Document:

exv10w1

 

EXHIBIT 10.1

FIFTH AMENDMENT TO CREDIT AGREEMENT

          THIS
FIFTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is dated as of April 7, 2008 and
is entered into by and among J. RAY MCDERMOTT, S.A., a Panamanian corporation (the
“Borrower”), CERTAIN OF THE GUARANTORS executing the signature pages hereto, CERTAIN LENDERS (as
such term is defined in the hereinafter described Credit Agreement) listed on the signature pages
hereto (the “Lenders”), and CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as Administrative Agent
(in such capacity, “Administrative Agent”) and as Collateral Agent (in such capacity, “Collateral
Agent”), and is made with reference to that certain CREDIT AGREEMENT dated as of June 6, 2006 (as
amended by the First Amendment dated as of August 4, 2006, the Second Amendment dated as of
December 1, 2006, the Third Amendment dated as of July 9, 2007 and the Fourth Amendment dated as of
July 20, 2007, the “Credit Agreement”) by and among Borrower, Lenders, Administrative Agent and the
other agents party thereto. Capitalized terms used herein without definition shall have the same
meanings herein as set forth in the Credit Agreement after giving effect to this Amendment.

RECITALS

          WHEREAS, the Borrower has requested that the Lenders agree to amend certain provisions of the
Credit Agreement as provided for herein; and

          WHEREAS, subject to certain conditions provided for herein, the Lenders are willing to agree
to such amendments.

          NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto agree as follows:

     SECTION I. Amendments

1.1 Amendments to Cover Page and Recitals.

          A. The cover page of the Credit Agreement is hereby amended by deleting the reference to
“$500,000,000” and replacing it with “$800,000,000”.

          B. The first and second recitals of the Credit Agreement are hereby amended and replaced
in their entirety as follows:

          WHEREAS, the Borrower has requested the Lenders to extend credit in an aggregate
principal amount of up to $800,000,000 on the terms and conditions set forth in this
Agreement (and its related schedules and exhibits) in order to recapitalize its existing
indebtedness, including its Existing Secured Notes (the “Recapitalization”) and for working
capital needs and other general corporate purposes;

          WHEREAS, the Lenders and the Issuers have agreed to extend certain senior secured
credit facilities to the Borrower, in an aggregate amount not to exceed $800,000,000,
consisting of a Revolving Facility available at any time and from time to

 

 

time on or after the Effective Date but prior to the Revolving Facility Termination
Date, which will be used to issue Letters of Credit and for Revolving Loans the proceeds of
which shall be used for working capital needs and for general corporate purposes, in
accordance with this Agreement;

1.2 Amendments to Article I: Definitions.

          A. Section 1.1 of the Credit Agreement is hereby amended by adding the following
definitions in proper alphabetical sequence:

          “Fifth Amendment” means that certain Fifth Amendment to Credit Agreement dated as of
April 7, 2008 among the Borrower, the Administrative Agent, the Collateral Agent and the
Lenders listed on the signature pages thereto.

          “Fifth Amendment Effective Date” means the date of satisfaction of the conditions
referred to in Section II of the Fifth Amendment.

          B. Section 1.1 of the Credit Agreement is hereby further amended by deleting the reference
to “$400,000,000” in the definition of “Revolving Facility” and replacing it with “$800,000,000”.

1.3 Amendments to Section 2.1: The Commitments

          The first sentence of Section 2.1(a) is hereby amended and replaced in its entirety as
follows:

          “On the terms and subject to the conditions contained in this
Agreement, each Lender under the Revolving Facility severally agrees
to make loans (each a “Revolving Loan”) to the Borrower from time to
time on any Business Day during the period from the Effective Date
until the Revolving Facility Termination Date in Dollars in an
aggregate principal amount at any time outstanding that will not
result in such Lender’s Revolving Exposure exceeding such Lender’s
Revolving Commitment; provided, however, that at no time shall any
Lender be obligated to make a Revolving Loan in excess of such
Lender’s Revolving Commitment.”

1.4 Amendments to Section 7.13: Post-Closing Covenants

     Section 7.13 of the Credit Agreement is hereby amended by inserting new clauses (k) and (l)
immediately after clause (j) thereof, such clauses (k) and (l) to read in their entirety as
follows:

“(k) Collateral Documents. Within 30 Business Days after the Fifth Amendment Effective Date
(or such longer period of time as permitted by the Collateral Agent in its sole reasonable
discretion), the Borrower shall deliver to the Collateral Agent any new Mortgages and all
amendments or supplements to any existing Mortgages, duly executed by the applicable Loan
Party, and any other documentation necessary or reasonably advisable in connection with the
transactions contemplated by the Fifth Amendment to be filed, registered or recorded in
order to create or maintain in favor of the Collateral Agent

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for the ratable benefit of the Secured Parties a valid, legal and perfected first-priority
Lien (subject only to Liens permitted under the Credit Agreement) on, and security interest
in, the Collateral; provided that the Borrower shall have 60 Business Days (or such longer
period of time as permitted by the Collateral Agent in its sole reasonable discretion) to
deliver any such amendments to Mortgages and related documentation with respect to the
McDermott Derrick Barge No. 26 and Barmada McDermott (L) Limited.

(l) Opinions. Within 30 Business Days after the Fifth Amendment Effective Date (or such
longer period of time as permitted by the Collateral Agent in its sole reasonable
discretion), the Administrative Agent shall have received favorable written opinions, in
each case in substantially the form agreed to by the Administrative Agent and the Borrower
as of the Fifth Amendment Effective Date, of (A) Arias, Fábrega & Fábrega, (B) Gardere Wynne
Sewell LLP, (C) Reed Smith Richards Butler LLP, and (D) Clarke Gittens & Farmer.

1.5 Amendments to Schedule I: Commitments

     Schedule I of the Credit Agreement is hereby amended by deleting it in its entirety and
replacing it with the new Schedule I annexed hereto as Exhibit A. Each Lender that is not, prior
to the Fifth Amendment Effective Date, a party to the Credit Agreement as a Lender (i) confirms
that it has received a copy of the Credit Agreement and the other Loan Documents, together with
copies of the most recent financial statements of the Borrower delivered pursuant thereto and such
other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Amendment; (ii) agrees that it has, independently and without reliance
upon the Administrative Agent, the Collateral Agent or any other Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and decision to enter
into this Amendment; (iii) agrees that it will, independently and without reliance upon the
Administrative Agent, the Collateral Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Loan Documents; (iv) appoints and authorizes the
Administrative Agent and the Collateral Agent to take such action as agent on its behalf and to
exercise such powers and discretion under the Loan Documents as are delegated to the Administrative
Agent and the Collateral Agent by the terms thereof, together with such powers and discretion as
are reasonably incidental thereto; and (v) agrees that it is a “Lender” under the Loan Documents
(and the Borrower and Guarantors hereby acknowledge it is a “Lender”) and will perform in
accordance with their terms all of the obligations that by the terms of the Loan Documents are
required to be performed by it as a Lender. The Administrative Agent and each Lender hereby agrees
that the Commitments set forth on the new Schedule I annexed hereto as Exhibit A shall be effective
as of the Fifth Amendment Effective Date.

     SECTION II. CONDITIONS TO EFFECTIVENESS

          This Amendment shall become effective as of the date hereof only upon the satisfaction of all
of the following conditions precedent (the date of satisfaction of such conditions being referred
to herein as the “Fifth Amendment Effective Date”):

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          A. Execution. The Administrative Agent shall have received a counterpart signature page
of this Amendment duly executed by the Borrower, each of the Guarantors, Requisite Lenders and 100
% of all the affected Lenders (including each new Lender that is not, prior to the Fifth Amendment
Effective Date, a party to the Credit Agreement).

          B. Opinions. The Administrative Agent shall have received favorable written opinions of
(a) Baker Botts L.L.P., counsel to the Loan Parties, and (b) Liane K. Hinrichs, Vice President,
General Counsel and Corporate Secretary of the Borrower, in each case dated as of the Fifth
Amendment Effective Date addressing such matters as the Administrative Agent may reasonably
request.

     SECTION III. REAFFIRMATION OF CREDIT SUPPORT

          A. Each of the Borrower and each Guarantor (each, individually, a “Credit Support Party”
and, collectively, the “Credit Support Parties”) has read this Amendment and consents to the terms
hereof and further hereby confirms and agrees that, notwithstanding the effectiveness of this
Amendment but, with respect to any increased Commitment amount, after giving effect to the
amendments to the Mortgages pursuant to Section 7.13(k) of the Credit Agreement, the obligations of
such Credit Support Party under, and the Liens granted by such Credit Support Party as collateral
security for the Indebtedness, obligations and liabilities evidenced by the Credit Agreement and
the other Loan Documents pursuant to, each of the Loan Documents to which such Credit Support Party
is a party shall not be impaired and each of the Loan Documents to which such Credit Support Party
is a party is, and shall continue to be, in full force and effect and are hereby confirmed and
ratified in all respects.

          B. Each Credit Support Party (other than the Borrower) acknowledges and agrees that
(i) notwithstanding the conditions to effectiveness set forth in this Amendment, such Credit
Support Party is not required by the terms of the Credit Agreement or any other Loan Document to
consent to the amendments to the Credit Agreement effected pursuant to this Amendment and
(ii) nothing in the Credit Agreement, this Amendment or any other Loan Document shall be deemed to
require the consent of such Credit Support Party to any future amendments to the Credit Agreement.

     SECTION IV. REPRESENTATIONS AND WARRANTIES

          In order to induce Lenders to enter into this Amendment and to amend the Credit Agreement in
the manner provided herein, the Borrower represents and warrants to each Lender that the following
statements are true and correct in all material respects:

          A. Corporate Power and Authority. The Borrower and each Guarantor has all requisite
corporate or other organizational power and authority to enter into this Amendment and to carry out
the transactions contemplated by, and perform its obligations under, the Credit Agreement and the
other Loan Documents.

          B. Authorization of Agreements. The execution and delivery of this Amendment has been
duly authorized by all necessary corporate or other organizational action on the part of the
Borrower and each Guarantor.

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          C. No Conflict. The execution and delivery by the Borrower and each Guarantor of this
Amendment does not and will not (i) violate (A) any provision of any law, statute, rule or
regulation, or of the certificate or articles of incorporation or partnership agreement, other
constitutive documents or by-laws of the Borrower or any such Guarantor or (B) any applicable order
of any court or any rule, regulation or order of any Governmental Authority, (ii) be in conflict
with, result in a breach of or constitute (alone or with notice or lapse of time or both) a default
under any Contractual Obligation of the Borrower or any Guarantor, where any such conflict,
violation, breach or default referred to in clause (i) or (ii) of this Section IV.C., individually
or in the aggregate could reasonably be expected to have a Material Adverse Effect, (iii) except as
permitted under the Credit Agreement, result in or require the creation or imposition of any Lien
upon any of the properties or assets of the Borrower or any such Guarantor (other than any Liens
created under any of the Loan Documents in favor of Collateral Agent on behalf of Lenders), or (iv)
require any approval of stockholders or partners or any approval or consent of any Person under any
Contractual Obligation of the Borrower or any Guarantor except for such approvals or consents which
will be obtained on or before the Fifth Amendment Effective Date and except for any such approvals
or consents the failure of which to obtain will not have a Material Adverse Effect.

          D. Governmental Consents. No action, consent or approval of, registration or filing with
or any other action by any Governmental Authority is or will be required in connection with the
execution and delivery by the Borrower or any Guarantor, except, with respect to any increased
Commitment amount, the amendments to the Mortgages to be entered into pursuant to Section 7.13(k)
of the Credit Agreement and for such actions, consents and approvals the failure of which to obtain
or make could not reasonably be expected to result in a Material Adverse Effect or which have been
obtained and are in full force and effect.

          E. Binding Obligation. This Amendment has been duly executed and delivered by the
Borrower and each Guarantor and constitutes a legal, valid and binding obligation of the Borrower
and each such Guarantor, enforceable against the Borrower and each Guarantor in accordance with its
terms, except as enforceability may be limited by bankruptcy, insolvency, moratorium,
reorganization or other similar laws affecting creditors’ rights generally and except as
enforceability may be limited by general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

          F. Incorporation of Representations and Warranties from Credit Agreement. The
representations and warranties contained in Article IV of the Credit Agreement are and will be true
and correct in all material respects on and as of the Fifth Amendment Effective Date to the same
extent as though made on and as of that date, except to the extent such representations and
warranties specifically relate to an earlier date, in which case they were true and correct in all
material respects on and as of such earlier date.

          G. Absence of Default. No event has occurred and is continuing or will result from the
consummation of the transactions contemplated by this Amendment that would constitute an Event of
Default or a Default, except for the events expressly being waived hereby.

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     SECTION V. MISCELLANEOUS

          A. Effect on the Credit Agreement and the Other Loan Documents.

          (i) Except as specifically modified by this Amendment, the Credit Agreement and the
other Loan Documents shall remain in full force and effect and are hereby ratified and
confirmed.

          (ii) The execution, delivery and performance of this Amendment shall not constitute
a waiver of any provision of, or operate as a waiver of any right, power or remedy of any
Agent or Lender under, the Credit Agreement or any of the other Loan Documents except as
otherwise expressly provided for herein.

          B. Headings. Section and Subsection headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment for any other
purpose or be given any substantive effect.

          C. Applicable Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF
THE STATE OF NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW
OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

          D. Counterparts. This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed and delivered
shall be deemed an original, but all such counterparts together shall constitute but one and the
same instrument; signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to the same document.

[Remainder of this page intentionally left blank.]

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          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their respective officers thereunto duly authorized as of the date first written
above.

	 	 	 	 	 
	BORROWER:	 J. RAY MCDERMOTT, S.A.

 	 
	 	By:  	 	 
	 	 	Name:  	James C. Lewis 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

	 	 	 
	GUARANTORS:

	 	GLOBAL ENERGY-MCDERMOTT LIMITED
	 

	 	J. RAY MCDERMOTT ENGINEERING, LLC
	 

	 	J. RAY MCDERMOTT SOLUTIONS, INC.
	 

	 	J. RAY MCDERMOTT TECHNOLOGY, INC.
	 

	 	J. RAY MCDERMOTT UNDERWATER SERVICES, INC.
	 

	 	J. RAY MCDERMOTT WEST AFRICA HOLDINGS, INC.
	 

	 	J. RAY MCDERMOTT WEST AFRICA, INC.
	 

	 	J. RAY MCDERMOTT DE MEXICO, S.A. DE C.V.
	 

	 	MCDERMOTT TRADE CORPORATION
	 

	 	MENTOR SUBSEA TECHNOLOGY SERVICES, INC.
	 

	 	OFFSHORE PIPELINES INTERNATIONAL, LTD.
	 

	 	OPI VESSELS, INC.
	 

	 	OPMI, LTD.
	 

	 	SABINE RIVER REALTY, INC.
	 

	 	SPARTEC, INC.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	James C. Lewis 	 
	 	 	Title:  	Treasurer of each of the above-named
Guarantors 	 
	 

[Signature Page to Fifth Amendment]

 

 

	 	 	 	 	 
	 	J. RAY MCDERMOTT HOLDINGS, LLC

J. RAY MCDERMOTT, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	James C. Lewis 	 
	 	 	Title:  	Vice President and Treasurer of each of

the above-named Guarantors 	 
	 
	 	MCDERMOTT SERVICOS DE CONSTRUCAO, 

LTDA.	 
	 
	 	 	By:  J. Ray McDermott, Inc., its majority equity holder
 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	James C. Lewis 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 
	 	OFFSHORE PIPELINES SDN. BHD.

 	 
	 	 	By:  Offshore Pipelines  International,

        Ltd., its sole shareholder
 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	James C. Lewis 	 
	 	 	Title:  	Treasurer 	 
	 
	 	J. RAY MCDERMOTT (NIGERIA) LTD.

MCDERMOTT INTERNATIONAL B.V.

 	 
	 	By:  	 	 
	 	 	Name:  	Robert E. Stumpf 	 
	 	 	Title:  	Assistant Secretary of each of the

above-named Guarantors 	 
	 

[Signature Page to Fifth Amendment]

 

 

	 	 	 	 	 
	 	Executed as a Deed by:

J. RAY MCDERMOTT INTERNATIONAL VESSELS, LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	James C. Lewis 	 
	 	 	Title:  	Treasurer 	 
	 
	 	

In the presence of:

 	 
	 	By:  	 	 
	 	 	Name:  	Robert E. Stumpf 	 
	 	 	Title:  	Attorney-in-Fact 	 
	 

[Signature Page to Fifth Amendment]

 

 

	 	 	 	 	 
	AGENT and LENDER:	 CREDIT SUISSE, CAYMAN ISLANDS BRANCH,

as Administrative Agent, Lender and Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Fifth Amendment]

 

 

	 	 	 	 	 
	LENDERS:	

By signing below, you have indicated your
consent to the Fifth Amendment to the Credit
Agreement

Name of Institution:

 	 
	 	 	 
	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name: 		 
	 	 	Title:  	 	 
	 

[Signature Page to Fifth Amendment]

 

 

	 	 	 
	ADDITIONAL GUARANTORS:

	 	Chartering Company (Singapore) Pte. Ltd.
	 

	 	Eastern Marine Services, Inc.

Hydro Marine Services, Inc.

International Vessels Ltd.
	 

	 	J. Ray McDermott (Aust.) Holding Pty. 
Limited
	 

	 	J. Ray McDermott Asia Pacific Pte. Ltd. 

J. Ray McDermott Contractors, Inc.
	 

	 	J. Ray McDermott Eastern Hemisphere 
Limited
	 

	 	J. Ray McDermott Far East, Inc. 
	 

	 	J. Ray McDermott International Services 
Limited
	 

	 	J. Ray McDermott International, Inc. 
	 

	 	J. Ray McDermott Middle East Inc.
	 

	 	McDermott (Malaysia) Sendirian Berhard 
	 

	 	McDermott Caspian Contractors, Inc.
	 

	 	McDermott Far East, Inc. 
	 

	 	McDermott Gulf Operating Company, Inc.
	 

	 	McDermott Industries (Aust.) Pty. Limited
	 

	 	McDermott Marine Construction Limited
	 

	 	McDermott Marine UK Limited
	 

	 	McDermott Old JV Office, Inc.
	 

	 	McDermott Overseas, Inc.
	 

	 	Mentor Engineering Consultants Limited
	 

	 	North Atlantic Vessel, Inc.
	 

	 	PT J. Ray McDermott Indonesia 
	 

	 	J. Ray McDermott Canada Holding, Ltd.
	 

	 	J. Ray McDermott Canada, Ltd.
	 

	 	McDermott International Vessels, Inc.
	 

	 	J. Ray McDermott UK Ltd
	 

	 	J. Ray McDermott Underwater Services, Inc.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	James C. Lewis 	 
	 	 	Title:  	Treasurer of each of the above-named Guarantors 	 
	 

[Signature Page to Fifth Amendment]

 

 

	 	 	 	 	 
	 	J. Ray McDermott Investments B.V. 

McDermott International Marine  Investments N.V.

Varsy International, N.V. 

 	 
	 	By:  	 	 
	 	Name: 	Robert E. Stumpf	 
	 	Title:	Assistant Secretary of each of the above- named
Guarantors 	 
	 
	 	McDermott Holdings (U.K.) Limited 

 	 
	 	By:  	 	 
		Name: 	Robert E. Stumpf	 
	 	Title: 	Joint Secretary	 
	 
	 	McDermott Offshore Services Company, 
Inc.

 	 
	 	By:  	 	 
	 	Name: 	Robert E. Stumpf	 
	 	Title:  	Treasurer	 	 
	 

[Signature Page to Fifth Amendment]

 

 

EXHIBIT A

[See attached]

 

 

Schedule I

To Credit Agreement

Revolving Commitments

	 	 	 
	Lender	 	Revolving Commitment
	Bank of America, N.A.
	 	$80,000,000.00
	Calyon New York Branch
	 	$80,000,000.00
	Fortis Capital Corp.
	 	$80,000,000.00
	JPMorgan Chase Bank, N.A.
	 	$80,000,000.00
	Wachovia Bank, National Association
	 	$80,000,000.00
	Credit Suisse, Cayman Islands Branch
	 	$80,000,000.00
	Natixis Banques Populaires
	 	$49,500,000.00
	BNP
	 	$40,000,000.00
	Whitney National Bank
	 	$40,000,000.00
	Bank of Nova Scotia
	 	$32,000,000.00
	Compass
	 	$25,000,000.00
	Wells Fargo
	 	$25,000,000.00
	Mizuho Corporate Bank, Ltd.
	 	$24,500,000.00
	Amegy Bank National Association
	 	$20,000,000.00
	PNC Bank, National Association
	 	$17,000,000.00
	National City Bank
	 	$16,000,000.00
	UBS Loan Finance LLC
	 	$16,000,000.00
	Arab Banking Corporation
	 	$15,000,000.00
	Total
	 	$800,000,000.00exv10w1

 

Exhibit 10.1

Execution Version

SECURITIES PURCHASE AGREEMENT

     This Securities Purchase Agreement (this “Agreement”) is entered into and effective as
of April 2, 2008, between ZipRealty, Inc., a Delaware corporation (the “Company”), and
Pyramid Technology Ventures I, L.P., a Delaware limited partnership (the “Seller”).

     WHEREAS, subject to the terms and conditions set forth in this Agreement, Seller desires sell
to the Company, and the Company desires to purchase from Seller, the securities of the Company held
by Seller as more fully described in this Agreement.

     NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for
other good and valuable consideration the receipt and adequacy of which are hereby acknowledged,
Seller and the Company agree as follows:

ARTICLE I.

PURCHASE AND SALE

     1.1 Closing. As soon as possible following the execution of this Agreement but no
later than at 9:00 A.M. New York City time on the third business day following the execution of
this Agreement (the “Closing Date”), upon the terms and subject to the conditions set forth
herein, Seller agrees to sell, and the Company agrees to repurchase, an aggregate of 3,486,300
shares of Common Stock of the Company (the “Shares”), which constitutes all of the Shares
currently held by Seller, at a purchase price of $5.00 per share. The Company shall deliver to
Seller, via wire transfer, immediately available funds equal to $17,431,500 (the “Purchase
Price”) and Seller shall deliver the Shares to the Company on the Closing Date (such deliveries
are referred to herein as the “Closing”).

     1.2 Closing Conditions. 

     (a) The obligations of the Company hereunder in connection with the Closing are subject
to the following conditions being met: (i) the accuracy in all material respects on the
Closing Date of the representations and warranties of Seller contained herein; and (ii) the
delivery by Seller of certificates representing the Shares to the Company, together with a
fully executed stock power and assignment for such shares.

     (b) The obligations of Seller hereunder in connection with the Closing are subject to
the following condition being met: (i) the accuracy in all material respects on the Closing
Date of the representations and warranties of the Company contained herein; and (ii) the
delivery by the Company of the Purchase Price to Seller.

     1.3 Termination. If the Closing has not occurred by the end of the third business day
following execution of this Agreement, either party who is not in breach of this Agreement may
terminate this Agreement by written notice to the other party. Termination of this Agreement shall
not relieve any breaching party from liability for such breach.

1

 

ARTICLE II.

REPRESENTATIONS AND WARRANTIES

     2.1 Representations and Warranties of the Seller. Seller hereby represents and
warrants to the Company as of the Closing Date:

     (a) Ownership of Shares; Full Title. The Shares are duly owned by Seller and
Seller has full, good and marketable title in the Shares, free and clear of all liens,
charges, security interests, encumbrances, preemptive right or other restriction, other than
restrictions under applicable securities laws. Attached on Schedule A hereto is a list of
all stock certificates and the number of shares held under certificates held by Seller, and
such Schedule reflects all shares owned by Seller, or that Seller otherwise have the right
to acquire, including any unexpired options or warrants.

     (b) Sufficient Information. Seller is a sophisticated and experienced investor
and has had an opportunity to review all publicly available information about the Company
and the opportunity to ask questions of the Company’s Board or officers about the Company’s
prospects. Seller has requested and received all information it believes necessary from the
Company in order to make an informed decision to sell its Shares to the Company.

     2.2 Representations and Warranties of the Company. The Company hereby represents and
warrants as of the Closing Date:

     (a) Organization and Qualification. The Company is an entity duly
incorporated, validly existing and in good standing under the laws of the State of Delaware,
with the requisite power and authority to own and use its properties and assets and to carry
on its business as currently conducted. The Company is not in violation or default of any
of the provisions of its certificate of incorporation, bylaws or other organizational or
charter documents.

     (b) Authorization; Enforcement. The Company has the requisite corporate power
and authority to enter into and to consummate the transaction contemplated by this Agreement
and otherwise to carry out its obligations hereunder. The execution and delivery of this
Agreement by the Company and the consummation by it of the transaction contemplated hereby
has been duly authorized by all necessary action on the part of the Company and no further
action is required by the Company, its board of directors or its stockholders in connection
therewith. This Agreement has been (or upon delivery will have been) duly executed by the
Company and, when delivered in accordance with the terms hereof and thereof, will constitute
the valid and binding obligation of the Company enforceable against the Company in
accordance with its terms except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of
creditors’ rights generally and (ii) as limited by laws relating to the availability of
specific performance, injunctive relief or other equitable remedies.

2

 

     (c) Filings, Consents and Approvals. The Company is not required to obtain any
consent, waiver, authorization or order of, give any notice to, or make any filing or
registration with, any court or other federal, state, local or other governmental authority
or other person or other entity of any kind, including, without limitation, any trading
market, in connection with the execution, delivery and performance by the Company of this
Agreement, other than any filings required to be made under applicable federal and state
securities laws or with the Nasdaq Stock Market, all of which will be made when required.
The execution, delivery and performance of this Agreement by the Company and the
consummation by the Company of the transactions contemplated hereby will not (i) contravene
or violate any law (including applicable provisions of the Delaware General Corporation Law
(the “DGCL”)), rule or regulation to which the Company is subject or any judgment,
order, writ, injunction or decree which is applicable to the Company, or (ii) violate, be in
conflict with or result in the breach of (with or without the giving of notice or lapse of
time, or both), or give rise to the acceleration of any rights or creation of any third
party rights resulting from, or require a consent, waiver or notification which has not been
obtained from or made to any other party to, any contract, agreement, document or other
instrument to or by which the Company is a party or otherwise bound or affected.

     (d) SEC Reports. The Company has complied in all material respects with the
requirements to file all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act of 1933, as amended (the “Securities
Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date
hereof (the foregoing materials, including the exhibits thereto and documents incorporated
by reference therein being collectively referred to herein as the “SEC Reports”) on
a timely basis or has received a valid extension of such time of filing and has filed any
such SEC Reports prior to the expiration of any such extension. As of their respective
dates, the SEC Reports complied in all material respects with the requirements of the
Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed,
contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.

     (e) Sufficient Funds; Solvency. The Company has and on the Closing Date will
have immediately available funds sufficient to consummate the transactions contemplated by
this Agreement. Upon the consummation of the transactions contemplated hereby, the
incurrence of any liabilities incurred in connection herewith and the payment of all fees
and expenses of the Company in connection herewith, the Company and its subsidiaries will
not (i) be insolvent or left with unreasonably small capital or unreasonably small assets in
relation to its business or transactions, (ii) have incurred debts beyond their ability to
pay such debts as they become due or (iii) have their capital impaired. The Company’s board
of directors has determined, in resolutions delivered to Seller, that (i) the redemption of
the Shares will not cause any impairment of the capital of the Company as prohibited by
Section 160 of the DGCL and (ii) the Company has sufficient surplus and/or net profits as
required by Section 170 of the DGCL to make the payments for the Shares contemplated by this
Agreement.

3

 

ARTICLE III.

MISCELLANEOUS

     3.1 Entire Agreement. This Agreement contains the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and understandings,
oral or written, with respect to such matters, which the parties acknowledge have been merged into
such documents, exhibits and schedules. Each party acknowledges and agrees that it is not relying
on any representations, warranties, statements, promises or agreements, express or implied, except
as expressly set forth in this Agreement, and each party hereby waives and releases any and all
claims or causes of action in connection with the transactions contemplated by this Agreement,
including any claims under applicable securities laws, excluding only a claim for breach of the
representations, warranties, covenants and agreements set forth in this Agreement. All of the
representations, warranties and covenants set forth in this Agreement shall survive the closing
indefinitely.

     3.2 Further Assurances. The Company and Seller shall each execute and/or cause to be
delivered to each other party hereto such instruments, assignments and other documents, and shall
take such other actions, as such other party may reasonably request (prior to, at or after the
Closing) for the purpose of carrying out or evidencing the sale and purchase of the Shares
hereunder and the transactions contemplated by this Agreement.

     3.3 Filing of Form 4. Seller covenants to timely file a Form 4 with Securities and
Exchange Commission (the “SEC”) reporting the sale of the Shares, in accordance with the
Exchange Act.

     3.4 Standstill.

     (a) For a period commencing from and after the Closing and ending on the first
anniversary of the date of this Agreement, the Seller shall not, without the prior written
consent of the Company or its board of directors: (i) acquire, offer to acquire, or agree to
acquire, directly or indirectly, by purchase or otherwise, any voting securities or direct
or indirect rights to acquire any voting securities of the Company or any subsidiary
thereof, or any successor to or person in control of the Company, or any assets of the
Company or any subsidiary or division thereof or any such successor or controlling person;
(ii) make, or in any way participate, directly or indirectly, in any “solicitation” of
“proxies” to vote (as such terms are used in the rules of the SEC), or seek to advise or
influence any person or entity with respect to the voting of any voting securities of the
Company; (iii) make any public announcement with respect to, or submit a proposal for, or
offer of (with or without conditions) any extraordinary transaction involving the Company or
any of its securities or assets; (iv) form, join or in any way participate in a “group” as
defined in Section 13(d)(3) of the Exchange Act in connection with any of the forgoing; (v)
otherwise act or seek to control or influence the management, board of directors or policies
of the Company; (vi) take any action that could reasonably be expected to require the
Company to make a public announcement regarding the possibility of any of the events
described in clauses (i) through (v) above; or (vii) request the Company or any of its
Representatives, directly or indirectly, to amend or waive any provision of this Section
3.4.

4

 

     (b) Seller hereby represents and warrants to the Company as of the Closing Date it has
no subsidiaries or controlled affiliates. Should within the period referred to in clause
(a) above the Seller have a subsidiary or controlled affiliate, the Seller shall cause each
such subsidiary or controlled affiliate to comply with the provisions of such clause (a).

     3.5 Governing Law. All questions concerning the construction, validity, enforcement
and interpretation of this Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the State of Delaware, without regard to the principles of conflicts of
law thereof. If either party shall commence an action or proceeding to enforce any provisions of
this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the
other party for its reasonable attorneys’ fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such action or proceeding.

     3.6 Execution. This Agreement may be executed in two or more counterparts, all of
which when taken together shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature
is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such
signature shall create a valid and binding obligation of the party executing (or on whose behalf
such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
page were an original thereof.

     3.7 Severability. If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their commercially reasonable efforts to find and employ an alternative means to
achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties
that they would have executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

(Signature Pages Follow)

5

 

     IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be
duly executed by their respective authorized signatories as of the date first indicated above.

	 	 	 	 	 
	COMPANY	 	 
	 
	 	 	 	 
	ZipRealty, Inc.	 	 
	 
	 	 	 	 
	By:

	 	/s/ J. Patrick Lashinsky 
	 	 
	 

	 	Name: J. Patrick Lashinsky	 	 
	 

	 	Title: Chief Executive Officer and President	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	SELLER	 	 
	 
	 	 	 	 
	Pyramid Technology Ventures I, L.P.	 	 
	 
	 	 	 	 
	By:

	 	Taurus Partners, LLC, sole General Partner	 	 
	 
	 	 	 	 
	By:

	 	/s/ Marc Cellier 
	 	 
	 

	 	Name: Marc Cellier	 	 
	 

	 	Title: Member	 	 
	 
	 	 	 	 
	By:

	 	/s/ Alexandre Jenkins Rhea 
	 	 
	 

	 	Name: Alexandre Jenkins Rhea	 	 
	 

	 	Title: Member	 	 

6

 

Schedule A

	 	 	 	 	 	 	 
	 	SHARES	 	 	 	CERTIFICATE NUMBER	 
	 	251,933
	 	 	 	ZIPR0240	 
	 	499,482
	 	 	 	ZIPR0241	 
	 	280,198
	 	 	 	ZIPR0242	 
	 	276,441
	 	 	 	ZIPR0243	 
	 	793,360
	 	 	 	ZIPR0254	 
	 	763,358
	 	 	 	ZIPR0258	 
	 	508,298
	 	 	 	ZIPR0735	 
	 	18,242
	 	 	 	ZIPR0742	 
	 	10,000
	 	 	 	ZIPR0777	 
	 	9,548
	 	 	 	ZIPR0784	 
	 	58,440
	 	 	 	ZIPR0785	 
	 	17,500*
	 	 	 	ZIPR0788	 

 

			
	*	 	Includes an additional 500 shares of Common Stock to be issued or credited to Friedman, Billings,
Ramsey & Co., Inc. per Rule 144 sale as directed in the Letter of Authorization.

7

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