Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(e) On August 23, 2012, the Compensation Committee of the Board of Directors of ZipRealty, Inc. (the "Company") approved the following changes to the compensation package for Franklin V. (Van) Davis, President of Brokerage Operations, as negotiated between the Company and Mr. Davis: (i) Mr. Davis will be eligible for reimbursement for only those reasonable expenses for travel between Northern California and Virginia that are incurred prior to August 23, 2012, and (ii) Mr. Davis will be eligible for a total reimbursement of up to $20,000 for reasonable expenses for housing or lodging in the San Francisco Bay Area that are incurred while Mr. Davis is employed by the Company.