Document:

exv10w21

 

EXHIBIT 10.21

ZipRealty, Inc. Management Incentive Plan — Fiscal Year 2007

General Purpose: This ZipRealty, Inc. (“Company”) Management Incentive Plan — Fiscal Year
2007 (“Plan”) is designed to motivate and retain the Company’s Management (as defined herein) to
achieve the Company’s financial and operational goals for Fiscal Year 2007, as well as to retain
such persons in the employ of the Company.

Management: “Management” as used in this Plan includes all employees of the Company
holding the position of Vice President or higher and all headquarters-based full-time “exempt”
(pursuant to federal and state wage and hour laws) employees. “Management” specifically excludes
all District Directors, Sales Management, as defined in the Sales Management 2007 Incentive Plan,
and other employees not specifically identified in this paragraph.

Duration: This Plan will be in effect for the Company’s fiscal year ending December 31,
2007 (“Fiscal Year 2007”), meaning that the performance period determining whether bonuses will be
paid upon satisfaction of performance objectives is Fiscal Year 2007 (though such payments, if
earned, will be made following the end of Fiscal Year 2007 as set forth below).

Plan Administrator: The Compensation Committee (the “Committee”) of the Board of Directors
(the “Board”) shall administer this Plan with respect to Eligible Persons (as defined below) who
are executive officers of the Company, and the Company’s President and/or Chief Executive Officer,
in consultation with the Committee, shall administer this Plan with respect to other Eligible
Persons (as applicable, the “Administrator”).

Eligible Persons: Individuals eligible to earn an incentive payment under this plan
(“Eligible Persons”) include Management who are employed by the Company (i) from January 1, 2007
through December 31, 2007, without interruption (except as set forth in the “Proration” section of
this Plan), and (ii) on the date following the end of Fiscal Year 2007 when the Administrator
completes its review of Fiscal Year 2007 performance, calculates and approves the payment of
bonuses under this Plan.

Proration: In the sole discretion of the Administrator, a pro-rated incentive bonus may be
paid under this Plan for any member of Management who became eligible to participate in the Plan
after the beginning of Fiscal Year 2007.

Incentive Pool Requirement: The Committee will establish an incentive pool of funds
available for payout under this Plan only if the Company meets the “Incentive Pool Requirement,”
which means that the Company (i) meets or exceeds Ninety-five Percent (95%) of “Target Revenue,” as
set forth by the Committee, and (ii) does not exceed the “Maximum Adjusted Pro Forma1
Loss”, as set forth by the Committee. The Committee will
determine a Maximum Adjusted Pro Forma Loss or Minimum Adjusted Pro Forma Income, as applicable,
for each level of revenue under this Plan.

 

			
	1	 	The term “Pro Forma” is as
defined in the Company’s publicly filed financial statements.

 

 

Incentive Amount: Subject to the terms and conditions of this Plan, each Eligible Persons
may earn payment of “Incentive Amounts” determined as a percentage of his or her annual base salary
at December 31, 2007 (“Base Salary”), upon the Company’s achievement of the Incentive Pool
Requirement set forth above.

The Incentive Amounts will be as follows:

“Sub-Target”: The Company achieves the Incentive Pool Requirement.

“Target”: The Company achieves Target Revenue and does not exceed Maximum Adjusted Pro Forma Loss.

“Above Target”: Above Target Incentive Amounts include all incentives based on Company performance
(revenue and corresponding Maximum Adjusted Pro Forma Loss / Minimum Adjusted Pro Forma Income)
exceeding Target.

The Incentive Amounts for Company revenue falling between Target Revenue and 125% of Target Revenue
will be determined pursuant to a “Linear Calculation,” which refers to a calculation based on
Company revenue and corresponding Maximum Adjusted Pro Forma Loss or Minimum Adjusted Pro Forma
Income, as set forth by the Committee.

To earn Incentive Amounts based on revenue at or above 112.5% of Target Revenue (and corresponding
Maximum Pro Forma Loss), the Company must also achieve the “Additional Conditions,” as set forth by
the Committee.

Incentive Amounts based on Company meeting or exceeding 125% of
Target Revenue and exceeding corresponding Minimum
Adjusted Pro Forma Income will be determined pursuant to a calculation determined by the Committee.

Incentive Amounts will be calculated, subject to the provisions of this Plan, as follows:

	 	 	 	 	 	 	 
	Position	 	Sub-Target	 	Target	 	125% of Target
	 	 	 	 	 	 	(Company meets 125% of
	 	 	 	 	 	 	Target Revenue) 
	 	 	 	 	 	 	Additional Conditions must
	 	 	 	 	 	 	also be achieved
	CEO

	 	50%
	 	100%
	 	200%
	President

	 	20%
	 	40%
	 	80%
	Executive Vice President

	 	15%
	 	30%
	 	60%
	Senior Vice President

	 	15%
	 	30%
	 	60%
	Vice President

	 	15%
	 	30%
	 	60%
	Director

	 	7.5%
	 	15%
	 	35%
	Manager

	 	3.5%
	 	7%
	 	18%
	Other HQ Employee

	 	1.75%
	 	3.5%
	 	7%

 

Performance Adjustment: The Administrator shall have discretion to adjust any Eligible
Person’s Incentive Amount based on his or her job performance for Fiscal Year 2007 (the “Adjusted
Incentive Amount”) by reducing or increasing the Incentive Amount as the Administrator, in its sole
discretion, deems appropriate, up to and including elimination of the Incentive Amount.

Calculation and Approval. An Eligible Person’s Incentive Amount or Adjusted Incentive
Amount, as determined in the manner set forth above, as the case may be, is that Eligible Person’s
“Actual Incentive” with respect to Fiscal Year 2007. All calculations of each participant’s Actual
Incentive must be approved by the Administrator with respect to such participant and the total
amount of the aggregate incentive pool to be paid hereunder to all Eligible Persons must be
approved by the Committee after such consultation with the Board as it deems appropriate.

Payouts: All amounts, if any, to be paid out hereunder shall be paid by March 14, 2008,
following determination by the Committee that there shall be a pool from which to make such
payments with respect to Fiscal Year 2007.

Future Incentive Periods: This Plan is in effect only with respect to Fiscal Year 2007.
Nothing in this Plan provides for or implies the establishment or payment of any bonuses with
respect to future periods.

Merger or Acquisition: The Board may modify this Plan, including terminate it without
making payments hereunder, with respect to Fiscal Year 2007 in its sole discretion in the event of
a merger or acquisition of the Company.

Administration: The Committee has sole and exclusive discretionary authority to interpret
this Plan and adopt such rules and regulations for carrying out this Plan as it deems necessary and
appropriate. Decisions by the Committee are final and binding on all parties to the maximum extent
allowed by law.

Employment is Terminable At Will: Nothing in this Plan will interfere with or limit in any
way the right of the Company or the right of any individual to alter or terminate the employment
relationship at any time, with or without cause.

General Terms and Conditions: Amounts to be paid under this Plan will be paid from the
general funds of the Company. Nothing in this Plan will be construed to create a trust or
establish any evidence of any individual’s claim of any right to payment other than as an unsecured
general creditor of the Company. All payments will be made in the currency in which the individual
is regularly paid and will be subject to the satisfaction of applicable federal, state, local or
similar income withholding requirements and to any employment tax withholding requirements. The
Company shall withhold all applicable amounts required by law from any payments hereunder.

Governing Law; Severability: This Plan will be construed, administered and governed in all
respects in accordance with the internal laws of the State of California. In the event that any
provision of this Plan is held illegal or invalid for any reason, such holding will not affect the
remaining provisions of this Plan, and this Plan will be construed and enforced as if the illegal
and invalid provision had not been included.

 

 

Entire Agreement. This Plan, and any resolutions of the Committee amending the Plan, is
the entire understanding between the Company and any participant regarding the subject matter of
this Plan and supersedes all prior bonus or commission incentive plans, or employment contracts
whether with any subsidiary or affiliate, or any written or verbal representations regarding the
subject matter of this Plan. Participation in this Plan during Fiscal Year 2007 will not convey
any entitlement to participate in this or future plans or to the same or similar bonus benefits.
Payments under this Plan are an extraordinary item of compensation that is outside the normal or
expected compensation for the purpose of calculating any extra benefits, termination, severance,
redundancy, end-of-service premiums, bonuses, long-service awards, overtime premiums, pension or
retirement benefits or other similar payment.exv10w13

 

Exhibit 10.13

FOURTH AMENDMENT

     THIS FOURTH AMENDMENT (the “Amendment”) is made effective as of April 1, 2006, by and between
CA-GATEWAY OFFICE LIMITED PARTNERSHIP, a Delaware limited
partnership (“Landlord”) and BACKWEB
TECHNOLOGIES, INC., a Delaware corporation (“Tenant”)

RECITALS

	A.	 	Landlord (as successor by conversion to EOP-Gateway Office, L.L.C., a Delaware limited
liability company, as successor in interest to Spieker Properties, L.P., a California limited
partnership) and Tenant are parties to that certain lease dated December 23, 1998 (the
“Original, Lease”), which lease has been previously amended by that certain 1st
Amendment to Lease — Expansion dated May 12, 2000, that certain 2nd Amendment
to Lease —  Expansion dated November 7, 2000 and that certain Third Amendment dated October
27, 2003 (the “Third Amendment”) (collectively, the “Lease”). Pursuant to the Lease, Landlord
has leased to Tenant space currently containing approximately 17,569 rentable square feet
(the “Premises”) described as Suite Nos. 500, 510 and 550 on the 5th floor of the
building commonly known as Gateway Office IIB located at 2077 Gateway
Place, San Jose,
California (the “Building”).

	B.	 	The Lease by its terms shall expire on January 31, 2007 (“Prior Termination Date”), and the
parties desire to reset the Base Rent as of October 1, 2006, (the “Reset Date”) and extend the
Term of the Lease, all on the following terms and conditions.

     NOW, THEREFORE, in consideration of the above recitals which by this reference are
incorporated herein, the mutual covenants and conditions contained herein and other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant
agree as follows:

	1.	 	Extension. The Term of the Lease is hereby extended for a period of 36 months and
shall expire on January 31, 2010 (“Second Extended Termination Date”), unless sooner
terminated in accordance with the terms of the Lease. That portion of the Term commencing
the day immediately following the Prior Termination Date (“Second Extension Date”)
and ending on the Extended Termination Date shall be referred to herein as the “Second
Extended Term”.

	2.	 	Premises. Effective as of the date hereof, the Premises shall consist of Suite No. 500
consisting of approximately 11, 131 rentable square feet and Suite No. 550 consisting of
approximately 6,438 rentable square feet, as shown on Exhibit A attached hereto. Landlord
and Tenant agree that only the suite numbers have changed with respect to the Premises and
the physical location of the Premises has not changed.

	3.	 	Baste Rent.

	 	3.01.	 	Notwithstanding any provision in the Lease to the contrary, effective as of
the Reset Date, the Base Rent applicable to the Premises from the Reset Date through
the Prior Termination Date shall be as follows:

	 	 	 	 	 	 	 	 	 
	Months of Term or	 	Annual Rate	 	        Monthly
	Period	 	Per Square Foot	 	       Base Rent
	Reset Date — Prior
Termination Date
	 	$	21.00	 	 	$	30,745.75	 

	 	3.02.	 	As of the Second Extension Date, the schedule of Base Rent payable with
respect to the Premises during the Second Extended Term is the following:

	 	 	 	 	 	 	 	 	 
	 	 	Annual Rate	 	 
	        Period	 	Per Square Foot	 	      Monthly Base Rent
	2/1/07 – 1/31/08
	 	$	21.60	 	 	$	31,624.20	 
	2/1/08 – 1/31/09
	 	$	22.20	 	 	$	32,502,65	 
	2/1/09 – 1/31/10
	 	$	22.80	 	 	$	33,381.10	 

     All such Base Rent shall be payable by Tenant in accordance with the terms of the
Lease.

	4.	 	Additional Security Deposit. No additional Security Deposit shall be
required in connection with this Amendment.

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	5.	 	Operating Expenses: For the period commencing on the Reset Date and ending on the
Second Extended Termination Date, Tenant shall pay for Tenant’s Proportionate Share of
Operating Expenses in accordance with the terms of the Lease.

	6.	 	Additional Payments

	 	6.01	 	. Restructure Fee. Simultaneously with the Tenant’s execution and delivery of
this Amendment (and as additional consideration therefore), Tenant shall pay to
Landlord, by cashier’s or certified check or by wire transfer of immediately available
funds to an account designated by Landlord, the sum of $130,213.68.
	 
	 	6.02.	 	Past Due Rent. Tenant acknowledges and agrees that Tenant owes Landlord
back due Rent for October 2005 and simultaneously with Tenant’s execution and delivery
of this Amendment, Tenant shall pay to Landlord the amount of $6,261.86 in
satisfaction therefore.
	 
	 	6.03.	 	Refund of Operating Expense Credit. Tenant acknowledges and agrees that, (i)
according to the terms of Section IV.B. of the Third Amendment, Tenant waived its
rights to any refunds leased on an Operating Expense Adjustment, and (ii) Tenant
received an Operating Expense refund in the amount of $24,827.51 from Landlord in
error. Simultaneously with the Tenant’s execution and delivery of this Amendment,
Tenant shall pay to Landlord, by cashier’s or certified check or by wire transfer
of immediately available funds to an account designated by Landlord, the sum of
$24,827.51 as a refund therefor.

	7.	 	Improvements to Premises:

	 	7.01.	 	Condition of Premises. Tenant is in possession of the Premises and accepts the
same “as is” without any agreements, representations, understandings or obligations
on the part of Landlord to perform any alterations, repairs or improvements, except
as may be expressly provided otherwise in this Amendment.
	 
	 	7.02.	 	Responsibility for Improvements to Premises. Any construction, alterations or
improvements to the Premises shall be performed by Tenant at its sole cost and
expense using contractors selected by Tenant and approved by Landlord and shall be
governed in all respects by the provisions of Section 9 of the Lease.

	8.	 	Other Pertinent Provisions: Landlord and Tenant agree that, effective as of the date
of this Amendment (unless different effective date(s) is/are specifically referenced in this
Section), the Lease shall be amended in the following additional respects:

	 	8.01.	 	Intentionally Omitted.
	 
	 	8.02.	 	HVAC. Effective as of April 1, 2006, and to the extent provided pursuant to
Section 15 of the Lease, Landlord’s: charge for after hours heat and air conditioning is
currently $50.00 per hour, subject to change from time to time.
	 
	 	8.03.	 	Restoration. Landlord and Tenant agree that in accordance with Paragraph 12 and
Paragraph 36 of the Original Lease, Tenant shall not be required
to remove any
Alterations other than the Suite 500 entry doors, which doors
shall be replaced with
Building standard doors at Tenant’s sole cost and expense upon
the expiration or
earlier termination of the Lease.
	 
	 	8.04.	 	Landlord’s Notice Address. Effective as of the date hereof, Landlord’s address
for Notices shall be as follows:

Landlord:

CA-Gateway Office Limited Partnership

c/o Equity Office

1740 Technology Drive, Suite 150

San Jose, California 95110

Attention: Gateway Office Property

Manager

With
a copy to:

Equity Office

One Market Street, Spear Tower, Suite

2

 

600

San Francisco, CA 94105

Attn: San Jose Managing Counsel

	 	8.05.	 	Effective as of April 1, 2006, the first sentence of Paragraph 21. B. “Bonus
Rent” of the Original Lease shall be amended and restated by deleting the first
sentence and substituting the following therefore: “Tenant shall pay to Landlord 100%
of any Rent or other consideration realized by Tenant under any such sublease or
assignment in excess of the Rent payable hereunder.”
	 
	 	8.06.	 	Letter of Credit. The parties acknowledge that Landlord currently holds a Letter
of Credit in the amount of $500,000.00. Beginning February 1, 2007, and subject
to the terms of the Lease as amended, Tenant may reduce the amount of the
Letter of Credit so that the new Letter of Credit amount will be
$225,000.00. Notwithstanding anything to the contrary contained herein, if Tenant
has been in default under the Lease (as amended) at any time prior to the effective
date of any reduction of the Letter of Credit and Tenant has failed to cure such
default within any applicable cure period, then Tenant shall have no further right
to reduce the Letter of Credit as described herein. Any reduction in the Letter of
Credit Amount shall be accomplished by Tenant providing Landlord with a substitute
letter of credit in the reduced amount or an amendment to the existing Letter of
Credit reflecting the reduced amount, all in the form and substance required by the
terms of the Lease (as amended) If the Letter of Credit is reduced in accordance
with this Section, then the reference to “$500,000.00” in the last paragraph of
Section VI.F. of the Third Amendment shall be amended and restated to
“$225,000.00”.

	9.	 	Miscellaneous,

	 	9.01.	 	This Amendment and the attached exhibits, which are hereby incorporated into
and made a part of this Amendment, set forth the entire agreement between the
parties with respect to the matters set forth herein. There have been no additional
oral or written representations or agreements. Under no circumstances shall Tenant
be entitled to any Rent abatement, improvement allowance, leasehold improvements,
or other work to the Premises, or any similar economic incentives that may have
been provided Tenant in connection with entering into the Lease, unless
specifically set forth in this Amendment.
	 
	 	9.02.	 	Except as herein modified or amended, the provisions, conditions and terms of the
Lease shall remain unchanged and in full force and effect.
	 
	 	9.03.	 	In the case of any inconsistency between the provisions of the Lease and this
Amendment, the provisions of this Amendment shall govern and control.
	 
	 	9.04.	 	Submission of this Amendment by Landlord is not an offer to enter into this
Amendment but rather is a solicitation for such an offer by Tenant. Landlord shall not be
bound by this Amendment until Landlord has executed and delivered the same to Tenant.
	 
	 	9.05.	 	The capitalized terms used in this Amendment shall have the same definitions as set
forth in the Lease to the extent that such capitalized terms are defined therein and not
redefined in this Amendment.
	 
	 	9.06.	 	Tenant hereby represents to Landlord that Tenant has dealt with no broker other than
Colliers in connection with this Amendment. Tenant agrees to indemnify and hold Landlord,
its members, principals, beneficiaries, partners, officers, directors, employees,
mortgagee(s) and agents, and the respective principals and members of any such agents
(collectively, the “Landlord Related Parties”) harmless from all claims of any other
brokers claiming to have represented Tenant in connection with this Amendment. Landlord
hereby represents to Tenant that Landlord has dealt with no broker in connection with this
Amendment. Landlord agrees to indemnify and hold Tenant, its members, principals,
beneficiaries, partners, officers, directors, employees, and agents, and the respective
principals and members of any such agents (collectively, the “Tenant Related Parties”)
harmless from all claims of any brokers claiming to have represented Landlord in connection
with this Amendment.
	 
	 	 	 	Equity Office Properties Management Corp. (“EOPMC”) is an affiliate of Landlord
and represents only the Landlord in this transaction. Any assistance rendered by
any agent or employee of EOPMC in connection with this Lease or any

3

 

	 	 	 	subsequent amendment or modification hereto has been or will be made as an
accommodation to Tenant solely in furtherance of consummating the
transaction on behalf of Landlord and not as agent for Tenant.

	 	9.07.	 	Each signatory of this Amendment represents hereby that he or she has the authority to
execute and deliver the same on behalf of the party hereto for which such signatory is
acting.
	 
	 	9.08.	 	At Landlord’s option, this Amendment shall be of no force and effect unless and until
accepted by the Guarantor of the Lease and of the Additional Reduction Fee Promissory Note,
who by signing bellow shall agree that its Guaranty of Lease and Guaranty of Note,
respectively, shall apply to the Lease and to the Additional Reduction Fee Promissory Note as
each are amended herein, unless such requirement is waived by Landlord in writing.

[SIGNATURES ARE ON FOLLOWING PAGE]

     IN
WITNESS WHEREOF, Landlord and Tenant have duly executed this Amendment as of the day
and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	LANDLORD:
	 
	 	 	 	 	 	 	 	 
	 	 	CA-GATEWAY OFFICE LIMITED PARTNERSHIP, a

Delaware limited partnership
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	EOM GP, L.L.C., a Delaware limited
liability company, its general partner
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Equity Office Management, L.L.C., a
Delaware limited liability company, its non-member manager
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Kenneth J. Church
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Kenneth J. Church
	 

	 	 	 	 	 	Title:
	 	Vice President - Leasing
	 
	 	 	 	 	 	 	 	 
	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 
	 	 	BACKWEB TECHNOLOGIES, INC., a Delaware corporation
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Ken Holmes
	 	 	 	 	 
	 	 	Name:	 	Ken Holmes
	 	 	Title:	 	V.P. Finance
	 
	 	 	 	 	 	 	 	 
	 	 	GUARANTOR:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BACKWEB TECHNOLOGIES LTD, an Israeli corporation
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Ken Holmes
	 	 	 	 	 
	 	 	Name:	 	Ken Holmes
	 	 	Title:	 	V.P. Finance

4

 

EXHIBIT A

OUTLINE AND LOCATION OF PREMISES

5

 

	 	 	 
	

	 	San Francisco Region-San Jose

1740 Technology Drive, Suite 150

San Jose, California 95110

	 

	 	phone 408.346.4000

www.equityoffice.com

July 21, 2006

VIA HAND DELIVERY

Mr. Ken Holmes

Back Web Technologies, Inc.

2077 Gateway Place, 5th Floor

San Jose, CA 95110

	 	 	 	 	 
	RE:

	 	Lease of premises at:
	 	2077 Gateway Place, 5th Floor, San Jose, California
	 

	 	LANDLORD:
	 	CA-GATWAY OFFICE LIMITED PARTNERSHIP
	 

	 	TENANT:
	 	Backweb Technologies, Inc.

Dear Ken:

Enclosed, for your records, please find one (1) original of the fully executed Fourth
Amendment as referenced above.

We’re very excited that BackWeb Technologies, Inc. has renewed at 2077 Gateway and look forward to
building our relationship.

Please call me at (408) 487-4119 should you have any questions related to your office space.

Sincerely,

/s/ Peter D. Setzer

Peter D. Setzer

Leasing Representative

Enclosure (1)

	 	 	 
	cc:

	 	Noemi Campa, Equity Office Properties
	 

	 	Jill Bengston, Equity Office Properties
	 

	 	Carol Edmiston, Equity Office Properties

6

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