Summary of PARKWAY PROPERTIES INC

Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On December 19, 2012, the Compensation Committee (the "Committee") of the Board of Directors of the Company approved special discretionary cash bonuses ("Bonuses") to the Company's named executive officers as set forth in the table below. Twenty-five percent of each Bonus will be paid by December 29, 2012; thereafter, 12.5% of each Bonus will be paid on or about June 15 and December 15 of each of 2013, 2014 and 2015 (with the final 12.5% payable on or about December 15, 2015), subject to the named executive officer's continued employment with the Company.

                                                                         Special Cash
Name and Title                                                              Bonus
James R. Heistand, President and Chief Executive Officer                $    2,100,000

David R. O'Reilly, Executive Vice President, Chief Financial
Officer and Chief Investment Officer                                    $    1,000,000

Henry F. Pratt, III, Executive Vice President of Asset Management
and Third-Party Services                                                $      275,000

Mandy M. Pope, Executive Vice President and Chief Accounting
Officer                                                                 $      110,000

The Committee also amended the total maximum bonus opportunities for Messrs. Heistand, O'Reilly and Pratt (the "Executives") as set forth in the table below, effective with respect to the Company's 2012 fiscal year. Each Executive is eligible to receive up to one-half of the Executive's maximum bonus opportunity with respect to bonuses paid pursuant to the Company's non-equity incentive compensation program upon achievement of formulated targets for modified FFO per diluted share. In addition, each Executive is eligible to earn an annual cash bonus in an amount up to one-half of the Executive's maximum bonus opportunity, based on the achievement of individual performance goals that pertain to the Executive's area of responsibility during the applicable year.

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                                                    Maximum
                                                   Possible
                               Maximum              Payout
                               Possible              Under
                             Payout Under         Non-Equity            Maximum
                              Cash Bonus           Incentive             Bonus
                                Awards             Award (as          Opportunity
                            (as percentage        percentage         (as percentage
                              of annual            of annual           of annual
     Name                    base salary)        base salary)         base salary)
     James R. Heistand                   70 %               70 %                 140 %

     David R. O'Reilly                   40 %               40 %                  80 %

     Henry F. Pratt, III                 30 %               30 %                  60 %