EMERYVILLE, Calif., Sept. 6 /PRNewswire-FirstCall/ -- On September 6, 2006, the Compensation Committee of ZipRealty, Inc. ("ZipRealty" or the "Company") granted Richard F. Sommer an option to purchase 1,250,000 shares of the Company's common stock in connection with the hiring of Mr. Sommer as its Chief Executive Officer, as announced by the Company on August 30, 2006. The stock option award was granted without stockholder approval pursuant to NASDAQ Marketplace Rule 4350(i)(1)(1A)(iv). Mr. Sommer's stock option has an exercise price equal to the closing price of ZipRealty's common stock today. Mr. Sommer's option will vest as to 25% of the shares subject to the option on the first anniversary date of his commencement of employment, with the balance of the shares vesting in thirty-six (36) equal monthly installments on the first day of each month thereafter so long as Mr. Sommer is employed by the Company. In the event that Mr. Sommer's employment is terminated by ZipRealty without cause or by Mr. Sommer for certain specified reasons prior to, and not in connection with, a change of control, the stock option will vest and become exercisable with respect to an additional 12.5% of the total number of shares subject to the option. In the event of a change of control of ZipRealty and either Mr. Sommer's stock option is not assumed by the acquiror or his option is assumed but his employment is terminated by ZipRealty or the acquiror without cause or by Mr. Sommer for certain specified reasons either in connection with the change of control or within 18 months following the change of control, the stock option will immediately vest and become exercisable as to 100% of the shares subject to the option.
About ZipRealty
ZipRealty is a full-service residential real estate brokerage firm. The Company uses the Internet, proprietary technology and efficient business processes to provide home buyers and sellers with high-quality service and value. Founded in 1999, the Company currently operates in 19 major metropolitan areas in 12 states and the District of Columbia. The Company's client-centric business strategy utilizes a sophisticated Web site, which enables home buyers and sellers to access comprehensive local Multiple Listing Services home listings data and other relevant information. The Company also utilizes a proprietary business management technology platform, which reduces costs and allows the Company to pass on significant financial savings to consumers. This Internet-enabled, technology-driven, employee-based model provides the Company with a distinct competitive advantage, allowing ZipRealty to consistently deliver outstanding service to clients. For more information on ZipRealty, visit http://www.ziprealty.com/ or call 1-800-CALL-ZIP (1-800-225-5947).
Marcus Gamo
Allison & Partners
415-277-4925
© 2006 PR Newswire
