Document:

Exhibit

Exhibit 10.6

Vision 2020 Award [for Awardees Other than the Chief Executive Officer]:  
2016 Price-Contingent Restricted Stock Unit Award Agreement - $40 Price Target
NCR Corporation 2013 Stock Incentive Plan
You have been granted a Vision 2020 Award consisting of a number of price-contingent restricted stock units (the “Stock Units”) under the NCR Corporation 2013 Stock Incentive Plan, as amended from time to time (the “Plan”), as described on the Price-Contingent Restricted Stock Units - $40 Price Target information page on the website (www.netbenefits.fidelity.com) of the third‐party Plan administrator (the “TPA”) for NCR Corporation (referred to herein as “NCR” or the “Company”), effective as of the date of grant of this award (the “Grant Date”), subject to the terms and conditions of this 2016 Price-Contingent Restricted Stock Unit Award Agreement - $40 Price Target (this “Agreement”) and the Plan.  Capitalized terms used but not defined herein are defined in the Plan.
1.Grant of Stock Units.  Subject to the terms and conditions of this Agreement, the Stock Units specified in Section 2 will become vested and nonforfeitable at the times specified in Section 2, provided that (i) the Compensation and Human Resource Committee of the NCR Board of Directors (the “Committee”) has certified that NCR has achieved the Price Target no later than the fifth anniversary of the Grant Date (the “Performance Period”), and (ii) you are continuously employed by NCR or, if different, an Affiliate or Subsidiary of NCR (the “Employer”) through and until the applicable Vesting Date.  In all cases, the Committee shall certify whether NCR has achieved the Price Target (as described in Section 2 below) within ninety (90) days of the applicable Vesting Date (or no later than the date of a Change in Control, as applicable).  The Stock Units are referred to in this Agreement as “Vested” at the time they become vested and non-forfeitable pursuant to this Section or Section 2 or Section 4 below.
2.    Performance Vesting.  The Stock Units awarded to you shall vest as follows:
Performance Vesting Rules
	
		
	Date $40 Price Target is Satisfied
	Vesting Date (subject to your Termination of Employment not occurring before the applicable Vesting Date except as provided in Section 4)

	After the Grant Date and Before the Fourth Anniversary of the Grant Date
	Fourth Anniversary of the Grant Date

	On or after the Fourth Anniversary of the Grant Date and Before the Fifth Anniversary of the Grant Date
	Fifth Anniversary of the Grant Date

	Not Satisfied Before Fifth Anniversary of the Grant Date
	No Vesting

The date on which the Stock Units become vested pursuant to the foregoing is referred to herein as the “Vesting Date”.  

For purposes of this Agreement, “Price Target” means that the closing price of NCR Shares reported on the Applicable Exchange is at or above $40 for any 20 consecutive trading days during the Performance Period.
In the event of your Termination of Employment for any reason prior to a Vesting Date, except as specifically provided in Section 4 below, the unvested portion of the Stock Units will terminate and be forfeited (for example, if your Termination of Employment were to occur after achievement of the Price Target but prior to the third anniversary of the Grant Date, all of the Stock Units would terminate and be forfeited).  The Stock Units are referred to in this Agreement as “Vested” to the extent they have become vested pursuant to this Section 2 or Section 1 or Section 4 below.
3.    Settlement of Stock Units.  Except as may be otherwise provided in Section 4 or 5 below, Section 14.12 of the Plan or pursuant to an election under Section 14.11 of the Plan,  Vested Stock Units will be paid to you as soon as reasonably practicable after the earlier of (i) your Vesting Date, (ii) your Termination of Employment if such Termination of Employment results in vesting pursuant to Section 4 below due to your death, Disability or Retirement (but in no event later than March 15 of the year following the year in which such Vesting Date or Termination of Employment occurs); provided that such payment shall be made promptly after any vesting immediately prior to or following a Change in Control.  Such Vested Stock Units will be paid to you in shares of Common Stock (such that one Stock Unit equals one share of Common Stock) or, in NCR’s sole discretion, in an amount of cash equal to the Fair Market Value of such number of shares of Common Stock on date that immediately precedes the Vesting Date (or such earlier date upon which the Stock Units have become Vested pursuant to Section 4 of this Agreement), or a combination thereof (the date of such payment shall be referred to herein as the “Settlement Date”).  
4.    Certain Events Resulting in Accelerated Vesting Date.  The following provisions govern vesting of the Stock Units in the event of your Termination of Employment and/or a Change in Control, notwithstanding any contrary provision of the Plan. 

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Termination Provisions
	
		
	Termination Event
	Treatment of Stock Units

	Death, Disability,  or Involuntary Termination (Other than for Cause)
	Prorated Vesting—A pro rata portion of the Stock Units may become Vested on a Vesting Date in the event of your Death, Disability, or Involuntary Termination (Other than for Cause) within the Performance Period as follows:  To the extent the Price Target has been achieved, but the applicable Vesting Date has not occurred, the Stock Units specified in Section 2 shall vest on a pro rata basis, which will be determined by multiplying the number of $40 Price-Contingent Restricted Stock Units by a fraction, the numerator of which is the number of days that you completed as an employee of the Company or an Employer after the Grant Date and before the end of the Performance Period, and the denominator of which is 1,825. Any portion of the unvested Stock Units that do not vest in accordance with the foregoing will terminate and be forfeited.

	Change in Control Termination or Good Reason Termination
	The Change in Control Portion (as defined below) shall be fully Vested immediately upon your Termination of Employment due to a Change in Control Termination or a Good Reason Termination.

	Voluntary Resignation
	Forfeited—Unvested Stock Units will be forfeited.

	Termination for Cause
	Forfeited—Unvested Stock Units will be forfeited.

For purposes of this Agreement, “Disability” means Termination of Employment as a result of a disability for which you qualify for benefits under the NCR Long-Term Disability Plan or another long-term disability plan sponsored by NCR, its Subsidiaries or Affiliates.  “Involuntary Termination (Other than for Cause)” means Termination of Employment by the Company or the Employer for any reason other than for Cause (as defined in the Plan and, for the avoidance of doubt, not including any termination due to your Disability, death or retirement), excluding termination by the Company or the Employer during the 24 months following a Change in Control.
“Change in Control Termination” means a Termination of Employment by the Company, the Employer or the continuing entity other than for Cause (as defined in the NCR Change in Control Severance Plan, to the extent that you are a participant in the NCR Change in Control Severance Plan at the time of such Termination of Employment; otherwise as defined in the Plan and, for the avoidance of doubt, not including any termination due to your Disability, death or retirement) occurring during the twenty-four (24) months following a Change in Control wherein this Award is assumed, converted or replaced by the continuing entity.  “Good Reason Termination” means, if you are a participant in the NCR Change in Control Severance Plan, or an NCR policy or similar arrangement or individual agreement that defines “Good Reason” in the context of a resignation following a Change in Control, your Termination of Employment for Good Reason as so defined within twenty-four (24) months following a Change in Control.

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Change in Control Provisions 
Notwithstanding any provisions in this Agreement to the contrary other than Sections 6, 11, 12, and 25, in the event a Change in Control occurs and the Stock Units are assumed, converted or replaced by the continuing entity, the following provisions shall apply to the Stock Units that have not previously Vested before the Change in Control: (i) if the Change in Control Price is less than the Price Target, then the Stock Units that had not previously Vested shall be forfeited; or (ii) if the Change in Control Price is greater than or equal to the Price Target, the Stock Units that have not previously Vested shall remain eligible to vest on the applicable Vesting Date specified in Section 2.  The portion of the Stock Units that remain eligible to vest pursuant to this paragraph is referred to as the “Change in Control Portion”.
Notwithstanding any provisions in this Agreement to the contrary other than Sections 6, 11, 12, and 25, in the event a Change in Control occurs and the Stock Units are not assumed, converted or replaced by the continuing entity, the following provisions shall apply to the Stock Units that have not previously Vested before the Change in Control: (i) if the Change in Control Price is less than the Price Target, then the Stock Units that have not previously Vested shall be forfeited; or (ii) if the Change in Control Price is greater than or equal to the Price Target, the Stock Units that have not previously Vested shall become Vested immediately prior to the Change in Control.
For purposes hereof, “Change in Control Price” means the price received per Share by NCR shareholders in connection with the Change in Control, as determined by the NCR Board of Directors or the Committee in good faith.  
5.    Compliance with Section 409A of the Code.  The intent of the parties is that payments under this Agreement comply with Section 409A of the Code or are exempt there from, and this Agreement shall be interpreted, administered and governed in accordance with such intent.  
6.    Confidentiality.  By accepting this Award, except to the extent disclosure is required by applicable law or regulation, you agree to keep this Agreement confidential and not to disclose its contents to anyone except your attorney, your immediate family or your financial consultant, provided such persons agree in advance to keep such information confidential and not disclose it to others.  The Stock Units will be forfeited if you violate the terms and conditions of this Section.
7.    Adjustments Based on Certain Changes in the Common Stock.  In the event of any stock split, reverse stock split, stock dividend, recapitalization or similar change affecting the Common Stock, the Award shall be equitably adjusted in accordance with Section 3.04 of the Plan.  In addition, the Price Target shall be appropriately adjusted by the Committee in such circumstances (including, for the avoidance of doubt, in connection with an extraordinary dividend) .
8.    Nontransferability.  At all times before the Vesting Date, the Stock Units, to the extent not fully Vested, may not be sold, transferred, pledged, assigned or otherwise alienated, except by beneficiary designation, by will or by the laws of descent and distribution upon your death.  As soon as practicable after the Vesting Date (or such other date as Stock Units become payable in accordance with Section 4), if Stock Units are to be paid in the form of shares of Common Stock, NCR will instruct its transfer agent and/or its TPA to record on your account the number of such shares underlying the number of Stock Units, and such shares will be freely transferable.

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9.    Dividends.  Any cash dividends declared before the date the Stock Units become Vested on the shares underlying unvested Stock Units shall not be paid currently, but shall be converted into additional unvested Stock Units, and any cash dividends declared after the Stock Units become Vested but before the applicable Settlement Date on the shares underlying Vested Stock Units shall not be paid currently, but shall be converted into additional Vested Stock Units and settled pursuant to Section 3 at the same time as the underlying Vested Stock Units.  Any Stock Units resulting from such conversion (the “Dividend Units”) will be considered Stock Units for purposes of this Agreement and will be subject to all of the terms, conditions and restrictions set forth herein that apply to the underlying Stock Units that generated the Dividend Units.  As of each date that NCR would otherwise pay the declared dividend on the shares underlying the Stock Units (the “Dividend Payment Date”) in the absence of the reinvestment requirements of this Section, the number of Dividend Units will be determined by dividing the amount of dividends otherwise attributable to the Stock Units but not paid on the Dividend Payment Date by the Fair Market Value of NCR’s Common Stock on the Dividend Payment Date.  
10.    Withholding.  Prior to any relevant tax or tax withholding event (as applicable) and as a condition of your receiving the shares of Common Stock in respect of the Stock Units, you agree to make arrangements satisfactory to NCR and/or the Employer to satisfy all income tax, social insurance tax, payroll tax, fringe benefits tax or other Federal, state or local tax payment or withholding requirements or other tax related items (collectively, “Tax-Related Items”) applicable to you as a result of or related to your participation in the Plan. In this regard, you agree to pay to NCR, including, at NCR’s sole discretion, through payroll withholding, a cash amount equal to any amount of such Tax-Related Items required to be paid or withheld with respect to the Stock Units; provided that you will be required to pay any such amount prior to the tax or tax withholding event (as applicable) and as a condition of your receiving the shares of Common Stock to be issued in respect of the Stock Units.  Notwithstanding the foregoing sentence, in lieu of paying NCR a cash amount equal to any amount of taxes required to be withheld or paid with respect to the Tax-Related Items in respect of the Stock Units, you may, to the extent permitted by NCR in its sole discretion, elect to satisfy any such amount required to be withheld or paid by either (A) instructing NCR to withhold shares of Common Stock that are issuable upon the settlement of the Stock Units equal to the amount required to be withheld or paid or (B) instructing NCR and any brokerage firm determined acceptable to NCR for such purpose to sell on your behalf the whole number of Common Stock underlying the Stock Units that NCR determines to be appropriate to generate the cash proceeds sufficient to satisfy such Tax-Related Items; provided that, any such sale or withholding of shares shall occur on the date that the requirement to withhold or pay taxes arises or as soon as practicable thereafter; provided further that, to the extent that you instruct NCR and any brokerage firm to sell shares of Common Stock on your behalf pursuant to this Section 10, you will be responsible for, and will indemnify and hold NCR and the Employer harmless with respect to, any and all losses, costs, damages or other expenses ( including brokerage fees and other similar costs related directly to any such sale of Common Stock) arising in connection with, or related to, any such sale.  You acknowledge that if, at the time any shares of Common Stock are sold to satisfy requirements relating to Tax-Related Items pursuant to this Section 10, you are an executive officer of NCR subject to Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), any such sale of Common Stock must be pursuant to an exemption from the requirements under Section 16(b) of the Exchange Act.  

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You acknowledge that, regardless of any action taken by NCR or the Employer, the ultimate liability for all Tax-Related Items is and remains your responsibility and may exceed the amount actually withheld by NCR or the Employer. Depending on the withholding method, NCR may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding rates, or such other rate that will not result in an adverse accounting consequence or cost, in which case you will receive a refund of any over-withheld amount in cash and will have no entitlement to the Common Stock equivalent.

11.     Noncompetition and Nonsolicitation. You acknowledge that following the termination of your employment from NCR, you will be in a position to compete unfairly with the Company as a result of the confidential information, trade secrets, and knowledge about NCR’s business, operations, customers, employees and trade connections that you have acquired or will acquire in connection with your employment.  You therefore agree to enter into the restrictions in this Agreement for the purpose of protecting NCR’s business interests and the confidential information, goodwill and the stable trained workforce of NCR and its subsidiaries and affiliates, including but not limited to any parent companies or subsidiaries (collectively for purposes of this Section, “NCR”).  In exchange for the consideration you are receiving pursuant to the terms of this Agreement, including without limitation the potential future vesting of equity awards under this Agreement (for avoidance of doubt, the obligations herein shall bind you without regard to whether any equity has vested as of the time of any violation of the terms of this Section), you agree that during your employment with NCR and for a twelve-month period after its termination (or if applicable law mandates a maximum time that is shorter than twelve months, then for a period of time equal to that shorter maximum period) (the “Restricted Period”), regardless of the reason for termination, you will not yourself or through others, without the prior written consent of the Chief Executive Officer of NCR: 
(a) perform services, directly or indirectly in any capacity (including, without limitation, as an employee, consultant, owner or member of a board of directors), (i) of the type conducted, authorized, offered, or provided by you on behalf of NCR within the two years prior to termination of your NCR employment; (ii) in connection with products, services, systems or solutions that are similar to or serve substantially the same functions as those with respect to which you worked for NCR within the last two years of your NCR employment; (iii) on behalf of yourself or a person or entity in competition with NCR that is not one of the named “Competing Organizations” either on the list below in this Section 11 or, as applicable, on the list currently in effect at the time of termination of your NCR employment (available from the NCR Human Resources intranet website; the list as of the Grant Date is set forth below in subparagraph (i)); and (iv) anywhere within the United States, or in any State or territory thereof, if you worked in the United States at any time within your last two years of NCR employment, or in any country in which NCR does or did business during your NCR employment and in which you worked at any time within your last two years of NCR employment, all of which States, territories or countries are deemed to be separately set forth here and the names of which are incorporated by reference;
 (b) perform services, directly or indirectly in any capacity (including, without limitation, as an employee, consultant, owner or member of a board of directors), (i) of the type conducted, authorized, 

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offered, or provided by you on behalf of NCR within the two years prior to termination of your NCR employment; (ii) in connection with products, services, systems or solutions that are similar to or serve substantially the same functions as those with respect to which you worked for NCR within the last two years of your NCR employment; and (iii) on behalf of any named “Competing Organization” either on the list below in this Section 11 or, as applicable, on the list currently in effect at the time of termination of your NCR employment (available from the NCR Human Resources intranet website; the list as of the Grant Date is set forth below in subparagraph (i)); 
(c) directly or indirectly (including without limitation assisting third parties) recruit, hire or solicit, or attempt to recruit, hire or solicit any employee of NCR, or induce or attempt to induce any employee of NCR, to terminate his or her employment with NCR; 
(d) directly or by assisting others, solicit or attempt to solicit the business of any NCR customers or prospective customers with which you had material contact during the last two years of your NCR employment, for purposes of providing products or services that are competitive with those provided by NCR and its Affiliates. “Material contact” means the contact between you and each customer or prospective customer (i) with which you dealt on behalf of NCR, (ii) whose dealings with NCR were coordinated or supervised by you, (iii) about whom you obtained confidential information in the ordinary course of business as a result of your association with NCR, or (iv) who receives products or services authorized by NCR, the sale or provision of which results or resulted in compensation, commissions, or earnings for you within the two years prior to the date of the your termination. 
(e) All references to “NCR” in this Section 11 shall be deemed to include its Subsidiaries and Affiliates, and references to “NCR employment” shall be deemed to include your employment, if any, by a company the stock or substantially all the assets of which NCR has acquired. As a non-limiting example, a reference to the “last two years of your NCR employment” may include both time as an NCR employee and time as a Retalix Ltd or Digital Insight employee. 
(f) The covenants contained within this Section 11 are a material component of the consideration for this Agreement.  If you breach any of these covenants, NCR shall be entitled to all of its remedies at law or in equity, including but not limited to money damages and injunctive relief.  In the event of such a breach, in addition to NCR’s other remedies, any unvested Stock Units will be immediately forfeited and deemed canceled, and you agree to pay immediately to NCR the Fair Market Value of any Stock Units that vested during the eighteen (18) months prior to the date of your Termination of Employment (or if applicable law mandates a maximum time that is shorter than eighteen (18) months, then for a period of time equal to the shorter maximum period), without regard to whether you continue to own the shares associated with such Stock Units or not.  
(g) The Restricted Period shall be tolled and suspended during and for the pendency of any violation of its terms, and for the pendency of any legal proceedings to enforce any of the covenants set forth herein, and all time that is part of or subject to such tolling and suspension shall not be counted toward the twelve-month duration of the Restricted Period. By way of example, if immediately following your departure from NCR you accept employment with a competitor that is prohibited by the noncompetition covenant contained in this Section 11, and work for such competitor for six months before NCR obtains a judicial or arbitral order terminating or modifying that employment, 

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your twelve-month noncompetition period shall not commence until after you have commenced compliance with that order.  This subsection (g) shall not have any effect and shall be deemed omitted from this Agreement in any jurisdiction that prohibits such tolling provisions.
(h) Subsections (a) and (b) of this Section 11 do not apply to you if, following the termination of your NCR employment, you continue to reside or work in California, or if you continue to reside or work in a country that mandates, as a non-waiveable condition, continued pay during the Restricted Period, unless NCR advises you it will tender such pay, which shall be in the minimum amount required by local law. 
(i) For purposes of this Agreement, “Competing Organizations” shall be the following as of the Grant Date including the subsidiaries and affiliates of each. Please note that non-competition provisions in this or other NCR agreements or plans are not limited to the identified Competing Organizations, and that other companies may qualify as competitors under other provisions of the NCR plans or agreements, including this Agreement, and that NCR employees may be restricted from accepting employment or other work from such other companies, subject to the terms of the relevant NCR plan or agreement.  The list of Competing Organizations is updated and revised from time to time, and such updated lists shall be deemed a part of this Agreement; updated lists can be obtained from the NCR intranet website at: https://intranet.ncr.com/index.php?option=com_content&view=frontpage&Itemid=8175.

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	ACI Worldwide
	GK Software
	Oracle (including Micros)

	Aldata
	Global Payments
	PAR Technology

	Alkami
	Glory
	Pinnacle Corporation

	Alliance (Australia)
	GRG Banking Equipment
	PMI

	Allure Global Solutions, Inc.
	GRG International
	Q2

	Alpha Paper
	Hewlett-Packard Corporation
	QSR Automations

	Altametrics
	Hewlett-Packard Enterprises
	Reder & Schlinmann

	App
	Hitachi
	Retail Pro International

	Appetize
	Hitachi-Omron Term Sys
(Leadus)
	Retaligent

	APTOS
	Hot Schedules
	Revel

	Arinc.
	HP Inc.
	RiteMadec

	Bematech- See TOTVS SA
	IBM Corporation
	RR Donnelly

	Burroughs
	IER
	RTC Quaterion Group

	Burroughs/Pendum
	Infor
	Schades-Heipa

	Bypass
	Itasca
	ShopKeep

	Cenveo
	Jack Henry
	SICOM

	CompuCom
	KAL (Korala Associates)
	SITA

	Computer Sciences Corporation
	Kiosk Info Sys (KIS)
	Spartan

	Crunchtime
	Kyrus – See Tolt Industries
	SPSS

	Cuscapi
	Leadus – See Hitachi
	Task Retail

	DATA Business Forms
	LG N-Sys
	TeleSource

	Diebold/Wincor Nixdorf
	LOC Software
	Tillster

	Dimension Data   
	Logicalis
	Toast POS

	Documotion
	LoyaltyLab
	Tolt

	Eastcom
	M19 Retail
	Tolt Solutions (including Kyrus)

	ECRS
	Magstar
	Toshiba TEC

	eRestaurant Systems
	Malauzai
	TOTVS SA (including Bematech)

	Escalate
	Manhattan Associates
	Unisys

	FIS
	MaxStick
	Vista

	Fiserv
	McDermott
	Vsoft

	Fourth Ltd
	Micros – See Oracle
	Wescom Resources Group

	Fujitsu
	Mobile Travel Technologies
	Wincor-Nixdorf – See Diebold

	FuturePOS
	Nautilus Hyosung
	WS Packaging

	Getronics
	Nscglobal
	Zonal Retail Data

	Gilbarco Veeder-Root
	OKI
	 

(j)  In the event that you receive an offer of employment or a request to provide services from an organization specified above or described above, either during your employment or during the term 

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of the Restrictive Period, you shall provide immediately to such person, company or other entity a full and accurate copy of this Agreement and advise him/her or it of your obligations under it.
(k)  The restrictions contained in this Agreement are acknowledged by the parties to be reasonable in all respects.  Each clause constitutes an entirely separate and independent restriction and the duration, extent and application of each of the restrictions are no greater than is necessary for the protection of NCR’s interests.  If any portion of this Section 11 is held unenforceable, it shall be severed and shall not affect any other part of this Agreement.  
(l)  This Agreement is entered into electronically.  You hereby waive any local requirement, to the extent one exists or may exist, of original ink signatures on paper documents. 
(m)  The governing law clause of this Agreement, for employees who work or reside outside the United States, shall be deemed to be the law of the country where such employee works for NCR (as defined above, including its subsidiaries and affiliates).
(n)  In any country outside the United States where liquidated damages are recoverable under local law, in the event that you breach the covenants in this Section 11, you acknowledge that NCR will suffer irreparable damage, and you promise to pay NCR on demand damages in a sum equal to the amount of six months of your salary that was in effect when your NCR employment ended.  You acknowledge that this sum represents a reasonable estimate of damages that NCR will suffer, and that, where local law allows, NCR may seek additional compensatory damages.  
12.      Compensation Recovery Policy. By accepting the Stock Units, you acknowledge and agree that to the extent the Stock Units constitute “Covered Incentive Compensation” subject to the terms of NCR’s Compensation Recovery Policy, as the same may be in effect from time to time (the “Compensation Recovery Policy”), then, notwithstanding any other provision of this Agreement to the contrary, you may be required to forfeit or repay any or all of the Stock Units pursuant to the terms of the Compensation Recovery Policy.  Further, you acknowledge and agree that NCR may, to the extent permitted or required by law or regulation (including the Dodd-Frank Act), enforce any repayment obligation pursuant to the Compensation Recovery Policy by reducing any amounts that may be owing from time to time by NCR to you, whether as wages, severance, vacation pay or in the form of any other benefit or for any other reason, or enforce any other recoupment as prescribed by applicable law or regulation.
13.     Dispute Resolution (applicable to employees working or residing in the United States). By accepting this Award, you agree that any controversy or claim arising out of or related to this Agreement with respect to your employment or your employment with NCR, its Subsidiaries or Affiliates shall be resolved by binding arbitration; the obligation to arbitrate shall also extend to and encompass any claims that you may have or assert against any NCR employees, officers, directors or agents.  NCR, its Subsidiaries and Affiliates, however, do not consent to class arbitration.  The arbitration shall be pursuant to the then current rules of the American Arbitration Association and, unless otherwise agreed by you and NCR, shall be held in the metropolitan Atlanta, Georgia area.  The arbitration shall be held before a single arbitrator who is an attorney. The arbitrator’s decision and award shall be final and binding and may be entered in any court having jurisdiction. Issues of arbitrability shall be determined in accordance with the U.S. federal substantive and 

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procedural laws relating to arbitration; in all other respects, this Agreement shall be governed by the laws of the State of Georgia in the United States, without regard to its conflict-of-laws principles. Each party shall bear its own attorney fees associated with the arbitration; other costs, and the expenses of the arbitration, shall be borne as provided by the rules of the American Arbitration Association. If any portion of this Section 13 is held unenforceable, it shall be severed and shall not affect the duty to arbitrate nor any other part of this Section 13. Notwithstanding the preceding subparagraph, you acknowledge that if you breach any of the covenants set forth in Section 11 or Section 16, NCR will sustain irreparable injury and will not have an adequate remedy at law. As a result, you agree that in the event of such breach NCR may, in addition to any other remedies available to it, bring an action in a court of competent jurisdiction for equitable relief pending appointment of an arbitrator and completion of an arbitration, and in such instance shall not be required to post a bond.
14.    Beneficiaries.  Subject to the terms of this Agreement, you may, to the extent permitted by the Senior Vice President, Corporate Services and Chief Human Resources Officer (or his or her delegate) and such procedures of the TPA as may be in effect from time to time, designate one or more beneficiaries to receive all or part of any shares of NCR Common Stock underlying the Stock Units to be distributed in case of your death, and you may change or revoke such designation at any time in accordance with such procedures.  In the event of your death, any such shares distributable hereunder that are subject to such a designation that has not been superseded, modified or revoked in accordance with such procedures will be distributed to such beneficiary or beneficiaries in accordance with this Agreement.  Any other shares of NCR Common Stock underlying the Stock Units not designated by you will be distributable to your estate.  If there is any question as to the legal right of any beneficiary to receive a distribution hereunder, the shares of NCR Common Stock underlying the Stock Units in question may be transferred to your estate, in which event NCR will have no further liability to anyone with respect to such shares.  For information about TPA beneficiary designation procedures, or to revoke or change a beneficiary designation, please call Fidelity at 1-800-544-9354 (U.S. grantees) or 1-800-544-0275 (non-U.S. grantees), or at such other number as provided by NCR or Fidelity.  If you are a non-U.S. grantee, please visit the following link for access to the toll-free number:  https://www.fidelity.com/customer-service/phone-numbers/overview.
15.    Data Privacy. You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this Agreement and any other Award materials (“Data”) by and among, as applicable the Employer, NCR, its Subsidiaries and Affiliates for the exclusive purpose of implementing, administering and managing your participation in the Plan.
You understand that the Company and the Employer may hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in NCR, details of all Stock Units or other entitlement to shares of stock awarded, cancelled, exercised, vested, unvested or outstanding in your favor, for the exclusive purpose of implementing, administering and managing the Plan.

11
    

You understand that Data will be transferred to the TPA or such other stock plan service provider as may be selected by NCR in the future, which is assisting NCR with the implementation, administration and management of the Plan.  You understand that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (for example, the United States) may have different data privacy laws and protections than your country.  You understand that if you reside outside the United States you may request a list with the names and addresses of any potential recipients of the Data by contacting your local human resources representative.  You authorize NCR, the TPA and any other possible recipients which may assist NCR (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing your participation in the Plan.  You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan.  You understand that if you reside outside the United States you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your local human resources representative.  Further, you understand that you are providing the consents herein on a purely voluntary basis.  If you do not consent, or if you later seek to revoke your consent, your employment status or service and career with the Employer will not be adversely affected; the only adverse consequence of refusing or withdrawing your consent is that NCR would not be able to grant you Stock Units or other equity awards or administer or maintain such awards.  Therefore, you understand that refusing or withdrawing your consent may affect your ability to participate in the Plan.  For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative.
16.    Protection of Confidential Information.  In exchange for the consideration you are receiving pursuant to the terms of this Agreement, you agree that during your employment with the Company or an Employer and at all times thereafter (or if applicable law mandates a maximum time, then for a period of time equal to that shorter maximum period) you agree to keep strictly confidential all confidential or trade secret information or material for so long as that information or material remains confidential or trade secret, as applicable.   Upon termination of your employment with the Company or an Employer, you will surrender to the Company or your Employer any and all copies, including in electronic form, of Company and Employer confidential information and Company and Employer intellectual property and cease to maintain any copies of such information or intellectual property.
17.    Application to Other Compensation.  Your participation in the Plan is voluntary.  The value of this Award is an extraordinary item of income, is not part of your normal or expected compensation for purposes of calculating any severance, redundancy, end‐of‐service payments, bonus, long-service awards, pension, retirement or other benefits or similar payments.  The Plan is discretionary in nature.  This Award is a one-time benefit that does not create any contractual or other right to receive additional awards or other benefits in the future.  Future grants, if any, are at the sole grace and discretion of NCR, including, but not limited to, the timing of the grant, amount and vesting provisions.

12
    

18.    No Advice Regarding Grant.  NCR is not providing any tax, legal or financial advice, nor is NCR making any recommendations regarding your participation in the Plan, or your acquisition or sale of the underlying shares of Common Stock.  You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.
19.    Electronic Delivery and Acceptance.  NCR may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by NCR or the TPA.
20.    Severability.  The provisions of this Agreement are severable.  If any provision of this Agreement is held to be unenforceable or invalid by a court or other tribunal of competent jurisdiction, it shall be severed and shall not affect any other part of this Agreement, which will be enforced as permitted by law.  Provided, however, that to the extent such invalid provision can be rendered valid by modification, you agree that the court or tribunal shall so modify such provision so as to render it valid and enforceable to the fullest extent permitted by law. 
21.    Amendment.  The terms of this Award of Stock Units as evidenced by this Agreement may be amended by the NCR Board of Directors or the Committee or any delegate thereof, but no such amendment shall be made which would materially impair your rights hereunder without your consent, except such an amendment made to comply with applicable law, including Section 409A of the Code, stock exchange rules or accounting rules.
22.    Waiver.  You acknowledge that a waiver by NCR of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach of this Agreement.
23.    Provisions Applicable to Participants in Jurisdictions outside the United States. Notwithstanding any provision of this Agreement or the Plan to the contrary, if you are or become subject to the laws of a jurisdiction outside the United States, your Award shall be subject to any special terms and conditions set forth in any appendix to this Agreement for your country (the “Appendix”).  In addition, your Award shall be subject to the laws and requirements of such jurisdiction outside the United States and the terms and conditions of this Agreement are deemed modified to the extent NCR determines necessary or advisable for legal or administrative reasons.  Moreover if you relocate to one of the countries included in the Appendix, the special terms and conditions for such country will apply to you, to the extent NCR determines that the application of such terms is necessary or advisable for legal or administrative reasons.  Finally, the Committee may take any other action, including amending this Agreement, before or after an Award is made, that it deems necessary or advisable to obtain approval or comply with any necessary local governmental regulatory requirements or exemptions to the extent such amendment is permissible under the Plan with or without your prior written consent.
24.    Conflicting Terms.  In the event of a conflict between the terms and conditions of this Agreement and the terms and conditions of the Plan, the terms and conditions of the Plan shall 

13
    

prevail, except that with respect to the law governing this Agreement and any claims arising under or relating to it, Section 13 of this Agreement shall prevail.
25.    Code of Conduct Certification.  Notwithstanding any other provision of this Agreement, this Award of Stock Units and your right to receive payment of any Stock Units that become Vested hereunder are subject to and expressly conditioned upon your timely annual certification to NCR’s Code of Conduct, and in the event of your failure to timely provide any such certification as may be required prior to the date that Stock Units would otherwise be paid under this Agreement, those Stock Units shall be forfeited; provided that no such forfeiture shall occur unless you are provided written notice (which notice may be provided by email) of the impending forfeiture, and you do not provide your certification to NCR’s Code of Conduct within thirty days following such notice.
26.    No Right to Continued Employment. The Plan and this Agreement do not constitute a contract of employment or impose on you, the Company or your Employer any obligation to retain you as an employee, to change the status of your employment, or to change the Company’s policies or those of its Subsidiaries’ regarding termination of employment.  Employment with the Company and the Employer is at will.    You or the Company or your Employer may terminate the employment relationship at any time, with or without cause.
27.    Execution and Validity of Agreement. This Agreement shall be valid, binding and effective upon the Company on the Grant Date.  However, the grant contained in this Agreement shall be forfeited by you and this Agreement shall have no force and effect if it is not duly executed by electronic acceptance in a form prescribed by and acceptable to the Company, by the date established by the Company and set forth on the website of the TPA at (www.netbenefits.fidelity.com); on which this Agreement is posted.

14Exhibit

Exhibit 10.1

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
2016-2018 RESTRICTED SHARE UNIT PROGRAM

(Established under the Pennsylvania Real Estate Investment Trust
Second Amended and Restated 2003 Equity Incentive Plan)

TABLE OF CONTENTS

	
			
	 
	 
	Page

	1.
	PURPOSES
	1

	2.
	DEFINITIONS
	1

	3.
	AWARD AGREEMENT
	4

	4.
	PREFORMANCE GOAL; DELIVERY OF SHARES
	4

	5.
	BENEFICIARY DESIGNATIONS
	7

	6.
	DELIVERY TO GUARDIAN
	7

	7.
	SOURCE OF SHARES
	7

	8.
	CAPITAL ADJUSTMENTS
	7

	9.
	TAX WITHOLDING
	8

	10.
	ADMINISTRATION
	8

	11.
	AMENDMENT AND TERMINATION
	8

	12.
	HEADINGS
	8

	13.
	INCORPORATION OF PLAN BY REFERENCE
	8

	APPENDIX A
	A-1

	APPENDIX B
	B-1

	APPENDIX C
	C-1

	 
	 
	 

	 
	 
	 

-i-

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
2016-2018 RESTRICTED SHARE UNIT PROGRAM

(Established under the Pennsylvania Real Estate Investment Trust
Second Amended and Restated 2003 Equity Incentive Plan)

PREAMBLE

WHEREAS, Pennsylvania Real Estate Investment Trust (the “Trust”) established, and its shareholders approved, the Pennsylvania Real Estate Investment Trust Second Amended and Restated 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 2016 through 2018 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 23, 2016 meeting;

NOW, THEREFORE, effective as of January 1, 2016, the Pennsylvania Real Estate Investment Trust 2016-2018 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.

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(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 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.
(l)“Disability Termination” means the termination of a Participant’s employment under the disability provisions of the Participant’s Employment Agreement or, if 

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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, 2016.
(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, 2018, such earlier date declared by the Committee in connection with a termination of the Program 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 Second Amended and Restated 2003 Equity Incentive Plan, as it may be amended from time to time.
(t)“Program” means the Pennsylvania Real Estate Investment Trust 2016-2018 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, each determined as of the last day of the Measurement Period.  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, 2018, Share Value shall mean the final price per Share agreed upon by the parties to the Business Combination.

-4-

(3)“Threshold” means the 25th percentile among the component members (including the Trust) of the MSCI US REIT Index at the end of the Measurement Period (ranked based upon each such member’s TRS for the Measurement Period).
(4)“TRS” means total return to shareholders, as calculated by the Committee or its designee, for the Measurement Period for the Trust and for the other component members of the MSCI US REIT Index.  “Component members” means those entities 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 within 60 days following the end of the Measurement Period, unless the Measurement Period ends as a result of a Change in Control, in which case the Shares will be delivered to the Participants within five days following the end of the Measurement Period. 
(e)DERs.  Participants shall be awarded DERs with respect to their 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 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 in respect of 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 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.

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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, 2018 in order to be effective; otherwise, Shares (and cash attributable to DERs) deliverable to the Participant, if any, will be delivered on March 1, 2019.  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 

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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 intends to administer the Program, including the delivery of Shares 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, but makes no representation with respect to the qualification of the Program or the Awards granted hereunder.
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.  No person shall be entitled to the privileges of ownership in respect of Shares which are subject to Awards hereunder until such Shares have been issued to that person.
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 

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resulting from a subdivision (share-split), consolidation (reverse split), share dividend, merger, spinoff or other similar event or transaction affecting 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.

-8-

APPENDIX A

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
2016-2018 RESTRICTED SHARE UNIT PROGRAM

(Established under the Pennsylvania Real Estate Investment Trust
Second Amended and Restated 2003 Equity Incentive Plan)

EXAMPLE *
A is a participant in the Pennsylvania Real Estate Investment Trust 2016-2018 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, 2016 is $15, and the price of a Share on December 31, 2018 is $25.  For the three-year period beginning January 1, 2016 and ending December 31, 2018 (the “Measurement Period”), dividends total $1.80 per Share (and are paid in an equal amount on a quarterly basis - i.e., $.15 dividend per Share per quarter).
Dividends and Crediting Additional RSUs
Participant A receives a Restricted Share Unit award for 250 “Base Units” (as defined in the Program).  Additional Restricted Share Units are deemed purchased and credited on a quarterly basis using dividends deemed to be paid on the units.  The purchase price of the additional Restricted Share Units credited pursuant to the terms of the Program is the 20-day average share price prior to and including the date of the dividend.
The following table illustrates how dividends are deemed to be paid on the Base Units and how additional Restricted Share Units are credited and added to the aggregate number of Base Units held by Participant A:
	
					
	Date
	

Aggregate
Base Units 
	

Deemed
Dividend
	

20-Day
Average Share Price
	

Additional
RSUs Credited 

	1/1/16
	250
	—
	—
	—

	3/15/16
	250
	$37.50
	$16
	2.3

	6/15/16
	252.3
	$37.85
	$16
	2.4

	9/15/16
	254.7
	$38.21
	$18
	2.1

	12/15/16
	256.8
	$38.52
	$19
	2

	3/15/17
	258.8
	$38.82
	$19
	2

	6/15/17
	260.8
	$39.12
	$20
	2

	9/15/17
	262.8
	$39.42
	$21
	1.9

	12/15/17
	264.7
	$39.71
	$21
	1.9

_________________________
*The example set forth in this Appendix A is illustrative only and is not intended to be precise or definitive.

A- 1

	
					
	Date
	
Aggregate
Base Units
	
Deemed
Dividend
	
20-Day
Average Share Price
	
Additional
RSUs Credited

	3/15/2018
	266.6
	$39.99
	$22
	1.8

	6/15/2018
	268.4
	$40.26
	$23
	1.8

	9/15/2018
	270.2
	$40.53
	$23
	1.8

	12/15/2018
	272
	$40.80
	$24
	1.7

	12/31/2018
	273.7
	—
	—
	—

Delivery of Shares
Following the expiration of the Measurement Period, the Committee (as defined in the Program) determines where the Trust’s performance, based on its total return to shareholders (“TRS”), places the Trust 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.
Assume the TRS for the Measurement Period is determined to be 160%.  If, as of December 31, 2018, the Trust’s TRS places the Trust above the 25th percentile on the Index, Participant A would receive Shares (with fractional Shares settled in cash), with the number of Shares deliverable to the Participant determined as a percentage of 273.7 (the number of Base Units the Participant holds as of December 31, 2018).  
The following chart illustrates the number of Shares deliverable as a percent of Base Units, based on the Trust’s percentile on the Index:
	
		
	Percentile
	Percent of Base Units Deliverable in Shares

	Below 25th
	0%

	25th
	50%

	40th
	80%

	50th
	100%

	65th
	130%

	75th or above
	150%

For example, if the Trust’s TRS places the Trust at the 50th percentile on the Index, Participant A would receive 273 Shares (and cash for the 0.7 Share).  If the Trust’s TRS places the Trust at the 24th percentile, Participant A would receive 0 Shares, and if the Trust’s TRS places the Trust at the 80th percentile, Participant A would receive 410 Shares (and cash for the 0.55 Share).

A- 2

APPENDIX B

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
2016-2018 RESTRICTED SHARE UNIT PROGRAM

(Established under the Pennsylvania Real Estate Investment Trust
Second Amended and Restated 2003 Equity Incentive Plan)

DEFERRAL ELECTION AGREEMENT* 

The Pennsylvania Real Estate Investment Trust 2016-2018 Restricted Share Unit Program, effective as of January 1, 2016 (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 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, 2018.  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 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 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, less any Shares necessary to satisfy any applicable FICA and/or FUTA tax withholding obligations.

_________________________
*  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.

B- 1

2.    Delivery Date Election
I hereby elect to have the Trust deliver the percentage set forth above of the Shares 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 December 31, 2019].

 ̈ (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 December 31, 2019].

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, 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 are delivered to me, such Shares shall be delivered in a single distribution 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).  In addition, the Company may distribute the Shares to me prior to the date selected under Section 2 above to the extent such delivery is consistent with Section 409A of the Internal Revenue Code.

5.    Insufficient Share Possibility

Because of the finite number of Shares available under the Pennsylvania Real Estate Investment Trust Second Amended and Restated 2003 Equity Incentive Plan, I understand that it is possible that not enough Shares will 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.  I acknowledge and agree that in the event that an insufficient number of Shares are available under the Plan, cash will be delivered to me in lieu of Shares.

*   *   *   *   *

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
2016-2018 RESTRICTED SHARE UNIT PROGRAM

(Established under the Pennsylvania Real Estate Investment Trust
Second Amended and Restated 2003 Equity Incentive Plan)

BENEFICIARY DESIGNATION FORM

This Form is for your use under the Pennsylvania Real Estate Investment Trust 2016-2018 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:    __________________________                    

C- 1

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