Document:

EX-10.2

 Exhibit 10.2 

 
  

FORM OF PERFORMANCE-VESTING AGREEMENT 
 PARKWAY PROPERTIES, INC., 
 PARKWAY PROPERTIES LP 

PROFITS INTEREST UNITS (LTIP UNITS) AGREEMENT 
  

THIS PROFITS INTEREST UNITS AGREEMENT (this “Agreement”) is made and entered into as of
[                ] (the “Grant Date”), by and between Parkway Properties LP, a Delaware limited partnership (the
“Partnership”), and [                            ] (the
“Participant”). Capitalized terms used in this Agreement but not otherwise defined herein shall have their respective meanings set forth in the Plan or the Partnership Agreement (each as defined below), as applicable.

 WHEREAS, Parkway Properties, Inc. (the “Company”) and the Partnership maintain the Parkway
Properties, Inc. and Parkway Properties LP 2013 Omnibus Equity Incentive Plan, as amended (the “Plan”); 

WHEREAS, the Company and the Partnership wish to carry out the Plan (the terms of which are hereby incorporated by reference and made a
part of this Agreement); 
 WHEREAS, Section 12(c) of the Plan authorizes the issuance of Profits Interest Units (LTIP
Units) to Employees, Directors or Consultants for the performance of services to or for the benefit of the Partnership in the individual’s capacity as a Partner or in anticipation of the Participant becoming a Partner; 

WHEREAS, the Committee, appointed to administer the Plan, has determined that it would be to the advantage and in the best interest of
the Company, in its own capacity and in its capacity as the sole stockholder of Parkway Properties General Partners, Inc. (the “General Partner”), in its individual capacity and as sole general partner of the Partnership, and
the Company’s stockholders to issue to the Award (as defined below) as an inducement to the Participant to provide services to or for the benefit of the Partnership, and as an additional incentive to continue in the service of the Company; and

 WHEREAS, if the Company’s stockholders do not approve the Plan within twelve (12) months of the Board’s
initial adoption of the Plan on December 19, 2012, the Award and the Profits Interest Units automatically shall terminate and be forfeited on such twelve (12)-month anniversary, and the Participant shall have no further right or interest in or
with respect to the Profits Interest Units (or such proportionate amount of the Participant’s Capital Account balance). 

        THE PARTIES HERETO AGREE AS FOLLOWS: 

        1.    Issuance of Award. In consideration of the
Participant’s agreement to provide services to or for the benefit of the Partnership, effective as of the Grant Date, the Partnership hereby issues to the Participant an Award (the “Award”) of
[            ] Profits Interest Units (LTIP Units) of the Partnership (the “Total Profits Interest Units”), which will be subject to (a) vesting as
provided in Section 2 below and (b) forfeiture as provided in Section 3 below. If not already a Partner, the Partnership admits the Participant as a Partner of the Partnership on the terms and conditions set forth herein, in the Plan
and in the Second Amended and Restated Agreement of Limited Partnership of Partnership Properties LP, as amended (the “Partnership Agreement”). The Partnership and the Participant acknowledge and agree that the Profits
Interest Units are hereby issued to the Participant for the performance of services to or for the benefit of the Partnership in his or her capacity as a Partner or in 

 
anticipation of the Participant becoming a Partner. Upon receipt of the Award, the Participant shall, automatically and without further action on his or her part, be deemed to be a party to,
signatory of and bound by the Partnership Agreement. At the request of the Partnership, the Participant shall execute the Partnership Agreement or a counterpart signature page thereto. The Participant acknowledges that the Partnership from time to
time may issue or cancel (or otherwise modify) Profits Interest Units in accordance with the terms of the Partnership Agreement. 
         2.    Vesting. The Profits Interest Units shall vest in accordance with the provisions of this Section 2. The number of
Profits Interest Units that Fully Vest on any Vesting Date shall be rounded to the nearest whole Profits Interest Unit, but in no event shall the aggregate number of Profits Interest Units that Fully Vest and become payable in accordance with this
award exceed the Total Profits Interest Units. 

                2.1    TSR
Performance. Subject to and conditioned upon the Participant’s continued Service through the End Date and further subject to Sections 2.2 and 3 below, the Participant shall be eligible to Fully Vest on the End Date in a number of Profits
Interest Units determined by multiplying the Total Profits Interest Units granted hereby by a percentage ranging from zero to one hundred percent (100%) based on the level at which TSR Value has been attained during the Performance Period
through the End Date, determined as follows: if, as of the End Date, TSR Value represents an increase from the Baseline Price ranging from (and including) a twenty-four percent (24%) increase to a forty-two percent (42%) increase, a number
of Profits Interest Units shall Fully Vest as of the End Date equal to the product obtained by multiplying (A) the Total Profits Interest Units, times (B) a percentage ranging from fifty percent (50%) to one hundred percent
(100%), determined on a straight line pro rata interpolation based on the actual increase over Baseline Price represented by the TSR Value within the specified increase range, it being understood that TSR Value representing an increase over the
Baseline Price of more than forty-two percent (42%) shall be counted as TSR Value representing a forty-two percent (42%) increase over Baseline Price for purposes of this calculation (such that no more than one hundred percent
(100%) of Total Profits Interest Units can Fully Vest). For the avoidance of doubt, to the extent TSR Value as of the End Date does not represent at least a twenty-four percent (24%) increase over the Baseline Price, no Profits Interest
Units shall Fully Vest on the End Date pursuant to this Section 2.1. 

                2.2    Any
accelerated vesting provisions contained in Section 15(a)(iv) of the Plan and in that certain Change in Control Agreement dated [            ] between the Company and the
Participant are hereby expressly superseded for purposes of this Agreement and the Profits Interest Units granted hereby, and the parties hereto acknowledge and agree that such accelerated vesting provisions shall not apply to the Profits Interest
Units. 

                2.3    
Definitions 
         (a) “Baseline Price” means the
fifteen (15) trading day trailing average market closing price over the period ending on the Grant Date. 

        (b) “End Date” means
[            ]. 

        (c) “Fully Vested” means that, with respect to a Profits Interest
Unit, both (A) the continued Service and (B) the TSR Value performance condition applicable to such Profits Interest Unit has been satisfied. 

  
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         (d) “Performance
Period” means the period beginning on the Grant Date and ending on the End Date. 

        (e) “Service” means the Participant’s continued service as
an Employee, Consultant and/or Director. 
         (f) “Termination of
Service” means 

                (i) As to a Consultant, the time when the
engagement of a Participant as a Consultant to the Company and its affiliates is terminated for any reason, with or without cause, including, without limitation, by resignation, discharge, death or retirement, but excluding terminations where the
Consultant simultaneously commences or remains in employment and/or service as an Employee and/or Director with the Company or any of its affiliates. 
                 (ii) As to a Non-Employee Director, the time when a Participant who is a Non-Employee Director ceases to be
a Director for any reason, including, without limitation, a termination by resignation, failure to be elected, death or retirement, but excluding terminations where the Participant simultaneously commences or remains in employment and/or service as
an Employee and/or Consultant with the Company or any of its affiliates. 

                (iii) As to an Employee, the time when
the employee-employer relationship between a Participant and the Company and its affiliates is terminated for any reason, including, without limitation, a termination by resignation, discharge, death, disability or retirement, but excluding
terminations where the Participant simultaneously commences and/or remains in service as a Consultant and/or Director with the Company or any of its affiliates. 
 The Committee, in its sole discretion, shall determine the effect of all matters and questions relating to any Termination of Service, including without limitation, whether a Termination of Service has
occurred, whether any Termination of Service resulted from a discharge for cause and whether any particular leave of absence constitutes a Termination of Service. For purposes of the Plan and this Agreement, a Participant’s employee-employer
relationship or consultancy relationship shall be deemed to be terminated in the event that the affiliate employing or contracting with such Participant ceases to remain an affiliate following any merger, sale of stock or other corporate transaction
or event (including, without limitation, a spin-off). 
         (g) “TSR
Value” means, as of any given date, the sum of (i) the fifteen (15) trading day trailing average market closing price over the period ending on the date on which TSR Value is being measured, plus (ii) the aggregate
dividends (including ordinary and special dividends) per Share with a record date that occurs during the period beginning on the Grant Date and continuing through and including the date on which TSR Value is being measured. 

        (h) “Vesting Date” means, with respect to a Profits Interest
Unit, the date on which the Profits Interest Unit becomes Fully Vested. 

                2.4    
Distributions. The Participant shall be entitled to distributions on the Profits Interest Units in accordance with the provisions set forth in the Partnership Agreement (including the limitations set forth in Section 16.4(b) of the
Partnership Agreement); provided, however, that, prior to the date that a Profits Interest Unit becomes Fully Vested, the Participant shall receive ten percent 

  
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(10%) of such distributions from the Partnership to which such holder is otherwise entitled with respect to such Profits Interest Unit pursuant to the Partnership Agreement, and the remaining
ninety percent (90%) of such distributions from the Partnership to which such holder is otherwise entitled with respect to such Profits Interest Unit pursuant to the Partnership Agreement (the “Accrued Distribution”)
shall be distributed to the Participant with respect to such Profits Interest Unit as set forth in the immediately following sentence. Subject to the limitations set forth in the Partnership Agreement with respect to distributions (including the
limitations set forth in Section 16.4(b) of the Partnership Agreement), prior to any distributions otherwise being made pursuant to Section 5.1 of the Partnership Agreement or otherwise following the applicable Vesting Date with respect to
a Profits Interest Unit, the Participant shall receive a special distribution of Available Cash (as defined in the Partnership Agreement) equal to the aggregate amount of Accrued Distributions with respect to such Profits Interest Unit, with such
special distribution being made as soon as it is reasonably practicable to do so after the applicable Vesting Date in compliance with such limitations. If the Profits Interest Unit linked to an Accrued Distribution fails to Fully Vest and is
forfeited for any reason, then (x) the linked Accrued Distribution shall be forfeited, and (y) the Partnership shall have no further obligations in respect of such Accrued Distribution. 

        3.    Forfeiture of Profits Interest Units. 

                3.1    Termination
Prior to End Date. Notwithstanding the foregoing, in the event that the Participant incurs a Termination of Service for any reason, the Award and all Profits Interest Units, to the extent not vested as of the Participant’s Termination of
Service, after taking into consideration any vesting that may occur in connection with such Termination of Service (if any) (and each of the proportionate amount of the Participant’s Capital Account balance attributable to such Profits Interest
Units and any Accrued Distributions linked to such Profits Interest Units), shall thereupon automatically and without further action be cancelled and forfeited, and the Participant shall have no further right or interest in or with respect to such
unvested Profits Interest Units (or such proportionate amount of the Participant’s Capital Account balance or any Accrued Distributions linked to such Profits Interest Units). No portion of the Award which is unvested as of the
Participant’s Termination of Service shall thereafter become vested. 

                3.2    Profits
Interest Units Unvested as of End Date. In addition, in the event that the Participant remains in Continuous Service through the End Date, any Profits Interest Units that have not Fully Vested as of the End Date, included without limitation any
Profits Interest Units that do not Fully Vest based on TSR Value as of the End Date, (and the proportionate amount of the Participant’s Capital Account balance attributable to such Profits Interest Units and any Accrued Distributions linked to
such Profits Interest Units), shall thereupon automatically and without further action be cancelled and forfeited, and the Participant shall have no further right or interest in or with respect to such unvested Profits Interest Units (or such
proportionate amount of the Participant’s Capital Account balance or any Accrued Distributions linked to such Profits Interest Units). 
                 3.3    Shareholder Approval. Notwithstanding anything contained herein to the
contrary, if the Company’s stockholders do not approve the Plan within twelve (12) months of the Board’s initial adoption of the Plan on December 19, 2012, the Award and the Profits Interest Units automatically shall terminate
and be forfeited on such twelve (12)-month anniversary, and the Participant shall have no further right or interest in or with respect to the Profits Interest Units (or such proportionate amount of the Participant’s Capital Account balance).

  
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         4.    Restrictions on
Awards; Distributions. 

                4.1    Transfer
Restrictions. 

                       
 (a) Notwithstanding Section 2 above, the Participant shall not, without the consent of the General Partner (which the General Partner may give or withhold in its sole discretion), sell, pledge, assign, hypothecate, transfer, or otherwise
dispose of (collectively, “Transfer”) any Profits Interest Units (the “Transfer Restrictions”); provided, however, that the Transfer Restrictions shall not apply to any Transfer of Profits
Interest Units to the Partnership or the Company or to any Transfer by will or pursuant to the laws of descent and distribution. 
                         (b) The Award and the Profits Interest Units are subject to
the terms of the Plan and the terms of the Partnership Agreement, including, without limitation, the restrictions on transfer of Partnership Units (including, without limitation, Profits Interest Units) set forth in Article 11 of the Partnership
Agreement. Any permitted transferee of the Award or the Profits Interest Units under Section 4.1(a) above shall take such Award and Profits Interest Units subject to the terms of the Plan, this Agreement, and the Partnership Agreement. Any such
permitted transferee must, upon the request of the Partnership, agree to be bound by the Plan, the Partnership Agreement, and this Agreement, and shall execute the same on request, and must agree to such other waivers, limitations, and restrictions
as the Partnership or the Company may reasonably require. Any Transfer of the Award or Profits Interest Units which is not made in compliance with the Plan, the Partnership Agreement and this Agreement shall be null and void ab initio, and of no
effect. 

                4.2    Execution
and Return of Documents and Certificates. At the Company’s or the Partnership’s request, the Participant hereby agrees to promptly execute, deliver and return to the Partnership any and all documents or certificates that the Company or
the Partnership deems necessary or desirable to effectuate the cancellation and forfeiture of the unvested Profits Interest Units, the proportionate amount of the Participant’s Capital Account balance attributable to the Profits Interest Units,
or to effectuate the transfer or surrender such unvested Profits Interest Units and Capital Account balance to the Partnership. 

        5.    Representations, Warranties, Covenants, and Acknowledgments
of Participant. The Participant hereby represents, warrants, covenants, acknowledges and agrees on behalf of the Participant and his or her spouse, if applicable, that: 
                 5.1    Investment; Status of Participant. The Participant is holding the Award
for the Participant’s own account, and not for the account of any other Person. The Participant is holding the Award for investment and not with a view to distribution or resale thereof except in compliance with applicable laws regulating
securities. The Participant has such knowledge, skill and experience in business, financial and investment matters such that the Participant is capable of evaluating the merits and risks of an investment in the Profits Interest Units and is capable
of protecting his or her interests in connection with his or her investment in the Profits Interest Units. To the extent that the Participant has deemed it appropriate to do so, the Participant has retained and relied upon necessary and appropriate
professional advice regarding the investment, tax and legal merits and consequences of this Agreement and holding the Profits Interest Units. By reason of the Participant’s business and financial experience, the Participant has the capacity to
protect his or her own interests in connection with his or her investment in the Profits Interest Units. [The Participant represents that he or she is an “accredited investor” as that term is defined in Rule 501 of Regulation D of the
Securities Act.] The Participant agrees to furnish any additional information requested to assure compliance with applicable federal securities laws and the securities laws of any state in connection with the holding of the Profits Interest Units.

  
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                5.2    Relation to
Partnership. The Participant is presently an employee of, or consultant to, the Partnership, or is otherwise providing services to or for the benefit of the Partnership, and in such capacity has become personally familiar with the business of
the Partnership. 

                5.3    Access to
Information. The Participant has had the opportunity to ask questions of, and to receive answers from, the Partnership with respect to the terms and conditions of the transactions contemplated hereby and with respect to the business, affairs,
financial conditions, and results of operations of the Partnership. 

                5.4    
Registration. The Participant understands that the Profits Interest Units have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) and the Profits Interest Units cannot be transferred
by the Participant other than in accordance with the terms and conditions set forth in the Plan, this Agreement and the Partnership Agreement and, in any event, unless such transfer is registered under the Securities Act or an exemption from such
registration is available. The Partnership has made no agreements, covenants or undertakings whatsoever to register the transfer of the Profits Interest Units under the Securities Act. The Partnership has made no representations, warranties, or
covenants whatsoever as to whether any exemption from the Securities Act, including, without limitation, any exemption for limited sales in routine brokers’ transactions pursuant to Rule 144 of the Securities Act (“Rule
144”), will be available. If an exemption under Rule 144 is available at all, it will not be available until all applicable terms and conditions of Rule 144 have been satisfied. 

                5.5    Public
Trading. None of the Partnership’s securities is presently publicly traded, and none of the Company, the Partnership or any of their Subsidiaries has made any representations, covenants or agreements as to whether there will be a public
market for any of its securities. 

                5.6    Tax
Advice. None of the Company, the Partnership or any of their Subsidiaries has made any warranties or representations to the Participant with respect to the income tax consequences of the issuance of the Profits Interest Units or the transactions
contemplated by this Agreement (including, without limitation, with respect to the making of an election under Code Section 83(b)), and the Participant is in no manner relying on the Partnership or its representatives for an assessment of such
tax consequences. The Participant is advised to consult with his or her own tax advisor with respect to such tax consequences and his or her ownership of the Profits Interest Units. 

        6.    Capital Account. The Participant shall make no
contribution of capital to the Partnership in connection with the Award and, as a result, the Participant’s Capital Account balance in the Partnership immediately after his or her receipt of the Profits Interest Units shall be equal to zero,
unless the Participant was a Partner in the Partnership prior to such issuance, in which case the Participant’s Capital Account balance shall not be increased as a result of his or her receipt of the Profits Interest Units. 

        7.    Section 83(b) Election. The Participant covenants
that he or she shall make an election under Code Section 83(b) (and any comparable election in the state of the Participant’s residence) with respect to the Profits Interest Units covered by the Award, within thirty (30) calendar days
following the Grant Date, and the Company hereby consents to the making of such election. In connection with such election, the Participant and the Participant’s spouse, if applicable, shall execute and deliver to the Company with this executed
Agreement, a copy of the election pursuant to Section 83(b) of the Internal Revenue Code substantially in the form attached hereto as Exhibit A. The Participant represents that the Participant has consulted any tax consultant(s) that the
Participant deems advisable in 

  
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connection with the filing of an election under Code Section 83(b) and similar state tax provisions. The Participant acknowledges that it is the Participant’s sole responsibility and
not the responsibility of the Company, the Partnership or any of their Subsidiaries to timely file an election under Code Section 83(b) (and any comparable state election), even if the Participant requests that the Company, the Partnership or
any of their Subsidiaries, or any representative of the Company, the Partnership or any of their Subsidiaries, make such filing on the Participant’s behalf. The Participant is encouraged to consult his or her tax advisor to determine if there
is a comparable election to file in the state of his or her residence. 

        8.    Covenants. The Participant hereby covenants that so long
as the Participant holds any Profits Interest Units, at the request of the Partnership, the Participant shall disclose to the Partnership in writing such information relating to the Participant’s ownership of the Profits Interest Units as the
Partnership reasonably believes to be necessary or desirable to ascertain in order to comply with the Code or the requirements of any other appropriate taxing authority. 
         9.    Taxes. The Partnership and the Participant intend that (a) the Profits Interest Units be treated as “profits
interests” within the meaning of the Code, Treasury Regulations promulgated thereunder, and any published guidance by the Internal Revenue Service with respect thereto, including, without limitation, Internal Revenue Service Revenue Procedure
93-27, 1993-2 C.B. 343, as clarified by Internal Revenue Service Revenue Procedure 2001-43, 2001-2 C.B. 191, (b) the issuance of such interests not be a taxable event to the Partnership or the Participant as provided in such Revenue Procedures,
and (c) the Partnership Agreement, the Plan and this Agreement be interpreted consistently with such intent. In furtherance of such intent, effective immediately prior to the issuance of the Profits Interest Units, the Partnership will cause
the “Gross Asset Value” (as defined in the Partnership Agreement) of all Partnership assets to be adjusted to equal their respective gross fair market values, and make the resulting adjustments to the “Capital Accounts” (as
defined in the Partnership Agreement) of the Partners, in each case as set forth in the Partnership Agreement and based upon a fair market value equal to the trading price of the Common Shares at the time of such adjustment. The Partnership may
withhold from the Participant’s wages, or require the Participant to pay to the Partnership, any applicable withholding or employment taxes resulting from the issuance of the Award hereunder, from the vesting or lapse of any restrictions
imposed on the Award, or from the ownership or disposition of the Profits Interest Units. 

        10.    Remedies. The Participant shall be liable to the
Partnership for all costs and damages, including incidental and consequential damages, resulting from a disposition of the Award or the Profits Interest Units which is in violation of the provisions of this Agreement. Without limiting the generality
of the foregoing, the Participant agrees that the Partnership shall be entitled to obtain specific performance of the obligations of the Participant under this Agreement and immediate injunctive relief in the event any action or proceeding is
brought in equity to enforce the same. The Participant will not urge as a defense that there is an adequate remedy at law. 

        11.    Governing Law and Venue. The laws of the State of
Maryland shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws. The Participant agrees that the
exclusive venue for any disputes arising out of or related to this Agreement shall be the state or federal courts located in Orlando, Florida. 
         12.    Survival of Representations and Warranties. The representations, warranties and covenants contained in Section 5
above shall survive the later of the date of execution and delivery of this Agreement or the issuance of the Award. 

  
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         13.    Unit
Certificate Restrictive Legends. Certificates evidencing the Award, to the extent such certificates are issued, may bear such restrictive legends as the Partnership and/or the Partnership’s counsel may deem necessary or advisable under
applicable law or pursuant to this Agreement, including, without limitation, the following legends or legends substantially similar thereto: 
 “The offering and sale of the securities represented hereby have not been registered under the Securities Act of 1933, as amended (the “Securities Act”). Any transfer of such
securities will be invalid unless a Registration Statement under the Securities Act is in effect as to such transfer or in the opinion of counsel for the Partnership such registration is unnecessary in order for such transfer to comply with the
Securities Act.” 
 “The securities represented hereby are subject to forfeiture and transferability
and other restrictions as set forth in (i) a written agreement with the Partnership, (ii) the Parkway Properties, Inc. 2013 Omnibus Equity Incentive Plan and (iii) the Second Amended and Restated Agreement of Limited Partnership of
Parkway Properties, L.P., dated as February 22, 2013, in each case, as may be amended from time to time, and such securities may not be sold or otherwise transferred except pursuant to the provisions of such documents.” 

        14.    Restrictions on Public Sale by Participant. To the
extent such limitation is not inconsistent with applicable law, the Participant agrees not to effect any sale or distribution of the Profits Interest Units or any similar security of the Company, or any securities convertible into or exchangeable or
exercisable for such securities, including a sale pursuant to Rule 144, during the 14 days prior to, and during the 90-day period beginning on, the effective date of a registration statement filed by the Partnership or the Company (except as part of
such registration), if and to the extent requested in writing by the Partnership or the Company in the case of a non-underwritten public offering or if and to the extent requested in writing by the managing underwriter or underwriters and consented
to by the Partnership or the Company, which consent may be given or withheld in the Partnership’s or the Company’s sole and absolute discretion, in the case of an underwritten public offering (such agreement to be in the form of lock-up
agreement provided by the managing underwriter or underwriters). 

        15.    Conformity to Securities Laws. The Participant
acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of all applicable federal and state laws, rules and regulations (including, but not limited to the Securities Act and the Exchange Act
and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, including without limitation the applicable exemptive conditions of Rule 16b-3 of the Exchange Act) and to such approvals by any listing,
regulatory or other governmental authority as may, in the opinion of counsel for the Partnership or the Company, be necessary or advisable in connection therewith. Notwithstanding anything herein to the contrary, the Plan shall be administered, and
the Award of Profits Interest Units is made, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan, this Agreement and the Award shall be deemed amended to the extent necessary
to conform to such laws, rules and regulations. 

  
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         16.    Code
Section 409A. Neither the Award nor the Profits Interest Units are intended to constitute or provide for “nonqualified deferred compensation” within the meaning of Section 409A of the Code (“Section
409A”). However, notwithstanding any other provision of the Plan or this Agreement, if at any time the Committee determines that the Award or the Profits Interest Units may be subject to Section 409A, the Committee shall have the
right, in its sole discretion, to adopt such amendments to the Plan or this Agreement or take such other actions (including amendments and actions with retroactive effect) as the Committee determines are necessary or appropriate either for the Award
and the Profits Interest Units to be exempt from the application of Section 409A or to comply with the requirements of Section 409A. Notwithstanding the foregoing, none of the Company, the Partnership or any of their Subsidiaries shall
have any obligation to adopt any such amendment or take any such other action, and nothing contained in this Section 16 shall create any such obligation. 
         17.    Not a Contract of Service Relationship. Nothing in this Agreement or in the Plan shall confer upon the Participant any
right to continue to serve as an Employee, Director, Consultant or other service provider of the Partnership, Company or any of their affiliates or shall interfere with or restrict in any way the rights of the Partnership, the Company and their
affiliates, which rights are hereby expressly reserved, to discharge or terminate the services of the Participant at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in a written agreement
between the Partnership, the Company or an affiliate and the Participant. 

        18.    Counterparts. This Agreement may be executed in any
number of counterparts, any of which may be executed and transmitted (without limitation) by facsimile or e-mail, and each of which shall be deemed to be an original, but all of which together shall be deemed to be one and the same instrument.

         19.    Successors and Assigns. Subject to the
limitations set forth in this Agreement, this Agreement shall be binding upon, and inure to the benefit of, the executors, administrators, heirs, legal representatives, successors and assigns of the parties hereto, including, without limitation, any
business entity that succeeds to the business of the Partnership. Subject to the restrictions on transfer set forth in Section 4 above, this Agreement shall be binding upon the Participant and his or her heirs, executors, administrators,
successors and assigns. 
         20.    Entire Agreement;
Amendments and Waivers. The Plan, the Partnership Agreement and this Agreement (including all Exhibits thereto, if any) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the
Partnership, the Company and its affiliates and the Participant with respect to the subject matter hereof. This Agreement may not be amended except in an instrument in writing signed by the Participant and a duly authorized representative of the
Company. No amendment, supplement, modification or waiver of this Agreement shall be binding unless executed in writing by the party to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided. 
         21.    Invalidity. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction
to exceed the limitations permitted by applicable law, then the provisions will be deemed reformed to the maximum limitations permitted by applicable law and the parties hereby expressly acknowledge their desire that in such event such action be
taken. If for any reason one or more of the provisions contained in this Agreement or in any other instrument referred to herein, shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, then to the

  
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maximum extent permitted by law, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other such instrument. 

        22.    Titles. Titles are provided herein for convenience only
and are not to serve as a basis for interpretation or construction of this Agreement. 
 [SIGNATURE PAGE FOLLOWS]

  
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 FORM OF PERFORMANCE-VESTING AGREEMENT 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. 

 

			
	 PARKWAY PROPERTIES LP,
 a Delaware limited partnership

		
	By:	 	 Parkway Properties General Partners, Inc.,
 a Delaware corporation, its general partner

		
	By:	 	 
	Name:	 	
	Title:	 	
		
	By:	 	 
	Name:	 	
	Title:	 	
	
	 PARKWAY PROPERTIES, INC.
 a Maryland corporation

		
	By:	 	 
	Name:	 	
	Title:	 	
		
	By:	 	 
	Name:	 	
	Title:	 	
	
	PARTICIPANT:
	
	
	
	 
	(Sign Name)
	
	
	
	 
	(Print Name)

 The Participant’s spouse indicates by the execution of this Agreement his or her consent to be
bound by the terms herein as to his or her interests, whether as community property or otherwise, if any, in the Profits Interest Units. 

  
 S-1

 
			
	
	Participant’s Spouse:
	
	
	
	 
	(Sign Name)
	
	
	
	 
	(Print Name)

  
 A-2

 EXHIBIT A 
 ELECTION PURSUANT TO SECTION 83(b) OF THE 
 INTERNAL REVENUE CODE TO
INCLUDE IN GROSS 
 INCOME THE EXCESS OVER THE PURCHASE PRICE, 

IF ANY, OF THE VALUE OF PROPERTY TRANSFERRED 
 IN CONNECTION WITH SERVICES 
 The undersigned hereby elects pursuant to
Section 83(b) of the Internal Revenue Code of 1986, as amended, to include in the undersigned’s gross income for the [            ] taxable year the excess (if any) of the
fair market value of the property described below, over the amount the undersigned paid for such property, if any, and supplies herewith the following information in accordance with the Treasury regulations promulgated under Section 83(b):

 1. The undersigned’s name, address and taxpayer identification (social security) number are: 

 

			
	 Name:
	  	 
		
	 Address:
	  	 
		
	 Social Security #:
	  	 

 The undersigned’s spouse’s name, address and taxpayer identification (social security) number
are (complete if applicable): 
  

			
	 Name:
	  	 
		
	 Address:
	  	 
		
	 Social Security #:
	  	 

 2. The property with respect to which the election is made consists of _____ Profits Interest Units (the
“Award”) of Parkway Properties LP, a Delaware limited partnership (the “Partnership”), representing an interest in the future profits, losses and distributions of the Partnership. 

3. The date on which the above property was transferred to the undersigned was
[                ], and the taxable year to which this election relates is [            ].

 4. The above property is subject to the following restrictions: (a) forfeiture and/or a right of repurchase by the
Partnership if the undersigned ceases to be an employee or director of, or consultant to, the Partnership or a parent or subsidiary thereof, and (b) certain other restrictions set forth in the Second Amended and Restated Limited Partnership
Agreement of Parkway Properties LP, dated as of February 22, 2013, as amended from time to time, should the undersigned wish to transfer the Award (in whole or in part). 
 5. The fair market value of the above property at the time of transfer (determined without regard to any restrictions other than those which by their terms will never lapse) is $0. 

  
 A-1

 6. The amount paid for the above property by the undersigned was $0. 

7. A copy of this election has been furnished to the Partnership, and the original will be filed with the income tax return of the
undersigned to which this election relates. 
  

									
		 		 	
					
	Date:	 	 	 		 		 	 
		 		 		 		 	[Name]
					
	Date:	 	 	 		 		 	 
		 		 		 		 	[Name of Spouse]

  
 A-2EX-10.3

 Exhibit 10.3 

 
 PERFORMANCE-VESTING FORM 

PARKWAY PROPERTIES, INC. 
 AND PARKWAY PROPERTIES LP 
 2013 OMNIBUS EQUITY INCENTIVE PLAN

 RESTRICTED STOCK UNIT AGREEMENT 
 GRANT NOTICE 
  
 Pursuant to this Restricted Stock Unit Agreement effective as of [                ] (including Appendix A
hereto, the “Agreement”), Parkway Properties, Inc. (the “Company”) hereby grants to [            ] (the
“Participant”) the following award of Restricted Stock Units (“RSUs”) pursuant and subject to the terms and conditions of this Agreement and the Parkway Properties, Inc. and Parkway Properties LP 2013
Omnibus Equity Incentive Plan, as amended (the “Plan”), the terms and conditions of which are hereby incorporated into this Agreement by reference. The RSUs granted pursuant to this Agreement shall be eligible to vest based
upon the satisfaction of both performance conditions and continued Service (as defined in Appendix A) conditions applicable to the RSUs. Each RSU is hereby granted in tandem with a corresponding Dividend Equivalent, as further described in
Section 4 of Appendix A hereto. Except as otherwise expressly provided herein, all capitalized terms used in this Agreement shall have the meanings provided in the Plan. Subject to the terms and conditions of this Agreement, the
principal features of this award are as follows: 
 Number of RSUs. The Participant shall be eligible to earn a
number of RSUs equal to [            ] RSUs (the “Total RSUs”) pursuant to this Agreement, provided, that the threshold number of RSUs that the
Participant may earn pursuant to this Agreement shall equal fifty percent (50%) of the Total RSUs, based on satisfaction of TSR Value (as defined in Appendix A hereto) and continued Service vesting conditions. 

Grant Date. [            ] (the “Grant
Date”) 
 Vesting of RSUs. The RSUs shall be eligible to vest on
[                ], 2016, subject to and conditioned upon the Participant’s continued Service and the Company’s achievement of a TSR Value in accordance
with the terms and conditions set forth in Section 3 of Appendix A hereto. 
 Payment of RSUs. Fully
Vested RSUs shall be paid to the Participant in the form of Shares as set forth in Section 6 of Appendix A hereto. 

Termination of RSUs/Dividend Equivalents. RSUs and Dividend Equivalents associated with such RSUs shall be subject to
forfeiture as set forth in Section 5 of Appendix A hereto. Notwithstanding anything contained herein or in Appendix A to the contrary, if the Company’s stockholders do not approve the Plan within twelve (12) months of
the Board’s initial adoption of the Plan on December 19, 2012, the RSUs and Dividend Equivalents shall terminate and be forfeited. 
 By his or her signature below, the Participant agrees to be bound by the terms and conditions of the Plan and this Agreement. The Participant has reviewed this Agreement and the Plan in their entirety,
has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provisions of this Grant Notice, the Agreement and the Plan. In the event of any inconsistency between the Plan and this Agreement,
the terms of the Plan shall control, and the Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the 

  
 1 

 PERFORMANCE-VESTING FORM 

 

 
Committee upon any questions arising under the Plan or the Agreement. In addition, by signing below, the Participant also agrees that the Company, in its sole discretion, may satisfy any
withholding obligations in accordance with Section 7 of Appendix A hereto by (a) withholding Shares otherwise issuable to the Participant upon vesting of the RSUs, (b) instructing a broker on the Participant’s behalf to
sell Shares otherwise issuable to the Participant upon full vesting of the RSUs and submit the proceeds of such sale to the Company or (c) using any other method permitted by Section 7 of Appendix A hereto or the Plan. If the
Participant is married, his or her spouse has signed the Consent of Spouse attached to this Agreement as Exhibit A. 
 THE PARTICIPANT
FURTHER ACKNOWLEDGES THAT THE PARTICIPANT HAS READ AND UNDERSTANDS THE PLAN AND THIS AGREEMENT, INCLUDING APPENDIX A HERETO, WHICH CONTAINS THE SPECIFIC TERMS AND CONDITIONS OF THIS GRANT OF RSUs AND DIVIDEND EQUIVALENTS. 

 

									
	PARKWAY PROPERTIES, INC.	 		 	PARTICIPANT
					
	By:	 	 	 		 	By:	 	 
					
	Print Name:	 	 	 		 	Print Name:	 	 
					
	Title:	 	 	 		 		 	
					
		 		 		 	Address:	 	 
					
	By:	 	 	 		 		 	
					
	Print Name:	 	 	 		 		 	
					
	Title:	 	 	 		 		 	

  

  
 2 

 PERFORMANCE-VESTING FORM 

 

 APPENDIX A 
 TERMS AND CONDITIONS OF 
 RESTRICTED STOCK UNITS AND DIVIDEND EQUIVALENTS

 1.    Grant. The Company hereby grants to the Participant, as of the Grant Date, an award of
RSUs in the amount set forth in the Grant Notice to which this Appendix A is attached, together with an equivalent number of tandem Dividend Equivalents, subject to the terms and conditions contained in this Agreement and the Plan.

 2.    RSUs. Each RSU that Fully Vests on an applicable Vesting Date shall represent the right to
receive payment, in accordance with Section 6 below, of one Share. Unless and until an RSU Fully Vests, the Participant will have no right to payment in respect of any such RSU. Prior to actual payment in respect of any Fully Vested RSU, such
RSU will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company. 

3.    Vesting. The RSUs (and their corresponding Dividend Equivalents) shall vest in accordance with the
provisions of this Section 3. The number of RSUs that Fully Vest on any Vesting Date shall be rounded to the nearest whole RSU, but in no event shall the aggregate number of RSUs that Fully Vest and become payable in accordance with this award
exceed the Total RSUs. 
         (a) TSR Performance. Subject to and conditioned
upon the Participant’s continued Service through the End Date and further subject to Sections 3(b), 3(c) and 5 below, the Participant shall be eligible to Fully Vest on the End Date in a number of RSUs determined by multiplying the Total RSUs
granted hereby by a percentage ranging from zero to one hundred percent (100%) based on the level at which TSR Value has been attained during the Performance Period through the End Date, determined as follows: if, as of the End Date, TSR Value
represents an increase from the Baseline Price ranging from (and including) a twenty-four percent (24%) increase to a forty-two percent (42%) increase, a number of RSUs shall Fully Vest as of the End Date equal to the product obtained by
multiplying (i) the Total RSUs, times (ii) a percentage ranging from fifty percent (50%) to one hundred percent (100%), determined on a straight line pro rata interpolation based on the actual increase over Baseline Price
represented by the TSR Value within the specified increase range, it being understood that TSR Value representing an increase over the Baseline Price of more than forty-two percent (42%) shall be counted as TSR Value representing a forty-two
percent (42%) increase over the Baseline Price for purposes of this calculation (such that no more than one hundred percent (100%) of Total RSUs can Fully Vest). For the avoidance of doubt, to the extent TSR Value as of the End Date does
not represent at least a twenty-four percent (24%) increase over the Baseline Price, no RSUs shall Fully Vest on the End Date pursuant to this Section 3(a). 
         (b) Change in Control. Subject to Sections 3(c) and 5 below, if the Performance Period ends upon a Change in Control, then the Participant shall be
eligible to Fully Vest in a number of RSUs determined by multiplying the Total RSUs granted hereby by a percentage ranging from zero to one hundred percent (100%) based on the level at which TSR Value has been attained during the Performance
Period through the date of the Change in Control, determined as follows: if, as of the date of the Change in Control, TSR Value represents an increase from the Baseline Price ranging from (and including) the Minimum Change in Control TSR Percentage
to the Maximum Change in Control TSR Percentage, a number of RSUs (the “CIC RSUs”) shall be eligible to Fully Vest equal to the product obtained by multiplying (i) the Total RSUs, times (ii) a percentage
ranging from fifty percent (50%) to one hundred percent (100%), determined on a straight line pro rata interpolation based on the actual 

  
 3 

 PERFORMANCE-VESTING FORM 

 

 
increase over the Baseline Price represented by the TSR Value within the specified increase range, it being understood that TSR Value representing an increase over the Baseline Price of more than
the Maximum Change in Control TSR Percentage shall be counted as TSR Value representing a Maximum Change in Control TSR Percentage increase over Baseline Price for purposes of this calculation (such that no more than one hundred percent
(100%) of Total RSUs can Fully Vest). For the avoidance of doubt, to the extent TSR Value as of the Change in Control does not represent at least an increase over the Baseline Price equal to the Minimum Change in Control TSR Percentage, no RSUs
shall become eligible to Fully Vest pursuant to this Section 3(b). The CIC RSUs (if any) shall Fully Vest on the first anniversary of the Change in Control or, if earlier, the date of a Qualifying Termination occurring within the twelve
(12)-month period following the date of such Change in Control, provided that such Qualifying Termination occurs after the Company’s stockholders approve the Plan, in each case, subject to and conditioned upon the Participant’s
continued Service. 
                 (c) Any
accelerated vesting provisions contained in Section 15(a)(iv) of the Plan [and in that certain Change in Control Agreement dated [            ] between the Company and the
Participant] are hereby expressly superseded and shall not apply to the RSUs or the Dividend Equivalents, and the parties hereto acknowledge and agree that such accelerated vesting provisions shall not apply to the RSUs or the Dividend Equivalents.

                (d)    
Definitions. 

                       
 i. “Baseline Price” means the fifteen (15) trading day trailing average market closing price over the period ending on the Grant Date. 
                         ii. “Cause” shall have the meaning
provided in an applicable employment or other service agreement between the Company (or an affiliate) and the Participant or, if no such agreement exists or such agreement does not contain a “cause” definition, then Cause shall mean
(A) the continued failure by the Participant to perform material responsibilities and duties toward the Company (other than any such failure resulting from the Participant’s incapacity due to physical or mental illness), (B) the
engaging by the Participant in willful or reckless conduct that is demonstrably injurious to the Company monetarily or otherwise, (C) the conviction of the Participant of a felony, or (D) the commission or omission of any act by the
Participant that is materially inimical to the best interests of the Company and that constitutes on the part of the Participant common law fraud or malfeasance, misfeasance, or nonfeasance of duty; provided, however, that Cause shall not
include the Participant’s lack of professional qualifications. For purposes of this Agreement, an act, or failure to act, on the Participant’s part shall be considered “willful” or “reckless” only if done, or
omitted, by the Participant not in good faith and without reasonable belief that the action or omission was in the best interest of the Company. 
                         iii. “End Date” means
[            ]. 

                       
 iv. “Fully Vested” means that, with respect to an RSU, both (A) the continued Service and (B) the TSR Value performance condition applicable to such RSU has been satisfied. 

  
 4 

 PERFORMANCE-VESTING FORM 

 

                       
 v. “Good Reason” shall have the meaning provided in an applicable employment or other service agreement between the Company (or an affiliate) and the Participant or, if no such agreement exists or such agreement does not
contain a “good reason” definition, then Good Reason shall mean the occurrence of any one or more of the following events without the Participant’s prior written consent, subject to the cure provisions described below: 

                       
         A. The assignment to the Participant of any duties that constitute a material diminution in the Participant’s authority, duties or responsibilities, excluding for this purpose any isolated,
insubstantial or inadvertent actions not taken in bad faith and which are remedied by the Company promptly after receipt of notice thereof given by the Participant; 
                                 B. A
material reduction of the Participant’s base salary as in effect on the date hereof or as the same may be increased from time to time. 
 Notwithstanding the foregoing, the Participant will not be deemed to have resigned for Good Reason unless (1) the Participant provides the Company with written notice setting forth in reasonable
detail the facts and circumstances claimed by the Participant to constitute Good Reason within sixty (60) days after the date of the occurrence of any event that the Participant knows or should reasonably have known to constitute Good Reason,
(2) the Company fails to cure such acts or omissions within thirty (30) days following its receipt of such notice, and (3) the effective date of the Participant’s termination for Good Reason occurs no later than thirty
(30) days after the expiration of the cure period. 

                       
 vi. “Maximum Change in Control TSR Percentage” means the number, expressed as a percentage, equal to the product obtained by multiplying (A) 42 by (B) (1) the number of days in the Performance Period
through and including the date of the Change in Control, divided by (2) 1,096. 

                       
 vii. “Minimum Change in Control TSR Percentage” means the number, expressed as a percentage, equal to the product obtained by multiplying (A) 24 by (B) (1) the number of days in the Performance Period
through and including the date of the Change in Control, divided by (2) 1,096. 

                       
 viii. “Performance Period” means the period beginning on the Grant Date and ending on the first to occur of the End Date or a Change in Control. 
                         ix. “Qualifying Termination” means a
termination of the Participant’s Service by the Company or a Subsidiary without Cause or by the Participant with Good Reason. 
                         x. “Service” means the
Participant’s continued service as an Employee, Consultant and/or Director. 

                       
 xi. “Termination of Service” means 

                       
         A. As to a Consultant, the time when the engagement of a Participant as a Consultant to the Company and its affiliates is terminated for any reason, with or without Cause, including, without
limitation, by resignation, discharge, death or retirement, but excluding terminations where the Consultant simultaneously commences or remains in employment and/or service as an Employee and/or Director with the Company or any of its affiliates.

  
 5 

 PERFORMANCE-VESTING FORM 

 

                       
         B. As to a Non-Employee Director, the time when a Participant who is a Non-Employee Director ceases to be a Director for any reason, including, without limitation, a termination by resignation,
failure to be elected, death or retirement, but excluding terminations where the Participant simultaneously commences or remains in employment and/or service as an Employee and/or Consultant with the Company or any of its affiliates. 

                       
         C. As to an Employee, the time when the employee-employer relationship between a Participant and the Company and its affiliates is terminated for any reason, including, without limitation, a
termination by resignation, discharge, death, disability or retirement, but excluding terminations where the Participant simultaneously commences and/or remains in service as a Consultant and/or Director with the Company or any of its affiliates.

 The Committee, in its sole discretion, shall determine the effect of all matters and questions relating to any Termination of
Service, including without limitation, whether a Termination of Service has occurred, whether any Termination of Service resulted from a discharge for Cause and whether any particular leave of absence constitutes a Termination of Service. For
purposes of the Plan and this Agreement, a Participant’s employee-employer relationship or consultancy relationship shall be deemed to be terminated in the event that the affiliate employing or contracting with such Participant ceases to remain
an affiliate following any merger, sale of stock or other corporate transaction or event (including, without limitation, a spin-off). 
                         xii. “TSR Value” means, as of any
given date, the sum of (A) the fifteen (15) trading day trailing average market closing price over the period ending on the date on which TSR Value is being measured, plus (B) the aggregate dividends (including ordinary and special
dividends) per Share with a record date that occurs during the period beginning on the Grant Date and continuing through and including the date on which TSR Value is being measured. 

                       
 xiii. “Vesting Date” means, with respect to a RSU, the date on which the RSU becomes Fully Vested. 

        4.    Dividend Equivalents. 

                (a) Grant. Each RSU granted
hereunder is hereby granted in tandem with a corresponding Dividend Equivalent that shall remain outstanding from the Grant Date through the earlier to occur of (i) the termination or forfeiture for any reason of the RSU to which such Dividend
Equivalent corresponds, or (ii) the delivery to the Participant of the Shares underlying the RSU to which such Dividend Equivalent corresponds. 
                 (b) Payment. Each Dividend Equivalent (i) shall become payable if and when the RSU to which such
Dividend Equivalent relates becomes Fully Vested, and (ii) shall be paid in cash, unless otherwise determined by the Committee, at the time of settlement of the underlying RSU in an amount equal to the total dividends per Share with applicable
record dates occurring over the period during which such Dividend Equivalent was outstanding. If the RSU linked to a Dividend Equivalent fails to Fully Vest and is forfeited for any reason, then (x) the linked Dividend Equivalent shall be
forfeited as well, (y) any amounts otherwise payable in respect of such Dividend Equivalent shall be forfeited without payment and (z) the Company shall have no further obligations in respect of such Dividend Equivalent. The Participant
shall not be entitled to any payment under a Dividend Equivalent 

  
 6 

 PERFORMANCE-VESTING FORM 

 

 
with respect to any dividend with an applicable record date that occurs prior to the Grant Date or after the termination of the underlying RSU for any reason, whether due to payment, forfeiture
of the RSU or otherwise. Dividend Equivalents and any amounts that may become distributable in respect thereof shall be treated separately from the RSUs and the rights arising in connection therewith for purposes of the designation of time and form
of payments required by Code Section 409A. 

        5.    Forfeiture and Termination of RSUs and Dividend
Equivalents. 
                 (a)
Notwithstanding anything contained herein to the contrary, if the Company’s stockholders do not approve the Plan within twelve (12) months of the Board’s initial adoption of the Plan on December 19, 2012, the RSUs and Dividend
Equivalents shall terminate and be forfeited. 

                (b) Failure to Achieve TSR Goal.
If a Change in Control does not end the Performance Period, then to the extent that some or all of the RSUs do not become Fully Vested as of the End Date, such unvested RSUs and all unpaid Dividend Equivalents associated with such unvested RSUs
shall thereupon automatically be forfeited by the Participant as of the End Date without payment of any consideration therefor. 

                (c) Termination of Service.
Subject to Section 5(d) below, in the event that the Participant experiences a Termination of Service for any reason, any of the RSUs that are not Fully Vested as of the date of termination (after taking into consideration any accelerated
vesting that may apply, if any), and any unpaid Dividend Equivalents associated with such RSUs, shall each thereupon automatically be forfeited by the Participant as of the date of termination without payment of any consideration therefor.

                 (d) Change in Control.
In the event a Change in Control ends the Performance Period, then (i) any RSUs that do not become eligible to Fully Vest pursuant to Section 3(b) above, and all unpaid Dividend Equivalents associated with such RSUs, shall thereupon
automatically be forfeited by the Participant immediately prior to such Change in Control without payment of any consideration therefor and (ii) any CIC RSUs that become eligible to Fully Vest pursuant to Section 3(b) above shall remain
outstanding and eligible to vest in accordance with Section 3(b) above, and shall remain subject to forfeiture in accordance with this Section 5. If the Participant experiences a Termination of Service other than a Qualifying Termination
during the twelve (12)-month period following such Change in Control, any RSUs that are not Fully Vested as of the date of termination (after taking into consideration any accelerated vesting that may apply, if any), and any unpaid Dividend
Equivalents associated with such RSUs, shall each thereupon automatically be forfeited by the Participant as of the date of termination without payment of any consideration therefor. 

        6.    Payment of RSUs. As soon as administratively practicable
following an applicable Vesting Date on which any RSUs become Fully Vested in accordance with Section 3 above, but in no event later than thirty (30) days after the applicable Vesting Date, the Company shall deliver to the Participant (or
any transferee permitted under Section 10 below) a number of Shares (either by delivering one or more certificates for such Shares or by entering such Shares in book entry form, as determined by the Committee in its sole discretion) equal to
the number of RSUs that have Fully Vested on the applicable Vesting Date. Notwithstanding the foregoing, if Shares cannot be issued pursuant to Section 20 of the Plan (or any successor provision thereto) or are delayed under Section 11
below, the Shares shall be issued pursuant to the preceding sentence as soon as administratively practicable after the 

  
 7 

 PERFORMANCE-VESTING FORM 

 

 
Committee determines that Shares can again be issued in accordance with such Section. In no event shall any such delay in the issuance of Shares impact the payment timing applicable to Dividend
Equivalents payable in cash. 
         7.    Tax
Withholding. The Company shall have the authority and the right to deduct or withhold, or to require the Participant to remit to the Company (including without limitation, as provided in the Grant Notice), an amount sufficient to satisfy all
applicable federal, state and local taxes (including without limitation any income and employment tax obligations) required by law to be withheld (if any) with respect to any taxable event arising in connection with the RSUs and/or the Dividend
Equivalents. The Company shall not be obligated to deliver any new certificate representing Shares to the Participant or the Participant’s legal representative or to enter such Shares in book entry form unless and until the Participant or the
Participant’s legal representative shall have paid or otherwise satisfied in full the amount of all federal, state and local taxes applicable to the taxable income of the Participant arising in connection with the RSUs or payments thereunder.

         8.    Rights as Stockholder. The holder of the
RSUs shall not be, nor have any of the rights or privileges of, a stockholder of the Company, including, without limitation, voting rights and rights to dividends, in respect of the RSUs or any Shares underlying the RSUs unless and until such Shares
shall have been issued by the Company and are held of record by such holder (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for a dividend or
other right for which the record date is prior to the date the Shares are issued, except as provided in Section 14 of the Plan. 
         9.    Administration. The Committee shall have the power to interpret the Plan and this Agreement as provided in the Plan. All
interpretations and determinations made by the Committee in good faith shall be final and binding upon the Participant, the Company and all other interested persons. 
         10.    Non-Transferability. Without limiting the generality of any other provision hereof, the RSUs and Dividend Equivalents
shall be subject to the restrictions on transferability set forth in Section 19(d) of the Plan. 

        11.    Distribution of Stock. The Company shall not be
required to issue or deliver any certificates or make any book entries evidencing Shares deliverable hereunder prior to fulfillment of the conditions set forth in Section 20 of the Plan. In the event that the Company delays a distribution or
payment in settlement of RSUs because it determines that the issuance of Shares in settlement of such RSUs will violate federal securities laws or other applicable law, such distribution or payment shall be made at the earliest date at which the
Company reasonably determines that the making of such distribution or payment will not cause such violation, as required by Treasury Regulation Section 1.409A-2(b)(7)(ii). No payment shall be delayed under this Section 11 if such delay
will result in a violation of Code Section 409A. 

        12.    Severability. In the event that any provision in this
Agreement is held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Agreement, which shall remain in full force and
effect. 

  
 8 

 PERFORMANCE-VESTING FORM 

 

        13.    Adjustments. The Participant acknowledges that the RSUs
and Dividend Equivalents are subject to modification and termination in certain events as provided in this Agreement and Sections 14 or 15 of the Plan. 
         14.    Tax Consultation. The Participant understands that the Participant may suffer adverse tax consequences in connection
with the RSUs and/or Dividend Equivalents granted pursuant to this Agreement (and any Shares issuable or amounts payable with respect thereto). The Participant represents that the Participant has consulted with any tax consultants the Participant
deems advisable in connection with the RSUs and Dividend Equivalents and the issuance of Shares and making of payments with respect thereto and that the Participant is not relying on the Company for any tax advice. 

        15.    Participant’s Representations. The Participant
shall, if required by the Company, concurrently with the issuance of any securities hereunder, make such written representations as are deemed necessary or appropriate by the Company and/or the Committee. 

        16.    Section 409A. 

                (a) General. To the extent that
the Committee determines that any RSUs and/or Dividend Equivalents may not be exempt from or compliant with Code Section 409A, the Committee may amend this Agreement in a manner intended to preserve the intended tax treatment of the RSUs and/or
Dividend Equivalents and avoid the imposition of penalties under Code Section 409A by causing the RSUs and Dividend Equivalents (as applicable) to comply with the requirements of Code Section 409A or an exemption therefrom (including
amendments with retroactive effect), or take any other actions as it deems necessary or appropriate in accordance with the foregoing. To the extent applicable, this Agreement shall be interpreted in accordance with the provisions of Code
Section 409A. Notwithstanding anything herein to the contrary, the Participant expressly agrees and acknowledges that in the event that any taxes are imposed under Code Section 409A in respect of any compensation or benefits payable
to the Participant, then (i) the payment of such taxes shall be solely the Participant’s responsibility, (ii) neither the Company nor any of its past or present directors, officers, employees or agents shall have any liability
for any such taxes and (iii) the Participant shall indemnify and hold harmless, to the greatest extent permitted under law, each of the foregoing from and against any claims or liabilities that may arise in respect of any such
taxes. 

                (b) Potential
Six-Month Delay. Notwithstanding anything to the contrary in this Agreement, no Shares (or other amounts) shall be paid to the Participant during the six (6)-month period following the Participant’s “separation from service”
(within the meaning of Code Section 409A, and Treasury Regulation Section 1.409A-1(h)) (“Separation from Service”) to the extent that the Company determines that the Participant is a “specified employee”
(within the meaning of Code Section 409A) at the time of such Separation from Service and that paying such amounts at the time or times indicated in this Agreement would be a prohibited distribution under Code Section 409A(a)(2)(b)(i). If
the payment of any such amounts is delayed as a result of the previous sentence, then on the first (1st) business day following the end of such six (6)-month period (or such earlier date upon which such amount can be paid under Code Section 409A without being subject to such additional taxes),
the Company shall pay to the Participant in a lump-sum all Shares (or other amounts) that would have otherwise been payable to the Participant during such six (6)-month period under this Agreement. 

  
 9 

 PERFORMANCE-VESTING FORM 

 

         17.    Amendment,
Suspension and Termination. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board; provided,
however, that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the RSUs or Dividend Equivalents in any material way without the prior written consent
of the Participant. 
         18.    Not a Contract of Service
Relationship. Nothing in this Agreement or in the Plan shall confer upon the Participant any right to continue to serve as an Employee, Director, Consultant or other service provider of the Company or any of its affiliates or shall interfere
with or restrict in any way the rights of the Company and its affiliates, which rights are hereby expressly reserved, to discharge or terminate the services of the Participant at any time for any reason whatsoever, with or without Cause, except to
the extent expressly provided otherwise in a written agreement between the Company or an affiliate and the Participant. 

        19.    Limitations Applicable to Section 16 Persons.
Notwithstanding any other provision of the Plan or this Agreement, if the Participant is subject to Section 16 of the Exchange Act, then the Plan, the RSUs and Dividend Equivalents and this Agreement shall be subject to any additional
limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by
applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule. 

        20.    Conformity to Securities Laws. The Participant
acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act of 1933, as amended and the Exchange Act, and any and all regulations and rules promulgated by the Securities and
Exchange Commission thereunder, as well as all applicable state securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the RSUs and Dividend Equivalents are granted, only in such a
manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 

        21.    Limitation on the Participant’s Rights.
Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust. The Plan,
in and of itself, has no assets. The Participant shall have only the rights of a general unsecured creditor of the Company and its affiliates with respect to amounts credited and benefits payable, if any, with respect to the RSUs, and rights no
greater than the right to receive the Shares as a general unsecured creditor with respect to RSUs, as and when payable hereunder. 
         22.    Successors and Assigns. The Company or any affiliate may assign any of its rights under this Agreement to single or
multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company and its affiliates. Subject to the restrictions on transfer set forth in Section 10 above, this Agreement shall be binding upon the
Participant and his or her heirs, executors, administrators, successors and assigns. 

        23.    Entire Agreement. The Plan and this Agreement
(including all Exhibits thereto, if any) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and its affiliates and the Participant with respect to the subject matter
hereof. 

  
 10 

 PERFORMANCE-VESTING FORM 

 

        24.    Notices. Any notice to be given under the terms of this
Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the Company’s principal office, and any notice to be given to the Participant shall be addressed to the Participant at the Participant’s
last address reflected on the Company’s records. Any notice shall be deemed duly given when sent via email or when sent by reputable overnight courier or by certified mail (return receipt requested) through the United States Postal Service.

         25.    Governing Law and Venue. The laws of the
State of Maryland shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws. The Participant agrees that
the exclusive venue for any disputes arising out of or related to this Agreement shall be the state or federal courts located in Orlando, Florida. 
         26.    Titles. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction
of this Agreement. 

  
 11 

 PERFORMANCE-VESTING FORM 

 

 EXHIBIT A 
 TO RESTRICTED STOCK UNIT GRANT NOTICE  
 CONSENT OF SPOUSE

  
 I, ____________________, spouse of _______________, have read and
approve the foregoing Agreement to which this Consent of Spouse is attached. In consideration of issuing to my spouse the Restricted Stock Units and Dividend Equivalents set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact
in respect to the exercise of any rights under the Agreement and agree to be bound by the provisions of the Agreement insofar as I may have any rights in said Agreement and any Restricted Stock Units, Dividend Equivalents, shares of the common stock
of Parkway Properties, Inc. or cash issued pursuant thereto under the community property laws or similar laws relating to marital property in effect in the state of our residence as of the date of the signing of the foregoing Agreement. 

 

															
		 		 		 		 		 	
								
	Dated:	 	 	 		 		 		 		 		 	 
		 		 		 		 		 		 		 	Signature of Spouse

  
 12

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