THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Parkway Properties, Inc. (PKY)

4/3/2006 Proxy Information

Change in Control Agreement. The Company has entered into a Change in Control Agreement (the “Change in Control Agreement”) with each of the Company’s executive officers (the “Executives”). The Change in Control Agreement provides that if an Executive’s employment is terminated or the Executive leaves the Company’s employment for certain reasons during a defined period (30 months in the case of Messrs. Rogers, Flatt, Ingram, Maloney and Mattingly, 20 months in the case of Mr. Fowler) after a Change in Control (as hereinafter defined), the Company will pay a lump sum benefit to the Executive equal to a multiple of (2.5 times in the case of Messrs. Rogers, Flatt, Ingram, Maloney and Mattingly and 1.667 times in the case of Mr. Fowler) the average of the Executive’s salary and accrued bonus for the three calendar year period ending on the December 31 prior to the Change in Control. The Change in Control Agreement also gives the Executive the ability to leave the employment of the Company at any time during the six month period after the Change in Control in which case the Executive will receive the lump-sum payment of one-half of the amount set forth above. Change in Control is defined in such agreement as (i) any change in control of a nature that would be required to be represented under the Exchange Act proxy rules; (ii) any person acquiring beneficial ownership of securities representing 30 percent or more of the combined voting power of the Company’s outstanding securities; (iii) certain changes in the Company’s Board of Directors; (iv) certain mergers; or (v) the approval of a plan of liquidation by the Company.

4/1/2005 Proxy Information

Cost Sharing Arrangement with EastGroup Properties, Inc. Currently, EastGroup Properties, Inc. and the Company equally share the services and certain expenses of the Chairman of the Board of Directors. These services and expenses include rent for office space, administrative costs, and entertainment and travel expenses. For the year ended December 31, 2004, Parkway’s share for these services and expenses was approximately $18,600. Mr. Speed’s compensation is $125,000 per year and is determined by our Compensation Committee which considers the amount of time Mr. Speed has spent on Parkway business in the past and estimates the amount of time Mr. Speed will spend on Parkway matters in the future.

4/1/2004 Proxy Information

Currently, EastGroup Properties, Inc. and the Company equally share the services and certain expenses of the Chairman of the Board of Directors. These services and expenses include rent for office and storage space, administrative costs, insurance benefits, entertainment and travel expenses, and the salary and benefits associated with the Chairman’s administrative assistant. For the year ended December 31, 2003, Parkway’s share for these services and expenses was approximately $52,029. Mr. Speed’s base compensation is determined by our Compensation Committee which considers the amount of time Mr. Speed has spent on Parkway business in the past and estimates the amount of time Mr. Speed will spend on Parkway matters in the future.