Document:

Amendment No. 1 to Amended and Restated Employment Agreement--Jeffrey Linn

 Exhibit 10.2 
 AMENDMENT TO EMPLOYMENT AGREEMENT 
 This Amendment to Employment Agreement (this “Amendment”) is
entered into between Pennsylvania Real Estate Investment Trust, a Pennsylvania business trust (“Company”), and Jeffrey A. Linn (“Executive”), effective as of May 1, 2009. 
 BACKGROUND 
 Executive and Company are party
to an Employment Agreement, as amended and restated on December 30, 2008 (the “Employment Agreement”), which sets forth the terms and conditions of Executive’s employment with Company. Executive and Company wish to amend the
terms of the Employment Agreement to correct scrivener’s errors contained therein, all as set forth below. Hereafter, references to the “Employment Agreement,” “Agreement,” “herein” or words of like import in the
Employment Agreement shall refer to the Employment Agreement as amended hereby or by any written subsequent amendment thereto. 
 NOW,
THEREFORE, the parties hereto, intending to be legally bound hereby, agree as follows: 
 1. Section 1.2(a) of the Employment Agreement
shall be amended by deleting the words “and Secretary of Company” from the first sentence therein and the words “and Secretary” from the last sentence thereof and, as so corrected and amended, Section 1.2 shall read in its
entirety as follows: 
  

	 	“(a)	Executive shall continue to serve as Executive Vice President-Acquisitions and, subject to the supervision and control of the Chief Executive Officer, shall have the duties and
authority generally consistent with such office. Executive shall perform such other duties and shall have such authority as may from time to time be specified by the Chief Executive Officer of Company and as shall be consistent with the status and
authority of his current office. Executive shall also serve as Executive Vice President-Acquisitions of PREIT Associates, L.P. (“PALP”), of which Company is the general partner.” 

 2. Clause (y) in the second sentence of Section 4.4(a)(1) of the Employment Agreement shall be
amended by deleting the words “or a multiple thereof,” and the third sentence of Section 4.4(a)(1) shall be amended by adding the words “or a multiple thereof” after the words “Executive’s base salary.” As so
corrected and amended, the second and third sentences of Section 4.4(a)(1) shall read as follows: 
 “In addition, subject to
subsection (c) below, Company shall pay Executive a lump-sum cash payment equal to the greater of (x) (A) Executive’s then current Base Salary through the end of the Term plus (B) an amount equal to the average of the
percentages of Base Salary that were paid to Executive as cash bonuses in each of the last three full calendar years multiplied by Executive’s then current Base Salary (the “Average Bonus”) and further multiplied by a fraction, the
denominator of which is 365 and the numerator of which is the number of days in the calendar year that expired prior to termination of employment and (y) two times (A) Executive’s then current annual Base Salary plus (B) an
amount equal to the Average Bonus. The portion of the lump-sum cash payment contemplated by the preceding sentence that represents Executive’s Base Salary or a multiple thereof shall be discounted from the dates that the Base Salary would have
been payable – at the time of termination during the relevant period following termination in accordance with Company’s regular payroll practices – to present value on the date of payment at a discount rate equal to 200 basis points
plus the London Interbank Offered Rate for a one-month period set forth in the WSJ on the date of termination of employment or, if the WSJ is not published on such date, the first day following such termination on which the WSJ is published.

 3. Section 4.5(c) of the Employment Agreement shall be corrected and amended to read, in its entirety, as follows: 
  

	 	“(c)	Notwithstanding anything to the contrary in this Section, if the amounts otherwise payable to Executive would, in the opinion of Company’s regularly engaged independent
certified public accountants, constitute “excess parachute payments” within the meaning of section 280G of the IRC, and if the net payment to Executive (after giving effect to the excise tax imposed by section 4999 of the IRC and to
federal, state and local income and employment taxes payable by Executive on such amounts) would be increased by reducing the total compensation payable pursuant to this Section to the maximum amount that may be paid to Executive without such
payment constituting an “excess parachute payment,” then the compensation payable under this Section shall be so reduced. In the event Company determines such a reduction is necessary, it shall promptly notify Executive of the amount of
the required reduction. To the fullest extent possible, such reduction shall first be effected through a reduction in the number of restricted shares that would otherwise vest and thereafter by a reduction in cash payments to the extent of the
balance.” 

 4. Except as amended hereby, all terms and conditions as set forth in the Employment Agreement shall remain
in full force and effect. 
  

 2 

 5. This amendment may be executed in a number of counterparts, each of which shall be an original but all
of which together shall constitute one instrument. 
 IN WITNESS WHEREOF, Executive and Company have caused this Amendment to be executed as
of the date first above written. 
  

			
	PENNSYLVANIA REAL ESTATE
	INVESTMENT TRUST
		
	By:	 	 /s/ Bruce Goldman

	Name:	 	Bruce Goldman
	Title:	 	Executive Vice President
		 	& General Counsel
	
	 /s/ Jeffrey A. Linn

	Jeffrey A. Linn

  

 32009-2011 Restricted Cash Unit Program

 Exhibit 10.3 
 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 
 2009-2011 PERFORMANCE INCENTIVE UNIT PROGRAM 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
			
	1.	  	PURPOSES	  	1
			
	2.	  	DEFINITIONS	  	1
			
	3.	  	AWARD AGREEMENT	  	3
			
	4.	  	PERFORMANCE GOAL; SETTLEMENT OF UNITS	  	3
			
	5.	  	BENEFICIARY DESIGNATION	  	5
			
	6.	  	DELIVERY TO GUARDIAN	  	5
			
	7.	  	SOURCE OF PAYMENTS	  	5
			
	8.	  	CAPITAL ADJUSTMENTS	  	5
			
	9.	  	TAX WITHHOLDING	  	5
			
	10.	  	ADMINISTRATION	  	6
			
	11.	  	AMENDMENT	  	6
			
	12.	  	HEADINGS	  	6
		
	APPENDIX A	  	1
		
	APPENDIX B	  	1

 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 
 2009-2011 PERFORMANCE INCENTIVE UNIT PROGRAM 
 PREAMBLE 
 WHEREAS, Pennsylvania Real Estate Investment Trust (the “Trust”) desires to establish a program for the 2009 through 2011 period for the
benefit of certain officers of the Trust and PREIT Services, LLC (one of the Trust’s Subsidiary Entities) whereby such officers would receive Performance Incentive Units (“Units”) which would entitle such officers to receive cash
payments in respect of such Units based on the extent to which the Trust attains the corporate goal set forth in the program. 
 NOW,
THEREFORE, effective as of January 1, 2009, the Pennsylvania Real Estate Investment Trust 2009-2011 Performance Incentive Unit Program is hereby adopted by the Trust, with the following terms and conditions: 
 1. Purposes. The purposes of the Program are to motivate certain officers of the Employer to reach and exceed challenging goals for the Trust of
profitability and growth, and to focus the attention of the eligible officers on a critical financial indicator used to measure the success of the Trust relative to other companies in the same business as the Trust. 
 2. Definitions 
 (a)
“Award” means an award of Units to a Participant. 
 (b) “Award Agreement” means a written document
evidencing the grant to a Participant of an Award. 
 (c) “Board” means the Board of Trustees of the Trust. 
 (d) “Business Combination” means “Business Combination” as such term is defined in the definition of “Change in
Control.” 
 (e) “Cause” means “Cause” as such term is defined in a Participant’s Employment Agreement
or, if the Participant is not a party to an Employment Agreement, then (solely for purposes of this Program) as set forth below: 
 (1) Fraud
in connection with the Participant’s employment; theft, misappropriation or embezzlement of funds of the Trust or its affiliates; or a willful violation of the provisions of the Trust’s Code of Business Conduct with respect to the purchase
or sale of securities of the Trust; 
 (2) Indictment of the Participant for a crime involving moral turpitude; 
 (3) Failure of the Participant to perform his or her duties to the Employer (other than on account of illness, accident, vacation or leave of absence)
that persists – after written demand for substantial performance which specifically identifies the manner in which the Participant has failed to perform – for more than 30 calendar days after such notice to him or her; or 

 (4) The Participant’s repeated abuse of alcohol or drugs. 
 (f) “Change in Control” means “Change in Control” as such term is defined in a Participant’s Employment Agreement or, if
the Participant is not a party to an Employment Agreement, then as defined in the Plan. 
 (g) “Code” means the Internal
Revenue Code of 1986, as amended. 
 (h) “Committee” means the Executive Compensation and Human Resources Committee of the
Board, which Committee has the responsibility to administer the Program under Section 10 hereof. 
 (i) “Corporate
Goal” means the specific performance goal, set forth in Section 4(a) hereof, which must be achieved in order for a Participant to receive payments in respect of Units under an Award. 
 (j) “Disability Termination” means the termination of a Participant’s employment under the disability provisions of the
Participant’s Employment Agreement or, if the Participant is not a party to an Employment Agreement, then as a result of a “Disability” as defined in the Plan. 
 (k) “Effective Date” means January 1, 2009. 
 (l) “Employer” means, collectively and individually (as applicable), the Trust and Services, and any other “Related Corporation” or “Subsidiary Entity” (both as defined in the
Plan). 
 (m) “Employment Agreement” means the written agreement entered into by a Participant and an Employer (if any)
setting forth the terms and conditions of the Participant’s employment, as amended at any applicable time. 
 (n) “Good
Reason” means “Good Reason” as such term is defined in a Participant’s Employment Agreement or, if the Participant is not a party to an Employment Agreement, then the relocation of the Participant’s principal business
office outside the metropolitan Philadelphia area without the consent of the Participant. 
 (o) “Grant Date” means the
effective date of an Award, as determined by the Committee and reflected in the applicable Award Agreement. 
 (p) “Measurement
Period” means the period beginning on the Effective Date and ending on the earlier of December 31, 2011 or the date of a Change in Control (provided that, if the Change in Control arises from a Business Combination, the Measurement
Period shall end on the date of the closing or effectiveness of the Business Combination, as applicable). 
 (q)
“Participant” means each individual who has received an Award under the Program. 
 (r) “Plan” means the
Pennsylvania Real Estate Investment Trust 2003 Equity Incentive Plan, as it may be amended from time to time. Although the Program is not established under the Plan, certain terms used in the Program are incorporated by reference to the Plan.

  

 -2- 

 (s) “Program” means this Pennsylvania Real Estate Investment Trust 2009-2011 Performance
Incentive Unit Program, as it may be amended from time to time. 
 (t) “Related Corporation” means “Related
Corporation” as such term is defined in the Plan. 
 (u) “Services” means PREIT Services, LLC, a Delaware limited
liability company. 
 (v) “Shares” means “Shares” as such term is defined in the Plan. 
 (w) “Subsidiary Entity” means “Subsidiary Entity” as such term is defined in the Plan. 
 (x) “Trust” means Pennsylvania Real Estate Investment Trust, a Pennsylvania business trust. 
 (y) “Trustee” means a member of the Board. 
 (z) “Unit” means a performance incentive unit, which unit shall entitle the holder to a cash payment determined with reference to the Stated Value at the time and subject to the conditions herein
described. 
 3. Award Agreement. Each Participant shall be issued an Award Agreement setting forth the number of Units awarded to the
Participant and entitling the Participant to receive the payments determined under Section 4 hereof based on the extent to which the Corporate Goal is achieved. Such Units shall be subject to the adjustments described in Section 8 hereof.
Each Award Agreement and the payments which may be made thereunder are subject to the terms of this Program. 
 4. Performance Goal;
Settlement of Units 
 (a) If, for the Measurement Period, the Trust’s performance, based on its “TRS” (as defined below),
equals or exceeds the “Threshold” (as defined below), then the Trust shall deliver to each Participant a cash payment in an amount equal to (i) the Stated Value, multiplied by the product of (ii)(A) the whole percentile (expressed as
a percentage equal to the percentile rounded up for fractions of one-half or greater) at which the Trust’s TRS for the Measurement Period places the Trust among the component members of the “MSCI US REIT Index” (as defined below) for
the Measurement Period, each ranked pursuant to such TRS, multiplied by two (but not greater than 150%), and (B) the number of Units held by the Participant. If, for the Measurement Period, the Trust’s performance, based on its TRS, does
not equal or exceed the Threshold, the Trust shall not make any payments in respect of the Units to the Participants. Also, except as provided in subsection (c) below, a Participant must be employed by an Employer on the last day of the
Measurement Period in order to receive any payments under this Program. See Appendix A attached hereto for examples illustrating the operation of this Section. 
  

 -3- 

 (b) Definitions for this Section. The following terms shall be defined as set forth below:

 (1) “MSCI US REIT Index” means the MSCI US REIT Index’s gross index (as it may be renamed from time to time) or, in
the event such index shall cease to be published, such other index as the Committee shall determine to be comparable thereto. 
 (2)
“Share Value” means, as of any Grant Date, the average of the closing prices of one Share on the New York Stock Exchange (the “NYSE”) (or, if not then listed on the NYSE, on the principal market or quotation system on
which then traded) for the 20 days on which Shares were traded prior to that Grant Date. 
 (3) “Stated Value” for one Unit
means the Share Value on the Grant Date plus, subject to Section 8 below, the sum of all cash dividends paid on one Share on or after the Grant Date but on or prior to the end of the Measurement Period. 
 (4) “Threshold” means the 25th percentile among the component members (including the Trust) of the MSCI US REIT Index at the end of the Measurement Period (ranked based upon each such member’s TRS for the
Measurement Period). 
 (5) “TRS” means total return to shareholders as calculated by the Committee or its designee for the
Measurement Period for the Trust and for the other component members of the MSCI US REIT Index. “Component members” means those members used for purposes of compiling the MSCI US REIT Index as of the first day of the Measurement Period and
that remain publicly held companies as of the last day of the Measurement Period, whether or not they are still included in the MSCI US REIT Index on such last day. 
 (c) Termination of Employment. Upon a Participant’s termination of employment on or prior to the last day of the Measurement Period, the following shall occur: 
 (1) Termination without Cause, for Good Reason, or on Account of Disability or Death. If, on or prior to the last day of the Measurement Period,
(i) the Participant terminates his or her employment with the Employer for Good Reason, (ii) the Employer terminates the Participant’s employment for reasons other than for Cause, (iii) the Participant incurs a Disability
Termination, or (iv) the Participant dies, the Participant (or the Participant’s beneficiary(ies), if applicable) shall be eligible to receive payments in respect of Units under the Program (or not) as though the Participant had remained
employed by the Employer through the end of the Measurement Period. 
 (2) Termination for Any Other Reason. If, on or prior to the
last day of the Measurement Period, the Participant’s employment with the Employer terminates for any reason other than a reason described in paragraph (1) above, the Participant shall forfeit all Units the Participant was granted under
the Program and shall have no further rights hereunder. 
 (d) Determination of Performance; Delivery of Cash Payments. Within 30 days
after the end of the Measurement Period, the Committee shall provide each Participant with a written determination of the extent to which, if at all, the Trust attained the Corporate Goal for the Measurement Period and the calculations used to make
such determination. If payments are to be delivered under the Program, they shall be made to Participants on March 1, 2012 (unless the Measurement Period ends early due to a Change in Control, in which case payments shall be made on the fifth
calendar day after the end of the Measurement Period). 
  

 -4- 

 5. Beneficiary Designation 
 (a) Each Participant shall designate the person(s) as the beneficiary(ies) to whom the Participant’s payments shall be delivered in the event of the
Participant’s death prior to the delivery of the payments to him or her. Each beneficiary designation shall be substantially in the form set forth in Appendix C attached hereto and shall be effective only when filed with the Committee during
the Participant’s lifetime. 
 (b) Any beneficiary designation may be changed by a Participant without the consent of any previously
designated beneficiary or any other person by the filing of a new beneficiary designation with the Committee. The filing of a new beneficiary designation shall cancel all beneficiary designations previously filed. 
 (c) If any Participant fails to designate a beneficiary in the manner provided above, or if the beneficiary designated by a Participant predeceases the
Participant, the Committee shall direct such Participant’s payments to be delivered to the Participant’s surviving spouse or, if the Participant has no surviving spouse, then to the Participant’s estate. 
 6. Delivery to Guardian. If payments under this Program are to be made to a minor, a person declared incompetent, or a person incapable of
handling the disposition of property, the Committee may direct the delivery of the payments to the guardian, legal representative, or person having the care and custody of the minor, incompetent or incapable person. The Committee may require proof
of incompetence, minority, incapacity or guardianship as the Committee may deem appropriate prior to the delivery. The delivery shall completely discharge the Committee, the Trustees and the Employer from all liability with respect to the payments
delivered. 
 7. Source of Payments. This Program shall be unfunded. Each Participant and beneficiary shall be a general and unsecured
creditor of the Employer to the extent of his or her rights determined hereunder, and the Participant shall have no right, title or interest in any specific asset that the Employer may set aside, earmark or identify as reserved for the satisfaction
of its obligations under the Program. The Employer’s obligation under the Program shall be merely that of an unfunded and unsecured promise to deliver payments in the future, provided the Corporate Goal is met. For the avoidance of doubt,
receipt of Units under this Program will not entitle a Participant to any rights as a shareholder of the Trust. 
 8. Capital
Adjustments. The calculation of the Stated Value to reflect cash dividends paid on or after the Grant Date but on or prior to the end of the Measurement Period shall be adjusted equitably by the Committee in its discretion to reflect any
subdivision (share-split), consolidation (reverse split), share dividend, merger, spin-off, or other similar event or transaction affecting the Trust during the Measurement Period. 
 9. Tax Withholding. Payments under this Program shall be subject to applicable tax withholding. 
  

 -5- 

 10. Administration. 
 (a) The Program shall be administered by 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 program administrator. 
 (b) The Committee shall have
the authority: 
 (1) to select the Participants to be granted Awards under the Program 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 Units subject to the Award; 
 (3) to determine the terms and conditions of each Award and to calculate the amount payable hereunder in respect of any Award; 
 (4) to amend an existing Award in whole or in part except that the Committee may not, 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 Program; and 
 (6) to interpret the Program 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 Program, shall be conclusive and shall bind all parties. 
 11. Amendment. The Committee reserves the right to amend the Program, by written resolution, at any time and from time to time in any fashion, and
to terminate it at will. However, no amendment or termination of the Program shall adversely affect any Award already issued under the Program without the written consent of the affected Participant(s). 
 12. Headings. The headings of the Sections and subsections of the Program are for reference only. In the event of a conflict between a heading and
the content of a Section or subsection, the content of the Section or subsection shall control. 
  

 -6- 

 APPENDIX A 
 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 
 2009-2011 PERFORMANCE INCENTIVE UNIT PROGRAM 
 EXAMPLE 
 Example. Full Measurement Period

 A is a participant in the Pennsylvania Real Estate Investment Trust 2009-2011 Performance Incentive Unit Program (the “Program”). Participant A
receives a Unit award for 250 Units. The Share Value on the Grant Date is $3.44. For both the three-year period beginning January 1, 2009 and ending December 31, 2011 (the “Measurement Period”), as well as that portion of the
Measurement Period that occurs on or after the Grant Date, Dividends total $3.00 per Share. Thus, at the end of the Measurement Period, the Stated Value of each Unit is $6.44. 
 Total return to shareholders (“TRS”) on one Share (expressed as a percentage) for the Trust over the Measurement Period, as calculated by the Committee or its designee, is the following: 
  

					
	 12/31/11 Value of One Share
	  	$	12.00	 
	 + Dividends over Measurement Period on One Share
	  	 	+3.00	 
		  	 	 	 
		  	$	15.00	 
	 Divided by 1/1/09 Value of One Share
	  	 	/7.45	 
		  	 	 	 
		  	 	2.013	 
		
	 TRS
	  	 	101.3	%

 If, as of December 31, 2011, the Trust’s TRS places the Trust at the percentiles listed below among the
component members of the “MSCI US REIT Index” (as defined in the Program) (the “Index”), ranked pursuant to each member’s TRS over the Measurement Period, as calculated by the Committee or its designee, Participant A would
receive the following cash payments: 
  

									
	 Column A
	  	Column B	 	 	Column C	  	Column D
	 MSCI US REIT Index Percentile
	  	Column A x 2	 	 	Column B x Number of
Units Held by
Participant	  	Column C x Stated
Value = Cash Payment
Due to Participant
	 Below 25th
	  	0	%	 	0	  	$	0
	 25th
	  	50	%	 	125	  	$	805.00
	 40th
	  	80	%	 	200	  	$	1,288.00
	 50th
	  	100	%	 	250	  	$	1,610.00
	 65th
	  	130	%	 	325	  	$	2,093.00
	 75th or above
	  	150	%	 	375	  	$	2,415.00

 APPENDIX B 
 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 
 2009-2011 PERFORMANCE INCENTIVE UNIT PROGRAM 
 BENEFICIARY DESIGNATION FORM 
 This
Form is for your use under the Pennsylvania Real Estate Investment Trust 2009-2011 Performance Incentive Unit Program (the “Program”) to name a beneficiary for the payments that may be due to you under the Program. You should complete the
Form, sign it, have it signed by your Employer, and date it. 
 * * * * 
 I understand that in the event of my death before I receive payments that may be due to me under the Program, such payments will be delivered to the
beneficiary designated by me below or, if none or if my designated beneficiary predeceases me, to my surviving spouse or, if none, to my estate. I further understand that the last beneficiary designation filed by me during my lifetime and accepted
by my Employer cancels all prior beneficiary designations previously filed by me under the Program. 
 I hereby state that
                                        
[insert name], residing at
                                         
                   [insert address], whose Social Security number is
                                        , is
designated as my beneficiary. 
  

							
	  
	 		 	  

	Signature of Participant	 		 	Date
			
		 		 	ACCEPTED:
			
		 		 	  

		 		 	[insert name of Employer]
		 		 	By:	 	  

		 		 	Date:

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