Document:

Form of Annual Incentive Compensation Opportunity Award-EVP other than CFO

 Exhibit 10.6 
 [TEMPLATE USED FOR EXECUTIVE VICE PRESIDENTS OTHER THAN CHIEF FINANCIAL OFFICER] 
 Pennsylvania Real
Estate Investment Trust 
 2008 Incentive Compensation Opportunity Award 
 for [Insert Name of Executive], 
 Executive Vice President 
  

													
	 	  	2008 Incentive Opportunity2	 
	  	 2008 Incentive Range3 - % of
Salary
	 
	  	 Threshold4
	  	 Target4
	  	Outperformance4	 
	  	        %	  	        %	  	        	%
				
	 	  	 	  	 	  	 Performance Measurement
Allocation5
	 
	 2008 Base Salary1

	  	$	            	  		  		  		  		
	 	  	 	  	 	  	 Corporate
	  	 	  	Individual	 
		  			  		  	        %	  		  	        	%
				
	 	  	 	  	 	  	 CORPORATE –    %
	 
	 	  	 Measure6
	  	 Threshold8
	  	 Target8
	  	Outperformance8	 
	  	FFO Per Share7	  	$         	  	$         	  	$         	 
	  	TOTAL 2008 CORPORATE OPPORTUNITY:	  	$         	  	$         	  	$         	 
	  	 	  	  
 INDIVIDUAL –    %
	 
	  	 Measure
	  	 Threshold
	  	 Target
	  	Outperformance	 
	  	 Compensation Committee
 Discretion1
	  	Committee Discretion	  	Committee Discretion	  	Committee
Discretion	 
 
	  	TOTAL 2008 INDIVIDUAL OPPORTUNITY:	  	$         	  	$         	  	$         	 
	  	TOTAL 2008 INCENTIVE OPPORTUNITY:*	  	$         	  	$         	  	$         	 

  

	*	The amount payable under this award will be paid in cash during the period January 1, 2009 through March 15, 2009. 

 The Grantee has read and understands this award, including the endnotes which describe the terms of the award, and agrees to be bound by such terms. Further, the Grantee
agrees that any amount awarded and paid to the Grantee under this award shall be subject to PREIT’s “Recoupment Policy” as in effect on the date the Committee granted this award, and as such policy is subsequently amended. 

IN WITNESS WHEREOF, PREIT has caused this 2008 Incentive Compensation Opportunity Award to be duly executed by its duly authorized officer and the Grantee has
hereunto set his hand on                          , 2008. 
  

			
	PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
		
	By:	 	  

	
	  

	Grantee

 ENDNOTES 
 1 “2008
Base Salary” means your regular, basic compensation from Pennsylvania Real Estate Investment Trust (“PREIT”) and/or a PREIT affiliate for 2008, not including bonuses or other additional compensation, but including contributions made
by PREIT and/or a PREIT affiliate on your behalf, by salary reduction pursuant to your election, (i) to an arrangement described in section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), (ii) to a
“cafeteria plan” (as defined in section 125(d) of the Code), and (iii) for a “qualified transportation fringe” (as defined in section 132(f) of the Code). 
 2 “2008
Incentive Opportunity” means the opportunity to earn incentive compensation for 2008, up to         % of your Base Salary, in the event certain corporate and individual performances are achieved.
Corporate performance relates to PREIT’s cumulative performance with respect to one measure of its financial results for 2008, while individual performance relates to your performance within the scope of your responsibilities as an employee of
PREIT and/or a PREIT affiliate. 
 3 “2008 Incentive Range” means, depending on the level of corporate and individual performance achieved (i.e., Threshold, Target or Outperformance), the percentage of
your Base Salary that you may earn under this 2008 Incentive Compensation Opportunity Award. If the corporate performance is between the Threshold level and the Target level, or between the Target level and the Outperformance level, the percentage
will be interpolated accordingly. 
 4 With respect to corporate performance, “Threshold” signifies a solid achievement, which is expected to have a reasonably high probability of achievement, but which may fall
short of expectations. Threshold performance represents the level of performance that has to be achieved before any of your potential 2008 Incentive Compensation is earned. The Executive Compensation and Human Resources Committee (the
“Committee”) will decide whether you have met what the Committee determines to be the “Threshold” level for purposes of your individual performance. If the Threshold performance level is achieved with respect to corporate and
individual performance, you will earn at least         % of your 2008 Base Salary as your 2008 Incentive Compensation allocated to such performances (see note 5). If the Threshold performance level is
not met with respect to corporate performance or your individual performance, you will not receive any 2008 Incentive Compensation allocated to such corporate performance or individual performance, as applicable. 
 With respect to corporate performance, “Target” generally signifies that the business objectives for the year, which are expected to have a reasonable
probability of achievement have been met. In many situations, this represents approximately the mid-range of the estimate for FFO Per Share publicly announced by PREIT at approximately the time that the earnings for the prior fiscal year are
publicly released by PREIT. The Committee will decide whether you have met what the Committee determines to be the “Target” level for purposes of your individual performance. If the Target performance level is achieved with respect to
corporate and individual performance, you will earn at least         % of your 2008 Base Salary as your 2008 Incentive Compensation allocated to such performances (see note 5). 
 With respect to corporate performance, “Outperformance” signifies an outstanding achievement, an extraordinary performance by industry standards, and which is
expected to have a modest probability of achievement. The Committee will decide whether you have met what the Committee determines to be the “Outperformance” level for purposes of your individual performance. If the Outperformance level is
achieved with respect to corporate and individual performance, you will earn         % of your 2008 Base Salary as your 2008 Incentive Compensation allocated to such performances (see note 5).

 5 “Performance Measurement Allocation” means the percent by which your 2008 Incentive Compensation is allocated between corporate performance and your individual performance. For example, if your base salary is $200,000, and
        % of your 2008 Incentive Compensation is allocated to corporate performance and         % is allocated to your individual performance, you will
earn $             (        % of         % of $200,000) of your 2008 Incentive
Compensation if the Outperformance level of the corporate performance is achieved and $            (        % of
        % of $200,000) of your 2008 Incentive Compensation if the Outperformance level of your individual performance is achieved. 
 6 The
“Measure” is the business criterion on which corporate performance is based. 
 7 “FFO Per Share” means, with respect to each diluted share of beneficial interest in PREIT, “funds from operations” of PREIT, as reported to
the public by PREIT for 2008. 
  

 - 2 - 

 8 In the event of a Major Transaction, the Committee shall have the authority (i) to adjust the Threshold, Target and Outperformance levels set forth in this award and
(ii) to adjust the minimum FFO Per Share that is required in note 9 before any payment based on individual performance may be made. Such adjustment(s) may be made in such manner as the Committee deems appropriate in its sole discretion, subject
to the requirement that (i) the same adjustment to performance levels shall be made to the 2008 Incentive Compensation Opportunity Awards granted to all officers of PREIT and PREIT affiliates and (ii) the same adjustment to the minimum FFO
Per Share shall be made to all such awards granted to all such officers who are subject to such minimum. A Major Transaction shall include a sale or purchase of one or more properties by PREIT or a direct or indirect subsidiary of PREIT, the
issuance or repurchase of equity by PREIT or a direct or indirect subsidiary of PREIT, or a business combination involving PREIT or a direct or indirect subsidiary of PREIT. The Committee shall not be obligated to make any adjustment(s). If the
Committee elects to make an adjustment, it shall be free to take such factors into account as it deems appropriate under the circumstances in its sole discretion. Further, in the case of a Major Transaction that also constitutes a “Change of
Control” of PREIT (as defined in your employment agreement), the Committee shall have the authority, in its sole discretion, to accelerate the payment of your 2008 Incentive Compensation. 
 9 The
Committee has the sole discretion to set the measure for your individual performance for 2008 and to determine the level of individual performance you have achieved. However, regardless of your individual performance, no 2008 Incentive
Compensation based on your individual performance will be paid if FFO Per Share (see note 7) is less than $             (subject to adjustment by the Committee – see note
8). 
  

 - 3 -Form of Annual Incentive Compensation Opportunity Award-Office of the Chair &CFO

 Exhibit 10.7 
 [TEMPLATE USED FOR MEMBERS OF OFFICE OF CHAIR AND CHIEF FINANCIAL OFFICER] 
 Pennsylvania Real
Estate Investment Trust 
 2008 Incentive Compensation Opportunity Award 
 for [Insert Name of Executive], 
 [Insert Executive’s Position]

  

													
	 	  	 	  	 	  	2008 Incentive Opportunity2	 
	 	  	 	  	 	  	 2008 Incentive Range3 - % of
Salary
	 
						
	 	  	 	  	 	  	 Threshold4
	  	 Target4
	  	Outperformance4	 
	 2008 Base Salary1
	  	$	            	  		  	        %	  	        %	  	        	%
					
	 	  	 Measure5
	  	 Threshold7
	  	 Target7
	  	Outperformance7	 
	  	FFO Per Share6	  	$         	  	$         	  	$         	 
	  	2008 INCENTIVE OPPORTUNITY*	  	$         	  	$         	  	$         	 

  

	*	The amount payable under this award will be paid in cash during the period January 1, 2009 through March 15, 2009. 

 The Grantee has read and understands this award, including the endnotes which describe the terms of the award, and agrees to be bound by such terms. Further, the Grantee
agrees that any amount awarded and paid to the Grantee under this award shall be subject to PREIT’s “Recoupment Policy” as in effect on the date the Committee granted this award, and as such policy is subsequently amended. 

IN WITNESS WHEREOF, PREIT has caused this 2008 Incentive Compensation Opportunity Award to be duly executed by its duly authorized officer and the Grantee has
hereunto set his hand on                          , 2008. 
  

			
	PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
		
	By:	 	  

	
	  

	Grantee

 ENDNOTES 
 1 “2008
Base Salary” means your regular, basic compensation from Pennsylvania Real Estate Investment Trust (“PREIT”) and/or a PREIT affiliate for 2008, not including bonuses or other additional compensation, but including contributions made
by PREIT and/or a PREIT affiliate on your behalf, by salary reduction pursuant to your election, (i) to an arrangement described in section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), (ii) to a
“cafeteria plan” (as defined in section 125(d) of the Code), and (iii) for a “qualified transportation fringe” (as defined in section 132(f) of the Code). 
 2 “2008
Incentive Opportunity” means the opportunity to earn incentive compensation for 2008, up to         % of your Base Salary, in the event certain performances are achieved. Performance relates to
PREIT’s cumulative performance with respect to one measure of its financial results for 2008. 
 
3 “2008 Incentive Range” means, depending on the level of performance achieved (i.e., Threshold, Target or Outperformance), the
percentage of your Base Salary that you may earn under this 2008 Incentive Compensation Opportunity Award. If the performance is between the Threshold level and the Target level, or between the Target level and the Outperformance level, the
percentage will be interpolated accordingly. 
 4 “Threshold” signifies a solid achievement, which is expected to have a reasonably high probability of achievement, but which may fall short of expectations. Threshold
performance represents the level of performance that has to be achieved before any of your potential 2008 Incentive Compensation is earned. If the Threshold performance level is achieved, you will earn at least
        % of your 2008 Base Salary as your 2008 Incentive Compensation. If the Threshold performance level is not met, you will not receive any 2008 Incentive Compensation. 
 “Target” generally signifies that the business objectives for the year, which are expected to have a reasonable probability of achievement, have been met. In
many situations, this represents approximately the mid-range of the estimate for FFO Per Share publicly announced by PREIT at approximately the time that the earnings for the prior fiscal year are publicly released by PREIT. If the Target
performance level is achieved, you will earn at least         % of your 2008 Base Salary as your 2008 Incentive Compensation. 
 “Outperformance” signifies an outstanding achievement, an extraordinary performance by industry standards, and which is expected to have a modest probability of achievement. If the Outperformance level is
achieved, you will earn         % of your 2008 Base Salary as your 2008 Incentive Compensation. 
 5 The
“Measure” is the business criterion on which performance is based. 
 6 “FFO Per Share” means, with respect to each diluted share of beneficial interest in PREIT, “funds from operations” of PREIT, as reported to
the public by PREIT for 2008. 
 7 In the event of a Major Transaction, the Executive Compensation and Human Resources Committee (the “Committee”) shall have the authority to adjust the Threshold, Target and Outperformance levels set forth
in this award in such manner as it deems appropriate in its sole discretion, subject to the requirement that the same adjustment shall be made to the 2008 Incentive Compensation Opportunity Awards granted to all officers of PREIT and PREIT
affiliates. A Major Transaction shall include a sale or purchase of one or more properties by PREIT or a direct or indirect subsidiary of PREIT, the issuance or repurchase of equity by PREIT or a direct or indirect subsidiary of PREIT, or a business
combination involving PREIT or a direct or indirect subsidiary of PREIT. The Committee shall not be obligated to make any adjustment. If the Committee elects to make an adjustment, it shall be free to take such factors into account as it deems
appropriate under the circumstances in its sole discretion. Further, in the case of a Major Transaction that also constitutes a “Change of Control” of PREIT (as defined in your employment agreement), the Committee shall have the authority,
in its sole discretion, to accelerate the payment of your 2008 Incentive Compensation. 
  

 - 2 -

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