Document:

2008-2010 Restricted Share Unit Program

 Exhibit 10.2 
 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 
 2008-2010 RESTRICTED SHARE UNIT PROGRAM 
 (Established under the Pennsylvania Real Estate 
 Investment Trust 2003 Equity Incentive Plan) 

 TABLE OF CONTENTS 
  

					
		  		  	Page
	 1. PURPOSES
	  	1
	 2. DEFINITIONS
	  	1
	 3. AWARD AGREEMENT
	  	4
	 4. PERFORMANCE GOAL; DELIVERY OF SHARES
	  	4
	 5. BENEFICIARY DESIGNATION
	  	7
	 6. DELIVERY TO GUARDIAN
	  	7
	 7. SOURCE OF SHARES
	  	7
	 8. CAPITAL ADJUSTMENTS
	  	8
	 9. TAX WITHHOLDING
	  	8
	 10. ADMINISTRATION
	  	8
	 11. AMENDMENT AND TERMINATION
	  	8
	 12. HEADINGS
	  	8
	 13. INCORPORATION OF PLAN BY REFERENCE
	  	8
		
	 APPENDIX A
	  	1
		
	 APPENDIX B
	  	1
		
	 APPENDIX C
	  	1

 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 
 2008-2010 RESTRICTED SHARE UNIT PROGRAM 
 (Established under the Pennsylvania Real
Estate 
 Investment Trust 2003 Equity Incentive Plan) 
 PREAMBLE 
 WHEREAS, Pennsylvania Real Estate Investment Trust (the “Trust”)
established, and its shareholders approved, the Pennsylvania Real Estate Investment Trust 2003 Equity Incentive Plan (the “Plan”), primarily in order to award equity-based benefits to certain officers and other key employees of the Trust
and its “Related Corporations” and “Subsidiary Entities” (both as defined in the Plan); 
 WHEREAS, one kind of an
equity-based benefit that can be awarded under the Plan is a “Performance Share,” defined in the Plan as “an Award that entitles the recipient to receive Shares, without payment, following the attainment of designated individual or
Corporate Performance Goals”; 
 WHEREAS, the Trust’s Executive Compensation and Human Resources Committee (the
“Committee”) is responsible for the administration of the Plan and may, pursuant to the powers granted to it thereunder, adopt rules and regulations for the administration of the Plan and determine the terms and conditions of each award
granted thereunder; 
 WHEREAS, the Committee desires to establish a program for the 2008 through 2010 period under the Plan for the
benefit of certain officers of the Trust and PREIT Services, LLC (one of the Trust’s Subsidiary Entities) whereby such officers would receive Performance Shares under the Plan, based on the extent to which the Trust attains the corporate goal
set forth in the program; and 
 WHEREAS, the Committee established in writing the objective performance goals for use under the
program, within the meaning of Treas. Reg. §1.162-27(e)(2)(i), in its February 20, 2008 meeting; 
 NOW, THEREFORE,
effective as of January 1, 2008, the Pennsylvania Real Estate Investment Trust 2008-2010 Restricted Share Unit Program is hereby adopted (under the Plan) by the Committee, with the following terms and conditions: 
 1. Purposes. The purposes of the Program are to motivate certain officers of the Employer to reach and exceed challenging goals for the Trust of
profitability and growth, and to focus the attention of the eligible officers on a critical financial indicator used to measure the success of the Trust and of other companies in the same business as the Trust. 
 2. Definitions 
 (a)
“Award” means an award of Restricted Share Units to a Participant. 

 (b) “Award Agreement” means a written document evidencing the grant to a Participant of
an Award, as described in Section 10.1 of the Plan. 
 (c) “Base Units” means the number of Restricted Share Units set
forth in the Award Agreement (increased by any additional Restricted Share Units “purchased” pursuant to Section 4(e) hereof) by which the number of Shares that may be delivered to a Participant is measured. 
 (d) “Board” means the Board of Trustees of the Trust. 
 (e) “Business Combination” means “Business Combination” as such term is defined in the definition of “Change in Control.” 
 (f) “Cause” means “Cause” as such term is defined in a Participant’s Employment Agreement or, if the Participant is not a
party to an Employment Agreement, then (solely for purposes of this Program) as set forth below – 
 (1) Fraud in connection with the
Participant’s employment; theft, misappropriation or embezzlement of funds of the Trust or its affiliates; or a willful violation of the provisions of the Trust’s Code of Business Conduct with respect to the purchase or sale of securities
of the Trust; 
 (2) Indictment of the Participant for a crime involving moral turpitude; 
 (3) Failure of the Participant to perform his or her duties to the Employer (other than on account of illness, accident, vacation or leave of absence)
that persists – after written demand for substantial performance which specifically identifies the manner in which the Participant has failed to perform – for more than 30 calendar days after such notice to him or her; or 
 (4) The Participant’s repeated abuse of alcohol or drugs. 
 (g) “Change in Control” means “Change in Control” as such term is defined in a Participant’s Employment Agreement or, if the Participant is not a party to an Employment Agreement, then
as defined in the Plan. 
 (h) “Code” means the Internal Revenue Code of 1986, as amended. 
 (i) “Committee” means the Executive Compensation and Human Resources Committee of the Board, which Committee has developed the Program
and has the responsibility to administer the Program under Section 3 of the Plan and Section 10 hereof. 
 (j) “Corporate
Goal” means the specific performance goal, set forth in Section 4(a) hereof, which must be achieved in order for a Participant to receive Shares under an Award. 
 (k) “DER” means “DER” (dividend equivalent right) as such term is defined in the Plan. 
  

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 (l) “Disability Termination” means the termination of a Participant’s employment
under the disability provisions of the Participant’s Employment Agreement or, if the Participant is not a party to an Employment Agreement, then as a result of a “Disability” as defined in the Plan. 
 (m) “Effective Date” means January 1, 2008. 
 (n) “Employer” means, collectively and individually (as applicable), the Trust and Services, and any other “Related Corporation” or “Subsidiary Entity” (both as defined in the
Plan) that becomes an Employer under the Plan with the consent of the Trust. 
 (o) “Employment Agreement” means the written
agreement entered into by a Participant and an Employer (if any) setting forth the terms and conditions of the Participant’s employment, as amended at any applicable time. 
 (p) “Good Reason” means “Good Reason” as such term is defined in a Participant’s Employment Agreement or, if the
Participant is not a party to an Employment Agreement, then the relocation of the Participant’s principal business office outside the metropolitan Philadelphia area without the consent of the Participant. 
 (q) “Measurement Period” means the period beginning on the Effective Date and ending on the earlier of December 31, 2010 or the
date of a Change in Control (provided that, if the Change in Control arises from a Business Combination, the Measurement Period shall end on the date of the closing or effectiveness of the Business Combination, as applicable). 
 (r) “Participant” means each individual who has received an Award under the Program. 
 (s) “Plan” means the Pennsylvania Real Estate Investment Trust 2003 Equity Incentive Plan, as it may be amended from time to time.

 (t) “Program” means the Pennsylvania Real Estate Investment Trust 2008-2010 Restricted Share Unit Program (established
under the Plan), as it may be amended from time to time. 
 (u) “Restricted Share Unit” or “RSU” means an
Award of a “Performance Share,” as such term is defined in the Plan. 
 (v) “Services” means PREIT Services, LLC,
a Delaware limited liability company. 
 (w) “Shares” means “Shares” as such term is defined in the Plan.

 (x) “Subsidiary Entity” means “Subsidiary Entity” as defined in the Plan. 
 (y) “Trust” means Pennsylvania Real Estate Investment Trust, a Pennsylvania business trust. 
 (z) “Trustee” means a member of the Board. 
  

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 3. Award Agreement. Each Participant shall be issued an Award Agreement setting forth the initial
number of Base Units awarded to the Participant and entitling the Participant to receive the number of Shares determined under Section 4 hereof based on the extent to which the Corporate Goal is achieved. Such Base Units shall be subject to the
adjustments described in Section 8 hereof. Each Award Agreement and the Shares which may be delivered thereunder are subject to the terms of this Program and the terms of the Plan. 
 4. Performance Goal; Delivery of Shares 
 (a) If, for the Measurement Period, the Trust’s performance, based on its “TRS” (as defined below), equals or exceeds the “Threshold” (as defined below), then the Trust shall deliver to each Participant the number
of Shares (rounded down to the nearest whole number of Shares) determined by first multiplying the whole percentile (expressed as a percentage equal to the percentile rounded up for fractions of one-half or greater) at which the Trust’s TRS for
the Measurement Period places the Trust among the component members of the “MSCI US REIT Index” (as defined below) for the Measurement Period, each ranked pursuant to such TRS, by two, and then multiplying that product by the
Participant’s Base Units; provided, however, that the number of Shares that may be delivered shall not exceed 150% of the Participant’s Base Units. Shares will be delivered under the Program to the extent that Shares remain available under
the Plan. If the total number of Shares to be delivered exceeds the number of Shares available under the Plan, then the number of Shares for each Participant will be reduced on a pro rata basis based on each individual Participant’s Base Units
as compared to the total of all Participants’ Base Units. If, for the Measurement Period, the Trust’s performance, based on its TRS, does not equal or exceed the Threshold, the Trust shall not deliver any Shares to the Participants. Also,
except as provided in subsection (c) below, a Participant must be employed by an Employer on the last day of the Measurement Period in order to receive any Shares under this Program. See Appendix A attached hereto for examples illustrating the
operation of this Section. 
 (b) Definitions for this Section. The following terms shall be defined as set forth below: 

(1) “MSCI US REIT Index” means the MSCI US REIT Index’s gross index (as it may be renamed from time to time) or, in the event
such index shall cease to be published, such other index as the Committee shall determine to be comparable thereto. 
 (2) “Share
Value” means, as applicable and except as provided in the following sentence, the average of the closing prices of one Share on the New York Stock Exchange (the “NYSE”) (or, if not then listed on the NYSE, on the principal market
or quotation system on which then traded) for (i) the 20 days on which Shares were traded prior to the Effective Date (for the value of a Share on the Effective Date); (ii) the 20 days on which Shares were traded prior to and including the
last day of the Measurement Period (for the value of a Share on the last day of the Measurement Period); or (iii) the 20 days on which the Shares were traded prior to and including the applicable dividend payment date (for the
“purchase” of additional RSUs under subsection (e) below). In the event of a Business Combination approved by the shareholders of the Trust on or prior to December 31, 2010, Share Value shall mean the final price per Share agreed
upon by the parties to the Business Combination. 
  

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 (3) “Threshold” means that, for
the Measurement Period, the Trust’s TRS places the Trust at least at the 25th percentile among the component members (including the Trust) of
the MSCI US REIT Index at the end of the Measurement Period (ranked based upon each such member’s TRS for the Measurement Period). 
 (4) “TRS” means total return to shareholders for the Measurement Period for the Trust and for the other component members of the MSCI US REIT Index (i.e., those component members used for purposes of compiling the MSCI US
REIT Index as of the first day of the Measurement Period and that remain publicly held companies as of the last day of the Measurement Period, whether or not they are still included in the MSCI US REIT Index on such last day). 
 (c) Termination of Employment. Upon a Participant’s termination of employment on or prior to the last day of the Measurement Period, the
following shall occur: 
 (1) Termination without Cause, for Good Reason, or on Account of Disability or Death. If, on or prior to the
last day of the Measurement Period, (i) the Participant terminates his or her employment with the Employer for Good Reason, (ii) the Employer terminates the Participant’s employment for reasons other than for Cause, (iii) the
Participant incurs a Disability Termination, or (iv) the Participant dies, the Participant (or the Participant’s beneficiary(ies), if applicable) shall be eligible to receive Shares under the Program (or not) as though the Participant had
remained employed by the Employer through the end of the Measurement Period. 
 (2) Termination for Any Other Reason. If, on or prior
to the last day of the Measurement Period, the Participant’s employment with the Employer terminates for any reason other than a reason described in paragraph (1) above, the Participant shall forfeit all of the Base Units (and all of the
Shares that may have become deliverable with respect to such Base Units) subject to the RSUs the Participant was granted under the Program. 
 (d) Determination of Performance; Share Delivery. Within 30 days after the end of the Measurement Period, the Committee shall provide each Participant with a written determination of whether the Trust did or did not attain the
Corporate Goal for the Measurement Period (and, if applicable, the extent to which the Corporate Goal was attained) and the calculations used to make such determination. If Shares are to be delivered under the Program, they shall be delivered to
Participants on March 1, 2011 (unless a Participant elects otherwise pursuant to subsection (f) below) or, if a Change in Control occurs before January 1, 2011, on the fifth day after the last day of the Measurement Period ending on
(or, if applicable, after) the Change in Control. 
 (e) DERs. Participants shall be awarded DERs with respect to their initial number
of Base Units. Each DER will be expressed as a specific dollar amount (the “Dollar Amount”) equal to the dollar amount of the dividend paid on an actual Share on a specific date (the “Dividend Date”) multiplied by the
Participant’s initial number of Base Units. Until the end of the Measurement Period, the Committee will apply the Dollar Amount to “purchase” a number of additional RSUs equal to the Dollar Amount divided by the Share Value. The
delivery of Shares under such additional RSUs shall also be subject to the attainment of the Corporate Goal set forth in subsection (a) above. DERs shall also be awarded on such additional 

  

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RSUs and applied in the same manner (thereby increasing the Participant’s Base Units on a cumulative basis). RSUs deemed purchased with DERs hereunder
may be whole or fractional units. 
 Participants who make a deferral election under subsection (f) below shall also be awarded DERs
under the Plan with respect to their deferred Shares. Each such DER will be expressed as a Dollar Amount equal to the dollar amount of the dividend paid on an actual Share on a Dividend Date during the deferral period multiplied by the number of
Shares still deferred by the Participant as of the Dividend Date. The Committee will apply the Dollar Amount to “purchase” notional shares (on which DERs thereafter will also be awarded and applied in the same manner) at the closing price
of a Share on the Dividend Date. Notional shares deemed purchased with DERs hereunder may be whole or fractional shares. DERs expressed as a Dollar Amount will continue to be applied to “purchase” notional shares on Dividend Dates until
all of the Participant’s deferred Shares are delivered to the Participant (or to his or her beneficiary(ies), if applicable), as elected in his or her deferral election agreement. A Participant’s notional shares “purchased” with
DERs awarded with respect to his or her deferred Shares shall be 100% vested at all times. 
 The Trust shall establish a bookkeeping account
(the “DER Account”) for each such Participant and credit to such account the number of whole and fractional additional RSUs and notional shares deemed purchased with the Dollar Amounts. The Participant’s additional RSUs and notional
shares shall be subject to the adjustments described in Section 8 hereof. All whole additional RSUs (for which Shares become deliverable under this Section) and whole notional shares credited to a Participant’s DER Account shall be
replaced by issued Shares on a one-to-one basis on the delivery date referred to in subsection (d) above, and the fractional additional RSUs (for which Shares become deliverable under this Section) and fractional notional shares credited to a
Participant’s DER Account shall be aggregated and replaced by issued Shares (and with cash in lieu of a fractional Share) based on the closing price of a Share on the replacement date, and delivered to the Participant (or to his or her
beneficiary(ies), if applicable) on the date the associated Shares are delivered to the Participant. 
 (f) Elective Deferrals. Except in the event of delivery on account of a Change in Control, if Shares are to be delivered under the Program, a Participant may elect to defer delivery (and the Trust shall defer
issuance) of all or a portion of the Shares until, as specified in the Participant’s deferral election agreement, (i) the Participant’s separation from service from the Trust’s controlled group of entities and/or (ii) a date
chosen by the Participant. The Participant may also elect in the deferral election agreement to receive Shares upon the occurrence of an “unforeseeable emergency,” as defined in section 409A(a)(2)(B)(ii) of the Code, to the extent not
prohibited by that section of the Code and regulations issued thereunder. If a Change in Control or the Participant’s death occurs during the deferral period, the Participant’s Shares (and cash attributable to DERs) shall be delivered in a
single sum to the Participant or to the Participant’s beneficiary(ies) (as applicable) on the 30th day after the Change in Control (provided
that, if the Change in Control arises from a Business Combination, the Change in Control shall be deemed to occur on the date of the closing or effectiveness of the Business Combination, as applicable) or the Participant’s death (as
applicable). 
 A Participant’s deferral election agreement must be submitted to the Committee no later than June 30, 2010 in order
to be effective; otherwise, Shares (and cash attributable to DERs) 

  

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deliverable to the Participant, if any, will be delivered on March 1, 2011. Unless the delivery of deferred Shares is occasioned by either of the events
described in the last sentence of the preceding paragraph, if deferred Shares are to be delivered to a Participant who is a “specified employee,” as defined in section 409A(a)(2)(B)(i) of the Code, upon his or her separation from service
from the Trust’s controlled group of entities, the Trust shall issue and deliver such deferred Shares (and cash attributable to DERs) on the date that is six months after the date of his or her separation from service. A deferral election
agreement shall be substantially in the form set forth in Appendix B attached hereto. 
 The Committee shall administer the delivery of
Shares (and cash attributable to DERs) under an election made pursuant to this subsection (f) and the underlying deferral election agreement in accordance with section 409A of the Code and regulations and other guidance issued thereunder.

 5. Beneficiary Designation 
 (a) Each Participant shall designate the person(s) as the beneficiary(ies) to whom the Participant’s Shares shall be delivered in the event of the Participant’s death prior to the delivery of the Shares to him or her. Each
beneficiary designation shall be substantially in the form set forth in Appendix C attached hereto and shall be effective only when filed with the Committee during the Participant’s lifetime. 
 (b) Any beneficiary designation may be changed by a Participant without the consent of any previously designated beneficiary or any other person by the
filing of a new beneficiary designation with the Committee. The filing of a new beneficiary designation shall cancel all beneficiary designations previously filed. 
 (c) If any Participant fails to designate a beneficiary in the manner provided above, or if the beneficiary designated by a Participant predeceases the Participant, the Committee shall direct such Participant’s
Shares to be delivered to the Participant’s surviving spouse or, if the Participant has no surviving spouse, then to the Participant’s estate. 
 6. Delivery to Guardian. If Shares are issuable under this Program to a minor, a person declared incompetent, or a person incapable of handling the disposition of property, the Committee may direct the delivery
of the Shares to the guardian, legal representative, or person having the care and custody of the minor, incompetent or incapable person. The Committee may require proof of incompetence, minority, incapacity or guardianship as the Committee may deem
appropriate prior to the delivery. The delivery shall completely discharge the Committee, the Trustees and the Employer from all liability with respect to the Shares delivered. 
 7. Source of Shares. This Program shall be unfunded, and the delivery of Shares shall be pursuant to the Plan. Each Participant and beneficiary
shall be a general and unsecured creditor of the Employer to the extent of the Shares determined hereunder, and the Participant shall have no right, title or interest in any specific asset that the Employer may set aside, earmark or identify as
reserved for the delivery of Shares under the Program. The Employer’s obligation under the Program shall be merely that of an unfunded and unsecured promise to deliver Shares in the future, provided the Corporate Goal is met. 
  

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 8. Capital Adjustments. Calculations required under the Program, the number of Base Units awarded
under the Program, and the number of Shares that may be delivered under the Program shall be adjusted to reflect any increase or decrease in the number of issued Shares resulting from a subdivision (share-split), consolidation (reverse split), share
dividend, or other change in the capitalization of the Trust during the Measurement Period. 
 9. Tax Withholding. The delivery of
Shares (and cash, if applicable) to a Participant or beneficiary under this Program shall be subject to applicable tax withholding pursuant to Section 10.6 of the Plan. 
 10. Administration. This Program shall be administered by the Committee pursuant to the powers granted to it in Section 3 of the Plan.

 11. Amendment and Termination. The Committee reserves the right to amend the Program, by written resolution, at any time and from
time to time in any fashion, provided any such amendment does not conflict with the terms of the Plan, and to terminate it at will. However, no amendment or termination of the Program shall adversely affect any Award Agreement already issued under
the Program without the written consent of the affected Participant(s). 
 12. Headings. The headings of the Sections and subsections
of the Program are for reference only. In the event of a conflict between a heading and the content of a Section or subsection, the content of the Section or subsection shall control. 
 13. Incorporation of Plan by Reference. Because the Program is established under the Plan in order to provide for, and determine the terms and
conditions of, the granting of certain Awards thereunder, the terms and conditions of the Plan are hereby incorporated by reference and made a part of this Program. If any terms of the Program conflict with the terms of the Plan, the terms of the
Plan shall control. 
  

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 APPENDIX A 
 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 
 2008-2010 RESTRICTED SHARE UNIT PROGRAM 
 (Established under the Pennsylvania Real Estate 
 Investment Trust 2003 Equity Incentive Plan) 
 EXAMPLES* 
 Example 1. Full Measurement Period 
 A is a participant in the Pennsylvania Real Estate Investment Trust 2008-2010 Restricted Share Unit Program (the “Program”). The price of a beneficial interest
(a “Share”) in the “Trust” (as defined in the Program) on January 1, 2008 is $30, and the price of a Share on December 31, 2010 is $50. For the three-year period beginning January 1, 2008 and ending
December 31, 2010 (the “Measurement Period”), dividends total $9 per Share (and are paid in an equal amount on a quarterly basis – i.e., $.75 dividend per Share per quarter). 
 Total return to shareholders (“TRS”) on one Share (expressed as a percentage) for the Trust over the Measurement Period, as calculated by the Trust or by a
third party selected by the “Committee” (as defined in the Program), is the following: 
  

				
	 12/31/10 Value of One Share
	  	$50	 
	 + Dividends over Measurement Period on One Share
	  	+9	 
		  	 	 
		  	$59	 
	 Divided by 1/1/08 Value of One Share
	  	/30	 
		  	 	 
		  	1.967	 
		
	 TRS
	  	96.7	%

 Participant A receives a Restricted Share Unit award for 250 “Base Units” (as defined in the Program).
Participant A also receives “DERs” (as defined in the Program) on his Base Units, such that his total number of Base Units on December 31, 2010 is 315.9, calculated as follows: 
  
  

	*	The examples set forth in this Appendix A are illustrative only and are not intended to be precise or definitive. For example, they do not show the full
calculation of “TRS” (as defined below) because, for ease of explanation, the calculation does not reflect that each cash dividend paid during the “Measurement Period” (as defined below) is deemed to be reinvested in a fractional
notional share of the “Trust” (as defined below). When actually calculating TRS, each cash dividend will generally be deemed to be reinvested in a fractional notional share. There may be other immaterial differences between the way
calculations are performed in these examples and the way the Trust or a third party engaged by the “Committee” (as defined below) would perform the calculations. 

											
	 Date
	  	Aggregate
Base Units	  	Deemed
Dividend	  	20- Day Average
Share Price	  	Additional
RSUs
“Purchased”
	 1/1/08
	  	250   	  	 	—  	  	 	—  	  	—  
	 3/15/08
	  	250   	  	$	187.50	  	$	32	  	5.9
	 6/15/08
	  	255.9	  	$	191.93	  	$	34	  	5.6
	 9/15/08
	  	261.5	  	$	196.13	  	$	34	  	5.8
	 12/15/08
	  	267.3	  	$	200.48	  	$	36	  	5.6
	 3/15/09
	  	272.9	  	$	204.68	  	$	38	  	5.4
	 6/15/09
	  	278.3	  	$	208.73	  	$	38	  	5.5
	 9/15/09
	  	283.8	  	$	212.85	  	$	36	  	5.9
	 12/15/09
	  	289.7	  	$	217.28	  	$	40	  	5.4
	 3/15/10
	  	295.1	  	$	221.33	  	$	42	  	5.3
	 6/15/10
	  	300.4	  	$	225.30	  	$	44	  	5.1
	 9/15/10
	  	305.5	  	$	229.13	  	$	44	  	5.2
	 12/15/10
	  	310.7	  	$	233.03	  	$	45	  	5.2
	 12/31/10
	  	315.9	  	 	—  	  	 	—  	  	—  

 If, as of December 31, 2010, the Trust’s TRS places the Trust at the percentiles listed below among the
component members of the “MSCI US REIT Index” (as defined in the Program) (the “Index”), ranked pursuant to each member’s TRS over the Measurement Period, as calculated by the Trust or by a third party selected by the
Committee, Participant A would receive the following number of Shares (with fractional Shares settled in cash): 
  

					
	 Percentile
	 	 Percent of
 Base Units
 Deliverable in Shares
	 	 Shares

	 Below 25th
	 	0%	 	0
	 25th
	 	50%	 	157 (plus cash for 1.0 Share)
	 40th
	 	80%	 	252 (plus cash for .7 Share)
	 50th
	 	100%	 	315 (plus cash for .9 Share)
	 65th
	 	130%	 	410 (plus cash for .7 Share)
	 75th or
above
	 	150%	 	473 (plus cash for .9 Share)

 Example 2. Change in Control 
 Assume the same facts as in Example 1, except that a “Change in Control” (as defined in the Program) occurs when the Trust’s shareholders approve a “Business Combination” (as defined in the
Program), which becomes effective on October 15, 2009. From the period between January 1, 2008 and October 15, 2009 inclusive, total dividends of $5.25 per Share have been 

  

 A-2 

 
paid. Because of the Change in Control, the Measurement Period ends on October 15, 2009, rather than December 31, 2010. The final price per Share
agreed upon by the parties to the Change in Control is $40. 
 TRS on one Share (expressed as a percentage) over the Measurement Period (ending
October 15, 2009), as calculated by the Trust or by a third party selected by the Committee, is the following: 
  

				
	 10/15/09 Value of One Share
	  	$40.00	 
	 + Dividends over Measurement Period on One Share
	  	+$5.25	 
		  	 	 
		  	$45.25	 
		  	/30	 
		  	 	 
	 Divided by 1/1/08 Value of One Share
	  	1.508	 
		
	 TRS
	  	50.8	%

 As of October 15, 2009, Participant A has 283.8 Base Units (see Example 1). If, as of October 15, 2009,
the Trust’s TRS places the Trust at the percentiles listed below among the component members of the Index (ranked pursuant to each member’s TRS over the Measurement Period, as calculated by the Trust or by a third party selected by the
Committee), Participant A would receive the following number of Shares (with fractional Shares settled in cash): 
  

					
	 Percentile
	 	 Percent of
 Base Units
 Deliverable in Shares
	 	 Shares

	 Below 25th

	 	0%	 	0
	 25th
	 	50%	 	141 (plus cash for .9 Share)
	 40th
	 	80%	 	227
	 50th
	 	100%	 	283 (plus cash for .8 Share)
	 65th
	 	130%	 	368 (plus cash for .9 Share)
	 75th or
above
	 	150%	 	425 (plus cash for .7 Share)

 Example 3. Termination During Measurement Period 
 Assume the same facts as in Example 1, except that Participant A incurs a “Disability Termination” (as defined in the Program) on May 5, 2009. From the
period between January 1, 2008 and May 5, 2009 inclusive, total dividends of $3.75 per Share have been paid. Thus, as of his date of termination, Participant A has 272.9 Base Units (see Example 1). Nevertheless, because of the kind of
termination that occurred, Participant A is treated as though he is still employed by the Trust through the end of the Measurement Period. Thus, his total number of Base Units on December 31, 2010 is 315.9 (see Example 1) and he would receive
the same number of Shares (with fractional Shares settled in cash) as described in Example 1. 
  

 A-3 

 APPENDIX B 
 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 
 2008-2010 RESTRICTED SHARE UNIT PROGRAM 
 (Established under the Pennsylvania Real Estate 
 Investment Trust 2003 Equity Incentive Plan) 
 DEFERRAL ELECTION AGREEMENT* 
 The Pennsylvania Real Estate Investment Trust 2008-2010 Restricted Share Unit Program effective as of January 1, 2008 (the “Program”),
provides a select group of management or highly compensated employees with the ability to defer a portion of their compensation earned under the Program. The purpose of this Deferral Election Agreement is to allow you to defer the delivery of all or
a portion of the Shares (and Shares deliverable with respect to dividend equivalent rights (“DERs”) awarded thereon) that are otherwise deliverable to you under the Program until one of the events selected below occurs. 
 AFTER YOU SIGN THIS DEFERRAL ELECTION AGREEMENT AND IT IS ACCEPTED BY PENNSYLVANIA REAL ESTATE INVESTMENT TRUST (THE “TRUST”), YOU MAY NOT REVOKE IT AFTER JUNE
30, 2010. IF YOU DECIDE SUBSEQUENTLY TO CHOOSE A LATER DELIVERY DATE, YOU MUST SUBMIT A NEW DEFERRAL ELECTION AGREEMENT AT LEAST 12 MONTHS PRIOR TO YOUR ORIGINAL DELIVERY DATE AND YOUR NEW DELIVERY DATE MUST BE AT LEAST FIVE YEARS AFTER YOUR
ORIGINAL DELIVERY DATE. YOU MAY NOT, UNDER ANY CIRCUMSTANCES, ACCELERATE THE DELIVERY OF YOUR PERFORMANCE SHARES (OR THE SHARES DELIVERABLE WITH RESPECT TO ANY DERS AWARDED THEREON) AFTER THIS DEFERRAL ELECTION AGREEMENT HAS BECOME EFFECTIVE (OTHER
THAN AS A RESULT OF AN UNFORESEEABLE EMERGENCY, IF ELECTED BELOW). 
 You need only complete this Deferral Election Agreement if you wish to defer the
delivery of Shares (and Shares deliverable with respect to DERs awarded thereon) that become deliverable to you under the Program. Capitalized terms in this Deferral Election Agreement are defined in the Program. 
 1. Participation Election 
  ̈ I
hereby elect to defer under the terms of the Program the delivery of             % [insert any whole percentage from one to 100 percent, inclusive] of the Shares that may
become deliverable to me under the Program. 
  
  

	*	Because of the complexities involved in the application of federal, state and local tax laws to specific circumstances and the uncertainties as to possible future changes in the tax
laws, you should consult your personal tax advisor regarding your own situation before completing this Deferral Election Agreement. 

 2. Delivery Date Election 
 I hereby elect to have the Trust deliver the percentage set forth above of the Shares (and the Shares deliverable with respect to DERs awarded thereon) that may become deliverable to me under the Program upon the following event [check
only one box]: 
  ̈ (A) On the 10th calendar day after my separation from service from the Trust’s controlled
group of entities (the date which is six months after such separation from service if I am a “specified employee” at that time – see Section 4(f) of the Program). 
  ̈ (B) On the following date:                     
    , 20     [must be after March 1, 2011]. 
  ̈ (C) Upon the
earlier of the 10th calendar day after my separation from service (as described in event (A) above) or the following date:
                             , 20     [must be after March 1,
2011]. 
 3. Acceleration in the Event of an Unforeseeable Emergency 
 In addition to the election I made in 2 above, if I check the following box, I also elect to have the Trust deliver Shares (and Shares deliverable with respect to DERs awarded thereon), to the extent permitted by
applicable law, to me: 
  ̈ Upon an “Unforeseeable Emergency,” as defined in Section 4(f) of the Program. (This
term is defined quite restrictively in the Internal Revenue Code. See the footnote on the previous page regarding consulting with your own tax advisor before completing this Deferral Election Agreement.) 
 4. Change in Control or Death 
  ̈
If a Change in Control or my death occurs before all of the Shares (and Shares deliverable with respect to DERs awarded thereon) are delivered to me, such Shares shall be delivered in a single sum to me or to my beneficiary(ies) designated in my
Beneficiary Designation Form (as applicable) on the 30th day after such Change in Control (provided that, if the Change in Control arises from a Business Combination, the Change in Control shall be deemed to occur on the date of the closing or
effectiveness of the Business Combination, as applicable) or death (as applicable). 
 5. Insufficient Share Possibility 
 Because of the finite number of Shares available under the Pennsylvania Real Estate Investment Trust 2003 Equity Incentive Plan, I understand that it is possible that not
enough Shares will still be available under the Plan to deliver all of the Shares otherwise required to be delivered to me (or to my beneficiary(ies)) on the deferral date(s) chosen in 2 and 3 above. 
 *    *    *    *    * 
  

 B-2 

 By signing this Deferral Election Agreement, I agree to the terms and conditions of the Program as the Program now
exists, and as it may be amended from time to time (provided that no amendment of the Program will adversely affect my rights under the Program without my written consent). 
  

							
	  
	 		 	  

	Signature of Participant	 		 	Date
			
		 		 	 ACCEPTED:
  
 Executive Compensation and Human Resources Committee of Pennsylvania Real Estate Investment Trust

				
		 		 	By:	  	 
				
		 		 	Date:	  	  

  

 B-3 

 APPENDIX C 
 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 
 2008-2010 RESTRICTED SHARE UNIT PROGRAM 
 (Established under the Pennsylvania Real Estate 
 Investment Trust 2003 Equity Incentive Plan) 
 BENEFICIARY DESIGNATION FORM 
 This Form is for your use under the Pennsylvania Real Estate Investment Trust 2008-2010 Restricted Share Unit Program (the “Program”) to name a
beneficiary for the Shares that may be deliverable to you from the Program. You should complete the Form, sign it, have it signed by your Employer, and date it. 
 *    *    *    * 
 I understand that in the
event of my death before I receive Shares that may be deliverable to me under the Program, the Shares will be delivered to the beneficiary designated by me below or, if none or if my designated beneficiary predeceases me, to my surviving spouse or,
if none, to my estate. I further understand that the last beneficiary designation filed by me during my lifetime and accepted by my Employer cancels all prior beneficiary designations previously filed by me under the Program. 
 I hereby state that
                                       
  [insert name], residing at
                                        
                                        
             [insert address], whose Social Security number is
                            , is designated as my beneficiary. 
  

							
	  
	 		 	  

	Signature of Participant	 		 	Date
			
		 		 	ACCEPTED:
			
		 		 	  

		 		 	[insert name of Employer]
				
		 		 	By:	  	  

				
		 		 	Date:Form of 2008-2010 Restricted Share Unit and Dividend Equivalent Rights Award

 Exhibit 10.3 
 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 
 2003 EQUITY INCENTIVE PLAN 
 RESTRICTED SHARE UNIT AND DIVIDEND EQUIVALENT RIGHTS 
 AWARD AGREEMENT 
 ISSUED PURSUANT TO THE 
 2008-2010 RESTRICTED SHARE UNIT PROGRAM 
 This RESTRICTED SHARE UNIT AND DIVIDEND EQUIVALENT RIGHTS AWARD
AGREEMENT (the “Award Agreement”), dated as of the 20th day of February, 2008, is between Pennsylvania Real Estate Investment Trust, a Pennsylvania business trust (the “Trust”), and
                                        
(the “Grantee”), a “Key Employee” under the Pennsylvania Real Estate Investment Trust 2003 Equity Incentive Plan (the “Plan”). 
 WHEREAS, the Trust’s Executive Compensation and Human Resources Committee (the “Committee”) established the Pennsylvania Real Estate Investment Trust 2008-2010 Restricted Share Unit Program (the
“Program”) under the Plan for specified Key Employees under the Plan; 
 WHEREAS, the Plan provides for the award of
“Performance Shares” (as defined in the Plan) (which award is referred to as a “Restricted Share Unit” or an “RSU” in the Program and herein) to participants following the attainment of a designated corporate
performance goal, and of dividend equivalent rights (“DERs,” as defined in the Plan) with respect to such Restricted Share Units; 
 WHEREAS, the Program designates a corporate performance goal that determines if and the extent to which Shares will become deliverable to a participant in the Program based on his or her Restricted Share Units; 
 WHEREAS, the Grantee may defer delivery of his or her Shares (if deliverable) until a later date and, if so deferred, the Grantee will be awarded
additional DERs with respect to such Shares; and 
 WHEREAS, DERs awarded with respect to Restricted Share Units and deferred Shares will be
expressed as a dollar amount, which will be applied to “purchase” additional Restricted Share Units and notional shares of the Trust, as applicable (on which DERs will also be awarded), and will be settled in actual shares of the Trust
(and in cash to the extent the Grantee’s account holds a fractional Restricted Share Unit or notional share); 
 NOW THEREFORE, in
consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the legal sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows: 

 1. Potential Award of Shares 
 (a) The Grantee is hereby awarded a number of initial “Base Units” (as defined in the Program) equal to
             Restricted Share Units. The Grantee’s Base Units will increase in number pursuant to the “purchase” of additional Restricted Share Units with DERs, as
described in subsections (b) and (e) below. 
 (b) The Grantee is hereby awarded a DER with respect to each of his or her Base
Units, as such number of units may be increased from time to time pursuant to subsection (e) below. If the Grantee makes a deferral election under Section 4(f) of the Program, the Grantee shall also be awarded DERs with respect to each
deferred Share. 
 (c) The Trust hereby promises to deliver to the Grantee the number of Shares that Grantee becomes entitled to under
Section 4 of the Program (if any). Unless the Grantee elects to make a deferral election pursuant to Section 4(f) of the Program, in which case Shares will be delivered in accordance with such election, the Shares shall be delivered on
March 1, 2011 or, in the event of a “Change in Control” (as defined in the Program) prior to January 1, 2011, on the fifth calendar day after the end of the “Measurement Period” (as defined in the Program) (the
“Delivery Date”). This Award Agreement is in all respects limited and conditioned as hereinafter provided, and is subject in all respects to the terms and conditions of the Program and the Plan now in effect and as they may be amended from
time to time; provided, that no amendment may adversely affect an issued Award Agreement without the written consent of the affected Grantee. The terms and conditions of the Program and the Plan are incorporated herein by reference, made a part
hereof, and shall control in the event of any conflict with any other terms of the Award Agreement. 
 (d) Pursuant to Section 4(c) of
the Program, if the Grantee’s employment with the “Employer” (as defined in the Program) (i) is terminated by the Employer for reasons other than for “Cause” (as defined in the Program), (ii) is terminated by the
Grantee for “Good Reason” (as defined in the Program), (iii) terminates on account of the Grantee’s death, or (iv) terminates as a “Disability Termination” (as defined in the Program), in each case on or before the
last day of the Measurement Period, the Grantee shall nevertheless be eligible to receive Shares under the Program (or not) as though the Grantee had remained employed by the Employer through the end of the Measurement Period. If the Grantee’s
employment with the Employer terminates for any other reason, the Grantee shall forfeit all of the Base Units (and all of the Shares that may have become deliverable with respect to such Base Units) subject to the RSUs the Participant was granted
under the Program. 
 (e) DERs awarded with respect to Restricted Share Units will be expressed as a specific dollar amount equal in value
to the amount of dividends paid on an actual Share on a specific date (the “Dividend Date”) during the Measurement Period, multiplied by the Grantee’s Base Units as of the Dividend Date. The Committee will apply the dollar amount to
“purchase” full and fractional Restricted Share Units at “Share Value” (as defined in the Program), which will be subject to Section 4(a) of the Program, and on which DERs thereafter will also be awarded. The Grantee’s
additional Restricted Share Units will be replaced by issued Shares (and by cash, to the extent the Grantee holds a fractional Restricted Share Unit) and delivered to the Grantee (if at all) in accordance with Section 4 of the Program.

  

 - 2 - 

 DERs awarded with respect to deferred Shares will also be expressed as a specific dollar amount equal in
value to the amount of dividends paid on an actual Share on a Dividend Date during the deferral period, multiplied by the number of Shares still deferred by the Grantee as of the Dividend Date. The Committee will apply the dollar amount to
“purchase” full and fractional notional shares at the closing price on the Dividend Date, on which DERs thereafter will also be awarded. The Grantee’s notional shares will be recorded in a bookkeeping account, and will be 100% vested.
The Grantee’s notional shares will be replaced by issued Shares (and by cash, to the extent the Grantee holds a fractional notional share) and delivered to the Grantee (if at all) in accordance with Section 4 of the Program. 
 2. Share Certificates. Certificates for Shares delivered pursuant to the Program shall be registered in the Grantee’s name (or, if the
Grantee so requests, in the name of the Grantee and the Grantee’s spouse, jointly with right of survivorship). 
 3.
Transferability. The Grantee may not, except by will or by the laws of descent and distribution, assign or transfer his or her Restricted Share Units or notional Shares. The Grantee may assign or transfer, in whole or in part, Shares
delivered hereunder pursuant to the Program. 
 4. Withholding of Taxes. The obligation of the Trust to deliver Shares shall be
subject to applicable federal, state and local tax withholding requirements. If the amount includible in the Grantee’s income as a result of the delivery of Shares is subject to the withholding requirements of applicable tax law, the Grantee,
subject to the provisions of the Plan and such withholding rules as may be applicable (the “Withholding Rules”), may satisfy the withholding tax, in whole or in part, by electing to have the Trust withhold Shares (or by returning Shares to
the Trust) pursuant to the Withholding Rules. Such Shares shall be valued, for this purpose, at their “Fair Market Value” (as defined in the Plan) on the Delivery Date Such election must be made in compliance with and subject to the
Withholding Rules, and the Trust may not withhold Shares in excess of that number necessary to satisfy the minimum federal, state and local income tax and Social Security (“FICA”) withholding requirements. Notwithstanding the foregoing,
the Trust may limit the number of Shares withheld to the extent necessary to avoid adverse accounting consequences. 
 5. Share Retention
Requirements. For purposes of the share retention requirements of the Trust’s governance guidelines, the Shares issued to the Grantee under the Program shall be treated as though they were restricted shares that became vested upon issuance.
However, any share retention requirement that results from this provision shall immediately lapse upon the Participant’s termination of employment with the Employer. 
 6. Recoupment Policy. The Grantee hereby agrees that any Shares delivered under this Award Agreement shall be subject to the Trust’s “Recoupment Policy” as in effect on the date the Restricted
Share Units are granted under this Award Agreement, and as subsequently amended. 
 7. Governing Law. This Award Agreement shall be
construed in accordance with, and its interpretation shall be governed by, applicable federal law and otherwise by the laws of the Commonwealth of Pennsylvania (without reference to the principles of the conflict of laws). 
  

 - 3 - 

 IN WITNESS WHEREOF, the Trust has caused this Award Agreement to be duly executed by its duly authorized
officer and the Grantee has hereunto set his or her hand all as of the day and year first above written. 
  

			
	 PENNSYLVANIA REAL ESTATE
 INVESTMENT TRUST

		
	By:	 	  

	
	  

	Grantee

  

 - 4 -

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