Document:

Amended and Restated Employment Agreement--Robert F. McCadden

 Exhibit 10.4 
 EMPLOYMENT AGREEMENT 
 (As Amended and Restated Effective as of the Date Below Executed) 

 This amended and restated EMPLOYMENT AGREEMENT (this “Agreement”), effective as of the date it is executed below, is between
Pennsylvania Real Estate Investment Trust, a Pennsylvania business trust (“Company”), and Robert McCadden (“Executive”). 
 BACKGROUND 
 Executive is currently Executive Vice President and Chief Financial Officer of Company. Company desires
to continue to employ Executive, and Executive desires to continue to be so employed, on the terms and conditions contained in this amended and restated Agreement. Executive has been and will be substantially involved with Company’s operations
and management and will have trade secrets and other confidential information relating to Company and its business relationships; accordingly, the noncompetition agreement and other restrictive covenants contained in Section 5 hereof constitute
essential elements hereof. 
 Company and Executive desire to amend and restate Executive’s current Agreement so that, among other
things, its terms and conditions comply with (or are exempt from) the deferred compensation rules set forth in section 409A of the Internal Revenue Code of 1986, as amended (the “IRC”), and the final regulations issued thereunder.

 NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein and intending to be legally bound
hereby, the parties hereto agree as follows: 
  

	1.	CAPACITY AND DUTIES 

 1.1 Employment;
Acceptance of Employment. Company hereby employs Executive and Executive hereby agrees to continue employment by Company for the period and upon the terms and conditions hereinafter set forth. 
 1.2 Capacity and Duties 
 (a) Executive shall continue to serve as Executive Vice President and Chief Financial Officer of Company and, subject to the supervision and control of the Chief Executive Officer of Company, shall have the duties and
authority generally consistent with such office. While serving as Executive Vice President and Chief Financial Officer, 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 offices. Executive shall also serve as Executive Vice President and Chief Financial Officer of PREIT Associates, L.P. (“PALP”), of which
Company is the general partner. 

 (b) Executive understands that substantially all of the assets of Company consists of its
general partner interest in PALP, and that the business operations of PALP and its direct and indirect subsidiaries constitute all of the business operations conducted by Company and its “Affiliates” (as defined in subsection
(c) below). Accordingly, Company and Executive understand that most of Executive’s time and energy will be expended on behalf of PALP and its direct and indirect subsidiaries in Executive’s capacity as an officer of PALP rather than
as an officer of Company. 
 (c) Except as permitted by subsection (d) below, Executive (i) shall devote his full
working time, energy, skill, and best efforts to the performance of his duties hereunder, in a manner that will comply with Company’s published rules and policies in effect from time to time, and (ii) shall not be employed by or
participate or engage in or in any manner be a part of the management or operation of any business enterprise other than Company and its Affiliates without the prior written consent of Company, which consent may be granted or withheld in the sole
discretion of Company. “Affiliate” as used in this Agreement means any person or entity controlling, controlled by, or under common control with, Company. “Control,” as used in the definition of Affiliate, means the power to
direct the management and policies of a person or entity, directly or indirectly, whether through the ownership of voting securities, by contract, or otherwise; the terms “controlling” and “controlled” shall have correlative
meanings. Further, any person or entity that owns beneficially, either directly or through one or more intermediaries, more than 20 percent of the ownership interests in a specified entity shall be presumed to control such entity for purposes of the
definition of Affiliate. 
 (d) Notwithstanding the provisions of subsection (c) above, and subject to Section 5.2
hereof, Executive shall be permitted to serve on the boards of directors or similar body of other organizations, including publicly-owned corporations or other entities, philanthropic organizations and organizations in which the Executive has made
an investment, provided that Executive’s activities with respect to the foregoing do not, individually or in the aggregate, in any significant way, interfere with, detract from, or affect the performance of his duties to Company under this
Agreement. 
  

	2.	TERM OF EMPLOYMENT 

 2.1 Term.
The initial term of Executive’s employment hereunder shall begin on the Effective Date and last until December 31, 2009 (the “Expiration Date”), unless sooner terminated in accordance with the other provisions hereof. Except as
hereinafter provided, on the Expiration Date and on each subsequent anniversary thereof, the Term (as hereinafter defined) shall be automatically extended for one year unless either party shall have given to the other party notice of non-renewal of
this Agreement at least 120 days prior to the expiration of the Term. The initial term of employment hereunder and each term as extended is a “Term.” If a non-renewal notice is given as provided above, Executive’s employment under
this Agreement shall terminate on the last day of the Term. 
  

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	3.	COMPENSATION 

 3.1 Base
Compensation. As compensation for Executive’s services, Company shall pay to Executive a salary at the initial annual rate of $387,601, payable in periodic installments in accordance with Company’s regular payroll practices in
effect from time to time. Effective as of January 1, 2009 and as of any later date, Executive’s salary shall be reviewed annually and may be increased pursuant to action taken or authorized by the Executive Compensation and Human Resources
Committee (the “Committee”) of the Board of Trustees of Company (the “Board”). Executive’s annual salary cannot be decreased without the written consent of Executive. Executive’s annual salary, as determined in
accordance with this Section, is hereinafter referred to as the “Base Salary.” No later than April 10 during any fiscal year during the Term, Company shall provide Executive with written notice of his Base Salary, bonus plan
eligibility, and equity incentive awards, if any, for the current fiscal year. Such notice shall provide sufficient information regarding Executive’s bonus plan eligibility, so that Executive’s maximum potential bonus is readily
ascertainable. Failure to provide such notice on a timely basis (such failure, a “Compensation Notice Delinquency”) shall not be deemed a breach by Company; however, Executive shall then be permitted to exercise his termination right under
Section 4.7 hereof. 
 3.2 Cash Incentives. Executive shall be entitled during his employment hereunder to
participate in such of Company’s cash incentive plans and programs as may from time to time be provided by Company for its executive officers, in each case as determined by the Committee or the Board, as appropriate. 
 3.3 Employee Benefits. In addition to the compensation provided for in Sections 3.1 and 3.2 hereof, Executive shall be entitled,
during his employment hereunder, to participate in such of Company’s employee benefit plans and benefit programs, including medical benefit programs, as may from time to time be provided by Company for its executive officers. Company shall use
its commercially reasonable efforts to provide Executive with health insurance through a preferred provider, traditional indemnity or equivalent plan. 
 3.4 Vacation. During the Term, Executive shall be entitled to a paid vacation of 25 business days during each calendar year or such additional number of days as is provided in the Employee
Handbook published from time to time by Company (the “Company Employee Handbook”). Executive’s right to carry forward unused vacation days for a calendar year to any future calendar year shall be governed by the Company Employee
Handbook as in effect from time to time. 
 3.5 Expense Reimbursement. Company shall reimburse Executive for all
reasonable expenses incurred by him in connection with the performance of his duties hereunder in accordance with its regular reimbursement policies as in effect from time to time and upon receipt of itemized vouchers and such other supporting
information with respect to such expenses as Company may reasonably require. Company shall pay to maintain Executive’s professional license as a certified public accountant in Florida, New Jersey, and Pennsylvania, and shall reimburse Executive
for all reasonable costs incurred in complying with any continuing education or other requirements to maintain his licenses in those states. 
  

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 3.6 Equity Plans. Executive shall be entitled, during his employment hereunder, to
participate in such of Company’s equity incentive plans and programs as may from time to time be provided by Company for its executive officers at such level as shall be determined by the Committee or the Board, as appropriate. 
 3.7 Nonqualified Retirement Plan. Company has previously entered into a nonqualified supplemental executive retirement plan with
Executive whereby Company has credited a bookkeeping account maintained by Company for Executive with a deemed contribution of $25,000 per fiscal year. Such deemed contribution shall be credited during the Term as of the first day of each fiscal
year of Company and shall earn interest at the rate of 10 percent compounded annually. Executive shall at all times be fully vested in such account and such account shall be paid to Executive in the manner and at the time(s) specified in such plan.

 3.8 Existing Grants. Executive shall be entitled to the benefit of all stock option, restricted share, and
performance unit grants heretofore made in accordance with the terms and conditions applicable to each thereof. 
  

	4.	TERMINATION OF EMPLOYMENT 

 4.1 Death
of Executive. If Executive dies during the Term, Company shall thereafter be obligated to continue to pay the Base Salary to Executive’s estate for the remainder of the Term or, if the remainder of the Term is less than one year, for a
period of 12 months, periodically in accordance with Company’s regular payroll practices and, within 30 calendar days of the death of Executive, shall pay any other amounts (including salary, bonuses, vacation pay, expense reimbursement, etc.)
that have been fully earned by, but not yet paid to, Executive under this Agreement as of the date of Executive’s death. If, for the year in which Executive dies, Company achieves the performance goals established in accordance with any cash
incentive plan in which Executive participates, Company shall pay Executive’s estate, within the period in the following year that begins January 1 and ends March 15, an amount equal to the bonus that Executive would have received had
he been employed by Company for the full year, multiplied by a fraction, the numerator of which is the number of calendar days Executive was employed in such year and the denominator of which is 365. Upon Executive’s death, (i) each
outstanding option granted to Executive before, on or after the date hereof shall become vested and shall be immediately exercisable in accordance with the terms thereof, (ii) each outstanding nonqualified stock option (“NQSO”)
granted to Executive before, on or after the date hereof shall be exercisable until the earlier of 180 days after the death of Executive or the scheduled expiration date of such option, (iii) the exercise period of each incentive stock option
(“ISO”) granted to Executive before, on or after the date hereof shall be governed by the terms of the relevant ISO agreement, (iv) anything to the contrary in any other existing agreement or plan notwithstanding, all outstanding
restricted shares granted to Executive that (A) are subject to vesting solely based on the passage of time and Executive’s continued employment shall become immediately 

  

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vested, and (B) are subject to vesting based upon the performance of Company (however measured) shall remain restricted shares under the terms of the
applicable restricted share award agreement (the “Award”) and shall vest or be forfeited in whole or in part under the terms of such Award as if Executive’s employment had not terminated, and (v) Executive’s spouse and
dependents (if any) shall be entitled for the balance of the Term or, if the balance of the Term is less than one year, for a period of 12 months, to continue to receive medical benefits insurance coverage at Company’s expense if and to the
extent Company was paying for such benefits for Executive’s spouse and dependents at the time of Executive’s death. Executive’s spouse and dependents shall be entitled to such rights as they may have to continue coverage at their sole
expense as are then accorded under Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (“COBRA”), for the COBRA coverage period following the expiration of the period, if any, during which
Company paid such expense. 
 4.2 Disability of Executive. If Executive is or has been materially unable for any reason
to perform his duties hereunder for 120 calendar days during any period of 150 consecutive calendar days, Company shall have the right to terminate Executive’s employment (within the meaning of Section 4.8 hereof) upon 30 calendar
days’ prior written notice to Executive at any time during the continuation of such inability, in which event Company shall thereafter be obligated to pay to Executive, within the 30-calendar-day period following his termination of employment,
a lump sum equal to (i) the greater of the amount of his Base Salary computed through the remainder of the Term or his Base Salary, in either case minus (ii) any disability payments reasonably projected to be received by Executive from
disability insurance policies paid for by Company during the longer of the remainder of the Term or 12 months following his termination of employment. Both the portion of the calculation in (i) of the preceding sentence and the portion of the
calculation in (ii) of the preceding sentence shall be discounted from the dates that the Base Salary or disability payments (as applicable) would have been payable during the relevant period following termination in accordance with
Company’s regular payroll practices or in accordance with such disability insurance policies (as applicable) to present value on the date of payment. The discount rate shall be equal to 200 basis points plus the London Interbank Offered Rate
for a one-month period set forth in The Wall Street Journal (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.
Company shall also, within 30 calendar days of such termination, pay any other amounts (including salary, bonuses, vacation pay, expense reimbursement, etc.) that have been fully earned by, but not yet paid to, Executive under this Agreement as of
the date of such termination. If, for the year in which Executive’s employment is terminated pursuant to this Section, Company achieves the performance goals established in accordance with any cash incentive plan in which Executive
participates, Company shall pay Executive, within the period in the following year that begins January 1 and ends March 15, an amount equal to the bonus that Executive would have received had he been employed by Company for the full year,
multiplied by a fraction, the numerator of which is the number of calendar days Executive was employed in the year in which his employment is terminated and the denominator of which is 365. Upon termination of Executive’s employment pursuant to
this Section, (i) each outstanding option granted to Executive before, on or after the date hereof shall become vested and shall be 

  

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immediately exercisable in accordance with the terms thereof, (ii) each outstanding NQSO granted to Executive before, on or after the date hereof shall
be exercisable until the earlier of 180 days after the termination of Executive’s employment pursuant to this Section or the scheduled expiration date of such option, (iii) the exercise period of each ISO granted to Executive before, on or
after the date hereof shall be governed by the terms of the relevant ISO agreement, (iv) anything to the contrary in any other existing agreement or plan notwithstanding, all outstanding restricted shares granted to Executive that (A) are
subject to vesting solely based on the passage of time and Executive’s continued employment shall become immediately vested, and (B) are subject to vesting based upon the performance of Company (however measured) shall remain restricted
shares under the terms of the applicable Award and shall vest or be forfeited in whole or in part under the terms of such Award as if Executive’s employment had not terminated, and (v) Executive shall be entitled for the balance of the
scheduled Term or, if the balance of the Term is less than one year, for a period of 12 months, to continue to receive at Company’s expense medical benefits coverage for Executive and Executive’s spouse and dependents (if any) if and to
the extent Company was paying for such benefits to Executive and his spouse and dependents at the time of such termination. Executive and his spouse and dependents shall be entitled to such rights as they may have to continue coverage at his or
their sole expense as are then accorded under COBRA for the COBRA coverage period following the expiration of the period, if any, during which Company paid such expense. 
 4.3 Termination for Cause. Executive’s employment hereunder shall terminate (within the meaning of Section 4.8 hereof) immediately upon notice that Company is terminating Executive for
Cause, in which event Company shall not thereafter be obligated to make any further payments hereunder other than amounts (including salary, bonus, vacation pay, expense reimbursement, etc.) that have been fully earned by, but not yet paid to,
Executive under this Agreement as of the date of such termination, and which shall be paid within 30 calendar days of such termination. Upon termination of Executive’s employment pursuant to this Section, (i) each outstanding NQSO granted
to Executive before, on, or after the date hereof that is vested and currently exercisable as of the date Executive’s employment is terminated pursuant to this Section shall remain exercisable until the earlier of 30 calendar days following
Executive’s termination or the scheduled expiration date of such option, (ii) the exercise period of each ISO granted to Executive before, on or after the date hereof shall be governed by the terms of the relevant ISO agreement,
(iii) all vested restricted shares granted to Executive shall be delivered to Executive free and clear of any restrictions, other than pursuant to applicable securities laws, and (iv) Executive and his spouse and dependents shall have such
rights (if any) to continue medical benefits coverage at his or their sole expense following termination for Cause as are then accorded under COBRA for the COBRA coverage period. “Cause” shall mean the following: 
 (a) (i) fraud in connection with Executive’s employment, (ii) theft, misappropriation or embezzlement of funds of Company or any
of its Affiliates, or (iii) an act resulting in termination pursuant to the provisions of the “Code” (as defined in Section 6.4) hereof; 
  

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 (b) indictment of Executive for a crime involving moral turpitude; 
 (c) breach of Executive’s obligations under Section 5.1 hereof or Section 5.2 hereof; 
 (d) failure of Executive to perform his duties to Company (other than on account of illness, accident, vacation or leave of absence) that
persists for more than 30 calendar days after written demand for substantial performance which specifically identifies the manner in which Executive has failed to perform; or 
 (e) Executive’s repeated abuse of alcohol or drugs. 
 4.4 Termination Without Cause or for Good Reason 
 (a) If at any time during
the Term (i) Executive’s employment is terminated (within the meaning of Section 4.8 hereof) by Company for any reason other than Cause or the death or disability of Executive or (ii) Executive’s employment is terminated
(within the meaning of Section 4.8 hereof) by Executive for “Good Reason” (as hereinafter defined): 
 (1)
Company shall, on or before Executive’s last day of full-time employment hereunder, pay Executive all amounts (including salary, bonuses, vacation pay, expense reimbursement, etc.) that have been fully earned by, but not yet paid to, Executive
under this Agreement as of the date of such termination. In addition, subject to subsection (c) below, Company shall pay Executive a lump-sum cash payment equal to the greater of (x) Executive’s then current Base Salary through the
end of the Term and (y) two times (A) Executive’s then current annual Base Salary 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”). 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. 
 (2) Executive shall be entitled to continue, for the
balance of the Term or, if the balance of the Term is less than one year, for a period of 12 months, to receive at Company’s expense medical benefits coverage for Executive and his spouse and dependents (if any) if and to the extent Company was
paying for such benefits to Executive and his spouse and dependents at the time of such termination. Executive and his spouse and dependents shall be entitled to such rights as he or they may have to continue coverage at his or their sole expense as
are then accorded under COBRA for the COBRA coverage period following the expiration of the period, if any, during which Company paid such expense. 
  

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 (3) Anything to the contrary in any other existing agreement or document notwithstanding,
each outstanding stock grant and stock option granted to Executive before, on or after the date hereof shall become immediately vested and exercisable on the date of such termination, and, with respect to each outstanding NQSO granted to Executive
before, on or after the date hereof, such NQSO shall remain exercisable until the earlier of 180 calendar days following such termination or the scheduled expiration date of such option. The exercise period of each ISO granted to Executive before,
on or after the date hereof shall be governed by the terms of the relevant ISO agreement. 
 (b) “Good Reason” shall
mean the following: 
 (1) any action or inaction that constitutes a material breach of Company’s obligations to
Executive hereunder; 
 (2) a material change in the geographic location at which Executive provides services; or 

(3) a material diminution in Executive’s authority, duties or responsibilities; 
 provided, in each case, that Executive shall have given written notice thereof to Company within a period not to exceed 90 calendar days from the initial existence of
the condition, and Company shall have failed to remedy the condition within 30 calendar days after its receipt of such notice. Further, for Executive’s termination of employment (within the meaning of Section 4.8 hereof) to be for Good
Reason, Executive must give Company irrevocable written notice of termination and such termination must occur before the end of the 120 calendar days following the end of the 30-calendar-day remedy period described above. 
 (c) Notwithstanding the foregoing, Company shall not be obligated to make the
lump-sum cash payment under subsection (a)(1) above unless Executive has executed and delivered to Company a further agreement, to be presented to Executive by Company on or before the 10th
 calendar day after such termination, that shall provide (i) an unconditional release by Executive of all claims, charges, complaints and grievances, whether known or unknown to Executive, against
Company and any Affiliate (including, with respect to matters relating to his employment hereunder, any trustee, officer, employee or agent of Company or any Affiliate) through the date of Executive’s termination of employment; (ii) an
undertaking to maintain the confidentiality of such agreement; and (iii) an undertaking to indemnify Company if Executive breaches such agreement. 
  

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 Executive must sign and return the
release to Company before the lump-sum payment is made to him; provided that, if the release is not timely presented to Executive, the requirement that Executive sign the release shall be waived. If the release is timely presented to Executive, but
Executive does not sign and return the release to Company by the end of the applicable consideration period under the federal Age Discrimination in Employment Act (currently, either 21 or 45 calendar days), then Executive shall forfeit the lump-sum
payment. If the release is timely signed and returned to Company and not thereafter revoked, such lump-sum payment shall be made to Executive on the first business day on or after the 75th calendar day after such termination. 
 (d) If
Executive’s employment is terminated by Executive for Good Reason within six months before or 12 months after a “Change of Control” of Company (as defined in Section 4.5(d) hereof), Section 4.5 hereof shall govern the rights
and obligations of the parties and this Section shall be of no effect. 
 4.5 Change of Control 
 (a) If, during a Term, there should be a Change of Control (as defined herein), and within six months before such “Change of
Control” or 12 months thereafter either (i) Executive’s employment shall be terminated (within the meaning of Section 4.8 hereof) by Company for any reason other than for death, disability or Cause or (ii) Executive’s
employment is terminated (within the meaning of Section 4.8 hereof) by Executive for Good Reason: 
 (1) Company shall,
on or before Executive’s last day of full-time employment hereunder, pay to Executive all amounts (including salary, bonuses, vacation pay, expense reimbursement, etc.), that have been fully earned by, but not yet paid to, Executive under this
Agreement as of such termination plus a lump-sum cash payment equal to the greater of (x) Executive’s then current Base Salary through the end of the Term and (y) two times (A) Executive’s then current annual Base Salary
plus (B) the Average Bonus. If Executive’s employment is terminated during the six-month period before such Change of Control, 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 during the relevant period following termination in accordance with Company’s regular payroll practices to present value on the
date of payment. The discount rate shall be 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. 
 (2) Executive shall be entitled to continue, for the balance
of the Term or, if the balance of the Term is less than one year, for a period of 12 months, to receive medical benefits coverage for Executive and his spouse and dependents (if any), to the extent Executive was so entitled prior to such
termination, at Company’s expense if and to the extent Company was paying for such benefits to Executive and his spouse and dependents at the time of such termination. Executive and his spouse and dependents shall be entitled to such rights as
he or they may have to continue coverage at his sole expense as are then accorded under COBRA for the COBRA coverage period following the expiration of the period during which Company paid such expense. 
  

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 (b) Anything to the contrary in any other agreement or document now or hereafter existing
notwithstanding, upon a Change of Control and without regard to whether Executive’s employment is thereafter terminated, Executive shall become fully vested as of the time immediately before such Change of Control in all then existing stock
grants, each stock option previously issued to him thereupon shall become immediately vested and exercisable, without regard to continued employment or performance-based vesting standards, and each NQSO shall remain exercisable until the earlier of
180 calendar days following such Change of Control or the scheduled expiration date of such option. The exercise period of any ISO granted to Executive before, on or after the date hereof shall be governed by the terms of the relevant ISO agreement.

 (c) In the event Executive is required to pay any excise tax imposed by section 4999 of the IRC, (the “Excise
Tax”), Company shall pay to Executive an additional payment in an amount equal to one-half of the Excise Tax (the “Tax Reimbursement”); provided that Executive delivers acceptable evidence to Company regarding the calculation and
payment of the Excise Tax within the 30-calendar-day period after the Excise Tax is paid. The Tax Reimbursement then shall be paid to Executive on the later of (i) the first business day after the 60th calendar day after the Excise Tax is paid
or (ii) the first business day of the seventh calendar month after the calendar month of his termination of employment (within the meaning of Section 4.8 hereof). The amount payable under this subsection (c) shall not be grossed-up to
cover any excise, income or employment taxes assessed upon the Tax Reimbursement. Notwithstanding anything to the contrary in this subsection (c), 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 after-tax payment to Executive (after giving effect to the Excise Tax and Tax
Reimbursement) 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. 
 (d) A “Change of Control” of Company 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 Securities Exchange
Act of 1934, as amended (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 Company entitled to vote generally in the election of trustees (the “Outstanding Shares”); provided, 

  

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however, that the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from Company 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 Company, (iii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by Company or any entity controlled by Company, (iv) any acquisition by any individual, entity, or group in connection with a Business Combination (as defined below) that fails to
qualify as a Change of 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 becoming a trustee subsequent to the date hereof whose appointment, election, or nomination for election by Company’s shareholders was approved by a vote of at least a
majority of the trustees then comprising the Incumbent Board or by a majority of the members of a committee authorized by the Incumbent Board to approve such appointment, election, or nomination (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 Company) shall be, for purposes of this Agreement, considered as though such person were a
member of the Incumbent Board; or 
 (3) Approval by the shareholders of Company of a reorganization, merger, or
consolidation, or sale or other disposition of all or substantially all of the assets of Company (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 Company or all or substantially all of Company’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) Approval by the shareholders of Company 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, 

  

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an entity which, as a result of such transaction, owns Company or all or substantially all of Company’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 Company 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 Company 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 Company 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)
Approval by the shareholders of Company of a complete liquidation or dissolution of Company. 
 Approval by the shareholders of Company 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 Company or all or substantially all of Company’s assets either directly or through one or more subsidiaries) shall
not constitute a “Change of Control” unless following such transaction the provisions of paragraphs (1) or (2) above are independently satisfied. 
 4.6 Voluntary Termination. In the event Executive’s employment is voluntarily terminated (within the meaning of Section 4.8 hereof) by Executive without Good Reason, Company shall not be
obligated to make any further payments to Executive under this Agreement other than amounts (including salary, bonuses, vacation pay, expense reimbursement, etc.) that have been fully earned by, but not yet paid to, Executive as of the date of
Executive’s termination, which amounts shall be paid within 30 calendar days of such termination. Executive shall also have such rights to continue medical coverage at his sole expense following such voluntary termination as are then accorded
under COBRA. 
  

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 4.7 Special Termination Right. Executive shall have the right to terminate (within
the meaning of Section 4.8 hereof) his employment hereunder upon 90 calendar days prior written notice to Company given at any time within 10 calendar days after (i) the occurrence of a Compensation Notice Delinquency or (ii) the date
on which he is notified pursuant to Section 3.1 hereof of his Base Salary and bonus plan eligibility with respect to any fiscal year of Company. Upon termination of Executive’s employment pursuant to this Section, Company shall not be
obligated to make any further payments to Executive under this Agreement other than as provided in Section 4.6 hereof. 
 4.8
Termination of Employment for Purposes of Compliance with (or Exemption from) Section 409A of IRC. Executive shall only have incurred a termination of employment from Company if Executive has separated from service with all
entities in the group of entities under common control with Company, within the meaning of sections 414(b) and 414(c) of the IRC (using the phrase “at least 50 percent” rather than the phrase “at least 80 percent,” where
applicable). The determination of whether Executive has had a termination of employment from Company shall be made by the Committee, applying the rules set forth in Treas. Reg. §1.409A-1(h) and any amendment thereof or successor thereto.

 4.9 Section 409A Compliance. Except for (i) the first sentence of Section 4.1 hereof and
(ii) Section 4.5(c) hereof, this Agreement is intended to be exempt from the requirements of section 409A of the IRC and the final regulations issued thereunder, primarily because of the short-term deferral exception to such coverage
provided by Treas. Reg. §1.409A-1(b)(4), and this Agreement shall be construed and interpreted in accordance with such exception (and any other applicable exception) in order to avoid such coverage. 
  

	5.	RESTRICTIVE COVENANTS 

 5.1
Confidentiality. Executive acknowledges a duty of confidentiality owed to Company and shall comply with the confidentiality section of the Company Employee Handbook as in effect from time to time. 
 5.2 Noncompetition. During the term of Executive’s employment and for one year after termination of Executive’s employment
by Company for Cause or by Executive for other than either Good Reason or pursuant to his special termination right under Section 4.7 hereof, Executive shall not directly or indirectly (i) engage, anywhere within 25 miles of any property
in which Company or an Affiliate has a direct or indirect ownership interest, in any activity which competes in whole or in part with the activities of Company or any Affiliate at the time of such termination (a “Proximate Competitive
Activity”) or (ii) be or become a stockholder, partner, owner, officer, director, employee or agent of, a consultant to, or give financial or other assistance to, any person or entity considering engaging in any Proximate Competitive
Activity or so engaged; provided, however, that nothing herein shall prohibit Executive and his affiliates from (A) owning, as passive investors, in the aggregate not more than two percent of the outstanding publicly traded stock of any
corporation engaged in a Proximate Competitive Activity; or (B) acquiring, developing, managing, or leasing any properties which do not involve a 

  

 - 13 - 

 
Proximate Competitive Activity. The duration of Executive’s covenants set forth in this Section shall be extended by a period of time equal to the
number of calendar days, if any, during which Executive is finally determined to be in violation of the provisions hereof. 
 5.3
Injunctive and Other Relief 
 (a) Executive acknowledges that the covenants contained in Sections 5.1, 5.2 and 6.3
hereof are fair and reasonable in light of the consideration paid hereunder, and that damages alone shall not be an adequate remedy for any breach by Executive of his covenants contained herein. Accordingly, in addition to any other remedies that
Company may have, Company shall be entitled to injunctive relief in any court of competent jurisdiction for any breach or threatened breach of any such covenants by Executive. Nothing contained herein shall prevent or delay Company from seeking, in
any court of competent jurisdiction, specific performance or other equitable remedies in the event of any breach or intended breach by Executive of any of his obligations hereunder. 
 (b) In addition to such equitable relief with respect to Sections 5.1, 5.2 and 6.3 hereof, Company shall be entitled to monetary damages
for any breach in an amount deemed reasonable to cover all actual and consequential losses, plus all monies received by Executive as a result of said breach and all costs and attorneys’ fees incurred by Company in enforcing this Agreement,
provided, however, that Company shall have no right to set off any such monetary damages against amounts owed by Company to Executive under this Agreement or any other agreement between the parties. Any action initiated by Company for monetary
damages related to any such breach shall be subject to Section 6.1 hereof. 
  

	6.	MISCELLANEOUS 

 6.1 Arbitration

 (a) All disputes arising out of or relating to this Agreement that cannot be settled by the parties shall be settled by
arbitration in Philadelphia, Pennsylvania, pursuant to the rules and regulations then obtaining of the American Arbitration Association; provided, that nothing herein shall preclude Company from seeking, in any court of competent jurisdiction,
specific performance or other equitable remedies in the case of any breach or threatened breach by Executive of Section 5.1 hereof, Section 5.2 hereof or Section 6.3 hereof. The decision of the arbitrators shall be final and binding
upon the parties, and judgment upon such decision may be entered in any court of competent jurisdiction. 
 (b) Discovery
shall be allowed pursuant to the intendment of the United States Federal Rules of Civil Procedure and as the arbitrators determine appropriate under the circumstances. 
 (c) The arbitration tribunal shall be formed of three arbitrators, one to be appointed by each party and the third to be appointed by the
first two arbitrators. Such arbitrators shall be instructed to apply the contractual provisions hereof in deciding any matter submitted to them. 
  

 - 14 - 

 (d) The cost of any arbitration proceeding hereunder shall be borne equally by the
parties. Each party shall be responsible for his or its own legal fees and expenses associated with any such arbitration. 
 6.2
Prior Employment. Executive represents and warrants that he is not a party to any other employment, non-competition, joint venture, partnership, or other agreement or restriction that could interfere with his employment with Company in
accordance with this Agreement or his or Company’s rights and obligations hereunder; and that his acceptance of continued employment with Company and the performance of his duties hereunder will not breach the provisions of any contract,
agreement, or understanding to which he is party or any duty owed by him to any other person. Executive warrants and covenants that, while an employee of Company, he will not hereafter become a party to or be bound by any such conflicting agreement.

 6.3 Solicitation of Employees. During the term of Executive’s employment and for two years thereafter, Executive
shall not directly or indirectly solicit or contact any person who is employed by Company or any Affiliate with a view to the engagement or employment of such person by any person or entity or otherwise interfere with the employment relationship of
Company or of any Affiliate with any of its employees. 
 6.4 Code of Business Conduct. Executive acknowledges that he
shall be subject to the provisions of Company’s Code of Business Conduct and Ethics for Employees and Officers (as modified, amended or supplemented from time to time, the “Code”), including, without limitation, the enforcement
provisions set forth in the Code. Executive agrees to comply with the provisions of the Code. 
 6.5 Indemnification; Litigation
Assistance. Company shall indemnify and defend Executive against all claims arising out of Executive’s activities as an officer or employee of Company or its Affiliates to the fullest extent permitted by law and under Company’s
Trust Agreement. In addition to the foregoing, Executive shall, upon reasonable notice, furnish such information and proper assistance to Company as may reasonably be required by Company in connection with any litigation in which it or its
Affiliates are, or may become, parties. After termination of Executive’s employment, Executive shall be fairly compensated for providing assistance to Company that is more than incidental; provided, however, that the failure of Company and
Executive to agree on such compensation shall not be the basis on which Executive withholds any information or assistance. 
 6.6
Severability. The invalidity or unenforceability of any particular provision or part of any provision of this Agreement shall not affect the other provisions or parts hereof. If any provision hereof is determined to be invalid or
unenforceable by a court of competent jurisdiction by reason of the duration or geographical scope of the covenants contained therein, such duration or geographical scope, or both, shall be considered to be reduced to a duration or geographical
scope to the extent necessary to cure such invalidity. 
  

 - 15 - 

 6.7 Assignment. This Agreement shall not be assignable by Executive, and shall be
assignable by Company only to an Affiliate or to any person or entity that becomes a successor in interest (by purchase of assets or shares, or by merger, or otherwise) to Company in the business or a portion of the business presently operated by
Company. Subject to the foregoing, this Agreement and the rights and obligations set forth herein shall inure to the benefit of, and be binding upon, the parties hereto and each of their respective permitted successors, assigns, heirs, executors and
administrators. An assignment by Company permitted under this Section shall not itself constitute a termination of Executive’s employment hereunder. 
 6.8 Notices. All notices hereunder shall be in writing and shall be sufficiently given if hand-delivered, sent by documented overnight delivery service or registered or certified mail, postage
prepaid, return receipt requested, or by telegram or telecopy (confirmed by U.S. mail), receipt acknowledged, addressed as set forth below or to such other person and/or at such other address as may be furnished in writing by any party hereto to the
other. Any such notice shall be deemed to have been given as of the date received, in the case of personal delivery, or on the date shown on the receipt or confirmation therefor, in all other cases. Any and all service of process and any other
notice in any action, suit, or proceeding shall be effective against any party if given as provided in this Agreement; provided that nothing herein shall be deemed to affect the right of any party to serve process in any other manner permitted by
law. 
  

	 	(a)	If to Company: 

 Pennsylvania Real Estate Investment Trust

 200 South Broad Street, Third Floor 
 Philadelphia, PA 19102 
 Tel: (215) 875-0700 
 Fax: (215) 547-7311 
 Attention:  Chairman, Executive Compensation and Human 
           Resources Committee of the Board of Trustees 
 With a copy to: 
 Drinker Biddle &
Reath LLP 
 One Logan Square 
 18th & Cherry Streets 
 Philadelphia, PA 19103 
 Tel: (215) 988-2794 
 Fax: (215) 988-2757 
 Attention: Howard A. Blum, Esquire 
  

 - 16 - 

	 	(b)	If to Executive: 

 Robert McCadden 
 1344 Barton Drive 
 Fort Washington, PA
19034 
 Tel: (215) 628-4975 
 With a copy to: 
 Cozen O’Connor 
 1900 Market Street 
 Philadelphia, PA 19103 
 Tel: (215) 665-4159 
 Fax:
(215) 665-2013 
 Attn: E. Gerald Riesenbach, Esquire 
 6.9 Entire Agreement and Modification. This Agreement constitutes the entire agreement between the parties hereto with respect to the matters contemplated herein and supersedes and replaces all
prior agreements and understandings with respect thereto. Neither the failure nor any delay on the part of any party to exercise any right, remedy, power, or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power, or privilege preclude any other or further exercise of the same or of any other right, remedy, power, or privilege with respect to any occurrence or be construed as a waiver of any right, remedy, power, or
privilege with respect to any other occurrence. 
 6.10 Governing Law. This Agreement is made pursuant to, and shall be
construed and enforced in accordance with, the internal laws of the Commonwealth of Pennsylvania (and United States federal law, to the extent applicable), without giving effect to otherwise applicable principles of conflicts of law. 
 6.11 Headings; Counterparts. The headings of Sections and subsections in this Agreement are for convenience only and shall not
affect its interpretation. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which, when taken together, shall be deemed to constitute but one and the same Agreement. 

6.12 Delegation. Any action hereunder that may be taken or directed by the Board or by the Committee may be delegated by
(i) the Board to a committee of the Board or to an individual trustee or officer, or (ii) the Committee to one or more members of the Committee or officers, and the determination of any such delegee or delegees shall have the same effect
hereunder as a determination of the Board or the Committee, as applicable. 
  

 - 17 - 

 6.13 Company Assets. Executive acknowledges that no trustee, officer, director or
shareholder of Company or any Affiliate is liable to Executive in respect of the payments or other matters set forth herein. 
 6.14
Amendment. No provision of this Agreement may be amended, modified, or waived except in a writing signed by Executive and such officer as may be specifically designated by Company to sign on its behalf. 
 6.15 No Mitigation. In no event shall Executive be required to seek other employment or take any other action by way of mitigation
of the amounts payable to Executive under this Agreement, and such amounts shall not be reduced whether or not Executive obtains other employment after termination of his employment hereunder. 
 6.16 D&O Insurance; Amendment of Trust Agreement or By-Laws 
 (a) Company shall not reduce its aggregate directors and officers insurance coverage in force as of May 17, 2004 by more than 20
percent. 
 (b) Company shall not amend, modify or repeal Paragraph 14 of its Trust Agreement or Article 5 of its By-Laws,
each as currently in effect, if the effect of such amendment, modification or repeal would be to alter, to the detriment of Executive, the rights of Executive to indemnification or advance of expenses based on an act or failure to act that took
place during Executive’s employment hereunder. 
 (c) It is agreed that Executive shall not have any equitable remedies
of any nature (including, but not limited to, injunctive relief and specific performance) with respect to this Section, and that his sole remedy shall be as set forth in Section 4.4 hereof, Section 4.5 hereof or Section 4.6 hereof,
whichever shall be applicable. 
 6.17 Legal Fees. Company agrees to pay all reasonable legal fees and expenses that
Executive has incurred in the preparation and negotiation of this Agreement. 
  

 - 18 - 

 IN WITNESS WHEREOF, the parties have executed this Agreement on this 30th day of December, 2008.

  

					
	 PENNSYLVANIA REAL ESTATE
 INVESTMENT TRUST

		
	By:	 	/s/ Bruce Goldman
		 	Name:	 	Bruce Goldman
		 	Title:	 	 Executive Vice President and
 General
Counsel

	
	/s/ Robert McCadden
	Robert McCadden

  

 - 19 -Amended and Restated Employment Agreement--Edward A. Glickman

 Exhibit 10.5 
 EMPLOYMENT AGREEMENT 
 (As Amended and Restated Effective as of December 31, 2008)

 TABLE OF CONTENTS 
  

					
	 ARTICLE I
	  	DEFINITIONS	  	1
			
	 1.1
	  	“Affiliate”	  	1
	 1.2
	  	“Base Salary”	  	1
	 1.3
	  	“Board”	  	2
	 1.4
	  	“Cause”	  	2
	 1.5
	  	“CEO”	  	2
	 1.6
	  	“Change in Control”	  	2
	 1.7
	  	“Code”	  	3
	 1.8
	  	“Committee”	  	3
	 1.9
	  	“Effective Date”	  	3
	 1.10
	  	“Exchange Act”	  	3
	 1.11
	  	“GAAP”	  	3
	 1.12
	  	“Good Reason”	  	3
	 1.13
	  	“Prior Employment Agreement”	  	4
	 1.14
	  	“Retirement Notice”	  	4
	 1.15
	  	“Shares”	  	4
			
	 ARTICLE II
	  	CAPACITY AND DUTIES	  	4
			
	 2.1
	  	Continued Employment; Acceptance of Continued Employment	  	4
	 2.2
	  	Capacity and Duties	  	4
			
	 ARTICLE III
	  	TERM OF EMPLOYMENT	  	5
			
	 3.1
	  	Term	  	5
			
	 ARTICLE IV
	  	COMPENSATION	  	5
			
	 4.1
	  	Base Salary	  	5
	 4.2
	  	Cash Incentive Compensation	  	6
	 4.3
	  	Benefits	  	6
	 4.4
	  	Vacation	  	6
	 4.5
	  	Expense Reimbursement	  	6
	 4.6
	  	Nonqualified Retirement Plan	  	6
			
	 ARTICLE V
	  	TERMINATION OF EMPLOYMENT	  	6
			
	 5.1
	  	Death of Executive	  	6
	 5.2
	  	Disability of Executive	  	7
	 5.3
	  	Termination for Cause	  	8
	 5.4
	  	Termination without Cause	  	9
	 5.5
	  	Voluntary Resignation	  	10
	 5.6
	  	Termination for Good Reason	  	11
	 5.7
	  	Termination in Connection with a Change in Control	  	12
	 5.8
	  	Rules to Effect Compliance with (or Exemption from) Section 409A of Code	  	14
	 5.9
	  	Section 409A Compliance	  	14

  

 - i - 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 5.10
	  	No Further Obligation	  	14
			
	 ARTICLE VI
	  	RESTRICTIVE COVENANTS	  	14
			
	 6.1
	  	Confidentiality	  	14
	 6.2
	  	Noncompetition	  	15
	 6.3
	  	Injunctive and Other Relief	  	15
			
	 ARTICLE VII
	  	MISCELLANEOUS	  	16
			
	 7.1
	  	Arbitration	  	16
	 7.2
	  	Prior Employment	  	16
	 7.3
	  	Solicitation of Employees	  	17
	 7.4
	  	Indemnification	  	17
	 7.5
	  	Severability	  	17
	 7.6
	  	Assignment	  	17
	 7.7
	  	Notices	  	17
	 7.8
	  	Entire Agreement and Modification	  	18
	 7.9
	  	Governing Law	  	19
	 7.10
	  	Headings; Counterparts	  	19
	 7.11
	  	Delegation	  	19
	 7.12
	  	Trust Assets	  	19
	 7.13
	  	Amendment	  	19
	 7.14
	  	General Creditor	  	19
			
	 Schedule 2.2(c) –
	  	Investment Properties	  	1
			
	 Schedule 4.3      –
	  	Benefits	  	1

  

 - ii - 

 EMPLOYMENT AGREEMENT 
 (As Amended and Restated Effective as of December 31, 2008) 
 This amended
and restated EMPLOYMENT AGREEMENT is between Pennsylvania Real Estate Investment Trust, a Pennsylvania business trust (the “Trust”), and Edward Glickman (“Executive”). 
 WHEREAS, the Trust desires to continue to employ Executive as Chief Financial Officer of the Trust, and Executive desires to continue to be so employed,
on the terms and conditions contained in this amended and restated Employment Agreement; 
 WHEREAS, except as described in the following
paragraph, the Trust and Executive desire to amend and restate Executive’s current Employment Agreement so that, among other things, its terms and conditions comply with (or are exempt from) the deferred compensation rules set forth in section
409A of the Internal Revenue Code and the final regulations issued thereunder; and 
 WHEREAS, the Trust and Executive desire to set forth
the terms and conditions of the dividend equivalency rights under the current Employment Agreement in a separate agreement because such rights (and earnings thereon) are not subject to section 409A, having been granted and having become vested
before January 1, 2005; 
 NOW THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein, and
intending to be legally bound hereby, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 For the purposes of this
Agreement, the following terms shall have the following meanings except where the context indicates otherwise: 
 1.1
“Affiliate” means any person or entity controlling, controlled by, or under common control with the Trust. “Control,” as used herein, means the power to direct the management and policies of a person or entity directly
or indirectly, whether through the ownership of voting securities, by contract, or otherwise; the terms “controlling” and “controlled” shall have correlative meanings. Further, any person or entity that owns beneficially, either
directly or through one or more intermediaries, more than 20 percent of the ownership interests in a specified entity shall be presumed to control such entity for purposes of this definition. 
 1.2 “Base Salary” shall mean Executive’s salary as determined under Section 4.1 hereof. 

 1.3 “Board” shall mean the Board of Trustees of the Trust. 
 1.4 “Cause” shall mean: 
 (a) fraud, theft, misappropriation or embezzlement of the assets or funds of the Trust or an Affiliate by Executive; 
 (b) indictment of Executive for a crime involving moral turpitude; 
 (c) breach of
Executive’s obligations under Section 6.1 or Section 6.2 hereof; 
 (d) failure of Executive to perform his
duties to the Trust, which persists for more than 20 calendar days after written notice to him of such failure or which recurs thereafter; or 
 (e) Executive’s repeated abuse of alcohol or other drugs. 
 1.5 “CEO” shall
mean the Chief Executive Officer of the Trust or a successor thereto. 
 1.6 “Change in Control” shall mean:

 (a) 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, (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 corporation controlled by the Trust, (iv) any acquisition by any corporation pursuant to a transaction which
complies with clauses (i), (ii) and (iii) of subsection (c) below, or (v) any acquisition by any Person entitled to file Form 13G under the Exchange Act with respect to such acquisition; or 
 (b) 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 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, as such terms are used in Rule 14a-1 promulgated under the Exchange Act) shall be, for purposes of this Plan, considered as though such person were a member of the Incumbent Board; or 
  

 - 2 - 

 (c) Approval by the shareholders of the Trust 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, unless, following such Business Combination, (i) 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, more than 60 percent of, respectively, the then outstanding shares of stock and the
combined voting power of the then outstanding voting securities entitled to vote generally in the election of trustees, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation
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 their ownership, immediately prior to such
Business Combination of the Outstanding Shares, (ii) no Person (excluding any employee benefit plan (or related trust) of the Trust or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 30
percent or more of, respectively, the then outstanding shares of stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that
such ownership existed prior to the Business Combination, and (iii) at least a majority of the members of the board of trustees or directors of the entity resulting from such Business Combination were 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 
 (d)
Approval by the shareholders of the Trust of a complete liquidation or dissolution of the Trust. 
 1.7 “Code” shall
mean the Internal Revenue Code of 1986, as amended. 
 1.8 “Committee” shall mean the Executive Compensation and
Human Resources Committee of the Board. 
 1.9 “Effective Date” shall mean December 31, 2008. 
 1.10 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 1.11 “GAAP” shall mean generally accepted United States accounting principles. 
 1.12 “Good Reason” shall mean: 
 (a) a material breach of the Trust’s obligations under this Agreement, provided that the Trust has not remedied such breach within 20 days after written notice to the Trust of such breach; 
  

 - 3 - 

 (b) the receipt by Executive of written notice from the Trust that the Trust elects not
to renew this Agreement under Section 3.1 hereof; 
 (c) Ronald Rubin ceases to be the CEO at any time; or 
 (d) following a Change in Control, the Trust or any successor thereto does not offer Executive an employment agreement for at least three
years that provides (i) the same title and responsibilities as Executive had immediately prior to the Change in Control, (ii) the same or greater compensation and benefits than Executive had immediately prior to the Change in Control, and
(iii) that Executive’s primary business office will continue to be located in the metropolitan Philadelphia area. 
 1.13
“Prior Employment Agreement” shall mean the amended and restated Employment Agreement, effective as of January 1, 1999, entered into between Executive and the Trust, as amended prior to the date hereof. 
 1.14 “Retirement Notice” shall mean notice by Ronald Rubin to the Board of his intention to cease his services as CEO as of a
date no fewer than 90 days from such notice. 
 1.15 “Shares” shall mean shares of beneficial interest in the Trust,
par value $1.00 per share. 
 ARTICLE II 
 CAPACITY AND DUTIES 
 2.1 Continued Employment; Acceptance of Continued Employment.
Commencing on the Effective Date, the Trust agrees to continue to employ Executive and Executive accepts continued employment by the Trust for the period and upon the terms and conditions hereinafter set forth. 
 2.2 Capacity and Duties 
 (a) Executive shall be employed by the Trust generally as its President and Chief Operating Officer and shall be a member of the Office of the Chair so long as there is more than one officer in the Office of the
Chair. As President and Chief Operating Officer, Executive shall, subject to the supervision and control of the CEO, have the duties and authority consistent with the duties and authorities of a President and Chief Operating Officer of a New York
Stock Exchange listed company and as may from time to time be specified by the CEO so long as such duties are consistent with his office. Executive shall report directly to the CEO in performing his duties hereunder. Executive shall also serve as
President and Chief Operating Officer of PREIT Associates, L.P. (“PALP”), of which the Trust is the general partner. 
  

 - 4 - 

 (b) Executive understands that substantially all of the assets of the Trust consists of
its general partner interest in PALP, and that the business operations of PALP and its direct and indirect subsidiaries constitute all of the business operations conducted by the Trust and its Affiliates. Accordingly, the Trust and Executive
understand that most of Executive’s time and energy will be expended on behalf of PALP and its direct and indirect subsidiaries in Executive’s capacity as an officer of PALP rather than as an officer of the Trust. 
 (c) Except as provided in subsection (d) below, Executive shall devote his full working time, energy, skill, and best efforts to the
performance of his duties hereunder and shall not be employed by, or participate or engage in, or be in any manner a part of the management or operation of any business enterprise or pursuit other than the Trust and its direct or indirect Affiliates
without the prior written consent of the Board, which consent may be granted or withheld in its sole discretion. 
 (d)
Executive may (1) continue his investments in the properties listed on Schedule 2.2(c) hereto and, subject to the provisions of Section 6.2 hereof, subsequent properties, provided that Executive’s activities with respect to such
subsequent properties comply with the procedures adopted by the Board governing Executive’s non-Trust-related real estate activities, and (2) subject to the provisions of Section 6.2 hereof, sit on the board of directors or similar
body of other organizations, including philanthropic organizations and organizations in which Executive has, directly or indirectly, made a venture capital investment, provided, in the case of both clause (1) and (2), that Executive’s
activities with respect to the foregoing do not, individually or in the aggregate, in any significant way interfere with, detract from, or affect the performance of his duties for the Trust under this Agreement. 
 ARTICLE III 
 TERM OF EMPLOYMENT 

 3.1 Term. The initial term of Executive’s employment hereunder shall expire on December 31, 2010. The term shall
thereafter automatically be renewed for additional two-year periods unless and until either party shall give notice, at least one year prior to the end of the then-current term, of his or its election to terminate Executive’s employment, in
each case unless Executive’s employment is earlier terminated as hereinafter provided. 
 ARTICLE IV 
 COMPENSATION 
 4.1 Base
Salary 
 (a) Initial Base Salary. As compensation for Executive’s services hereunder, the Trust shall pay
to Executive a Base Salary at the initial annual rate of $507,501, payable in accordance with the Trust’s regular payroll practices in effect from time to time during the term of Executive’s employment. 
 (b) Automatic Increase in Base Salary. Effective as of January 1 of each year during a term hereof, commencing with
January 1, 2009, Executive’s annual Base Salary shall be increased by $25,000 over his Base Salary as in effect for the preceding year or by such greater amount that the Trust shall determine. 
  

 - 5 - 

 4.2 Cash Incentive Compensation. Executive shall be entitled during his employment
hereunder to participate in such of the Trust’s cash incentive plans and programs as may from time to time be provided by the Trust for its executive officers, in each case as determined by the Committee or the Board, as appropriate.

 4.3 Benefits. In addition to the compensation provided for in Sections 4.1 and 4.2 hereof, Executive shall be entitled to
participate in the Trust’s benefit plans listed on Schedule 4.3 hereof at the Trust’s cost, subject to modifications to such plans (and to the manner in which the Trust pays the cost of such plans) as shall be generally applicable to
senior executives of the Trust. The Executive shall be reimbursed for any amounts Executive is required to pay under co-pay or deductible features of any medical coverage provided by the Trust. 
 4.4 Vacation. Executive shall be entitled to no fewer than 20 vacation days during each calendar year, during which time his compensation
shall be paid in full. 
 4.5 Expense Reimbursement. The Trust shall reimburse Executive for all reasonable expenses incurred
by him in connection with the performance of his duties hereunder in accordance with its regular reimbursement policies as in effect from time to time and upon receipt of itemized vouchers and such other supporting information therefor as the Trust
may reasonably require. 
 4.6 Nonqualified Retirement Plan. The Trust shall continue the nonqualified supplemental executive
retirement plan with Executive whereby the Trust credits a bookkeeping account maintained by the Trust for Executive with a deemed contribution of $25,000 per fiscal year. Such deemed contribution shall be credited as of the first day of each fiscal
year of the Trust and shall earn interest at the rate of 10 percent, compounded annually. Executive shall at all times be fully vested in such account and such account shall be paid to Executive in the manner and at the time(s) specified in such
plan. 
 ARTICLE V 
 TERMINATION OF EMPLOYMENT 
 5.1 Death of Executive. If Executive’s employment by the Trust is terminated
as a result of Executive’s death: 
 (a) the Trust shall pay to Executive’s estate all amounts accrued under this
Agreement on the date of Executive’s death in accordance with GAAP, as conclusively determined in the absence of manifest error by the auditors of the Trust; 
 (b) the Trust shall pay to Executive’s estate, within the 60-day period following his death, a lump sum equal to six months of
Executive’s then current Base Salary; 
  

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 (c) if the Trust achieves the performance goals established in accordance with any plan
or program referred to in Section 4.2 hereof for the year in which Executive dies, the Trust shall pay to Executive’s estate, within the period in the following year that begins January 1 and ends March 15, an amount equal to the
incentive bonus that Executive would have received under such plan or program had he been employed by the Trust for the full year, multiplied by a fraction the numerator of which is the number of calendar days Executive was employed by the Trust in
such year and the denominator of which is 365; 
 (d) all outstanding options granted to Executive pursuant to the Prior
Employment Agreement shall be exercisable in accordance with the terms thereof; all other outstanding options that were granted to Executive prior to the Effective Date (if any) and all options that are granted to Executive on or after the Effective
Date (if any) shall be exercisable in accordance with their terms; 
 (e) anything to the contrary in any other existing
agreement or plan notwithstanding, all restricted shares granted to Executive that (i) are subject to vesting solely based on the passage of time and Executive’s continued employment shall become immediately vested, and (ii) are
subject to vesting based upon the performance of the Trust (however measured) shall remain restricted shares under the terms of the applicable restricted share award agreement (the “Award”) and shall vest or be forfeited in whole or in
part under the terms of such Award as if Employee’s employment had not terminated; and 
 (f) the Trust shall continue to
provide at the Trust’s expense the benefits provided for in Section 4.3 hereof to Executive’s family members who are covered under such plans on the date of Executive’s death for a period of one year following the date of
Executive’s death; such continued benefits may be provided by (i) the family members’ continued participation in such plans (to the extent permitted under the terms of the plans), or (ii) the Trust’s purchase of an
individual insurance policy(ies) providing such benefits and covering the family members. 
 5.2 Disability of Executive. If
Executive, in the reasonable opinion of a physician selected by the Trust, has been unable, for any reason due to his physical, mental, or emotional illness or condition, to perform his duties hereunder for a period of 120 days within five
consecutive months, then the Trust shall have the right to terminate Executive’s employment upon 30 days’ prior written notice to Executive at any time during the continuation of such inability. If Executive’s employment is so
terminated, and subject to Section 5.8 hereof: 
 (a) the Trust shall pay to Executive all amounts accrued under this
Agreement on the date Executive’s employment is terminated in accordance with GAAP, as conclusively determined in the absence of manifest error by the auditors of the Trust; 
 (b) the Trust shall pay to Executive, within the 60-day period following his termination of employment, a lump sum equal to two times his
then current Base Salary, minus any disability payments reasonably projected to be received by Executive from other sources during the two years following his termination of employment. 
  

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 (c) if the Trust achieves the performance goals established in accordance with any plan
or program referred to in Section 4.2 hereof for the year in which Executive’s employment is terminated, the Trust shall pay to Executive, within the period in the following year that begins January 1 and ends March 15, an amount
equal to the incentive bonus that Executive would have received under such plan or program had his employment not been terminated, multiplied by a fraction the numerator of which is the number of calendar days Executive was employed by the Trust in
such year and the denominator of which is 365; 
 (d) all outstanding options granted to Executive pursuant to the Prior
Employment Agreement shall be exercisable in accordance with the terms thereof; all other outstanding options that were granted to Executive prior to the Effective Date (if any) and all options that are granted to Executive on or after the Effective
Date (if any) shall be exercisable in accordance with their terms; 
 (e) anything to the contrary in any other existing
agreement or document notwithstanding, all restricted Shares granted to Executive that (i) are subject to vesting solely based on the passage of time and Executive’s continued employment shall become immediately vested, and (ii) are
subject to vesting based upon the performance of the Trust (however measured) shall remain restricted shares under the terms of the applicable Award and shall vest or be forfeited in whole or in part under the terms of such Award as if
Employee’s employment had not terminated; and 
 (f) the Trust shall continue to provide at the Trust’s expense the
benefits provided for in Section 4.3 hereof to Executive and his family members who are covered under such plans on the date of Executive’s termination (other than the profit sharing/401(k) plan) for a period of one year following the date
of the termination of Executive’s employment; such continued benefits may be provided by (i) Executive’s and the family members’ continued participation in such plans (to the extent permitted under the terms of the plans), or
(ii) the Trust’s purchase of an individual insurance policy(ies) providing such benefits and covering Executive and the family members. 
 5.3 Termination for Cause. The Trust shall have the right to terminate Executive’s employment for Cause, and, if it does so, and subject to Section 5.8 hereof: 
 (a) the Trust shall pay to Executive all amounts accrued under this Agreement on the date Executive’s employment is terminated in
accordance with GAAP, as conclusively determined in the absence of manifest error by the auditors of the Trust; 
 (b) if the
Trust achieves the performance goals established in accordance with any cash incentive plan in which Executive participates for the year in which Executive’s employment is terminated, the Trust shall pay to Executive, within the period in the
following year that begins January 1 and ends March 15, an amount equal to the incentive bonus that Executive would have received had his employment not been terminated, multiplied by a fraction the numerator of which is the number of
calendar days Executive was employed by the Trust in such year and the denominator of which is 365; 
  

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 (c) Executive shall have three months to exercise all options granted to Executive
pursuant to the Prior Employment Agreement in accordance with the terms thereof; all other outstanding options that were granted to Executive prior to the Effective Date (if any) and all options that are granted to Executive on or after the
Effective Date (if any) shall be exercisable in accordance with their terms; 
 (d) all vested restricted Shares granted to
Executive shall be issued to Executive free and clear of any restriction, other than pursuant to applicable securities laws; and 
 (e) to the extent permitted under the terms of the Trust’s benefit plans, the Trust shall continue to provide the benefits provided for in Section 4.3 hereof to Executive and his family members who are covered under such plans on
the date of Executive’s termination (other than the profit sharing/401(k) plan) for a period of six months following the date of the termination of Executive’s employment; provided, however, that, to the extent permitted by law, the Trust
shall be entitled to charge Executive for the cost of providing such benefits. 
 5.4 Termination without Cause Subject to
Sections 5.7 and 5.8 hereof, if the Trust terminates Executive’s employment without Cause: 
 (a) the Trust shall pay to
Executive all amounts accrued under this Agreement on the date Executive’s employment is terminated in accordance with GAAP, as conclusively determined in the absence of manifest error by the auditors of the Trust; 
 (b) the Trust shall pay to Executive, within the 60-day period following his termination of employment, a lump sum amount equal to three
times his then current Base Salary; 
 (c) the Trust shall pay to Executive, within the 60-day period following his
termination of employment, a lump sum amount equal to three times the average of the bonuses paid to Executive under any plan or program referred to in Section 4.2 hereof during the three calendar years preceding the calendar year in which
Executive’s employment is terminated; 
 (d) all outstanding options granted to Executive pursuant to the Prior
Employment Agreement shall remain exercisable until the earlier of the expiration of the term of the option or 12 months after the termination of Executive’s employment; all other outstanding options that were granted to Executive prior to the
Effective Date (if any) and all options that are granted to Executive on or after the Effective Date (if any) shall be exercisable in accordance with their terms; 
 (e) all restricted Shares granted to Executive shall become vested and all restrictions on such Shares (other than pursuant to applicable
securities laws) shall end; and 
  

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 (f) to the extent permitted under the terms of the Trust’s benefit plans, the Trust
shall continue to provide at the Trust’s expense the benefits provided for in Section 4.3 hereof to Executive and his family members who are covered under such plans on the date of Executive’s termination (other than the profit
sharing/401(k) plan) for the balance of the term of Executive’s employment as in effect immediately prior to the termination of Executive’s employment, plus one year; such continued benefits may be provided by (i) Executive’s and
the family members’ continued participation in such plans (to the extent permitted under the terms of the plans), or (ii) the Trust’s purchase of an individual insurance policy(ies) providing such benefits and covering Executive and
the family members. 
 5.5 Voluntary Resignation. If Executive’s employment by the Trust is terminated as a result of
Executive’s voluntary resignation, and subject to Section 5.8 hereof: 
 (a) the Trust shall pay to Executive all
amounts accrued under this Agreement on the date Executive’s employment is terminated in accordance with GAAP, as conclusively determined in the absence of manifest error by the auditors of the Trust; 
 (b) if Executive has given the Trust at least six weeks advance written notice of his voluntary resignation and the Trust achieves the
performance goals established in accordance with any plan or program referred to in Section 4.2 hereof for the year in which Executive’s employment is terminated, the Trust shall pay to Executive, within the period in the following year
that begins January 1 and ends March 15, an amount equal to the incentive bonus that Executive would have received under such plan or program had his employment not been terminated, multiplied by a fraction the numerator of which is the
number of calendar days Executive was employed by the Trust in such year and the denominator of which is 365; 
 (c) Executive
shall have three months to exercise all options granted to Executive pursuant to the Prior Employment Agreement in accordance with the terms thereof; all other outstanding options that were granted to Executive prior to the Effective Date (if any)
and all options that are granted to Executive on or after the Effective Date (if any) shall be exercisable in accordance with their terms; 
 (d) all vested restricted Shares granted to Executive shall be issued to Executive free and clear of any restriction, other than pursuant to applicable securities laws; and 
 (e) to the extent permitted under the terms of the Trust’s benefit plans, the Trust shall continue to provide the benefits provided
for in Section 4.3 hereof to Executive and his family members who are covered under such plans on the date of Executive’s termination (other than the profit sharing/401(k) plan) for a period of six months following the date of the
termination of Executive’s employment; provided, however, that to the extent permitted by law the Trust shall be entitled to charge Executive for the cost of providing such benefits. 
  

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 5.6 Termination for Good Reason 
 (a) Executive shall have the right to terminate his employment by the Trust for Good Reason. Subject to Sections 5.6(b), 5.7 and 5.8
hereof, if Executive’s employment by the Trust is terminated within six months of any event or occurrence described in Section 1.12 hereof by Executive for Good Reason (solely as defined in subsections (a), (b) and (c) of
Section 1.12 hereof): 
 (1) the Trust shall pay to Executive all amounts accrued under this Agreement on the date
Executive’s employment is terminated in accordance with GAAP, as conclusively determined in the absence of manifest error by the auditors of the Trust; 
 (2) the Trust shall pay to Executive, within the 60-day period following his termination of employment, a lump sum amount equal to three
times his then current Base Salary; 
 (3) the Trust shall pay to Executive, within the 60-day period following his
termination of employment, a lump sum amount equal to three times the average of the bonuses paid to Executive under any plan or program referred to in Section 4.2 hereof during the three calendar years preceding the calendar year in which
Executive’s employment is terminated; 
 (4) all outstanding options granted to Executive pursuant to the Prior
Employment Agreement shall remain exercisable until the earlier of the expiration of the term of the option or 12 months after the termination of Executive’s employment; all other outstanding options that were granted to Executive prior to the
Effective Date (if any) and all options that are granted to Executive on or after the Effective Date (if any) shall be exercisable in accordance with their terms; 
 (5) all restricted Shares granted to Executive shall become vested and all restrictions on such Shares (other than pursuant to applicable
securities laws) shall end; and 
 (6) to the extent permitted under the terms of the Trust’s benefit plans, the Trust
shall continue to provide at the Trust’s expense the benefits provided for in Section 4.3 hereof to Executive and his family members who are covered under such plans on the date of Executive’s termination (other than the profit
sharing/401(k) plan) for the balance of the term of Executive’s employment as in effect immediately prior to the termination of Executive’s employment, plus one year; such continued benefits may be provided by (i) Executive’s and
the family members’ continued participation in such plans (to the extent permitted under the terms of the plans), or (ii) the Trust’s purchase of an individual insurance policy(ies) providing such benefits and covering Executive and
the family members. 
  

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 (b) Executive shall not be entitled to the payments, vesting and other entitlements set
forth in Section 5.6(a) above if Executive terminates his employment by the Trust solely by reason of Section 1.12(c) hereof, unless Executive terminates his employment during the applicable period set forth below: 
 (1) If Ronald Rubin ceases to serve as CEO in accordance with a Retirement Notice, the applicable period shall commence six months and end
twelve months after the first to occur of the following: (a) Ronald Rubin’s cessation of services as CEO, (b) the designation by the Board of Ronald Rubin’s successor and, if not then employed by the Trust, the commencement of
his employment, and (c) the first anniversary of the Retirement Notice; and 
 (2) If Ronald Rubin ceases to serve as CEO
other than in accordance with a Retirement Notice, the applicable period shall (a) begin on the earlier to occur of (i) the anniversary of the date that Ronald Rubin shall have ceased to serve as CEO and (ii) the date that is 180 days
after the permanent successor to Ronald Rubin shall have begun serving as CEO and (b) end 180 days after it has begun. 
 This subsection (b) shall not be construed to affect the entitlements of Executive under Section 5.7(b) hereof following a Change in Control, if applicable; nor shall it be construed to affect the entitlements of Executive under
Section 5.5 hereof, if applicable. 
 5.7 Termination in Connection with a Change in Control 
 (a) Upon a Change in Control (whether or not there shall be a termination of employment under clauses (i) or (ii) of
Section 5.7(b) below): 
 (1) all outstanding options granted to Executive pursuant to the Prior Employment Agreement
shall be exercisable in accordance with the terms thereof; all other outstanding options that were granted to Executive prior to the Effective Date (if any) and all options that are granted to Executive on or after the Effective Date (if any) shall
be exercisable in accordance with their terms; and 
 (2) all restricted Shares granted to Executive shall become vested.

 (b) If Executive’s employment by the Trust is terminated (i) by the Trust without Cause following a Change in
Control or within the one-year period preceding a Change in Control, or (ii) by Executive for Good Reason within six months following a Change in Control, subject to Section 5.8 hereof: 
 (1) Executive shall be entitled to receive the payments and other benefits provided under whichever of Sections 5.4 and 5.6 hereof shall
be applicable. In the event it is determined that any payment or distribution by the Trust or its Affiliates to or for the benefit of Executive (determined without regard to any additional payments required under this Section 5.7) is subject to
the excise tax imposed by section 4999 of the Code (the “Excise Tax”), then the amount of such payments or distributions shall be reduced to the extent necessary to avoid the imposition of any Excise Tax (first by any cash payments and
then, to the extent necessary, by any equity awards). 
  

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 In the alternative, and if Executive would receive a net after-tax benefit by doing so,
the Trust shall pay Executive an additional payment (the “Tax Reimbursement”) in an amount equal to one-half of the Excise Tax imposed upon the payments or distributions. The Tax Reimbursement shall not be grossed-up to cover income or
employment taxes assessed upon it. The Tax Reimbursement shall be paid to Executive on the later of (i) the first business day of the seventh calendar month after the calendar month of his termination of employment, or (ii) the date on
which Executive pays the taxes to which the Tax Reimbursement relates, but in any event not later than the end of the year following the year in which Executive pays the taxes to which the Tax Reimbursement relates. If the applicable date is
described in clause (i) in the preceding sentence, then the Trust shall pay the Tax Reimbursement on the date described in clause (ii) in the preceding sentence to the grantor trust described in Section 5.8(b) hereof, with
instructions to the trustee of the grantor trust to pay the Tax Reimbursement to Executive on the date described in such clause (i). 
 Executive shall notify the Trust in writing of any claim by the Internal Revenue Service that, if successful, might require the payment by the Trust of the Tax Reimbursement. Such notification shall be given as soon as practicable but no
later than 10 business days after Executive is informed in writing of such claim. The notification shall apprise the Trust of the nature of such claim and the date on which such claim is requested to be paid. Executive shall not pay such claim prior
to the expiration of the 30-day period following the date on which he gives such notice to the Trust (or such shorter period ending on the date that any payment of Excise Tax with respect to such claim is due). If the Trust notifies Executive in
writing prior to the expiration of such period that it desires to contest such claim, Executive shall: 
 (i) give the Trust
any information reasonably requested by the Trust relating to such claim; 
 (ii) take such action in connection with
contesting such claim as the Trust shall reasonably request from time to time, including, without limitation, accepting legal representation with respect to such claim by legal counsel selected by the Trust (who, without limitation, may regularly
provide legal services to the Trust); 
 (iii) cooperate with the Trust in good faith in order to contest effectively such
claim; and 
 (iv) permit the Trust to participate in any proceedings relating to such claim. 
 (2) Notwithstanding Sections 5.4 and 5.6 hereof, all options held by Executive shall remain exercisable until the earlier of the
expiration of the 10-year term of the option or 24 months after Executive’s termination of employment under this subsection (b). 
  

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 5.8 Rules to Effect Compliance with (or Exemption from) Section 409A of Code

 (a) Termination of Employment. Executive shall only have incurred a termination of employment from the Trust for
purposes of this Agreement if Executive has separated from service with all entities in the group of entities under common control with the Trust, within the meaning of sections 414(b) and 414(c) of the Code (using the phrase “at least 50
percent” rather than the phrase “at least 80 percent,” where applicable). The determination of whether Executive has had a termination of employment from the Trust shall be made by the Committee, applying the rules set forth in Treas.
Reg. §1.409A-1(h) and any amendment thereof or successor thereto. 
 (b) Required Delay for Some Payments.
Notwithstanding any payout schedule set forth in this Article V, if Executive is a “specified employee,” as defined in Treas. Reg. §1.409A-1(i) and any amendment thereof or successor thereto, on the date his termination of employment
from the Trust occurs, any payments due to him under Sections 5.2(b), 5.4(b), 5.4(c), 5.6(a)(2) and 5.6(a)(3) hereof, and the first sentence only of Section 5.7(b)(1) hereof during the first six months after his termination of employment will
not be paid to him during such first six months and will instead be paid to him on the first business day of the seventh calendar month following the calendar month of such termination of employment. Such payments shall instead be paid by the Trust
into a “grantor trust” on the date such amount would have been paid to Executive but for the six-month delay required by this subsection (b). Such grantor trust shall be established by the Trust under terms and conditions substantially the
same as the terms and conditions approved by the Internal Revenue Service in its Revenue Procedure 92-64, with instructions to the trustee of the grantor trust to make the delayed payment at the time set forth in this subsection (b), subject to such
terms and conditions. 
 5.9 Section 409A Compliance. This Agreement is intended to comply with the requirements of
section 409A of the Code and the final regulations issued thereunder and shall be construed and interpreted in accordance therewith in order to avoid the imposition of additional tax hereunder. 
 5.10 No Further Obligation. Upon all payments described in this Article V having been made to Executive, the Trust shall have no further
obligation to Executive hereunder. 
 ARTICLE VI 
 RESTRICTIVE COVENANTS 
 6.1 Confidentiality. Executive acknowledges a duty of
confidentiality owed to the Trust and shall not, directly or indirectly, at any time during or after his employment by the Trust, retain in writing, use, divulge, furnish, or make accessible to anyone, without the express authorization of the Board,
any trade secret, private or confidential information, or knowledge of the Trust or any of its Affiliates obtained or acquired by him while so employed by the Trust or any of its Affiliates or any predecessors or successors thereto. All computer
software, books, 

  

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records (excluding Executive’s personal financial records and papers relating to his compensation and benefits), files, and know-how generated or
acquired while an employee of the Trust or any of its Affiliates, are acknowledged to be the property of the Trust and shall not be duplicated, removed from the Trust’s possession or made use of other than in pursuit of the Trust’s or its
Affiliates’ businesses and, upon termination of employment for any reason, Executive shall deliver to the Trust, without further demand, all copies thereof which are then in his possession or under his control. The provisions of this
Section 6.1 shall not apply to information which (i) is or becomes generally available to the public or generally known in the real estate investment industry other than as a result of disclosure by Executive in breach of this
Section 6.1 or any other agreement with the Trust or any Affiliate, (ii) was available to Executive on a non-confidential basis prior to its disclosure to Executive, (iii) becomes available to Executive on a non-confidential basis
from a source other than the Trust or its Affiliates, or (iv) is required to be disclosed by law or by order of a court or governmental authority. 
 6.2 Noncompetition. During the term of Executive’s employment and for six months after termination of Executive’s employment for Cause (solely as defined in subsections (a), (b) and
(e) of Section 1.4 hereof), Executive shall not directly or indirectly (i) engage, anywhere within 25 miles of any property in which the Trust or an Affiliate has a direct or indirect ownership interest (the “Trust
Properties”) (A) in the acquisition or development of any apartment properties or shopping centers in competition with any apartment properties or shopping centers in which at any time during the term of Executive’s employment, the
Trust or an Affiliate thereof has a direct or indirect ownership interest; or (B) in the management or leasing of any property in competition with the Trust Properties or (ii) be or become a stockholder, partner, owner, officer, director,
employee or agent of, a consultant to, or give financial or other assistance to, any person or entity considering engaging in any such activities or so engaged; provided, however, that nothing herein shall prohibit Executive and his affiliates from
(A) owning, as passive investors, in the aggregate not more than two percent of the outstanding publicly traded stock of any corporation so engaged; or (B) acquiring, developing, managing, or leasing any properties not in competition with
the Trust or any Affiliate, subject to subsections (b) and (c) of Section 2.2 hereof. The duration of Executive’s covenants set forth in this Section 6.2 shall be extended by a period of time equal to the number of days, if
any, during which Executive is in violation of the provisions hereof. 
 6.3 Injunctive and Other Relief 
 (a) Executive acknowledges that the covenants contained in Sections 6.1, 6.2, and 7.3 hereof are fair and reasonable in light of the
consideration paid hereunder, and that damages alone shall not be an adequate remedy for any breach by Executive of his covenants contained herein. Accordingly, in addition to any other remedies that the Trust may have, the Trust shall be entitled
to injunctive relief in any court of competent jurisdiction for any breach or threatened breach of any such covenants by Executive. Nothing contained herein shall prevent or delay the Trust from seeking, in any court of competent jurisdiction,
specific performance or other equitable remedies in the event of any breach or intended breach by Executive of any of his obligations hereunder. 
  

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 (b) In addition to such equitable relief with respect to Sections 6.1, 6.2, and 7.3
hereof, the Trust shall be entitled to monetary damages for any breach in an amount deemed reasonable to cover all actual and consequential losses, plus all monies received by Executive as a result of said breach and all costs and attorneys’
fees incurred by the Trust in enforcing this Agreement, provided, however, that the Trust shall have no right to set off any such monetary damages against amounts owed by the Trust to Executive under this Agreement or any other agreement between the
parties. 
 ARTICLE VII 
 MISCELLANEOUS 
 7.1 Arbitration 
 (a) All disputes arising out of or relating to this Agreement that cannot be settled by the parties shall be settled by arbitration in
Philadelphia, Pennsylvania, pursuant to the rules and regulations then obtaining of the American Arbitration Association; provided, that nothing herein shall preclude the Trust from seeking, in any court of competent jurisdiction, damages, specific
performance, or other equitable remedies in the case of any breach or threatened breach by Executive of Section 6.1, Section 6.2, or Section 7.3 hereof. The decision of the arbitrators shall be final and binding upon the parties, and
judgment upon such decision may be entered in any court of competent jurisdiction. 
 (b) Discovery shall be allowed pursuant
to the intendment of the United States Federal Rules of Civil Procedure and as the arbitrators determine appropriate under the circumstances. 
 (c) The arbitration tribunal shall be formed of three arbitrators, one to be appointed by each party and the third to be appointed by the first two arbitrators. Such arbitrators shall be required to apply the
contractual provisions hereof in deciding any matter submitted to them and shall not have any authority, by reason of this Agreement or otherwise, to render a decision that is contrary to the mutual intent of the parties as set forth in this
Agreement. 
 (d) The cost of any arbitration proceeding hereunder shall be paid by the non-prevailing party. 
 7.2 Prior Employment. With the exception of the Prior Employment Agreement, Executive represents and warrants on the date hereof that he is
not a party to any other employment, non-competition, joint venture, partnership, or other agreement or restriction that could interfere with his employment with the Trust or his or the Trust’s rights and obligations hereunder; and that his
acceptance of continued employment with the Trust and the performance of his duties hereunder will not breach the provisions of any contract, agreement, or understanding to which he is party or any duty owed by him to any other person. Executive
warrants and covenants that he will not while an employee of the Trust hereafter become a party to or be bound by any such conflicting agreement. The Prior Employment Agreement is terminated as of the Effective Date, and Executive hereby releases
the Trust from any and all obligations, liabilities, or claims under such Agreement as of such date. 
  

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 7.3 Solicitation of Employees. During the term of Executive’s employment and for two
years thereafter, Executive shall not directly or indirectly solicit or contact any person who is employed by the Trust or any Affiliate with a view to the engagement or employment of such person by any person or entity or otherwise interfere with
the employment relationship of any employee of the Trust or of any Affiliate. 
 7.4 Indemnification. The Trust shall indemnify
and defend Executive against all claims arising out of Executive’s activities as an officer or employee of the Trust to the fullest extent permitted under the Trust’s Trust Agreement, provided that the Trust shall not indemnify Executive
for any claims in connection with liabilities arising under the “Contribution Agreement” (as defined in the Employment Agreement, dated as of July 30, 1997, entered into between Executive and the Trust) or any document contemplated in
the Contribution Agreement. In addition to the foregoing, Executive shall, upon reasonable notice, furnish such information and proper assistance to the Trust as may reasonably be required by the Trust in connection with any litigation in which it
or its Affiliates are, or may become, parties. 
 7.5 Severability. The invalidity or unenforceability of any particular
provision or part of any provision of this Agreement shall not affect the other provisions or parts hereof. If any provision hereof is determined to be invalid or unenforceable by a court of competent jurisdiction by reason of the duration or
geographical scope of the covenants contained therein, such duration or geographical scope, or both, shall be considered to be reduced to a duration or geographical scope to the extent necessary to cure such invalidity. 
 7.6 Assignment. This Agreement shall not be assignable by Executive, and shall be assignable by the Trust only to any person or entity
which may become a successor in interest (by purchase of assets or shares, or by merger, or otherwise) to the Trust in the business or a portion of the business presently operated by it or to an Affiliate. Subject to the foregoing, this Agreement
and the rights and obligations set forth herein shall inure to the benefit of, and be binding upon, the parties hereto and each of their respective permitted successors, assigns, heirs, executors and administrators. 
 7.7 Notices. All notices hereunder shall be in writing and shall be sufficiently given if hand-delivered, sent by documented overnight
delivery service or registered or certified mail, postage prepaid, return receipt requested, or by telegram, fax, or telecopy (confirmed by U.S. mail), receipt acknowledged, addressed as set forth below or to such other person and/or at such other
address as may be furnished in writing by any party hereto to the other. Any such notice shall be deemed to have been given as of the date received, in the case of personal delivery, or on the date shown on the receipt or confirmation therefor, in
all other cases. Any and all service of process and any other notice in any action, suit, or proceeding shall be effective against any party if given as provided in this Agreement; provided that nothing herein shall be deemed to affect the right of
any party to serve process in any other manner permitted by law. 
  

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 (a) If to the Trust: 
 Pennsylvania Real Estate Investment Trust 
 200 South Broad Street, Third Floor 
 Philadelphia, PA 19102 
 Tel:
(215) 875-0700 
 Fax: (215) 547-7311 
 Attention: Executive Compensation and Human Resources 
           Committee of the Board of Trustees 
 With a copy to: 
 Drinker Biddle & Reath LLP 
 One
Logan Square 
 18th & Cherry Streets 
 Philadelphia, PA 19103 
 Tel: (215) 988-2794 
 Fax:
(215) 988-2757 
 Attention: Howard A. Blum, Esquire 
 (b) If to Executive: 
 Edward Glickman 
 280 Melrose Avenue 
 Merion, PA 19066

 With a copy to: 
 Eckert
Seamans Cherin & Mellott, LLC 
 Two Liberty Place 
 50 South 16th Street 
 Philadelphia, PA 19102 
 Tel: (215) 851-8422 
 Fax:
(215) 851-8383 
 Attention: Stephen M. Foxman, Esquire 
 7.8 Entire Agreement and Modification. This Agreement constitutes the entire agreement between the parties hereto with respect to the matters contemplated herein and supersedes all prior agreements and
understandings with respect thereto, including but not limited to the Prior Employment Agreement, as of the Effective Date. Neither the failure nor any delay on the part of any party to exercise any right, remedy, power, or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power, or privilege preclude any other or further exercise of the same or of any other right, remedy, power, or privilege with respect to any occurrence or
be construed as a waiver of any right, remedy, power, or privilege with respect to any other occurrence. 
  

 - 18 - 

 7.9 Governing Law. This Agreement is made pursuant to, and shall be construed and enforced
in accordance with, the internal laws of the Commonwealth of Pennsylvania (and United States federal law, to the extent applicable), without giving effect to otherwise applicable principles of conflicts of law. 
 7.10 Headings; Counterparts. The headings of Sections and subsections in this Agreement are for convenience only and shall not affect its
interpretation. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which, when taken together, shall be deemed to constitute but one and the same Agreement. 
 7.11 Delegation. Any action hereunder that may be taken or directed by the Board may be delegated by the Board to the Committee or to an
individual trustee or officer, and the determination of the Committee or individual shall have the same effect hereunder as a determination of the Board. 
 7.12 Trust Assets. Executive acknowledges that no trustee, officer, or shareholder of the Trust is liable to Executive in respect of the payments or other matters set forth herein. 
 7.13 Amendment. No provision of this Agreement may be amended, modified, or waived except in a writing signed by Executive and such officer
as may be specifically designated by the Trust to sign on its behalf. 
 7.14 General Creditor. Nothing contained herein shall
create or require the Trust to create a trust of any kind to fund any benefits which may be payable hereunder, and to the extent that Executive acquires a right to receive benefits from the Trust hereunder, such right shall be no greater than the
right of any unsecured general creditor of the Trust. 
  

 - 19 - 

 IN WITNESS WHEREOF, the parties have executed this Agreement on this 23rd day of December, 2008.

  

			
	 PENNSYLVANIA REAL ESTATE
 INVESTMENT TRUST

		
	By:	 	/s/ Bruce Goldman
	Name:	 	Bruce Goldman
	Title:	 	 Executive Vice President and
 General
Counsel

  

	
	/s/ Edward Glickman
	Edward Glickman

  

 - 20 - 

 Schedule 2.2(c) to Amended and Restated Employment Agreement 
 for Edward Glickman 
  

	1.	Delaware Avenue 

  

	2.	Sports World/Stadium Complex 

 Schedule 4.3 to Amended and Restated Employment Agreement 
 for Edward Glickman 
  

	1.	Personal Choice health plan for Executive and family or equivalent plan 

  

	2.	Prescription drug benefit through Flexible Benefits Plan 

  

	3.	CIGNA dental insurance for Executive and family or equivalent plan 

  

	4.	$700,000 in own life insurance; $200,000 for his spouse; $10,000 for each child 

  

	5.	$700,000 in AD&D insurance for Executive and family 

  

	6.	Executive LTD plan for 66-2/3% of monthly earnings up to $15,000 per month of equivalent plan 

  

	7.	Transportation benefit (parking) 

  

	8.	401(k) Plan. Executive contribution of 1 to 15% of salary matched 100% by Trust up to the first 3% and matched 50% up to the next 2% 

  

	9.	Business travel accident insurance 

  

	10.	Vision care plan 

  

	11.	Flexible spending accounts – medical, dependent, travel 

  

	12.	Employee assistance program 

  

	13.	Sick and personal days – per Trust guidelines

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