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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>SECURITIES AND EXCHANGE
COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>FORM 8-K</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">CURRENT REPORT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Pursuant to Section&nbsp;13
or 15(d) of</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">the Securities Exchange Act of 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">Date of report (Date of
earliest event reported): <B>September 28, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 100%; border-bottom: windowtext 1pt solid; padding-right: 0.7pt; padding-left: 0.7pt; text-indent: 0in; font-size: 10pt; font-weight: bold; text-align: center">ZIPREALTY, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt; text-indent: 0in; font-size: 10pt; text-align: center">(Exact Name of Registrant as Specified in Its Charter)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B></B></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; padding-right: 5.45pt; text-align: center; font-weight: bold; text-decoration: none; border-bottom: Black 1pt solid">Delaware</TD>
    <TD STYLE="width: 34%; padding-right: 5.45pt; text-align: center; font-weight: bold; text-decoration: none; border-bottom: Black 1pt solid">000-51002</TD>
    <TD STYLE="width: 33%; padding-right: 5.45pt; text-align: center; font-weight: bold; text-decoration: none; border-bottom: Black 1pt solid">94-3319956</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.45pt; text-indent: 0in; text-align: center">(State or Other Jurisdiction of Incorporation)</TD>
    <TD STYLE="padding-right: 5.45pt; text-indent: 0in; text-align: center">(Commission File Number)</TD>
    <TD STYLE="padding-right: 5.45pt; text-indent: 0in; text-align: center">(I.R.S. Employer Identification No.)</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>&nbsp;&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 100%; border-bottom: windowtext 1pt solid; padding-right: 0.7pt; padding-left: 0.7pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>2000 Powell Street,
        Suite 300</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Emeryville, CA 94608</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">(Address of Principal
        Executive Offices)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">(Zip Code)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>510-735-2600</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; font-size: 10pt; text-align: center">(Registrant&rsquo;s Telephone Number, Including Area Code)</TD>
    <TD COLSPAN="2" STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-indent: 0.5in; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt; text-indent: 0in; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-indent: 0.5in; font-size: 10pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 25%">&nbsp;</TD>
    <TD STYLE="width: 54%">&nbsp;</TD>
    <TD STYLE="width: 19%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>Not Applicable</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 26%; border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 54%; border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; font-size: 10pt; text-align: center">(Former Name or Former Address, if Changed Since Last Report)</TD>
    <TD STYLE="width: 20%; border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; font-size: 10pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<I>see</I> General Instruction
A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.25pt; text-indent: -14.25pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.25pt; text-indent: -14.25pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>Item&nbsp;1.01&nbsp;&nbsp; Entry into a
Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 28, 2012, ZipRealty, Inc. (the
&ldquo;Company&rdquo;) entered into a Settlement Agrement and General Release (the &ldquo;Agreement&rdquo;) with the Division of
Labor Standards Enforcement, Department of Industrial Relations, State of California (the &ldquo;DLSE&rdquo;). The Agreement pertains
to the Complaint filed by the DLSE against the Company on September 26, 2011, in the Superior Court of California, Alameda County
(the &ldquo;Court&rdquo;),&nbsp;<I>State Labor Commissioner, etc., v. ZipRealty, Inc</I>. The Complaint concerned the Company&rsquo;s
compensation practices regarding real estate agents in California, who at the time at issue were classified as employees. Specifically,
the Complaint alleged that the Company failed to pay these persons minimum wage and overtime, and failed to provide itemized wage
statements, as required by California laws. In addition to wages and overtime, the Complaint sought liquidated damages, for a total
claim in excess of $17 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the Agreement, the Company has
agreed to pay $5&nbsp;million within fifteen (15) days following the execution of the Agreement, with $0.2 million to be paid to
the DSLE for attorneys fees and costs, and $4.8 million to be paid into a trust for disbursement to the Company&rsquo;s former
employees as back wages. The Company will also pay the employer&rsquo;s shares of F.I.C.A. taxes and other employer tax responsibilities
on back wages as they are distributed to former employees, as well as the administrative costs of the claims administrator for
the trust. Disbursements to former employees are subject to their exection of a release of claims against the Company. The Agreement
also includes a full release by the DSLE from any further liability on this issue. In addition, the DLSE has executed a Request
for Dismissal of the Complaint, with prejudice, which the Company intends to file with the Court after making the $5 million payment.
The terms of the Agreement are subject to the Court&rsquo;s dismissal of the entire action, with prejudice, against all defendants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For more information, please see the copy
of the Agreement that is filed as an exhibit to this report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>Item 9.01&#9; Financial Statements and
Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">(d)</TD><TD>Exhibits.</TD></TR>                                                                                       <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in">10.1</TD><TD>Settlement Agreement and General Release dated September 28, 2012, with the Division of Labor Standards Enforcement, Department
of Industrial Relations, State of California</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>SIGNATURE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2"><B>ZIPREALTY, INC.</B></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">a Delaware corporation&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 50%">Dated: October 1, 2012&nbsp;</TD>
    <TD STYLE="width: 4%">By:&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 46%">/s/ Samantha E. Harnett</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-top: #000000 1px solid">Samantha E. Harnett<BR>Vice President and General Counsel</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 0pt; margin-top: 0pt; margin-bottom: 6pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>INDEX TO EXHIBITS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 18%; border-bottom: windowtext 1pt solid; padding-right: 0; padding-left: 0; font-size: 10pt; font-weight: bold; padding-top: 0">Exhibit</TD>
    <TD STYLE="width: 82%; border-bottom: windowtext 1pt solid; padding-right: 0; padding-left: 0; font-size: 10pt; font-weight: bold; padding-top: 0">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; font-size: 10pt">10.1</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; font-size: 10pt">Settlement Agreement and General Release dated September 28, 2012, with the Division of Labor Standards Enforcement, Department of Industrial Relations, State of California</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>



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[{"type": "8-K", "sequence": "1", "filename": "v324677_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 20726}]
{"company-data": {"conformed-name": "ZIPREALTY INC", "cik": "0001142512", "assigned-sic": "6531", "irs-number": "943319956", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-51002", "film-number": "121119987"}, "business-address": {"street1": "2000 POWELL STREET, SUITE 300", "city": "EMERYVILLE", "state": "CA", "zip": "94608", "phone": "510-735-2600"}, "mail-address": {"street1": "2000 POWELL STREET, SUITE 300", "city": "EMERYVILLE", "state": "CA", "zip": "94608"}}
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13
or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of
earliest event reported):
September 28, 2012
ZIPREALTY, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
000-51002
94-3319956
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
2000 Powell Street,
        Suite 300
Emeryville, CA 94608
(Address of Principal
        Executive Offices)
(Zip Code)
510-735-2600
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (
see
General Instruction
A.2. below):
¨
Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01   Entry into a
Material Definitive Agreement.
On September 28, 2012, ZipRealty, Inc. (the
"Company") entered into a Settlement Agrement and General Release (the "Agreement") with the Division of
Labor Standards Enforcement, Department of Industrial Relations, State of California (the "DLSE"). The Agreement pertains
to the Complaint filed by the DLSE against the Company on September 26, 2011, in the Superior Court of California, Alameda County
(the "Court"),
State Labor Commissioner, etc., v. ZipRealty, Inc
. The Complaint concerned the Company's
compensation practices regarding real estate agents in California, who at the time at issue were classified as employees. Specifically,
the Complaint alleged that the Company failed to pay these persons minimum wage and overtime, and failed to provide itemized wage
statements, as required by California laws. In addition to wages and overtime, the Complaint sought liquidated damages, for a total
claim in excess of $17 million.
Pursuant to the Agreement, the Company has
agreed to pay $5 million within fifteen (15) days following the execution of the Agreement, with $0.2 million to be paid to
the DSLE for attorneys fees and costs, and $4.8 million to be paid into a trust for disbursement to the Company's former
employees as back wages. The Company will also pay the employer's shares of F.I.C.A. taxes and other employer tax responsibilities
on back wages as they are distributed to former employees, as well as the administrative costs of the claims administrator for
the trust. Disbursements to former employees are subject to their exection of a release of claims against the Company. The Agreement
also includes a full release by the DSLE from any further liability on this issue. In addition, the DLSE has executed a Request
for Dismissal of the Complaint, with prejudice, which the Company intends to file with the Court after making the $5 million payment.
The terms of the Agreement are subject to the Court's dismissal of the entire action, with prejudice, against all defendants.
For more information, please see the copy
of the Agreement that is filed as an exhibit to this report.
Item 9.01	 Financial Statements and
Exhibits.
(d)
Exhibits.
10.1
Settlement Agreement and General Release dated September 28, 2012, with the Division of Labor Standards Enforcement, Department
of Industrial Relations, State of California
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ZIPREALTY, INC.
a Delaware corporation
Dated: October 1, 2012
By:
/s/ Samantha E. Harnett
Samantha E. Harnett
Vice President and General Counsel
INDEX TO EXHIBITS
Exhibit
Description
10.1
Settlement Agreement and General Release dated September 28, 2012, with the Division of Labor Standards Enforcement, Department of Industrial Relations, State of California