Document:

exhibit_10-13.htm

    EMPLOYMENT
AGREEMENT

     

    This
Employment Agreement (this “Agreement”) is made effective as of May 13, 2008 between JAMES BRACE ("Employee") and
WELLS-GARDNER ELECTRONICS CORPORATION, an Illinois corporation
("Company").

     

    WHEREAS,
the parties desire to enter into this Agreement in order to set forth the terms
of Employee’s employment with the Company;

     

    NOW,
THEREFORE, in consideration of the premises, the parties hereby agree as
follows:

     

    1.      Employment and
Duties. The Company hereby employs Employee as its Chief Financial
Officer ("CFO").  Employee shall report to Anthony Spier, the Chief
Executive Officer of the Company, and from time to time to the board of
directors of the Company (“Board of Directors”).

     

    2.      Performance. Employee
agrees to actively devote all of his time and effort during normal business
hours to the performance of his duties hereunder and to use his best efforts and
endeavors to promote the interests and welfare of the Company at all
times.

     

    3.      Term. Employee shall
be an employee-at will.

     

    4.      Compensation. For all
services rendered by Employee, Company agrees to pay Employee a salary and such
additional compensation as the Board of Directors shall from time to time
determine.

     

    5.      Expenses. The Company
shall reimburse Employee for reasonable business expenses incurred by Employee
in the performance of his duties under this Agreement, including expenses for
entertainment, travel and similar items consistent with its then-current
practices.

     

    6.      Vacation and
Benefits. During the period of his employment under this Agreement,
Employee shall be entitled to four weeks' annual vacation, insurance, and other
employment benefits customarily provided by the Company, including increased or
changed benefits as are from time to time provided Company's employees
generally, or for any group or class of employees of which Employee shall be a
member.

     

    7.      Termination.

     

    a.      The
Company may terminate Employee's employment hereunder at any time, either for
"cause," for any other reason or for no reason whatsoever.  As used
herein, "cause" means (i) any breach by Employee of any provision of this
Agreement or any violation of any statutory or common law fiduciary duty to the
Company, (ii) gross neglect by Employee of his duties hereunder, (iii) any act
of Employee constituting a felony under the laws of the State of Illinois or
federal law or resulting or intending to result in improper personal gain or
enrichment at the expense of the Company, (iv) fraud, dishonesty or misconduct
in the performance of Employee's duties, or (v) conduct by Employee which is
detrimental to the Company and which continues after the Company has
specifically requested that such conduct be discontinued.

     

    
      
        
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    b.      If
the Company shall terminate Employee’s employment for “cause” under paragraph
7(a), the Company shall pay Employee his full base salary through the date of
termination at the rate in effect at the time written notice of termination is
given Employee by the Company, and no other amounts shall be due and payable by
the Company to Employee subsequent to the date of termination.  If the
Company shall terminate Employee’s employment for any reason other than for
“cause” then (i) the Company shall pay Employee his full base salary through the
date of termination at the rate in effect at the time written notice of
termination is given Employee by the Company and (ii) in lieu of any further
compensation payments to Employee for periods subsequent to the date of
termination, the Company shall (A) pay to Employee for a period of twelve months
from the date of termination (payable in accordance with the Company’s
then-current payroll practices) his base salary at the rate in effect at the
time written notice of termination is given Employee by the Company (without
bonus compensation) and (B) provide to Employee for a period of twelve months
from the date of termination his standard benefits pursuant to paragraph
6.

     

    c.      
Employee may terminate his employment hereunder for any reason, including in the
event of a change in control of the Company.  For purposes of this
Agreement, a "change in control of the Company" shall mean a change in control
of a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of
1934 ("Exchange Act"); provided that, without limitation, such a change in
control shall be deemed to have occurred if (i) any "person" (as such term is
used in Sections 13(d) and 14(d)(2) of the Exchange Act) other than Employee or
any other person currently the beneficial owner of 10% or more of the
outstanding common shares of the Company, becomes the beneficial owner, directly
or indirectly, of securities of the Company representing 30% or more of the
combined voting power of the Company's then outstanding securities; or (ii)
during any period of two consecutive years, individuals who at the beginning of
such period constitute the Board of Directors of the Company cease for any
reason to constitute at least a majority thereof (unless the election of each
director, who was not a director at the beginning of the period, was approved by
a vote of at least two-thirds of the directors then still in office who were
directors at the beginning of the period).

     

    d.      If
Employee shall terminate his employment in the event of a change in control of
the Company under paragraph 7(c), then (i) the Company shall pay Employee his
full base salary through the date of termination at the rate in effect at the
time written notice of termination is given the Company by Employee; and (ii) if
Employee terminates his employment within five days of such change in control
and does not, within five days of such termination, enter into a new employment
agreement with the Company or its successor, as the case may be, with a term of
one year or more, then, in lieu of any further compensation payments to Employee
for periods subsequent to the date of termination, the Company shall (A) pay to
Employee for a period of twelve months from the date of termination (payable in
accordance with the Company’s then-current payroll practices) his base salary at
the rate in effect at the time written notice of termination is given the
Company by Employee (without bonus compensation) and (B) provide to Employee for
a period of twelve months from the date of termination his standard benefits
pursuant to paragraph 6.  If Employee shall terminate his employment
for any reason other than a change in control of the Company, the Company shall
pay Employee his full base salary through the date of termination at the rate in
effect at the time written notice of termination is given the Company by
Employee, and no other amounts shall be due and payable by the Company to
Employee subsequent to the date of termination.

     

    e.      For
the avoidance of doubt, upon the termination of Employee’s employment for any
reason or for no reason whatsoever, any unvested common stock or other rights to
equity of the

     

    
      
        
          

           

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    Company
granted to Employee pursuant to the Company’s Executive Stock Award Plan (or any
other Company plan) and any Restricted Stock Agreement (or other grant
agreement) entered into thereunder (collectively, the “Unvested Stock”) shall be
deemed forfeited by Employee, and Employee shall have no further rights to or
interests in any such Unvested Stock subsequent to the date of
termination.

     

    8.      Restrictions.

     

    a.      Employee
agrees that he will not, during the term of his employment with the Company or
for a period of one year after the termination of his employment for any reason
or no reason whatsoever, directly or indirectly, (i) divulge, publish, disclose
or otherwise reveal any trade secrets, or other information acquired by or
disclosed to him about the Company, its customers or its vendors during his
employment by the Company, to any person, firm, corporation, association, or
other entity for any reason or purpose whatsoever without the prior written
consent of the Company, or (ii) engage in any activity which is or will be
detrimental or contrary to the best interests of the Company.

     

    b.      Employee
also agrees that, upon termination of his employment for any reason or for no
reason whatsoever, he will forthwith return to the Company all books, lists, and
other documents and data and all other property belonging to the Company or
relating to its business.

     

    c.      Employee
acknowledges that he has learned and will, during his continued employment by
the Company, learn certain financial information, technical information and
other trade secrets of the Company and that disclosure of such information to
competitors of the Company would be detrimental to the
Company.  Employee agrees that during the term hereof and for a period
of one year after the termination of his employment for any reason or for no
reason whatsoever, he will not, directly or indirectly, be in any manner engaged
in, connected with (as a shareholder, employee or otherwise) or employed by any
person, firm or corporation which is engaged in a business competitive with the
Company or a successor or affiliate thereof, anywhere in the world, provided,
however, that this subparagraph shall not be deemed to limit Employee's right to
own less than 1% of the common stock of a publicly-held corporation whose shares
are traded on a recognized stock exchange or over-the counter.

     

    d.      In
the event of a breach, violation or attempted breach or violation by Employee of
any of the provisions of this Section 8, the Company shall be entitled to an
injunction or restraining order immediately upon the commencement of any suit
therefore by the Company and without notice.  Nothing herein shall be
construed as prohibiting the Company from pursuing any other remedy available to
it for any such breach or violation for the recovery of damages, including
punitive damages by reason thereof.

     

    9.           Waiver of Breach.
Failure of the Company to take action with respect to any breach or violation of
any provision of this Agreement by Employee, whether or not the Company had
knowledge thereof, shall not operate as a waiver of any subsequent breach or
violation by Employee.

     

    10.           Disability or Death of
Employee. In the event Employee shall become unable to perform his duties
hereunder by reason of illness or incapacity for a period of six (6) consecutive
months, and such period commences before the Company has given any notice of
termination under Section 7 of this Agreement, Employee shall be paid, in lieu
of all other compensation payable hereunder, 100% of his salary during such six
(6) months and 60% of his salary during the ensuing six (6) months.

     

    
      
        
          

           

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    Notwithstanding
the foregoing, Employee will be included under any long-term disability plan
maintained by the Company for its employees generally.  In addition,
during Employee's employment by the Company and without limiting the provisions
of Section 6 of this Agreement, the Company will provide an aggregate of
$500,000 of term life insurance to Employee.  In the event of
Employee’s death, Employee’s employment shall terminate immediately, and the
Company shall pay to Employee’s legal representative Employee’s then–current
base salary through the date of termination, and no other amounts shall be due
and payable by the Company to Employee or his representatives subsequent to the
date of termination.

     

    

    11.           Section 280G of the
Code.  Notwithstanding anything else herein, if any payment or
benefit, within the meaning of Section 280G(b)(2) of the Internal Revenue Code
of 1986, as amended (the “Code”), to Employee
or for Employee’s benefit paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise in connection with, or
arising out of, Employee’s employment with the Company or a change in control of
the Company or of a substantial portion of its assets, would be subject to the
excise tax imposed by Section 4999 of the Code or any interest or penalties are
incurred by Employee with respect to such excise tax (such excise tax, together
with any such interest and penalties, are hereinafter collectively referred to
as the “Excise
Tax”), the amounts and benefits provided under this Agreement or
otherwise that are subject to Section 280G of the Code as a result of such
transaction will be automatically reduced to an amount that equals the product
of 2.99 multiplied by Employee’s “base amount” (as determined in accordance with
Sections 280G and 4999 of the Code by the Company’s certified public
accountants, unless the Company and Employee mutually agree to the appointment
of an independent certified public accounting firm (the “Accounting Firm”)),
such that Employee will not be subject to the Excise Tax (the “Payment
Reduction”).  Unless Employee otherwise elects, the Payment
Reduction shall first be applied to any severance payments payable to Employee
pursuant to Section 7 of this Agreement.  Notwithstanding the
foregoing, the Payment Reduction shall not apply if the Accounting Firm
determines that, on an after-tax basis, Employee would retain a greater amount
of compensation following payment of the Excise Tax on the unreduced amount of
any payments than the amount of compensation retained following the Payment
Reduction as required hereby.

     

    12.           Section 409A of the
Code.  It is intended that any amounts payable under this
Agreement will comply with Section 409A of the Code and the regulations relating
thereto so as not to subject Employee to the payment of interest, tax, and
penalties which may be imposed under Section 409A of the
Code.  Notwithstanding anything in this Agreement to the contrary, if
upon the employment termination date, Employee is a “specified employee” as
defined in Section 409A of the Code, as determined by the Company, any amounts
paid as severance pursuant to Section 7 of this Agreement in excess of the
amount permitted to be paid under Treasury Regulation Section
1.409A-1(b)(9)(iii) shall be delayed until the date that is six (6) months
following Employee’s separation from service with the Company, and the Company
will make all applicable payments that have accrued during such six (6) month
period in a lump sum to Employee following the expiration of such
period.  For purposes of Section 409A of the Code, each payment under
this Agreement shall be considered a separate payment.  In no event
whatsoever shall the Company or any of its affiliates be liable for any
additional tax, interest or penalties that may be imposed on Employee by Section
409A of the Code or any damages for failing to comply with Section 409A of the
Code other than for withholding obligations under Section 409A of the
Code.

     

    13.           Assignment. This
Agreement is based upon the personal services of Employee, and the obligations
of Employee hereunder shall not be assignable by Employee except as herein
expressly provided.  The rights and obligations of the Company under
this Agreement

    
      
        
          

           

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    shall
inure to the benefit of and shall be binding upon the successors and assigns of
the Company.

     

    14.           Entire Agreement.
This instrument supersedes all prior understandings and agreements with respect
to Employee's employment by the Company and contains the entire agreement of the
parties and may be amended only in writing, signed by the party against whom
enforcement of any waiver, change, modification, extension or discharge is
sought.

     

    15.           Applicable Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Illinois.

     

    

     

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signature page follows this page.]

     

    

     

    
      
        
          

           

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    IN
WITNESS WHEREOF, the parties have executed this Agreement on the day and year
first above written.

     

    
      	 
      
	
              WELLS-GARDNER
      ELECTRONICS CORPORATION

            
	 
      
	
              By:
      Anthony Spier, Chief Executive Officer

            
	 
      
	 
      
	
              /s/ Anthony S.
      Spier                                                                

            
	 
      
	 
      
	
              Employee:
      James Brace

            
	 
      
	 
      
	
              /s/ James F.
      BraceCHANGE IN CONTROL AGREEMENT

Exhibit 10.1 

CHANGE IN CONTROL
AGREEMENT

AS
AMENDED AND RESTATED JANUARY 1, 2008

THIS AMENDED AND RESTATED AGREEMENT by and between
Parkway Properties, Inc., a Maryland corporation (the "Company"),
with offices at One Jackson Place, Suite 1000, 188 East Capitol Street,
Jackson, Mississippi 39201-2195, and ______________ (the
"Executive"), an individual residing at ____________________, dated
as of ____________ (the "Agreement").

WHEREAS, the Company entered into a Change in Control
Agreement with the Executive as of _______________, (the "Original
Agreement") based on the following premises:

A.        The Company recognized that it is difficult
to attract and retain highly qualified executives unless a certain degree of
security can be offered against organizational and personnel changes that
frequently follow changes in control of corporations; and

B.        Even rumors of acquisitions or mergers may
cause executives to consider major career changes in an effort to assure
financial security for themselves and their families; and

C.        The Company desired to assure fair treatment
of its executives in the event of a Change in Control (as defined below) and to
allow them to make critical career decisions without undue time pressure and
financial uncertainty, thereby increasing their willingness to remain with the
Company notwithstanding the outcome of a possible Change in Control
transaction; and

D.        The Company recognized that its executives
will be involved in evaluating or negotiating any offers, proposals or other
transactions that could result in a Change in Control of the Company and
believed that it was in the best interest of the Company and its stockholders
for such executives to be in a position, free from personal financial and
employment considerations, to be able to assess objectively and pursue
aggressively the interests of the Company's stockholders in making these
evaluations and carrying on such negotiations; and

E.         The Board of Directors (the
"Board") of the Company believed it was essential to provide the
Executive with compensation arrangements upon a Change in Control that provide
the Executive with individual financial security and are competitive with those
of other corporations, and, to accomplish these objectives, the Board caused
the Company to enter into the Original Agreement.

WHEREAS, the Board reaffirms the premises stated above
and desires to amend and restate the Original Agreement to incorporate certain
changes into its terms and to conform it to the requirements of section 409A of
the Internal Revenue Code of 1986, as amended, for the deferral of the taxation of deferred compensation, and, to accomplish these objectives, the Board has caused the Company to enter into this Agreement.

 

NOW THEREFORE, the parties, for good and valuable
consideration and intending to be legally bound, agree as follows:1.                 
Operation and Term of Agreement.  This Agreement is an amendment
and restatement of the Original Agreement, which shall no longer have any
effect.  This Agreement shall be effective immediately upon its execution. 
This Agreement may be terminated by the Company upon 24 months' advance written
notice to the Executive; provided, however, that after a Change in Control of
the Company during the term of this Agreement, this Agreement shall remain in
effect until all of the obligations of the parties under the Agreement are
satisfied and the Protection Period has expired.  Prior to a Change in Control
this Agreement shall immediately terminate upon termination of the Executive's
employment or upon the Executive's ceasing to be an elected officer of the
Company. 

2.                 
Certain Definitions.  For purposes of this Agreement, the
following words and phrases shall have the following meanings:

(a)               
"Cause" shall mean (i) the continued failure by the Executive
to perform material responsibilities and duties toward the Company (other than
any such failure resulting from the Executive's incapacity due to physical or
mental illness), (ii) the engaging by the Executive in willful or reckless
conduct that is demonstrably injurious to the Company monetarily or otherwise,
(iii) the conviction of the Executive of a felony, or (iv) the commission or
omission of any act by the Executive that is materially inimical to the best
interests of the Company and that constitutes on the part of the Executive
common law fraud or malfeasance, misfeasance, or nonfeasance of duty; provided,
however, that Cause shall not include the Executive's lack of professional
qualifications.  For purposes of this Agreement, an act, or failure to act, on
the Executive's part shall be considered "willful" or
"reckless" only if done, or omitted, by the Executive not in good
faith and without reasonable belief that the action or omission was in the best
interest of the Company.  The Executive's employment shall not be deemed to
have been terminated for Cause unless the Company shall have given or delivered
to the Executive (v) reasonable notice setting forth the reasons for the
Company's intention to terminate the Executive's employment for Cause, (vi) a
reasonable opportunity, at any time during the 30-day period after the
Executive's receipt of such notice, for the Executive, together with the
Executive's counsel, to be heard before the Board, and (vii) a Notice of
Termination (as defined in Section 10(b) below) stating that, in the good
faith opinion of not less than a majority of the entire membership of the
Board, the Executive was guilty of the conduct set forth in clauses (i), (ii),
(iii), or (iv) of the first sentence of this 2(a).

- 2 -

(b)              
"Change in Control" shall mean a change in control of a nature
that would be required to be reported in response to Item 6(e) of Schedule 14A
of Regulation 14A promulgated under the Securities and Exchange Act of 1934, as
amended (the "Exchange Act"), whether or not the Company is then
subject to such reporting requirements; provided that, without limitation, such
a Change in Control shall be deemed to have occurred if (i) any person (as such
term is used in section 13(d) and 14(d) of the Exchange Act)
("Person") is or becomes beneficial owner (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company
representing 30 percent or more of the combined voting power of the Company's
then outstanding securities; or (ii) during any period of two consecutive
years, the following persons (the "Continuing Directors") cease for
any reason to constitute a majority of the Board:  individuals who at the
beginning of such period constitute the Board and new Directors each of whose
election to the Board or nomination for election to the Board by the Company's
security holders was approved by a vote of at least two-thirds of the Directors
then still in office who either were Directors at the beginning of the period
or whose election or nomination for election was previously so approved; or
(iii) the security holders of the Company approve a merger or consolidation of
the Company with any other corporation, other than (A) a merger or
consolidation that would result in the voting securities of the Company
outstanding immediately before the merger or consolidation continuing to
represent (either by remaining outstanding or by being converted into voting
securities of such surviving entity) more than 50 percent of the combined voting
power of the voting securities of the Company or of such surviving entity
outstanding immediately after such merger or consolidation or (B) a merger or
consolidation that is approved by a Board having a majority of its members
persons who are Continuing Directors, of which Continuing Directors not less
than two-thirds have approved the merger or consolidation; (iv) the security
holders of the Company approve a plan of complete liquidation of the Company or
an agreement for the sale or disposition by the Company of all or substantially
all of the Company's assets; or (v) the security holders of the Company approve
an agreement (or, if such approval is not required by applicable law and is not
solicited by the Company, the closing of such an agreement) that involves (A)
the transfer to a Person or Persons other than a related Person of at least 50
percent of the total gross book value of the Company's real estate assets as
measured under GAAP immediately before the transfer or (B) the transfer of
assets of the Company to a Person or Persons other than a related Person, which
transfer, when aggregated with all other such transfers completed during the 12
month period ending on the date of the security holders' most recent approval
or the most recent closing, as applicable, involves 50 percent of the total
gross book value of the Company's real estate assets as measured under GAAP
immediately before the first in such series of transfers, provided however, for
the purposes of (A) and (B), that the consideration received in relation to
such transfer is not reinvested into similar real estate assets or real estate
investments within the Company.  For the purposes of this Section 0, a Person is a related Person if the Person is the Parent or a Subsidiary of the
Company or an employee benefit plan of the Company or of the Parent or a
Subsidiary of the Company.

(c)               
"Code" shall mean the Internal Revenue Code of 1986, as amended.

(d)              
"Disability," for purposes of this Agreement, shall mean total
disability as defined in any long-term disability plan sponsored by the Company
in which the Executive participates, or, if there is no such plan or it does
not define such term, then it shall mean the physical or mental incapacity of
the Executive that prevents the Executive from substantially performing the
duties of the office or position to which the Executive was elected or
appointed by the Board for a period of at least 180 days and the incapacity is
expected to be permanent and continuous through the Executive's 65th birthday.

- 3 -

(e)               
The "Change in Control Date" shall be any date during the term
of this Agreement on which a Change in Control occurs.  Anything in this
Agreement to the contrary notwithstanding, if (i) the Executive's employment or
status as an elected officer with the Company is terminated by the Company
within six months before the date on which a Change in Control occurs; (ii) the
Change in Control is a transaction or event that qualifies as a "change in
control event" as defined in the regulations under section 409A of the
Code; and (iii) it is reasonably demonstrated that such termination (A) was at
the request of a third party who has taken steps reasonably calculated or
intended to effect a Change in Control or (B) otherwise arose in connection
with or anticipation of a Change in Control, then for all purposes of this
Agreement the "Change in Control Date" shall mean the date
immediately before the date of such termination.

(f)               
"Good Reason" means:

(i)                
the assignment to the Executive within the Protection Period of any
duties materially inconsistent with the Executive's position (including status,
offices, titles, and reporting requirements, authority, duties or
responsibilities), or any other action that results in a material diminution in
such position, authority, duties, or responsibilities;

(ii)              
a material reduction by the Company in the Executive's base salary in
effect immediately before the beginning of the Protection Period or as
increased from time to time after the beginning of the Protection Period;

(iii)            
a material reduction by the Company in the Executive's annual bonus
opportunity or in the target level for such bonus or in the level of the
Executive's long term equity incentive, as compared to such opportunity or
level in effect immediately before the beginning of the Protection Period;

(iv)            
a failure by the Company to maintain health benefit plans available to
the Executive and the Executive's family that provide benefits at least as
beneficial as those provided under the plans in which the Executive participated
immediately before the beginning of the Protection Period, or any action taken
by the Company that would adversely affect the Executive's participation in
such plans, which failure or action reduces the value to the Executive of such
health benefit plans to the extent that the reduction in value, if measured as
a portion of the Executive's base salary, would be material, provided the
Company does not increase the Executive's base salary to make up for such
reduction in value to the Executive;

(v)              
a material diminution during the Protection Period in any budget over
which the Executive retains authority;

(vi)            
the Company's requiring the Executive, without the Executive's written
consent, to be based at any office or location materially distant from the Executive's
office location immediately before the beginning of the Protection Period,
except for travel reasonably required in the performance of the Executive's
responsibilities;

(vii)          
any purported termination by the Company of the Executive's employment
for Cause otherwise than as referred to in Section 0 of this Agreement; or

 

- 4 -

(viii)        
any failure by the Company to obtain the assumption of the obligations
contained in this Agreement by any successor as contemplated by Section 10(b) of this Agreement,
provided, however, that Good Reason shall not
exist unless the Executive gives notice to the Company of the existence of a
condition described in paragraph (i), (ii), (iii), (iv), (v), (vii), or (viii)
within 90 days of the initial existence of the condition, and the Company does
not remedy the condition within 30 days of receipt of notice from the
Executive.  The intent of the use of the terms "materially" and
"material" to qualify the conditions described in clauses (i) through
(vi) above is to assure that a termination for Good Reason shall be considered
for purposes of the regulations under section 409A of the Code as an
involuntary separation from service;  the terms materially and material shall
be construed accordingly, and without requiring any greater negative change to
the aspect of the Executive's employment described in the relevant clause above
than would be required to fulfill the intent of the use of the terms materially
and material as described in this sentence.(ix)            
"Parent" means any entity that directly or indirectly through
one or more other entities owns or controls more than 50 percent of the voting
stock or common stock of the Company.

(x)              
"Protection Period" means the period beginning on the Change
in Control Date and ending on the last day of the 20th calendar month following
the Change in Control Date.

(xi)            
"Subsidiary" means a company 50 percent or more of the voting
securities of which are owned, directly or indirectly, by the Company.

3.                 
Payment of Target Bonus and Vesting of Equity Awards on Change in
Control.

(a)               
Within 10 days after a Change in Control that occurs during the term of
this Agreement the Company shall pay to the Executive the product of (i) the
Executive's Board approved target bonus for the fiscal year of the Company in
which the Change in Control occurs, multiplied by (ii) the fraction of the
fiscal year elapsed by the date of the Change in Control.  Such payment shall
offset any obligation of the Company to pay a bonus for the fiscal year of the
Company in which the Change in Control occurs.

(b)              
Upon a Change in Control during the term of this Agreement:

(i)                
All outstanding options issued to the Executive by the Company to
purchase shares of the Company's common stock ("Common Shares") shall
become immediately exercisable.

(ii)              
All stock appreciation rights issued to the Executive by the Company
with respect to Common Shares shall become immediately exercisable.

(iii)            
All restrictions applicable with respect to restricted Common Shares
issued by the Company to the Executive shall lapse, any restricted period with
respect to such restricted Common Shares shall expire, and any condition to
which such restricted Common Shares are subject shall be deemed to have been
satisfied, so that the Executive shall be entitled to unrestricted ownership of
such Common Shares, subject to the Company's tax withholding obligations.

(iv)            
To the extent any right held by the Executive to receive Common Shares
from the Company in the future is subject to restrictions or conditions, all
such restrictions shall lapse and such conditions shall be deemed to be
satisfied.

- 5 -

4.                 
Benefits Upon Termination Within a Protection Period.  If, during
a Protection Period, the Executive's employment is terminated by the Company
other than for Cause or Disability or other than as a result of the Executive's
death or if the Executive terminates employment for Good Reason, the Company
shall pay to the Executive the following amounts:

(a)               
The Executive's full base salary and vacation pay (for vacation not
taken) accrued but unpaid through the date of termination at the rate in effect
at the time of the termination, in a lump sum in cash within 10 days after the
date of termination; and

(b)              
A severance payment in an amount equal to ___________ times the
Executive's "Annual Compensation."  For purposes of this Agreement,
"Annual Compensation" shall be an amount equal to the sum of (i) the
Executive's annual base salary from the Company at the rate in effect on the
date of termination, plus (ii) the Executive's "Average Bonus."  For
purposes of this Agreement, the Executive's Average Bonus shall be the average
of the amount of annual bonus accrued by the Company for the Executive in the
three fiscal years of the Company ending before the date of termination,
provided that: (A) any such year in which the Executive was not employed by the
Company shall be excluded from the averaging period; (B) the bonus for any such
year that reflects a partial year of employment shall be annualized; and (C) if
the Executive did not participate in the annual bonus program before the year
of termination of employment because the Executive was not employed by the
Company during (or for the full) fiscal year preceding the year of termination,
then the Executive's Average Bonus shall be the Executive's target bonus for
the year of termination.  Of this severance payment, there shall be paid in a
lump sum in cash within 10 days after the date of termination an amount equal
to the applicable dollar amount under section 402(g)(1)(B) of the Code for the
year of termination plus one half of the full severance payment; the balance of
the severance payment shall be paid in a lump sum in cash on the first day of
the seventh month beginning after the month in which the date of termination
occurs; provided, however, that if the conditions of Section 0(i), (ii), and (iii) exist (termination within six months before a Change in
Control), then the entire severance payment shall be paid in a lump sum in cash
on the first day of the seventh month beginning after the month in which the
Change in Control occurs.

5.                 
Executive's Right to Leave Employment.  At any time during the
six month period following a Change in Control Date, the Executive shall have
the right to terminate the Executive's employment with the Company at the
Executive's sole discretion (the "Executive Termination Right").  In
the event the Executive exercises the Executive Termination Right, the Company
shall pay to the Executive:

(a)               
in a lump sum in cash within 10 days after the date of termination, the
amount set forth in Section 4(a); and

(b)              
a severance payment in an amount equal to one half of the amount
described in Section 4(b).  Of this severance payment, an amount equal to the
applicable dollar amount under section 402(g)(1)(B) of the Code for the year of
termination shall be paid in a lump sum in cash within 10 days after the date
of termination, and the balance of the severance payment shall be paid in a
lump sum in cash on the first day of the seventh month beginning after the
month in which the date of termination occurs.

- 6 -

6.                 
Nonexclusivity of Rights.  Nothing in this Agreement shall
prevent or limit the Executive's continuing or future participation in any
benefit, bonus, incentive, or other plans, practices, policies, or programs
provided by the Company or any of its Subsidiaries and for which the Executive
may qualify, nor shall anything in this Agreement limit or otherwise affect
such rights as the Executive may have under any stock option or other
agreements with the Company or any of its Subsidiaries.  Amounts that are
vested benefits or that the Executive is otherwise entitled to receive under
any plan, practice, policy, or program of the Company or any of its Subsidiaries
at or subsequent to the date of termination shall be payable in accordance with
such plan, practice, policy, or program; provided, however, that the
Executive shall not be entitled to severance pay, or benefits similar to
severance pay, under any plan, practice, policy, or program generally
applicable to employees of the Company or any of its Subsidiaries.

7.                 
Full Settlement; No Obligation to Seek Other Employment; Legal
Expenses.  The Company's obligation to make the payments provided for in
this Agreement and otherwise to perform its obligations under this Agreement
shall not be affected by any set-off, counterclaim, recoupment, defense, or
other claim, right, or action that the Company may have against the Executive
or others.  The Executive shall not be obligated to seek other employment or
take any other action by way of mitigation of the amounts payable to the
Executive under any of the provisions of this Agreement.  The Company agrees to
pay, upon written demand by the Executive, all legal fees and expenses the
Executive may reasonably incur as a result of any dispute or contest
(regardless of outcome) by or with the Company or others regarding the validity
or enforceability of, or liability under, any provision of this Agreement.  The
Company shall pay any such legal fees and expenses as soon as practicable after
receipt of notice and evidence of the fee or expense, but in no event later
than the last day of the calendar year following the year in which the
Executive incurred the fee or expense.  In any such action brought by the
Executive for damages or to enforce any provisions of this Agreement, the
Executive shall be entitled to seek both legal and equitable relief and
remedies, including, without limitation, specific performance of the Company's
obligations under this Agreement, in the Executive's sole discretion.

- 7 -

8.                 
Cut Back in Benefits.  Notwithstanding any other provision of
this Agreement, the cash lump sum payment and other benefits otherwise to be
provided pursuant to Sections 0 and 5 of this Agreement (the "Severance
Benefit") shall be reduced as described below if the Net After-Tax Benefit
(as defined below) the Executive would realize would be greater with the
reduction than without the reduction.  The Net After-Tax Benefit is the sum of
the parachute payments (within the meaning of section 280G of the Code) payable
to the Executive under this Agreement and all other plans, practices, policies,
or programs of the Company, reduced by the federal, state, and local income
taxes payable with respect to the parachute payments and any excise tax imposed
on the Executive with respect to the parachute payments under section 4999 of
the Code.  If the Net After-Tax Benefit would be greater with the reduction,
then the Severance Benefit shall be reduced, but only to the extent required to
avoid the imposition on the Executive of any excise tax under section 4999 of
the Code.  Tax counsel designated in the manner described below shall make all
determinations required for the purposes of this Section 0, including the determination of which payments or benefits are parachute payments, the value of the
parachute payments, the amount of Net After-Tax Benefit realizable with and without
a reduction, and the amount of the reduction required to avoid the excise tax. 
All determinations shall be made in accordance with sections 280G and 4999 and
other relevant provisions of the Code.  Tax counsel shall be designated as
follows:  the Executive and the Company shall each designate a party to serve
as co-tax counsel.  The co-tax counsel shall endeavor to agree upon the
determinations required for the purposes of this Section 0, but if they have not done so by the end of the tenth business day following the change in control,
the accounting firm that was the independent auditor of the Company immediately
before the change in control shall designate a third party to serve as
successor tax counsel, and all of its determinations shall prevail. The Company
shall determine which elements of the Severance Benefit shall be reduced, if
necessary to conform to the provisions of this Section.  The Company shall be
responsible for payment of the fees charged by all parties serving as tax
counsel (whether as co-tax counsel or otherwise) and by the accounting firm for
services rendered in connection with this Section.

9.                 
Confidential Information.  The Executive shall
hold in a fiduciary capacity for the benefit of the Company all secret or
confidential information, knowledge, or data relating to the Company or any of
its Subsidiaries, and their respective businesses, obtained by the Executive
during the Executive's employment by the Company or any of its Subsidiaries and
that has not become public knowledge (other than by acts of the Executive or
the Executive's representatives in violation of this Agreement).  After the
date of termination of the Executive's employment with the Company, the
Executive shall not, without the prior written consent of the Company,
communicate or divulge any such information, knowledge, or data to anyone other
than the Company and those designated by it.  In no event shall an asserted
violation of the provisions of this Section 9 constitute a basis for deferring
or withholding any amounts otherwise payable to the Executive under this
Agreement.

10.             
Successors.

(a)               
This Agreement is personal to the Executive and without the prior
written consent of the Company shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution.  This Agreement
shall inure to the benefit of and be enforceable by the Executive's legal
representatives or successor(s) in interest.  The Executive may designate a
successor (or successors) in interest to receive any and all amounts due the
Executive in accordance with this Agreement should the Executive be deceased at
any time of payment.  Such designation of successor(s) in interest shall be
made in writing and signed by the Executive, and delivered to the Company
pursuant to Section 14(a).  This Section 10 shall not supersede any designation
of beneficiary or successor in interest made by the Executive, or separately covered,
under any other plan, practice, policy, or program of the Company.

(b)              
This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns.

- 8 -

(c)               
The Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation, or otherwise) to all or substantially all of the
business or assets of the Company and any Parent of the Company or any
successor and without regard to the form of transaction utilized to acquire the
business or assets of the Company, to assume expressly and agree to perform
this Agreement in the same manner and to the same extent that the Company would
be required to perform it if no such succession or parentage had taken place. 
As used in this Agreement, "Company" shall mean the Company as
defined above and any successor to its business or assets as aforesaid (and any
Parent of the Company or any successor) that is required by this clause to
assume and agree to perform this Agreement or that otherwise assumes and agrees
to perform this Agreement.

11.             
Notice of Termination.  Any termination of the Executive's
employment by the Company for Cause or by the Executive for Good Reason shall
be communicated by Notice of Termination to the other party given in accordance
with Section 14(a) of this Agreement.  For purposes of this Agreement, a
"Notice of Termination" means a written notice that (i) indicates the
specific termination provision in this Agreement relied upon, (ii) sets forth
in reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision so indicated, and
(iii) if the date of termination is other than the date of receipt of such
notice, specifies the termination date (which date shall be not more than 15
days after the giving of such notice).  The failure by the Executive to set
forth in the Notice of Termination any fact or circumstance that contributes to
a showing of Good Reason shall not waive any right of the Executive under this
Agreement or preclude the Executive from asserting such fact or circumstance in
enforcing the Executive's rights.

12.             
Requirements and Benefits If Executive Is Employee of Subsidiary of
Company.  If the Executive is an employee of any Subsidiary of the Company,
the Executive shall be entitled to all of the rights and benefits of this
Agreement as though the Executive were an employee of the Company and the term
"Company" shall be deemed to include the Subsidiary by whom the
Executive is employed.  The Company guarantees the performance of its
Subsidiary under this Agreement.

13.             
Arbitration.  The Company and the Executive shall attempt to
resolve between them any dispute that arises under this Agreement.  If they
cannot agree within ten days after either party submits a demand for
arbitration to the other party, then the issue shall be submitted to
arbitration with each party having the right to appoint one arbitrator and
those two arbitrators mutually selecting a third arbitrator.  The rules of the American
Arbitration Association for the arbitration of commercial disputes shall apply
and the decision of two of the three arbitrators shall be final.  The
arbitrators must reach a decision within 60 days after the selection of the
third arbitrator.  The arbitration shall take place in Jackson, Mississippi.  The arbitrators shall apply Mississippi law.

14.             
Miscellaneous.

(a)               
This Agreement shall be governed by and construed in accordance with the
laws of the State of Mississippi, without reference to principles of conflict
of laws.  The captions of this Agreement are not part of the provisions of the
Agreement and shall have no force or effect.  This Agreement may not be amended
or modified otherwise than by a written agreement executed by the parties or
their respective successors and legal representatives.

- 9 -

(b)              
All notices and other communications under this Agreement shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, to the addresses
for each party as first written above or to such other address as either party
shall have furnished to the other in writing in accordance with this Section. 
Notices and communications to the Company shall be addressed to the attention of
the Company's Corporate Secretary.  Notice and communications shall be
effective when actually received by the addressee.

(c)               
Whenever reference is made in this Agreement to any specific plan or
program of the Company, to the extent that the Executive is not a participant
in the plan or program or has no benefit accrued under it, whether vested or
contingent, as of the Change in Control Date, then such reference shall be null
and void, and the Executive shall acquire no additional benefit as a result of
such reference.

(d)              
When this Agreement uses the term "termination of employment"
or otherwise uses the term "terminate" with reference to employment,
the terms termination or terminate shall be construed to mean a separation from
service or separate from service, as those terms are defined in the regulations
under section 409A of the Code.

(e)               
If the Executive is, on the date of termination of employment, a
specified employee, as that term is used in regulations under section 409A of
the Code, no payment of an amount that is deferred compensation for purposes of
section 409A of the Code may be made until the first day of the seventh month
beginning after termination of the Executive's employment.  The Company and the
Executive believe all amounts payable under the terms of this Agreement before
such seventh month are not deferred compensation for purposes of section 409A
of the Code, and this paragraph (e) shall be construed accordingly unless the
Company's and the Executive's belief is demonstrated to be incorrect.

(f)               
The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement.

(g)              
The Company may withhold from any amounts payable under this Agreement
such Federal, state, or local taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

(h)              
The Executive's failure to insist upon strict compliance with any
provision of this Agreement shall not be deemed to be a waiver of such
provision or any other provision.

(i)                
Upon a termination of the Executive's employment or upon the Executive's
ceasing to be an elected officer of the Company, in each case, prior to the
Change in Control Date, there shall be no further rights under this Agreement.

(j)                
This Agreement shall supersede and replace any previous agreement
between the Executive and the Company relating to a possible Change in Control
of the Company.

- 10 -

IN WITNESS WHEREOF, the Executive has executed this
Agreement and, pursuant to the authorization from the Board, the Company has
caused this Agreement to be executed as of the day and year first above
written.

 

                                                                                                                        PARKWAY PROPERTIES, INC.

 

 

                                                                                                                        By                                                                               

 

 

                                                                                                                        EXECUTIVE

 

                                                                                                                       
_________________________________________

                                                                                                                        Name, Title

- 11 -

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