** **

** **

**                                                                                                                                    Exhibit 10.25**

** **

**ADOPTION AGREEMENT**

** **

                        THISAGREEMENT is the adoption by **Parkway Properties, Inc.** (the"Employer") of the Executive Nonqualified Excess Plan ("Plan"). 

W I T N E S S E T H:

                        WHEREAS,the Employer desires to adopt the Plan as an unfunded, nonqualified deferredcompensation plan; and

WHEREAS, the provisions of the Plan are intended tocomply with the requirements of Section 409A of the Code and the regulationsthereunder, and shall apply to amounts deferred after January 1, 2005, and toamounts deferred under the terms of any predecessor plan; and  

                        NOW, THEREFORE, the Employerhereby adopts the Plan in accordance with the terms and conditions set forth inthis Adoption Agreement:

ARTICLE I

                        Termsused in this Adoption Agreement shall have the same meaning as in the Plan,unless some other meaning is expressly herein set forth.  The Employer herebyrepresents and warrants that the Plan has been adopted by the Employer uponproper authorization and the Employer hereby elects to adopt the Plan for thebenefit of its Participants as referred to in the Plan.  By the execution ofthis Adoption Agreement, the Employer hereby agrees to be bound by the terms ofthe Plan. 

1

----

ARTICLE II

TheEmployer hereby makes the following designations or elections for the purposeof the Plan:

**2.6       Committee:**  The duties of the Committee set forth in the Planshall be satisfied by:

**XX**       (c)        Other (specify):  **CompensationCommittee**.

**2.7       Compensation:**  The "Compensation" of a Participant shall mean allof a Participant's: 

                        **XX**       (f)         Other: **Deferred Share Units and Dividend Equivalents (as**

**                                                            definedin Appendix)**.

**2.8       CreditingDate:**  The Deferred CompensationAccount of a Participant shall be credited with the amount of any ParticipantDeferral to such account at the time designated below: 

**XX**       (f)         Any business day on whichParticipant Deferrals are received by the Provider.

**2.12     Effective Date:**

           **XX**       (b)        This is an amendment and restatement of a plan named**Parkway**

**                                    Properties,Inc. Deferred Compensation Plan** with aneffective date of 

                                   **December 15, 2002**.   The Effective Date of thisamended and restated Plan is January 1, 2005.  This is amendment number**1**.

**2.18     NormalRetirement Age:**  The NormalRetirement Age of a Participant shall be: 

**XX**       (a)        Age  **65**.

**XX**       (c)        Other:  **Early Retirement: Attainment of age 55**.

**2.22     ParticipatingEmployer(s):**  As of the EffectiveDate, the following Participating Employer(s) are parties to the Plan: 

| Name of Employer                   |            | Address                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |            | Telephone No. |            | EIN    |
|------------------------------------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|---------------|------------|--------|
|                               |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |       |          |       |   |
|                               | ** ** | ** 188 East Capitol Street**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | ** ** |          | ** ** |   |
| ** Parkway Properties, Inc.** |       | **Suite 1000**   
**(601) 948-4091**   
**72-1344324**
** **

 

** **

 

**Jackson, MS  39201**

** **

** **

** **

** **

 

 2

**2.24     Plan:**  The name of the Plan as applied to the Employer is **ParkwayProperties, Inc. Deferred Compensation Plan**.

**2.25     PlanAdministrator:**  The PlanAdministrator shall be:

**XX**       (c)        Other:  **Compensation Committee**.

**2.27     Plan Year:**  The Plan Year shall end each year on the last day of the month of **December**.

**2.35     Trust:**

**XX**       (a)      The Employer **does desire** toestablish a "rabbi" trust for the purpose of setting aside assets of theEmployer contributed thereto for the payment of benefits under the Plan.

**4.1       Participant Deferral Credits:**  Subject to the limitations in Section 4.1 of thePlan, a Participant may elect to have his Compensation (as selected in Section2.7 of this Adoption Agreement) deferred within the annual limits below by thefollowing percentage or amount as designated in writing to the Committee: 

**XX**     (d)        **Other:  Deferred Share Units (See Appendix).**

**4.2       Employer Credits:**  The Employer will make Employer Credits in thefollowing manner:

**XX**       (d)        Employer Credits not allowed.

**5.3       Deathof a Participant:**  If the Participantdies while in Service, the Employer shall pay a benefit to the Beneficiary inan amount equal to the vested balance in the Deferred Compensation Account ofthe Participant determined as of the date payments to the Beneficiary commence,plus:

**XX**       (c)        No additional benefits.

**5.4       In-ServiceDistributions:**  In-service accountsare permitted under the Plan:

            **XX**       (a)        Yes,with respect to:

**XX**       ParticipantDeferral Credits only.

                                    In-servicedistributions may be made in the following manner:

**XX**       Single lump sum payment.

                        **XX**       Annualinstallment payments over no more than **5** years.

                                                                             3

                                    If applicable, amounts not vested at the specifiedtime of distribution will be:

                                    **XX**       Forfeited,unless the grant provides for a later possible vesting

                                                date.

 

**5.5       EducationDistributions:**  Education accounts are permitted under the Plan:

 

            **XX**       (a)       Yes, withrespect to:

**XX**       ParticipantDeferral Credits only.

 

Education distributions may be made inthe following manner:

**XX**       Single lump sum payment.

**XX**       Annual installment payments over **4**years.

 

                                    If applicable, amounts not vested at the specifiedtime of distribution will be:

**XX**       Forfeited,unless the grant provides for a later possible vesting   date.

 

**5.6       Changein Control:**  May a participant elect to receive distributions under thePlan upon

aChange in Control?

 

**XX**       (b)        Participants may not elect to haveaccounts distributed upon a Change in 

Control.

**6.1       PaymentOptions:**  Any benefit payable underthe Plan upon a Qualifying Distribution Event may be made to the Participant orhis Beneficiary (as applicable) in any of the following payment forms, asselected by the Participant in the Participant Deferral Agreement:

**Payment shall be made in cash except for Deferred Share Units, paymentof which shall be made in shares of common stock, $0.001 par value of theEmployer**.

1.         Separation from Serviceother than Retirement (Retirementis defined by the Employer)** **

**                        XX      **(a)        A lump sum in cash as soon as practicablefollowing the date of the Qualifying Distribution Event.

2.         Separation from Service dueto Retirement** **

**                        XX      **(a)        A lump sum in cash as soon as practicablefollowing the date of the Qualifying Distribution Event.

**           **3.         Death

**                        XX      **(a)        A lump sum in cash as soon as practicablefollowing the date of the Qualifying Distribution Event.

                                                                             4

4.         Disability** **

**XX**       (c)        Other:**No payment on disability.**

5.         Change in Control

**XX**       (d)        Notapplicable.

**6.2       DeMinimis Amounts. **Notwithstanding anypayment election made by the Participant, the vested balance in the DeferredCompensation Account of the Participant will be distributed in a single lumpsum payment if the payment accompanies the termination of the Participant'sentire interest in the Plan and the amount of such payment does not exceed $ **10,000**.

**7.         Vesting: See Appendix.**

**14.       Amendment andTermination of Plan: The provisions of the Appendix to this Adoption Agreementsupersede any contrary or conflicting provisions of this Adoption Agreement orthe Plan Document.**

**17.9     Construction:**  The provisions of the Plan and Trust (if any) shallbe construed and enforced according to the laws of the State of **Maryland**,except to the extent that such laws are superseded by ERISA and the applicableprovisions of the Code.

INWITNESS WHEREOF, this Agreement has been executed as of the day and year firstabove stated. 

                                                                                            **ParkwayProperties, Inc.**

                                                                                            Nameof Employer

                                                                                            By:                                                                              

                                                                                                 Authorized Person

                                                                                            Date:_____________________________________

821615.v2

5 |