of such year, as recommended by the CEO
and approved by the Committee.
  
 Upon the recommendation of the CEO and
approval by the Committee, other key executives that participate in other Variable Compensation Plans may be allocated a percent interest in the GEC LTIP Pool at the beginning of a year to motivate performance during the period (each an “Annual
Participant”).

		
	 CEO Sharing Rate    

and Limit:    
	 	Once the initial percentage interest allocations are approved for GEC members and other Annual Participants, the CEO will be assigned a percentage interest by the
Committee. The CEO shall receive no more than 35% of the interest in the GEC LTIP.
		
	 Application of    

Unallocated Interests:    
	 	If less than 100% of the GEC LTIP Pool has been allocated by
March 31st of the year, any unallocated interest that
may remain at the end of the year may be used to (i) reward then current employees who were not initially selected as Participants or (ii) to provide a retention incentive to new employees, in either of the foregoing cases upon the recommendation of
the CEO and approval by the Committee.

  

  

3 

  
  

													
	 Use of Forfeited    

Interests:    
	 	Forfeited interests that were initially assigned to a Participant at the beginning of a calendar year, may not be reallocated to GEC or other Annual Participants
following the Participant’s termination of employment during that calendar year.
		
	 Award    

Determination    

Procedures:    
	 	 At the end of each year, the Committee shall review performance achieved on each Performance Measure that was established
at the beginning of the Performance Period. A Participant’s award is determined from his/her share of the available GEC LTIP Pool and the percentage of each Performance Measure.

 
 Eighty five percent (85%) of the Annual Funding Target is available for each of the
OI or Margin Performance Measures if 85% to 99% of the Performance Goal established for the Performance Measure is achieved.
  

One hundred percent (100%) of the Annual Funding Target is available for each of the OI, Margin or TSR Performance Measures if 100% to 110% of the
Performance Goal established for the Performance Measure is achieved.
  
 One
hundred and ten percent (110%) of the Annual Funding Target is available for each of the OI, Margin or TSR Performance Measures if performance achieved is greater than 110% of the Performance Goal established for the Performance Measure.

 
 One hundred percent (100%) of the Annual Funding Target for the G5 Performance
Measure is available if overall performance meets or exceeds the pre-determined G5 objectives. Less than 100% of the Annual Funding Target for G5 shall be available for partial accomplishment of the G5 objectives, subject to the Committee’s
right to reduce or eliminate such amount in its discretion.

		
	 Minimum    

Performance    

Requirements:    
	 	No awards will be made for performance against OI or Margin if performance is less than 85% of the Performance Goal. No awards will be made for the TSR Performance
Measure if performance is less than 100% of the Performance Goal.
		
	 Determining the Form    

of Awards:    
	 	GEC LTIP Awards are anticipated to be made in a combination of cash (“Cash Award”) and restricted stock units (“RSU Awards”) for results completed
on the four Performance Measures. Cash Awards will be made with respect to performance achieved on the OI and Margin goals. RSU Awards will be made for performance achieved on the G5 and TSR objectives. The Committee reserves the right to make final
determination of the portion to be paid as Cash Awards and RSU Awards.
		
	 RSU Awards    

Made at    

Fair Market Value    
	 	The “Award Date” for RSU Awards and Cash Awards will be the date the Committee approves annual incentive bonuses to be paid to GEC members. The closing price
of the Company’s common stock on the Award Date will be used to determine the number of restricted stock units that each Participant will receive.
		
	 No Interest Paid on    

Cash Awards    
	 	Cash Awards are not credited with interest or any other income during the vesting period. Cash Awards are unsecured liabilities of the Company prior to
vesting.
		
	 Dividend    

Equivalents:    
	 	The Board of Directors may, in its discretion, grant dividend equivalents to Participants who were granted RSU Awards. Dividend equivalents are the right to receive
cash, common stock, or other property equal in value to the amount of dividends paid with respect to the Company’s common stock. RSU Awards do not otherwise have voting rights or a legal right to receive dividends until
vested.

  

  

4 

  
  

 IV. Award Terms 
  

			
	 Vesting and Vesting

Dates:
	 	The vesting date (each a “Vesting Date”) for RSU Awards and for Cash Awards shall be determined as follows:
		
	RSU Awards    	 	Special Vesting Terms for RSU Awards. Subject to special consideration given for different termination events described below, one hundred percent (100%) of any RSU Award
made for G5 or TSR performance will vest on the first business day of July following the thirty six (36) month anniversary of the Award Date. For RSU Awards, it is the Company’s intent to settle the vested restricted stock units in shares of
Company common stock.
		
	Cash Awards    	 	Special Vesting Terms for Cash Awards. Subject to special consideration given for different termination events described below, one hundred percent (100%) of any Cash Award
made for OI and Margin performance will vest on the first business day of July following the thirty six (36) month anniversary of the Award Date.
		
	 Sustained    

Performance    

Required for Cash    

Awards    
	 	 Vesting of any Cash Award is contingent on OI and/or Margin performance for the subsequent year not falling below the goal for which the
awards were based. For example, if 2010 OI and Margin were to exceed performance goals such that the total awards made to Participants were $2.5 million, the following scenarios describe how these 2010 awards would vest under different
performance results in 2011:
  

	 	Hypothetical Example 1: Sustained or Improved Performance. If performance in 2011 exceeds the OI and Margin goals set for 2011, the Participants’ $2.5 million Cash
Awards received for 2010 performance would continue to vest, since the subsequent year’s performance was maintained above the levels established for 2010. Further, since 2011 OI and Margin goals were exceeded, Participants would receive Cash
Awards for OI and Margin performance in 2011. The new 2011 awards would have a 2012 Award Date and be subject to similar sustained performance in 2012 in order for the 2011 Cash Awards to continue to vest.
		
		 	Hypothetical Example 2: Declining Performance. If performance in 2011 fell below the OI and Margin goals set for 2010, the Participants’ $2.5 million Cash Awards
received for 2010 performance would be forfeited, since performance in 2011 declined below the Performance Goals established for 2010. Further, assuming the Performance Goals for 2011 OI and Margin will be greater than 2010 Performance Goals, the
Participants would not receive any Cash Awards for 2011 OI and Margin performance.
		
		 	Hypothetical Example 3: Mixed Performance. If performance in 2011 fell below actual 2010 performance, but above the OI and Margin goals set for 2010 and 2011, the
Participants’ $2.5 million Cash Awards received for 2010 performance would continue to vest, since the subsequent year’s performance was maintained above the levels established for 2010. Further, since 2011 OI and Margin goals were
exceeded, Participants would receive Cash Awards for OI and Margin performance in 2011. The new 2011 awards would have a 2012 Award Date and be subject to similar sustained performance in 2012 in order for the 2011 Cash Awards to continue to vest.

		
	 Employment    

Required on Vesting    

Dates:    
	 	A Participant must be currently employed by the Company (or one of its subsidiaries) on a Vesting Date to receive an RSU Award or a Cash Award that vests on such Vesting
Date.

  

  

5 

  
  

			
	 Forfeiture upon

Termination:
	  	Except as set forth below under “Voluntary Termination After ‘Rule of 65’ Retirement” and “Termination due to Death/Disability,” Participants forfeit
unvested Awards if they voluntarily terminate employment with the Company or are terminated involuntarily by the Company for Cause. For purposes of the Plan, “Cause” means any of (1) failure to perform the Participant’s job
responsibilities in good faith, (2) documented poor performance, (3) falsification of Company records, theft, failure to cooperate with an investigation, conviction of any crime against the Company, any of the Company’s subsidiaries or any of
their employees, or (4) a documented violation of the Company’s Code of Business Ethics.
		
	Change in Control:	  	All unvested Cash Awards and RSU Awards become 100% vested in the event of a Change in Control as defined in the SAIP and as determined by the Committee.
		
	 Voluntary

Termination After
 “Rule of
65”
 Retirement:
	  	All unvested Cash Awards and RSU Awards become 100% vested if an employee voluntarily terminates employment after either of the following conditions has been met: (1) being at least
55 years old and having any combination of age plus years of service to the Company and its affiliates equal to at least 65 or (2) having reached the statutory retirement age as defined within the country of the employee’s residence or
citizenship, as applicable. In addition, as stipulated in the SAIP, the Company may, in its discretion, impose special conditions on a retired employee regarding non-competition and non-solicitation of clients and employees in order for the retired
employee to become vested in RSU Awards or Cash Awards.
		
	 Termination
 due
to
 Death/Disability:
	  	All unvested Cash Awards and RSU Awards become 100% vested when an employee terminates employment as a result of death or total disability, with distributions to be made reasonably
promptly thereafter. In the case of a Participant’s death, distribution shall be made to his or her estate in accordance with applicable laws.
		
	 Other Involuntary

Termination Events:
	  	All unvested RSU Awards and Cash Awards continue to vest according to the provisions for Cash Awards and RSU Awards described in the Plan.
		
	 Transfer to a

Different Position
 within the
Company:
	  	All unvested RSU Awards and Cash Awards continue to vest according to the provisions for Cash Awards and RSU Awards described in the Plan.
		
	 No Re-Allocation of

Forfeited Awards:
	  	Any awards forfeited are not available to re-distribute to current or future Participants. As with all forfeited equity compensation vehicles issued from the shareholder-approved
share reserve balance, forfeited RSU Awards are re-allocated to the share reserve balance for the SAIP.
		
	 Recoupment of
 Awards
Made Under
 the Plan:
	  	To the extent legally required, or if the Committee determines that any fraud or intentional misconduct by one or more Participants caused the Company, directly or indirectly, to
restate its financial statements, the Committee will take, in its sole discretion, such action as it deems necessary to remedy the misconduct and prevent its recurrence. The Committee may require reimbursement of any compensation awarded to
Participants under the GEC LTIP, as well as cancel unvested RSU or Cash Awards previously granted to such Participants in the amount by which such compensation exceeded any lower payment that would have been made based on the restated financial
results. The recoupment period would encompass any compensation given under the GEC LTIP within 12 months of the filing of the financial restatement.

 

  

6 

  
  

 V. Relationship to Stock Ownership Program 

For avoidance of any doubt, the following provisions reflect the terms of other Company programs in which GEC members participate as of
the effective date of the Plan, in each case subject to future change in the discretion of the Committee. 
  

					
	 Required

Participation in Stock
 Ownership
Program:
	 	As International Directors, GEC members will continue to be automatically subject to the Company’s Stock Ownership Program (the “SOP”), including its
stock ownership guidelines and the voluntary election to decrease or withdraw from SOP once ownership criteria are met. However, no GEC member will receive any additional Company contribution (“SOP Uplift”) that is made available to other
SOP participants.
		
	Mandatory GEC Stock Bonus:	 	In addition to being subject to the terms of SOP, and under the provisions of SAIP, members of the GEC shall receive a mandatory portion of any annual incentive
compensation that would otherwise be paid in cash (“Cash Bonus”) in the form of restricted stock units (“RSU”) as a “Stock Bonus.”
		
		 	Until modified by the Committee, the following Stock Bonuses will be awarded automatically, with the effect of ratably reducing the Cash Bonuses paid to GEC members:

			
		 	Chief Executive Officer:	 	Twenty five percent (25%) of the Cash Bonus to be paid as Stock Bonus;
		 	Chief Operating and Financial Officer:	 	Twenty percent (20%) of the Cash Bonus to be paid as Stock Bonus; and
		 	Other GEC Members:	 	Fifteen percent (15%) of the Cash Bonus to be paid as Stock Bonus.
		
	 Award Date used for    

Stock Bonus:    
	 	The Award Date for Stock Bonuses will be deemed to be the first trading day in January of each year, with the closing price of the Company’s common stock on that
date used to determine the number of RSUs that a GEC Participant will receive as a Stock Bonus.
		
	Terms of Award:    	 	The Stock Bonus will be memorialized and subject to the general terms of the Company’s SAIP, with 50% of the RSU award to vest on the eighteen (18) month
anniversary of the Award Date and the remaining 50% on the thirty (30) month anniversary. Other provisions that will apply to the Stock Bonus will follow the award terms as outlined in this document.
		
	VI. Governance	 	
		
	 Administration and

Interpretation:
	 	As the Plan is a Variable Compensation Plan contemplated by the Company’s SAIP, Awards under the Plan will be administered as performance based awards under the
SAIP. The Plan shall be interpreted by the Committee and such interpretations shall be final.
		
		 	The Plan will be administered by or under the discretion of the Committee. Subject to the provisions of the Company’s SAIP, the Committee in its discretion shall
have the authority to approve eligibility to participate in the Plan and to establish the terms and conditions under which the awards become payable. In addition, the Committee shall have the authority to delegate such of its duties and authority
under the Plan, including calculation of performance results.

  

  

7 

  
  

			
	Term of Plan:	  	 The Plan will be effective for the five year performance period starting January 1, 2010 and ending December 31,
2014.
  
 This Plan supersedes and replaces each previous GEC long term
incentive plan.
  
 It is anticipated (but not guaranteed) that a subsequent
long-term incentive plan would be developed following the expiration of this Plan on December 31, 2014, and such a plan would reflect market competitive compensation practices and business forecasts at that time.

		
	Amendments:	  	The Plan is intended to continue in its initial form and not be amended during its term, provided, however, the Committee reserves the right to amend the Plan in order to
maintain its original objectives at any time during its term. In addition, the Committee may, at any time and from time to time, alter, amend, suspend or terminate the Plan in whole or part. Notwithstanding the foregoing, no amendment shall affect
adversely any of the rights of any Participant under any Award already then previously granted under the Plan.
		
	Compliance:	  	The Plan is intended to comply with all applicable law, including Code Section 409A and related Treasury guidance and Regulations, and shall be operated and interpreted in
accordance with this intention.

  

  

8Pennsylvania Real Estate Investment 2003 Equity Incentive Plan

 Exhibit 10.2 

 
 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 

AMENDED AND RESTATED 2003 EQUITY INCENTIVE PLAN 
  

 
  
  

 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 

AMENDED AND RESTATED 2003 EQUITY INCENTIVE PLAN 

TABLE OF CONTENTS 
  

			
	 	  	Page
	 1.         PURPOSE
	  	A-1
		
	 2.         DEFINITIONS
	  	A-1
		
	 3.         ADMINISTRATION
	  	A-5
		
	 4.         EFFECTIVE DATE AND TERM OF PLAN
	  	A-5
		
	 5.         SHARES SUBJECT TO THE PLAN
	  	A-5
		
	 6.         ELIGIBILITY
	  	A-6
		
	 7.         TYPES OF AWARDS
	  	A-6
		
	 7.1.          Options
	  	A-6
	 7.2.          Share Appreciation
Rights
	  	A-7
	 7.3.          Restricted Shares
	  	A-8
	 7.4.          Performance Shares; Performance
Goals
	  	A-9
	 7.5.          Contract Shares
	  	A-9
	 7.6.          Bonus Shares
	  	A-9
	 7.7.          Dividend Equivalent
Rights
	  	A-10
		
	 8.        EVENTS AFFECTING OUTSTANDING
AWARDS
	  	A-10
		
	 8.1.          
Termination of Service (Other Than by Death or Disability)
	  	A-10
	 8.2.          Death or
Disability
	  	A-10
	 8.3.          Capital
Adjustments
	  	A-11
	 8.4.          Certain Corporate Transactions

	  	A-11
		
	 9.        SUSPENSION, AMENDMENT OR TERMINATION OF THE PLAN

	  	A-11
		
	 10.        MISCELLANEOUS
	  	A-12
		
	 10.1.        Documentation of Awards
	  	A-12
	 10.2.        Rights as a Shareholder
	  	A-12
	 10.3.        Conditions on Delivery of
Shares
	  	A-12
	 10.4.        Registration and Listing of
Shares
	  	A-12
	 10.5.        Compliance with Rule
16b–3
	  	A-12
	 10.6.        Tax Withholding
	  	A-13
	 10.7.        Transferability of Awards
	  	A-13
	 10.8.        Registration.
	  	A-13
	 10.9.        Acquisitions
	  	A-13
	 10.10.      Replacement of Outstanding Options.
	  	A-13
	 10.11.      Employment Rights
	  	A-14
	 10.12.      Indemnification of Board and Committee.
	  	A-14
	 10.13.      Application of Funds
	  	A-14
	 10.14.      Governing Law
	  	A-14

  

 A-i 

 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 

AMENDED AND RESTATED 2003 EQUITY INCENTIVE PLAN 

Preamble 

WHEREAS, Pennsylvania Real Estate Investment Trust (the “Trust”) desires to continue to have the ability to award certain
equity-based benefits to certain of the non-employee trustees and officers and other key employees of the Trust and its “Related Corporations” and “Subsidiary Entities” (both as defined below); 

WHEREAS, the Trust maintains the Plan (as defined below), and the Trust desires to amend and restate the Plan, as hereinafter provided.

 NOW, THEREFORE, the Plan is hereby amended and restated (subject to the approval of the shareholders of the Trust) under the
following terms and conditions: 
 Plan 

1. Purpose. The Plan is intended to provide a means whereby the Trust may grant ISOs, NQSOs,
Restricted Shares, SARs, Performance Shares, Contract Shares, Bonus Shares and/or DERs to Key Employees and Non–Employee Trustees. Thereby, the Trust expects to attract and retain such Key Employees and Non–Employee Trustees and to
motivate them to exercise their best efforts on behalf of the Trust and its Subsidiary Entities. 

2. Definitions 

(a) “Annual Grant” shall have the meaning set forth in Section 7.3(c). 

(b) “Award” shall mean ISOs, NQSOs, Restricted Shares, SARs, Performance Shares, Contract Shares, Bonus
Shares and/or DERs awarded by the Committee to a Participant. 
 (c) “Award Agreement” shall
mean a written document evidencing the grant of an Award, as described in Section 10.1. 
 (d)
“Board” shall mean the Board of Trustees of the Trust. 
 (e) “Bonus Shares”
shall mean an Award that entitles the recipient to receive Shares without payment, as a bonus. 
 (f)
“Change in Control” shall mean: 
 (1) The acquisition by an individual, entity, or group
(within the meaning of section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d–3 promulgated under the Exchange Act) of 30 percent or more of the combined voting power of
the then outstanding voting securities of the Trust entitled to vote generally in the election of trustees (the “Outstanding Shares”); provided, however, that the following acquisitions shall not constitute a Change in Control:
(i) any acquisition directly from the Trust unless, in connection therewith, a majority of the individuals who constitute the Board as of the date immediately preceding such transaction cease to constitute at least a majority of the Board;
(ii) any acquisition by the Trust; (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Trust or any entity controlled by the Trust; (iv) any acquisition by any individual, entity, or
group in connection with a “Business Combination” (as defined in paragraph (3) below) that fails to qualify as a Change in Control pursuant to paragraphs (3) or (4) below; or (v) any acquisition by any Person entitled
to file Form 13G under the Exchange Act with respect to such acquisition; or 
 (2) Individuals who, as of the
date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual 

 

 A-1 

 
becoming a trustee subsequent to the date hereof whose appointment, election, or nomination for election by the Trust’s shareholders was approved by a vote of at least a majority of the
trustees then comprising the Incumbent Board (other than an appointment, election, or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the
trustees of the Trust) shall be, for purposes of this Plan, considered as though such person were a member of the Incumbent Board; or 

(3) The consummation of a reorganization, merger, or consolidation, or sale or other disposition of all or substantially
all of the assets of the Trust (a “Business Combination”), in each case, if, following such Business Combination all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Shares immediately
prior to such Business Combination beneficially own, directly or indirectly, less than 40 percent of, respectively, the then outstanding shares of equity securities and the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of trustees or directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity which as a result of such transaction owns the Trust or all or
substantially all of the Trust’s assets either directly or through one or more subsidiaries) in substantially the same proportions as such beneficial owners held their ownership, immediately prior to such Business Combination of the Outstanding
Shares; or 
 (4) The consummation of a Business Combination, if, following such Business Combination all or
substantially all of the individuals and entities who were the beneficial owners of the Outstanding Shares immediately prior to such Business Combination beneficially own, directly or indirectly, 40 percent or more but less than 60 percent of,
respectively, the then outstanding shares of equity securities and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of trustees or directors, as the case may be, of the entity resulting
from such Business Combination (including, without limitation, an entity which, as a result of such transaction, owns the Trust or all or substantially all of the Trust’s assets either directly or through one or more subsidiaries) in
substantially the same proportions as such beneficial owners held their ownership, immediately prior to such Business Combination, of the Outstanding Shares, and (i) any Person (excluding any employee benefit plan (or related trust) of the
Trust or such entity resulting from such Business Combination) beneficially owns, directly or indirectly, 30 percent or more of, respectively, the then outstanding shares of equity securities of the entity resulting from such Business Combination or
the combined voting power of the then outstanding voting securities of such entity except to the extent that such ownership existed prior to the Business Combination, or (ii) at least a majority of the members of the board of trustees or
directors of the entity resulting from such Business Combination were not members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination, or (iii) the
Chief Executive Officer of the Trust at the time of the execution of the initial agreement providing for such Business Combination is not appointed or elected to a comparable or higher position with the entity resulting from such Business
Combination, or (iv) the executive officers of the Trust holding the title of Executive Vice President or higher at the time of the execution of the initial agreement for such Business Combination constitute less than a majority of the
executive officers holding comparable or higher titles of the entity resulting from such Business Combination; or 

(5) A complete liquidation or dissolution of the Trust. The consummation of a Business Combination, following which all
or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Shares immediately prior to such Business Combination beneficially own, directly or indirectly, 60 percent or more of, respectively, the then
outstanding shares of equity securities and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of trustees or directors, as the case may be, of the entity resulting from such Business
Combination (including, without limitation, an entity which, as a result of such transaction, owns the Trust or all or substantially all of the Trust’s assets either directly or through one

  

 A-2 

 
or more subsidiaries) shall not constitute a “Change in Control” unless following such transaction the provisions of paragraphs (1) or (2) are independently satisfied.

 (g) “Code” shall mean the Internal Revenue Code of 1986, as amended. 

(h) “Committee” shall mean the Trust’s Executive Compensation and Human Resources Committee, which
shall consist solely of not fewer than two trustees of the Trust who shall be appointed by, and serve at the pleasure of, the Board (taking into consideration the rules under section 16(b) of the Exchange Act and the requirements of section 162(m)
of the Code). 
 (i) “Contract Date” shall mean the date specified in the Award Agreement on
which a Participant is entitled to receive Contract Shares, provided he or she is still providing services to the Trust or one of its Subsidiary Entities on each date. 

(j) “Contract Shares” shall mean an Award that entitles the recipient to receive unrestricted Shares,
without payment, if the recipient is still providing services to the Trust or one of its Subsidiary Entities as of the future date specified in the Award Agreement. 

(k) “Disability” shall mean a Participant’s “permanent and total disability,” as defined
in section 22(e)(3) of the Code. 
 (l) “DER” shall mean a dividend equivalent right—i.e.,
an Award that entitles the recipient to receive a benefit in lieu of cash dividends that would be payable on any or all Shares subject to another Award granted to the Participant, or that would be payable on a number of notional Shares unrelated to
any other Award, in either case had such Shares been outstanding. 
 (m) “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended. 
 (n) “Fair Market Value” shall mean the
following, arrived at by a good faith determination of the Committee: 
 (1) if there are sales of Shares on a
national securities exchange or in an over–the–counter market on the date of grant (or on such other date as value must be determined), then the mean between the highest and lowest quoted selling price on such date; or 

(2) if there are no such sales of Shares on the date of grant (or on such other date as value must be determined) but
there are such sales on dates within a reasonable period both before and after such date, the weighted average of the means between the highest and lowest selling price on the nearest date before and the nearest date after such date on which there
were such sales; or 
 (3) if paragraphs (1) and (2) above are not applicable, then such other method
of determining fair market value as shall be adopted by the Committee. 
 Where the Fair Market Value of Shares is determined
under (2) above, the average shall be weighed inversely by the respective numbers of trading days between the dates of reported sales and the specified valuation date, in accordance with Treas. Reg. §20.2031–2(b)(1) or any successor
thereto. 
 (o) “ISO” shall mean an incentive stock option—i.e., an Option which, at the
time such Option is granted under the Plan, qualifies as an incentive stock option within the meaning of section 422 of the Code, unless the Award Agreement states that the Option will not be treated as an ISO. 

(p) “Key Employee” shall mean an officer or other key employee of the Trust or one of its Subsidiary
Entities, as determined by the Committee in its sole discretion. 
 (q)
“More–Than–10–Percent Shareholder” shall mean any person who at the time of grant owns, directly or indirectly, or is deemed to own by reason of the attribution rules of section 424(d) of the Code, Shares possessing
more than 10 percent of the total combined voting power of all classes of Shares of the Trust or of a Related Corporation. 
  

 A-3 

 (r) “Non–Employee Trustee” shall mean a trustee of the
Trust who is not an employee of the Trust or of a Related Corporation or Subsidiary Entity. 
 (s)
“NQSO” shall mean a nonqualified stock option—i.e., an Option that, at the time such Option is granted to a Participant, does not meet the definition of an ISO, whether or not it is designated as a nonqualified stock option in
the Award Agreement. 
 (t) “Option” is an Award entitling the Participant on exercise thereof
to purchase Shares at a specified exercise price. 
 (u) “Participant” shall mean an individual
who has been granted an Award under the Plan. 
 (v) “Performance Shares” shall mean an Award
that entitles the recipient to receive Shares, without payment, following the attainment of designated individual or Corporate Performance Goals. 

(w) “Performance Goals” shall mean goals deemed by the Committee to be important to the success of the
Trust or any of its Subsidiary Entities. The Committee shall establish the specific measures for each such goal at the time an Award is granted, if the Committee desires to condition the Award on the achievement of Performance Goals. In creating
these measures, the Committee shall use one or more of the following business criteria: funds from operations, return on assets, return on net assets, asset turnover, return on equity, return on capital, market price appreciation of Shares, economic
value added, total shareholder return, net income, pre–tax income, earnings per Share, operating profit margin, net income margin, sales margin, cash flow, market share, inventory turnover, sales growth, capacity utilization, increase in
customer base, environmental health and safety, diversity, and/or quality. The business criteria may be expressed in absolute terms or relative to the performance of other individuals or companies or an index. 

(x) “Plan” shall mean this Amended and Restated Pennsylvania Real Estate Investment Trust 2003 Equity
Incentive Plan, as set forth herein and as it may be amended from time to time. 
 (y) “Related
Corporation” shall mean either a “subsidiary corporation” of the Trust (if any), as defined in section 424(f) of the Code, or the “parent corporation” of the Trust (if any), as defined in section 424(e) of the Code.

 (z) “Restricted Shares” shall mean an Award that grants the recipient Shares at no cost,
subject to whatever restrictions are determined by the Committee. 
 (aa) “SAR” shall mean a
share appreciation right—i.e., an Award entitling the recipient on exercise to receive an amount, in cash or Shares or a combination thereof (such form to be determined by the Committee), determined in whole or in part by reference to
appreciation in Share value. 
 (bb) “Securities Act” shall mean the Securities Act of 1933, as
amended. 
 (cc) “Shares” shall mean shares of beneficial interest in the Trust, par value
$1.00 per share. 
 (dd) “Short-Term Deferral Period” shall mean, with
respect to an amount (including Shares) payable pursuant to an Award, the 2
 1/2-month period beginning on the day immediately
following the last day of the Participant’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture. In no event shall interest be payable to reflect a payment date after the first day of the Short-Term
Deferral Period. 
 (ee) “Subsidiary Entity” shall mean an affiliate of the Trust that
is controlled by the Trust, directly or indirectly, through one or more intermediaries. 
 (ff)
“Trust” shall mean Pennsylvania Real Estate Investment Trust, a Pennsylvania business trust. 
  

 A-4 

 3. Administration 

(a) The Plan shall be administered by the Committee; provided, however, that the Board reserves the right to exercise
from time to time the authority and discretion otherwise reserved herein to the Committee, and, in that case, the authority and discretion of the Board will be coextensive with that of the Committee. Each member of the Committee, while serving as
such, shall be deemed to be acting in his or her capacity as a trustee of the Trust. Acts approved by a majority of the members of the Committee at which a quorum is present, or acts without a meeting reduced to or approved in writing by a majority
of the members of the Committee, shall be the valid acts of the Committee. Any authority of the Committee (except for the authority described in subsection (b)(1)–(4) below) may be delegated to a plan administrator. 

(b) The Committee shall have the authority: 

(1) to select the Key Employees and Non–Employee Trustees to be granted Awards under the Plan, and to grant such
Awards at such time or times as it may choose; 
 (2) to determine the type and size of each Award, including
the number of Shares subject to the Award; 
 (3) to determine the terms and conditions of each Award;

 (4) to amend an existing Award in whole or in part (including the extension of the exercise period for any
NQSO), except that the Committee may not (i) lower the exercise price of any Option, or (ii) without the consent of the Participant holding the Award, take any action under this clause if such action would adversely affect the rights of
such Participant with respect to such Award; 
 (5) to adopt, amend, and rescind rules and regulations for the
administration of the Plan; and 
 (6) to interpret the Plan and decide any questions and settle any
controversies that may arise in connection with it. 
 Such determinations and actions of the Committee (or its delegate), and all other
determinations and actions of the Committee (or its delegate) made or taken under authority granted by any provision of the Plan, shall be conclusive and shall bind all parties. Nothing in this subsection (b) shall be construed as limiting the
power of the Board or the Committee to make the adjustments described in Sections 8.3 and 8.4. 

4. Effective Date and Term of Plan 

(a) Effective Date. The Plan was adopted by the Board and became effective on July 24, 2003, was approved by
the shareholders of the Trust pursuant to Section 9(b) on November 11, 2003 and was amended and restated and reapproved by shareholders effective June 3, 2010. 

(b) Term of Plan for ISOs. No ISO may be granted under the Plan after the tenth anniversary of the most recent
date the Plan is approved by the shareholders of the Trust, but ISOs previously granted may extend beyond that date. Awards other than ISOs may be granted after that date. 

5. Shares Subject to the Plan. The aggregate number of Shares that may be delivered under the Plan
(pursuant to Options, SARs or otherwise) is 3,400,000 Shares (which number includes the Shares that were available under the Pennsylvania Real Estate Investment Trust 1999 Equity Incentive Plan). Further, no Key Employee shall receive Options and/or
SARs for more than 250,000 Shares during any calendar year under the Plan. However, the limits in the preceding two sentences shall be subject to the adjustment described in Section 8.3. Shares delivered under the Plan may be authorized but
unissued Shares or reacquired Shares, and the 
  

 A-5 

 
Trust may purchase Shares required for this purpose, from time to time, if it deems such purchase to be advisable. Any Shares subject to an Option which expires or otherwise terminates for any
reason whatever (including, without limitation, the surrender thereof without having been exercised), any Shares that are subject to an Award that are forfeited, any Shares not delivered to the Participant because they are withheld for the payment
of taxes with respect to an Award or in satisfaction of the exercise price of an Option, and any Shares subject to an Award which is payable in Shares or cash and that is satisfied in cash rather than in Shares, shall continue to be available for
Awards under the Plan. However, if an Option is cancelled, the Shares covered by the cancelled Option shall be counted against the maximum number of Shares specified above for which Options may be granted to a single Key Employee. 

6. Eligibility. The class of employees who shall be eligible to receive Awards (including ISOs) under
the Plan shall be the Key Employees (including any trustees of the Trust who are also Key Employees). The class of individuals who shall be eligible to receive Awards (other than ISOs) under the Plan shall be the Non–Employee Trustees. More
than one Award may be granted to a Participant under the Plan. 
 7. Types of Awards

 7.1. Options 

(a) Kinds of Options. Both ISOs and NQSOs may be granted by the Committee under the Plan; however, ISOs may only
be granted to Key Employees of the Trust or of a Related Corporation. Once an ISO has been granted, no action by the Committee that would cause the Option to lose its status as an ISO under the Code will be effective without the consent of the
Participant holding the Option. 
 (b) $100,000 Limit. The aggregate Fair Market Value of the Shares with
respect to which ISOs are exercisable for the first time by a Key Employee during any calendar year (counting ISOs under this Plan and under any other stock option plan of the Trust or a Related Corporation) shall not exceed $100,000. If an Option
intended as an ISO is granted to a Key Employee and the Option may not be treated in whole or in part as an ISO pursuant to such $100,000 limit, the Option shall be treated as an ISO to the extent it may be so treated under the limit and as an NQSO
as to the remainder. For purposes of determining whether an ISO would cause the limit to be exceeded, ISOs shall be taken into account in the order granted. The annual limits set forth above for ISOs shall not apply to NQSOs. 

(c) Exercise Price. Except as provided in Section 10.10, the exercise price of an Option shall be determined
by the Committee, subject to the following: 
 (1) The exercise price of an ISO shall not be less than the
greater of (i) 100 percent (110 percent in the case of an ISO granted to a More–Than–10–Percent Shareholder) of the Fair Market Value of the Shares subject to the Option, determined as of the time the Option is granted, or
(ii) the par value per Share. 
 (2) The exercise price of an NQSO shall not be less than the greater of
(i) 100% percent of the Fair Market Value of the Shares subject to the Option, determined as of the time the Option is granted, or (ii) the par value per Share. 

(d) Term of Options. The term of each Option may not be more than 10 years (five years, in the case of an ISO
granted to a More–Than–10–Percent Shareholder) from the date the Option was granted, or such earlier date as may be specified in the Award Agreement. 

(e) Exercise of Options. An Option shall become exercisable at such time or times, and on such conditions, as the
Committee may specify. The Committee may at any time and from time to time accelerate the time at which all or any part of the Option may be exercised. Any exercise of an Option must be in writing, signed by the proper person, and delivered or
mailed to the Trust, accompanied by (i) any other documents required by the Committee and (ii) payment in full in accordance with 

 

 A-6 

 
subsection (f) below for the number of Shares for which the Option is exercised (except that, in the case of an exercise arrangement approved by the Committee and described in subsection
(f)(3) below, payment may be made as soon as practicable after the exercise). Only full Shares shall be issued under the Plan, and any fractional Share that might otherwise be issuable upon exercise of an Option granted hereunder shall be forfeited.

 (f) Payment for Shares. The Award Agreement shall set forth, from among the following alternatives,
how the exercise price is to be paid: 
 (1) in cash or by check (acceptable to the Committee), bank draft, or
money order payable to the order of the Trust; 
 (2) in Shares previously acquired by the Participant;
provided, however, that such Shares have been held by the Participant for such period of time as required to be considered “mature” Shares for purposes of accounting treatment; 

(3) by delivering a properly executed notice of exercise of the Option to the Trust and a broker, with irrevocable
instructions to the broker promptly to deliver to the Trust the amount of sale or loan proceeds necessary to pay the exercise price of the Option; or 

(4) by any combination of the above–listed forms of payment or such other means as the Committee may approve.

 In the event the Option price is paid, in whole or in part, with Shares, the portion of the Option price so paid shall be
equal to the Fair Market Value on the date of exercise of the Option of the Shares surrendered in payment of such Option price. 

(g) No Repricing. Repricing of Options shall not be permitted without the approval of the shareholders of the
Trust. For this purpose, a “repricing” means any of the following (or any other action that has the same effect as any of the following): (i) changing the terms of an Option to lower its exercise price (other than on account of
capital adjustments resulting from share splits, etc., as described in Section 8.3); (ii) any other action that is treated as a “repricing” under generally accepted accounting principles; and (iii) repurchasing for cash or
canceling an Option in exchange for another Award at a time when its exercise price is greater than the Fair Market Value of the underlying Shares, unless the cancellation and exchange occurs in connection with an event set forth in Section 8.4
(involving certain corporate transactions). Such cancellation and exchange will be considered a “repricing” regardless of whether it would be treated as a “repricing” under generally accepted accounting principles and regardless
of whether it is voluntary on the part of the Participant. 
 7.2. Share
Appreciation Rights 
 (a) Grant of Share Appreciation Rights. SARs may be granted to a Key Employee
or a Non–Employee Trustee by the Committee. SARs may be granted in tandem with, or independently of, Options granted under the Plan. An SAR granted in tandem with an Option that is not an ISO may be granted either at or after the time the
Option is granted. An SAR granted in tandem with an ISO may be granted only at the time the ISO is granted. 

(b) Nature of Share Appreciation Rights. An SAR entitles the Participant to receive, with respect to each Share as
to which the SAR is exercised, the excess of the Share’s Fair Market Value on the date of exercise over its Fair Market Value on the date the SAR was granted. Such excess shall be paid in cash, Shares, or a combination thereof, as determined by
the Committee. With respect to an SAR paid in Shares, the total number of Shares actually issued to a Participant with respect to such SAR, rather than the number of Shares subject to such SAR, shall reduce the number of Shares available for
issuance under the Plan. 
  

 A-7 

 (c) Rules Applicable to Tandem Awards. When SARs are granted in
tandem with Options, the number of SARs granted to a Participant that shall be exercisable during a specified period shall not exceed the number of Shares that the Participant may purchase upon the exercise of the related Option during such period.
Upon the exercise of an Option, the SAR relating to the Shares covered by such Option will terminate. Upon the exercise of an SAR, the related Option will terminate to the extent of an equal number of Shares. The SAR will be exercisable only at such
time or times, and to the extent, that the related Option is exercisable and will be exercisable in accordance with the procedure required for exercise of the related Option. The SAR will be transferable only when the related Option is transferable,
and under the same conditions. An SAR granted in tandem with an ISO may be exercised only when the Fair Market Value of the Shares subject to the ISO exceeds the exercise price of such ISO. 

(d) Exercise of Independent Share Appreciation Rights. An SAR not granted in tandem with an Option shall become
exercisable at such time or times, and on such conditions, as the Committee may specify in the Award Agreement. The Committee may at any time accelerate the time at which all or any part of the SAR may be exercised. Any exercise of an independent
SAR must be in writing, signed by the proper person, and delivered or mailed to the Trust, accompanied by any other documents required by the Committee. 

(e) No Repricing. Repricing of SARs shall not be permitted without the approval of the shareholders of the Trust.
For this purpose, a “repricing” means any of the following (or any other action that has the same effect as any of the following): (i) changing the terms of an SAR to lower its exercise price (i.e., its starting value) (other than on
account of capital adjustments resulting from share splits, etc., as described in Section 8.3); (ii) any other action that is treated as a “repricing” under generally accepted accounting principles; and (iii) repurchasing
for cash or canceling an SAR in exchange for another Award at a time when its exercise price (i.e., its starting value) is greater than the Fair Market Value of the underlying Shares, unless the cancellation and exchange occurs in connection with an
event set forth in Section 8.4 (involving certain corporate transactions). Such cancellation and exchange will be considered a “repricing” regardless of whether it would be treated as a “repricing” under generally accepted
accounting principles and regardless of whether it is voluntary on the part of the Participant. 
 
7.3. Restricted Shares 
 (a) General Requirements. Restricted Shares may be issued or
transferred to a Key Employee or a Non–Employee Trustee for no consideration. 
 (b) Restrictions.
Except as otherwise specifically provided by the Plan, Restricted Shares may not be sold, assigned, transferred, pledged, or otherwise encumbered or disposed of, and if the Participant ceases to be an employee or a Non–Employee Trustee of any
of the Trust or its Subsidiary Entities or any reason, shall be forfeited to the Trust. These restrictions will lapse at such time or times, and on such conditions, as the Committee may specify in the Award Agreement. Upon the lapse of all
restrictions, the Shares will cease to be Restricted Shares for purposes of the Plan. The Committee may at any time accelerate the time at which the restrictions on all or any part of the Shares will lapse. 

(c) Annual Grant to Non-Employee Trustees. As of the first business day following each Annual Meeting of
Shareholders of the Trust (or, if the Shares do not trade on such business day, then as of the first trading day thereafter), such number of Restricted Shares as determined by the Board in its sole discretion shall be issued automatically for no
consideration to each Non-Employee Trustee then in service with the Trust. The automatic grant of Restricted Shares to each Non-Employee Trustee pursuant to the preceding sentence shall be referred to herein as the “Annual Grant.”
Restrictions with respect to Restricted Shares underlying Annual Grants will generally lapse with respect to one-third of the Restricted Shares on May 1 of each year following the applicable grant date (or, if such May 1 is not a trading
day, the trading day next preceding such May 1); provided, that such restrictions will 
  

 A-8 

 
immediately lapse in full upon the Participant’s death or Disability or upon the occurrence of a Change in Control. If, as of the grant date of any Annual Grant, the number of Shares
available for issuance under the Plan is insufficient to make all the Annual Grants then due to be issued pursuant to this Section 7.3(c), no Annual Grants will then be made and the operation of this Section 7.3(c) will then be
automatically suspended. 
 (d) Rights as a Shareholder. Unless the Committee determines otherwise, a
Participant who receives Restricted Shares shall have certain rights of a shareholder with respect to the Restricted Shares, including voting and dividend rights, subject to the restrictions described in subsection (b) above and any other
conditions imposed by the Committee at the time of grant. Unless the Committee determines otherwise, certificates evidencing Restricted Shares will remain in the possession of the Trust until such Shares are free of all restrictions under the Plan.

 (e) Notice of Tax Election. Any Participant making an election under section 83(b) of the Code for the
immediate recognition of income attributable to an Award of Restricted Shares must provide a copy thereof to the Trust within 10 days of the filing of such election with the Internal Revenue Service. 

7.4. Performance Shares; Performance Goals 

(a) Grant. The Committee may grant Performance Shares to any Key Employee or Non–Employee Trustee,
conditioned upon the meeting of designated Performance Goals. The Committee shall determine the number of Performance Shares to be granted. 

(b) Performance Period and Performance Goals. When Performance Shares are granted, the Committee shall establish
the performance period during which performance shall be measured, the Performance Goals, and such other conditions of the Award as the Committee deems appropriate. 

(c) Delivery of Performance Shares. At the end of each performance period, the Committee shall determine to what
extent the Performance Goals and other conditions of the Award have been met and the number of Shares, if any, to be delivered with respect to the Award. Any Shares deliverable pursuant to this subsection (c) shall be delivered no later than
the end of the Short-Term Deferral Period, except to the extent such delivery is deferred pursuant to a deferral arrangement that complies with Section 409A of the Code and the final regulations issued thereunder or any amendment thereof or
successor thereto. 
 7.5. Contract Shares 

(a) Grant. The Committee may grant Contract Shares to any Key Employee or Non–Employee Trustee, conditioned
upon the Participant’s continued provision of services to the Trust or one of its Subsidiary Entities through the date(s) specified in the Award Agreement. The Committee shall determine the number of Contract Shares to be granted. 

(b) Contract Dates. When Contract Shares are granted, the Committee shall establish the Contract Date(s) on which
the Contract Shares shall be delivered to the Participant, provided the Participant is still providing services to the Trust or one of its Subsidiary Entities on such date(s). 

(c) Delivery of Contract Shares. If the Participant is still providing services to the Trust or to one or more of
its Subsidiary Entities as of the Contract Date(s), the Committee shall cause the Contract Shares to be delivered to the Participant in accordance with the terms of the Award Agreement. 

7.6. Bonus Shares. The Committee may grant Bonus Shares to any Key Employee or
Non–Employee Trustee as a bonus to the Key Employee or Non–Employee Trustee for services to the Trust or to one or more of its Subsidiary Entries. The Committee shall determine the number of Bonus Shares to be granted. 

 

 A-9 

 7.7. Dividend Equivalent Rights. The
Committee may provide for payment to a Key Employee or Non–Employee Trustee of DERs, either currently or in the future, or for the investment of such DERs on behalf of the Participant. Events Affecting Outstanding Awards 

8. Events Affecting Outstanding Awards 

8.1. Termination of Service (Other Than by Death or Disability) If a Participant ceases to
be an employee or trustee of any of the Trust and its Subsidiary Entities for any reason other than death or Disability, the following shall apply: 

(a) Except as otherwise stated in the Award Agreement, all Options and SARs held by the Participant that were not
exercisable immediately prior to the Participant’s termination of service shall terminate at that time. Any Options or SARs that were exercisable immediately prior to the termination of service will continue to be exercisable for three months
(or for such longer period as the Award Agreement states), and shall thereupon terminate, unless the Award Agreement provides by its terms for immediate termination or for termination in less than three months in the event of termination of service
in specific circumstances. In no event, however, shall an Option or SAR remain exercisable beyond the latest date on which it could have been exercised without regard to this Section. For purposes of this subsection (a), a termination of service
shall not be deemed to have resulted by reason of a sick leave or other bona fide leave of absence approved for purposes of the Plan by the Committee. 

(b) Except as otherwise stated in the Award Agreement, all Restricted Shares held by the Participant at the time of
termination of service must be transferred to the Trust (and, in the event the certificates representing such Restricted Shares are held by the Trust, such Restricted Shares shall be so transferred without any further action by the Participant), in
accordance with Section 7.3. 
 (c) Except as otherwise stated in the Award Agreement, all Performance
Shares, Contract Shares and DERs to which the Participant was not irrevocably entitled prior to the termination of service shall be forfeited and the Award canceled as of the date of such termination of service. 

8.2. Death or Disability. If a Participant dies or terminates his or her services on
account of a Disability, the following shall apply: 
 (a) Except as otherwise stated in the Award Agreement,
all Options and SARs held by a Participant that were not exercisable immediately prior to the Participant’s death or termination of service on account of Disability shall terminate at the date of death or termination of service on account of
Disability. Any Options or SARs that were exercisable immediately prior to death or termination of service on account of Disability, as the case may be, will continue to be exercisable by the Participant or by the Participant’s legal
representative (in the case of Disability), or by the Participant’s executor or administrator or by the person or persons to whom the Option or SAR is transferred by will or the laws of descent and distribution (in the case of death), for the
one–year period ending with the first anniversary of the Participant’s death or termination of service on account of Disability (or for such shorter or longer period as may be provided in the Award Agreement), and shall thereupon
terminate. In no event, however, shall an Option or SAR remain exercisable beyond the latest date on which it could have been exercised without regard to this Section. 

(b) Except as otherwise stated in the Award Agreement, all Restricted Shares held by the Participant at the date of death
or termination of service on account of Disability, as the case may be, must be transferred to the Trust (and, in the event the certificates representing such Restricted Shares are held by the Trust, such Restricted Shares shall be so transferred
without any further action by the Participant), in accordance with Section 7.3. 
 (c) Except as otherwise
stated in the Award Agreement, all Performance Shares, Contract Shares and DERs to which the Participant was not irrevocably entitled prior to death or termination of service on account of Disability, as the case may be, shall be forfeited and the
Award canceled as of the date of death or termination of service on account of Disability. 
  

 A-10 

 8.3. Capital Adjustments. The maximum
number of Shares that may be delivered under the Plan, the maximum number of SARs not in tandem with Options, the maximum number of DERs payable in notional Shares that may be granted, and the maximum number of Shares with respect to which Options
or SARs may be granted to any Key Employee under the Plan, all as stated in Section 5, and the number of Shares issuable upon the exercise or vesting of outstanding Awards under the Plan (as well as the exercise price per Share under
outstanding Options) shall be proportionately adjusted, as may be deemed appropriate by the Committee, to reflect any increase or decrease in the number of issued Shares resulting from a subdivision (share–split), consolidation (reverse split),
share dividend, or similar change in the capitalization of the Trust. No adjustment under this Section shall be made (i) to an outstanding ISO if such adjustment would constitute a modification under section 424(h) of the Code, unless the
Participant consents to such adjustment, and (ii) to an outstanding NQSO or SAR if such adjustment would constitute a modification under Treas. Reg. §1.409A-1(b)(5)(v) or any amendment thereof or successor thereto unless the Participant
consents to such adjustment. 
 8.4. Certain Corporate Transactions

 (a) In the event of a corporate transaction (as, for example, a merger, consolidation, acquisition of
property or shares, separation, reorganization, or liquidation), each outstanding Award shall be assumed by the surviving or successor entity; provided, however, that in the event of a proposed corporate transaction, the Committee may terminate all
or a portion of any outstanding Award, effective upon the closing of the corporate transaction, if it determines that such termination is in the best interests of the Trust. If the Committee decides to terminate outstanding Options or SARs, the
Committee shall give each Participant holding an Option or SAR to be terminated not less than seven days’ notice prior to any such termination, and any Option or SAR that is to be so terminated may be exercised (if and only to the extent that
it is then exercisable) up to, and including the date immediately preceding such termination. Further, the Committee, in its discretion, may (i) accelerate, in whole or in part, the date on which any or all Options and SARs become exercisable,
(ii) remove the restrictions from the outstanding Restricted Shares, (iii) cause the delivery of any Performance Shares, even if the associated Performance Goals have not been met, (iv) cause the delivery of any Contract Shares, even
if the Contract Date(s) have not been reached, and/or (v) cause the payment of any DERs. The Committee also may, in its discretion, change the terms of any outstanding Award to reflect any such corporate transaction; provided that, (i) in
the case of ISOs, such change would not constitute a “modification” under section 424(h) of the Code unless the Participant consents to the change, and (ii) in the case of NQSOs and SARs, such change would not constitute a
modification under Treas. Reg. §1.409A-1(b)(5)(v) or any amendment thereof or successor thereto unless the Participant consents to the change. 

(b) In lieu of the action described in subsection (a) above, the Committee may, in its discretion, arrange to have
the surviving or acquiring entity or affiliate grant to each Participant a replacement award which, in the judgment of the Committee, is substantially equivalent to the Award. 

9. Suspension, Amendment or Termination of the Plan 

(a) In General. The Board, pursuant to a written resolution, may from time to time suspend or terminate the Plan
or amend the Plan and any outstanding Award Agreement evidencing Annual Grants, and, except as provided in Sections 3(b)(4), 7.1(a), 7.1(g), 7.1(e) and 8.4(a), the Committee may amend any outstanding Awards (other than Awards of Annual Grants) in
any respect whatsoever; except that, without the approval of the shareholders (given in the manner set forth in subsection (b) below)— 

(1) no amendment may be made that would— 

(A) change the class of employees eligible to participate in the Plan with respect to ISOs; 

 

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 (B) except as permitted under Section 8.3, increase the maximum number
of Shares with respect to which ISOs may be granted under the Plan; or 
 (C) extend the duration of the Plan
under Section 4(b) with respect to any ISOs granted hereunder; 
 (2) no amendment may be made that would
constitute a modification of the material terms of the “performance goal” within the meaning of Treas. Reg. § 1.162–27(e)(4)(vi) or any successor thereto (to the extent compliance with section 162(m) of the Code is desired); and

 (3) no amendment may be made that would require shareholder approval under the applicable rules of the New
York Stock Exchange or as required under any other applicable law, rule or regulation. 
 Notwithstanding the foregoing, no
such suspension, termination, or amendment shall materially impair the rights of any Participant holding an outstanding Award without the consent of such Participant. 

(b) Manner of Shareholder Approval. The approval of shareholders must be effected by a majority of the votes cast
(including abstentions, to the extent abstentions are counted as voting under applicable state law), in a separate vote at a duly held shareholders’ meeting at which a quorum representing a majority of all outstanding voting Shares is, either
in person or by proxy, present and voting on the Plan. 
 10. Miscellaneous 

10.1. Documentation of Awards. Awards shall be evidenced by such written Award
Agreements as may be prescribed by the Committee from time to time. Such instruments may be in the form of agreements to be executed by both the Participant and the Trust, or certificates, letters, or similar instruments, which need not be executed
by the Participant but acceptance of which by the Participant will evidence agreement by the Participant to the terms thereof. 

10.2. Rights as a Shareholder. Except as specifically provided by the Plan or an
Award Agreement, the receipt of an Award shall not give a Participant rights as a shareholder; instead, the Participant shall obtain such rights, subject to any limitations imposed by the Plan or the Award Agreement, upon the actual receipt of
Shares. 
 10.3. Conditions on Delivery of Shares. The Trust shall not
deliver any Shares pursuant to the Plan or remove restrictions from Shares previously delivered under the Plan (i) until all conditions of the Award have been satisfied or removed, (ii) until all applicable Federal and state laws and
regulations have been complied with, and (iii) if the outstanding Shares are at the time of such delivery listed on any stock exchange, until the Shares to be delivered have been listed or authorized to be listed on such exchange. If an Award
is exercised by the Participant’s legal representative, the Trust will be under no obligation to deliver Shares pursuant to such exercise until the Trust is satisfied as to the authority of such representative. 

10.4. Registration and Listing of Shares. If the Trust shall deem it necessary to
register under the Securities Act or any other applicable statute any Shares purchased or otherwise delivered under this Plan, or to qualify any such Shares for an exemption from any such statutes, the Trust shall take such action at its own
expense. Purchases and grants of Shares hereunder shall be postponed as necessary pending any such action. 
 
10.5. Compliance with Rule 16b–3. All elections and transactions under this Plan by persons subject to Rule 16b–3, promulgated under section 16(b) of the Exchange Act, or any successor to such Rule, are

  

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intended to comply with at least one of the exemptive conditions under such Rule. The Committee shall establish such administrative guidelines to facilitate compliance with at least one such
exemptive condition under Rule 16b–3 as the Committee may deem necessary or appropriate. 
 
10.6. Tax Withholding 
 (a) Obligation to Withhold. The Trust shall withhold from any cash
payment made pursuant to an Award an amount sufficient to satisfy all Federal, state, and local withholding tax requirements (the “withholding requirements”). In the case of an Award pursuant to which Shares may be delivered, the Committee
may require that the Participant or other appropriate person remit to the Trust an amount sufficient to satisfy the withholding requirements, or make other arrangements satisfactory to the Committee with regard to such requirements, prior to the
delivery of any Shares. 
 (b) Election to Withhold Shares. The Committee, in its discretion, may permit
or require the Participant to satisfy the withholding requirements, in whole or in part, by electing to have the Trust withhold Shares (or by returning previously acquired Shares to the Trust); provided, however, that the Trust may limit the number
of Shares withheld to satisfy the tax withholding requirements to the extent necessary to avoid adverse accounting consequences. Shares shall be valued, for purposes of this subsection (b), at their Fair Market Value (determined as of the date an
amount is includible in income by the Participant (the “Determination Date”), rather than the date of grant). The Committee shall adopt such withholding rules as it deems necessary to carry out the provisions of this Section. 

10.7. Transferability of Awards. No ISO may be transferred other than by will or by
the laws of descent and distribution. No other Award may be transferred, except to the extent permitted in the applicable Award Agreement or by will or the laws of descent and distribution. During a Participant’s lifetime, an Award requiring
exercise may be exercised only by the Participant (or in the event of the Participant’s incapacity, by the person or persons legally appointed to act on the Participant’s behalf). 

10.8. Registration. If the Participant is married at the time Shares are delivered
and if the Participant so requests at such time, the certificate or certificates for such Shares shall be registered in the name of the Participant and the Participant’s spouse, jointly, with right of survivorship. 

10.9. Acquisitions. Notwithstanding any other provision of this Plan, Awards may be
granted hereunder in substitution for awards held by directors, trustees and key employees of another entity that engages in a merger, consolidation, acquisition of assets, or similar transaction with the Trust or a Related Corporation, provided the
terms of the substitute Awards so granted conform to the terms set forth in this Plan (except that the exercise price of any substituted Option—whether an ISO or an NQSO—may be adjusted according to the provisions of section 424(a) of the
Code, if the grant of such substituted Option is pursuant to a transaction described in such section of the Code). 

10.10. Replacement of Outstanding Options. The Committee shall have the authority to
cancel, at any time and from time to time, with the consent of the affected Participant(s), any or all outstanding Options under the Plan and to grant in substitution therefor, but not within six months before or after such cancellation, new Options
under the Plan covering the same or a different number of Shares but having a per–Share purchase price not less than the greater of par value or 100 percent of the Fair Market Value of a Share on the new date of the grant. The Committee may
permit the voluntary surrender of all or a portion of any Option to be conditioned upon the granting to the Participant under the Plan of a new Option for the same or a different number of Shares as the Option surrendered, or may require such
voluntary surrender as a condition precedent to a grant of a new Option to such Participant. Any new Option (i) shall not be granted within six months before or after such voluntary surrender, and (ii) shall be exercisable at the price,
during the period, and in accordance with any other terms and conditions specified by the Committee at the time the new Option is granted, all determined in accordance with the provisions of the Plan without regard to the price, period of exercise,
and any other terms or conditions of the Option surrendered. 
  

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 10.11. Employment Rights. Neither the
adoption of the Plan nor the grant of Awards will confer on any person any right to continued employment by the Trust or any of its Subsidiary Entities or affect in any way the right of any of the foregoing to terminate an employment relationship at
any time. 
 10.12. Indemnification of Board and Committee. Without
limiting any other rights of indemnification that they may have from the Trust or any of its Subsidiary Entities, the members of the Board and the members of the Committee shall be indemnified by the Trust against all costs and expenses reasonably
incurred by them in connection with any claim, action, suit, or proceeding to which they or any of them may be a party by reason of any action taken or failure to act under, or in connection with, the Plan or any Award granted thereunder, and
against all amounts paid by them in settlement thereof (provided such settlement is approved by legal counsel selected by the Trust) or paid by them in satisfaction of a judgment in any such action, suit, or proceeding, except a judgment based upon
a finding of willful misconduct or recklessness on their part. Upon the making or institution of any such claim, action, suit, or proceeding, the Board or Committee member shall notify the Trust in writing, giving the Trust an opportunity, at its
own expense, to handle and defend the same before such Board or Committee member undertakes to handle it on his or her own behalf. The provisions of this Section shall not give members of the Board or the Committee greater rights than they would
have under the Trust’s by–laws or Pennsylvania law. 
 10.13.
Application of Funds. Any cash proceeds received by the Trust from the sale of Shares pursuant to Awards granted under the Plan shall be added to the general funds of the Trust. Any Shares received in payment for additional Shares upon
exercise of an Option shall become treasury shares. 
 10.14. Governing
Law. The Plan shall be governed by the applicable Code provisions to the maximum extent possible. Otherwise, the laws of the Commonwealth of Pennsylvania (without reference to the principles of conflict of laws) shall govern the operation of,
and the rights of Key Employees or Non–Employee Trustees under, the Plan and Awards granted hereunder. 

IN WITNESS WHEREOF, Pennsylvania Real Estate Investment Trust has caused this Plan to be duly executed this
19th day of April, 2010. 

 

			
	 PENNSYLVANIA REAL ESTATE

INVESTMENT TRUST

		
	 By:
	 	 /s/ Bruce Goldman

	 Title:
	 	 Executive Vice President and General

Counsel

  

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