Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

EXHIBIT 10.7.3    
  

ESCROW AGREEMENT  

        THIS ESCROW AGREEMENT (this "Agreement") is entered into as of
October 12, 2000, by and among LivePerson, Inc., a Delaware corporation ("LP"), First Union National Bank, as Escrow Agent (the
"Escrow Agent"), HumanClick Ltd., a private company organized under the laws of the State of Israel
("HumanClick"), and Eitan Ron, as Shareholders' Agent, on behalf of each of the Shareholders of HumanClick listed on Schedule A hereto
(collectively, the "Shareholders"). 

        WHEREAS, LP, HumanClick and the Shareholders have entered into a Stock Purchase Agreement dated as of October 12, 2000 (the
"Stock Purchase Agreement"); 

        WHEREAS, the Stock Purchase Agreement provides that an escrow account will be established to secure various obligations of the
Shareholders on the terms and subject to the conditions set forth in the Stock Purchase Agreement and set forth herein; and 

        WHEREAS, LP, Escrow Agent, HumanClick and the Shareholders' Agent (the "Parties") desire
to establish the terms and conditions pursuant to which such escrow account will be established and maintained. 

        NOW, THEREFORE, the Parties hereto hereby agree as follows: 

        1.    Defined Terms.    Capitalized terms used in this Agreement and not otherwise defined shall have the meanings
given them in the Stock Purchase Agreement. 

        2.    Appointments.    First Union National Bank hereby accepts its appointment as Escrow Agent hereunder. LP hereby
appoints its President and Chief Executive Officer and its Executive Vice President, Chief
Financial Officer and Secretary to act, either jointly or individually, on behalf of LP for all purposes hereunder (each, an "LP Agent"). Each of the
Shareholders has heretofore appointed Eitan Ron as its agent and representative to act on behalf of the Shareholders on all matters relating to this Agreement, upon the terms and subject to the
conditions hereinafter set forth (the "Shareholders' Agent"). The actions of an LP Agent or the Shareholders' Agent under or pursuant to this Agreement
shall be binding on LP and the Shareholders, respectively. 

        3.    Consent of Shareholders.    Pursuant to the Stock Purchase Agreement, the Shareholders have consented to the
establishment of this escrow to secure certain obligations under Article VIII of the Stock Purchase Agreement and certain other obligations in the manner set forth therein. 

        4.    Escrow and Indemnification.    

        (a)    Escrow of Shares of Parent Common Stock.    As soon as reasonably practicable after the Effective Time, LP
shall deposit, on behalf of the Shareholders, with the Escrow Agent one or more certificates representing an aggregate of twenty-five percent (25%) of the Purchaser Shares (the
"Escrow Shares") to be issued pursuant to Section 2.03 of the Stock Purchase Agreement, issued in the name of the Escrow Agent in the respective
amounts set forth on Schedule A hereto. The Escrow Agent agrees to accept delivery of the Escrow Shares and to hold the Escrow Shares in an escrow account (the "Escrow
Account"), on the terms and subject to the conditions of this Agreement. The Escrow Account shall not be an interest bearing account. 

        (b)    Distributions and Dividends.    All dividends and other distributions on Escrow Shares or additional shares of
capital stock issued on or with respect to the Escrow Shares as a result of stock splits, stock dividends or other similar capital adjustments to, or recapitalizations on, the Escrow Shares shall be
delivered by LP to the Escrow Agent and retained in the Escrow Account subject to the terms hereof and shall constitute Escrow Shares. 

        (c)    Voting of Shares and Other Rights.    All voting rights with respect to Escrow Shares may be exercised by the
Shareholders in accordance with their proportionate interests therein, and the Escrow Agent shall from time to time execute and deliver to the Shareholders such proxies, consents or other 

 

documents as may be necessary to enable the Shareholders to exercise such rights. In the absence of any exercise of such voting rights with respect to Escrow Shares by the Shareholders, the Escrow
Agent shall not vote any of the Escrow Shares. 

        (d)    Transferability; Sale.    The interest of the Shareholders in the Escrow Shares shall not be assignable or
transferable so long as such Escrow Shares are held by the Escrow Agent hereunder; provided, however, that the Escrow Agent may sell, transfer, or
otherwise dispose of the Escrow Shares pursuant to Sections 5 and 6 hereof, and as otherwise provided in this Agreement. 

        5.    Release of Escrow Shares.    

        (a)
At any time, and from time to time, prior to twelve (12) months after the Effective Date (the "Termination Date"), LP may make
claims, in the manner set forth in Section 6 hereof, for payment against the Escrow Shares if it (or any other Indemnified Person) has paid or incurred Damages and is entitled to
indemnification under Article VIII of the Stock Purchase Agreement. The Shareholders' Agent, on behalf of each of the Shareholders, agrees that the Shareholders shall indemnify and hold
harmless any Indemnified Person for such Damages pursuant to Section VIII of the Stock Purchase Agreement. Any of the Escrow Shares to be released pursuant to this Section 5(a) shall be
valued in accordance with the terms of this Agreement. 

        (b)
As soon as possible after the Termination Date, upon delivery of a notice executed jointly by both an LP Agent and the Shareholders' Agent to the Escrow Agent (which notice shall not
be withheld unless pursuant to the matters provided for in Section 5(c) below), the Escrow Agent shall deliver and/or submit for transfer, delivery and assignment to an Israeli trustee to be
designated in writing by the Shareholders' Agent within thirty days of the date hereof (the "Israeli Trustee"), for the benefit of each of the Shareholders, such Shareholder's pro rata portion of the
Escrow Shares not subject to outstanding Claim Notices (as defined herein). 

        (c)
Notwithstanding the foregoing, if on the Termination Date an LP Agent has previously given any Claim Notices (as defined herein) that have not then been resolved in accordance with
Section 6 below, the Escrow Agent shall retain in the Escrow Account an amount of Escrow Shares having a Fair Market Value (as defined in Section 7 hereof) equal to the aggregate Claimed
Amount (as defined herein) covered by all such Claim Notices that have not then been resolved. Any Escrow Shares retained in escrow pursuant to this Section 5(c) shall be disbursed in
accordance with the terms of the resolution of any claims relating to any of the Escrow Shares retained hereunder. 

        6.    Administration of Escrow Account for Indemnification Claims.    With respect to indemnification claims, the
Escrow Agent shall administer the Escrow Account as follows: 

        (a)
The release of Escrow Shares shall be applied to each Shareholder in the proportion that the Escrow Shares of such Shareholder bears to the sum of Escrow Shares then remaining in the
Escrow. In lieu of releasing any fractional Escrow Shares, any fraction of a released Escrow Share that would otherwise be released shall be rounded to the nearest whole share of Parent Common Stock
(with one-half of a share being rounded upward). 

        (b)
If an Indemnified Person has incurred or suffered Damages for which it is entitled to indemnification by the Shareholders under the Stock Purchase Agreement, the LP Agent shall,
prior to the Termination Date, give written notice of such claim (a "Claim Notice") to the Shareholders' Agent with a copy to the Escrow Agent. Each
Claim Notice shall state the amount of Damages claimed (the "Claimed Amount") and the basis for such claim. 

        (c)
Claims for indemnification involving a claim or legal proceeding by a third party shall be made in accordance with the procedures set forth in the Stock Purchase Agreement and the
provisions of this Section 6. For indemnification claims not involving any claim or legal proceeding by a third party, the procedures herein alone shall apply. Within twenty
(20) business days of receipt by the Shareholders' 

2

 

Agent of a Claim Notice, the Shareholders' Agent shall provide to the party providing the Claim Notice (with a copy to the Escrow Agent) a written response (the "Response
Notice") in which the Shareholders' Agent shall either: (i) agree that Escrow Shares having a Fair Market Value (as computed pursuant to Section 7 below) equal to
the full Claimed Amount may be released from the Escrow Account to the Indemnified Person, (ii) agree that Escrow Shares having a Fair Market Value equal to part, but not all, of the Claimed
Amount may be released from the Escrow Account to the Indemnified Person, or (iii) contest that any of the Escrow Shares may be released from the Escrow Account to the Indemnified Person. The
Shareholders' Agent may contest the release of Escrow Shares having a Fair Market Value equal to all or a portion of the Claimed Amount only if the Shareholders' Agent has a good faith belief that all
or such portion of the Claimed Amount does not constitute Damages for which the Indemnified Person is entitled to indemnification under the Stock Purchase Agreement. If no Response Notice is delivered
to, and received by the Escrow Agent prior to twenty (20) business days of receipt of the Claim Notice by the Shareholders' Agent, the Shareholders' Agent shall be deemed to have agreed that
Escrow Shares having a Fair Market Value equal to all of the Claimed Amount may be released to the Indemnified Person from the Escrow Account. Notwithstanding any terms of this Agreement to the
contrary, no Claim Notice or Response Notice shall be deemed to have been delivered to the Escrow Agent until it is actually received by the Escrow Agent at the address set forth in Section 12
hereof. 

        (d)
If the Shareholders' Agent agrees (or is deemed to have agreed) that Escrow Shares having a Fair Market Value equal to all of the Claimed Amount may be released from the Escrow
Account to the Indemnified Person, the Escrow Agent shall promptly thereafter transfer, deliver and assign to the Indemnified Person the Escrow Shares having a Fair Market Value equal to the Claimed
Amount (or such lesser amount of Escrow Shares as are then held in the Escrow Account). 

        (e)
If the Shareholders' Agent agrees that Escrow Shares having a Fair Market Value equal to part, but not all, of the Claimed Amount (the "Partial Agreed
Amounts") may be released from the Escrow Account to the Indemnified Person, the Escrow Agent promptly shall transfer, deliver and assign to the Indemnified Person Escrow
Shares having a Fair Market Value equal to the sum of all Partial Agreed Amounts (or such lesser amount of Escrow Shares as are then held in the Escrow Account). 

        (f)
If the Shareholders' Agent contests the release of Escrow Shares having a Fair Market Value equal to all or part of the Claimed Amount (the "Contested
Amount"), the Shareholders' Agent and the Indemnified Person or LP Agent, as applicable, shall attempt promptly and in good faith to agree upon the rights of the parties with
respect to the Contested Amount. If the parties should so agree, a memorandum setting forth such agreement shall be prepared and signed by both parties and delivered to the Escrow Agent and, if such
agreement provides that all or a portion of the Contested Amount is to be paid to the LP Agent, the Escrow Agent shall promptly transfer, assign and deliver to the Indemnified Person from the Escrow
Account an amount of Escrow Shares having a Fair Market Value equal to the amount so agreed. If no such agreement can be reached within 15 days, the matter shall be settled by binding
arbitration in New York City, New York. Notwithstanding the foregoing, the parties may defer arbitration to a mutually agreeable later date. All claims shall be settled by a single arbitrator mutually
agreeable to the LP Agent and the Shareholders' Agent, or if they cannot agree on a single arbitrator in 20 days, by three arbitrators, in accordance with the Commercial Arbitration Rules then
in effect of the American Arbitration Association (the "AAA Rules"). One of such arbitrators shall be chosen by the LP Agent, one shall be chosen by the
Shareholders' Agent and the third shall be chosen by the first two arbitrators selected pursuant to this sentence. The Party against whom a judgment is made or against whom an award is entered shall
pay the costs of arbitration and the other Party's reasonable out of pocket costs and expenses, including without limitation, reasonable attorney's fees. The arbitrator's decision shall relate solely
to whether the Indemnified Person is entitled to receive the Contested Amount (or a portion thereof) pursuant to the applicable terms of the 

3

 

Stock Purchase Agreement and this Agreement. The final decision of the arbitrator, or a majority of the arbitrators in the case of three arbitrators, shall be furnished to the Shareholders' Agent and
the LP Agent in writing and shall constitute a conclusive determination of the issue in question, binding upon the Shareholders and LP, and shall not be contested by any of them. Such decision may be
used in a court of law only for the purpose of seeking enforcement of the arbitrator's award. Either the Shareholders' Agent or an LP Agent may deliver a memorandum to the Escrow Agent setting forth
such arbitrator's decision in accordance with the second sentence of this paragraph. The parties hereto agree that all arbitration proceedings conducted pursuant to this Agreement shall be held
confidential. 

        (g)
After delivery of a Response Notice that the Claimed Amount is contested by the Shareholders' Agent, the Escrow Agent shall continue to hold in the Escrow Account an amount of Escrow
Shares having a Fair Market Value sufficient to cover the Contested Amount (up to the amount of Escrow Shares then available in the Escrow Account), notwithstanding the occurrence of the Termination
Date, until (i) delivery of a copy of a settlement agreement executed by an LP Agent and the Shareholders' Agent setting forth instructions to the Escrow Agent as to the release of Escrow
Shares that shall be made with respect to the Contested Amount or (ii) delivery of a copy of the final award of the arbitrator, or a majority of the arbitrators in the case of three
arbitrators, and the memo referenced in the last sentence of the preceding paragraph setting forth instructions to the Escrow Agent as to the release of Escrow Shares that shall be made with respect
to the Contested Amount. The Escrow Agent shall thereupon release Escrow Shares from the Escrow Account (up to the amount of Escrow Shares then available in the Escrow Account) in accordance with such
agreement or instructions. 

        7.    Valuation of Escrow Shares.    For purposes of this Agreement, the Fair Market Value of each of the Escrow
Shares shall be seven dollars ($7.00) per share, with appropriate adjustment to take into account any stock split, reverse stock split, stock dividend, recapitalization or other similar capital
adjustments with respect to LP's common stock. The Fair Market Value shall be calculated as set forth
above jointly by the LP Agent and the Shareholders' Agent, and the results of such calculation shall be provided to the Escrow Agent. 

        8.    Fees and Expenses of the Escrow Agent.    LP hereby agrees to pay the Escrow Agent's reasonable fees and
expenses, including attorneys fees, travel expenses, postal and delivery charges, and all other out-of-pocket expenses incurred, in accepting and performing its appointment as
Escrow Agent hereunder (collectively, the "Escrow Agent Expenses"). 

        9.    General Terms and Standards Regarding the Escrow Agent.    Notwithstanding any terms of this Agreement to the
contrary, each term of this Agreement, including without limitation each of the stated duties and responsibilities of the Escrow Agent set forth herein, shall be subject to the following terms and
conditions: 

        (a)
The duties, responsibilities and obligations of the Escrow Agent shall be limited to those expressly set forth in this Agreement (and the duty to exercise reasonable care in the
physical safekeeping of any property held in escrow hereunder), and no implied duties, responsibilities or obligations shall be read into this Agreement against the Escrow Agent. Without limiting the
generality of the foregoing, the Escrow Agent shall have no duty to take action to preserve or exercise rights in any property held by it hereunder (including, without limitation, against prior
parties or otherwise). 

        (b)
The Escrow Agent shall not be subject to, bound by, charged with notice of or be required to comply with or interpret any agreement or document (including without limitation the
Stock Purchase Agreement) between or among the interested parties (whether or not reference to any such other agreement or documents is expressed herein) other than this Agreement. 

        (c)
The Escrow Agent shall in no instance be under any duty to give any property held by it hereunder any greater degree of care than it gives its own similar property. The Escrow Agent
shall not 

4

 

be required to invest any funds held hereunder, and shall not be obligated to pay interest on uninvested funds. All amounts received by the Escrow Agent (and any credits to the Escrow Account) shall
be conditional upon collection (and actual receipt by the Escrow Agent of final payment). In no event shall the Escrow Agent have any obligation to advance funds. 

        (d)
The Escrow Agent may rely upon, and shall be protected in acting or refraining from acting upon, any written notice, instruction, statement, request, waiver, order, judgement,
certification, consent, receipt or other paper or document furnished to it (not only as to genuineness, but also as to its due execution and validity, the genuineness of signatures appearing thereon
and as to the truth and accuracy of any information therein contained), which it in good faith believes to be genuine and signed or presented by the proper person. 

        (e)
Neither the Escrow Agent nor any of its directors, officers or employees shall be liable to anyone for any error of judgment, or for any act done or step taken or omitted to be taken
by it or any of its directors, officers or employees, or for any mistake of fact or law, or for anything which it, or any of its directors, officers or employees, may do or refrain from doing in
connection with or in the administration of this Agreement, unless and except to the extent the same constitutes gross negligence, bad faith or willful misconduct on the part of the Escrow Agent. In
no event shall the Escrow Agent be liable for any indirect, punitive, special or consequential damages, or any amount in excess of the value of the Escrow Shares (as of the date of the action or
omission giving rise to liability). 

        (f)
The Escrow Agent shall not be deemed to have notice of any fact, claim or demand with respect hereto unless actually known by an officer charged with responsibility for administering
this Agreement or unless in writing received by the Escrow Agent and making specific reference to this Agreement. 

        (g)
No provision of this Agreement shall require the Escrow Agent to expend or risk its own funds, or to take any legal or other action hereunder which might in its judgement involve it
in, or require it to incur in connection with the performance of its duties hereunder, any expense or any financial liability unless it shall be furnished with indemnification acceptable to it. 

        (h)
Any permissive right of the Escrow Agent to take any action hereunder shall not be construed as duty. 

        (i)
All indemnifications contained in this Agreement shall survive the resignation or removal of the Escrow Agent, and shall survive the termination of this Agreement. 

        (j)
The Escrow Agent is not responsible for the recitals appearing in this Agreement. The recitals shall be deemed to be statements of the interested parties to this Agreement. 

        (k)
The Escrow Agent has no responsibility for the sufficiency of this Agreement for any purpose. Without limiting the foregoing, if any security interest is referred to herein, the
Escrow Agent shall have no responsibility for, and makes no representation or warranty as to, the creation, attachment or perfection of any such security interest or the sufficiency of this Agreement
therefor. 

        (l)
Nothing in this Agreement shall obligate the Escrow Agent to qualify to do business or act in any jurisdiction in which it is not presently qualified to do business, or be deemed to
impose upon the Escrow Agent the duties of a trustee. The duties of the Escrow Agent under this Agreement are strictly ministerial in nature. 

        (m)
In no event shall the Escrow Agent have any liability for any failure or inability of any of the interested parties to perform or observe his or its duties under the Agreement, or by
reason of a breach of this Agreement by either of the interested parties. In no event shall the Escrow Agent be obligated to take any action against any of the interested parties to compel performance
hereunder. 

5

 

        (n)
The Escrow Agent shall in no instance be obligated to commence, prosecute or defend any legal proceedings in connection herewith. The Escrow Agent shall be authorized and entitled,
however, in any instance to commence, prosecute or defend any legal proceedings in connection herewith, including without limitation any proceeding it may deem necessary to resolve any matter or
dispute, to obtain a necessary declaration of rights, or to appoint a successor upon resignation (and after failure by the interested parties to appoint a successor, as provided in Section 13). 

        (o)
Whenever the terms hereof call for any notice, payment or other action on a day which is not a business day, such payment or action may be taken, or such notice given, as the case
may be, on the next succeeding business day. As used herein, "business day" shall mean any day other than a Saturday or Sunday, or any other day on which the Escrow Agent is closed for business. 

        (p)
In the event of any ambiguity or uncertainty under this Agreement, or in any notice, instruction, or other communication received by the Escrow Agent hereunder, the Escrow Agent may,
in its reasonable discretion, refrain from taking action, and may retain the Escrow Shares, until and unless it receives written instruction signed by all interested parties, or a decision by a court
of competent jurisdiction which eliminates such uncertainty or ambiguity. 

        (q)
If at any time Escrow Agent is served with any judicial or administrative order, judgement, decree, writ or other form of judicial administrative process which in any way relates to
or affects the Escrow Shares (including but not limited to orders of attachment or garnishment or other forms of levies or injunctions or stays relating to the Escrow Shares), Escrow Agent is
authorized to comply therewith in any manner as it or its legal counsel reasonably deems appropriate; and if the Escrow Agent complies with any such judicial or administrative order, judgement,
decree, writ or other form of judicial or administrative process, Escrow Agent shall not be liable to any of the Parties hereto or to any other person or entity notwithstanding that though such order,
judgement, decree, writ or process may be subsequently modified, annulled, set aside, vacated, found to have been without proper jurisdiction, or otherwise determined to have been without legal force
or effect. 

        (r)
The Escrow Agent shall have no liability for the actions or omissions of any transfer agent, book-entry depository, nominee, correspondent, subagent or subcustodian,
except to the extent that such action or omission of any transfer agent, book-entry depository, nominee, correspondent, subagent or subcustodian was caused by the Escrow Agent's own gross
negligence, bad faith or willful misconduct. 

        (s)
The parties understand that the Escrow Shares are not subject to an effective registration statement at the time of this Agreement, and that the Escrow Agent shall not be responsible
for fluctuations in the market in connection with any transfer of the shares. 

        10.    Indemnification.    

        (a)    General.    Each of the Shareholders (jointly and severally as a group) and LP, jointly and severally, hereby
covenant and agree to indemnify the Escrow Agent for, and to defend and hold harmless the Escrow Agent from and against, any and every loss, liability, damage, claim, cost and expense of any nature
incurred or suffered by the Escrow Agent and arising out of or in connection with this Agreement or the administration of this Agreement or the performance or observance by the Escrow Agent of its
responsibilities or services under this Agreement (including but not limited to reasonable attorneys fees and other costs and expenses of defending or preparing to defend against any claim or
liability), unless and except to the extent such loss, liability, damage, cost or expense shall be caused by the Escrow Agent's own willful misconduct, bad faith or gross negligence; provided, that
any indemnification payment required to be made to the Escrow Agent by the Shareholders should be made from, and as a charge against, the Escrow Account. 

        (b)    Tax-Related Matters.    Each of the Shareholders (jointly and severally as a group) and LP, jointly
and severally, agree to assume any and all obligations imposed now or hereafter by any 

6

 

applicable tax law with respect to the payment of Escrow Shares under this Agreement, and, without limiting the generality of Section 10(a) above, hereby agree to indemnify and hold the Escrow
Agent harmless from and against any taxes, additions for late payment, interest, penalties and other expenses, that may be assessed against the Escrow Agent on any such payment or other activities
under this Agreement. LP and each of the Shareholders undertake to instruct the Escrow Agent in writing with respect to the Escrow Agent's responsibility for withholding and other taxes, assessments
or other governmental charges, certifications and governmental reporting in connection with its acting as Escrow Agent under this Agreement. Each of the Shareholders (severally as a group) and LP,
jointly and severally, agree to indemnify and hold the Escrow Agent harmless from any liability on account of taxes, assessments or other governmental charges, including without limitation the
withholding or deduction of or the failure to withhold or deduct same, and any liability for failure to obtain proper certifications or to properly report to governmental authorities, to which the
Escrow Agent may be or become subject in connection with or which arises out of this Agreement, including costs and expenses (including reasonable legal fees), interest and penalties. The interested
parties shall each promptly provide Escrow Agent with appropriate IRS Forms W-9 for taxpayer identification number certifications, or Forms W-8 for nonresident alien
certifications in connection with any payments to be made to them. 

        11.    Termination.    If this Agreement is not terminated pursuant to Section 5 above, this Agreement shall
terminate upon the later of the Termination Date or the distribution by the Escrow Agent of all of the
Escrow Account in accordance with this Agreement, provided that the provisions of Sections 9 and 10 above shall survive such termination. 

        12.    Notices.    All notices, requests, demands, and other communications under this Agreement shall be in writing
and shall be deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given, on the first business day following the date of transmittal of
services via telecopy to the party to whom notice is to be given, or on the fifth day after mailing if mailed to the party to whom notice is to be given, by first class mail, registered or certified,
postage prepaid, or by an internationally recognized courier service, and properly addressed as follows (or at such other address for a party as shall be specified by like notice): 

	To LP at:	 	LivePerson, Inc.

462 Seventh Avenue

New York, New York 10018

Attention: Timothy E. Bixby
	

With a copy to:	
 	

Brobeck, Phleger & Harrison LLP

1633 Broadway, 47th Floor

New York, NY 10019

Attention: Brian Margolis, Esq.

Telecopy No.: (212) 586-7878
	

To the Shareholders Agent:	
 	

Eitan Ron

c/o HumanClick Ltd.

P.O. Box 193

Bnei Zion, Israel 60910

Telecopier: (972) 9-741-2311
	

With a copy to:	
 	

Zellermayer, Pelossof, Adv.

Europe House 37 Shaul Hamelech

Tel Aviv, Israel 64928

Attention: Guy Even Ezra, Esq.

Telecopier: (972) 3-695-2884
	
 	
 	

 

7

 

	

To Escrow Agent at:	
 	

First Union National Bank

One World Trade Center, 47th Floor

New York, NY 10048

Attention: Corporate Trust Group

        Notwithstanding
anything herein to the contrary, any party may give any notice, request, demand, claim or other communication hereunder by personal delivery or telecopy, but no such
notice, request, demand, claim or other communication shall be deemed to have been duly given unless and until it actually is received by the party for whom it is intended. Any party may change the
address to which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other parties notice in the manner herein set forth. Copies of any notice,
request, demand, claim or other communication hereunder by personal delivery or telecopy given to the Escrow Agent by either party, shall be delivered to the other party as soon thereafter as
practicable. 

        13.    Successor Escrow Agent.    In the event the Escrow Agent becomes unavailable or unwilling to continue in its
capacity herewith, the Escrow Agent may resign and be discharged from its duties or obligations hereunder by delivering a resignation to the parties, not less than 60 days prior to the date
when such resignation shall take effect. LP may appoint a successor Escrow Agent with the consent of the Shareholders' Agent, which shall not be unreasonably withheld. If, within such notice period,
LP provides to the Escrow Agent written instructions with respect to the appointment of a successor Escrow Agent and directions for the transfer of any Escrow Shares then held by the Escrow Agent to
such successor, the Escrow Agent shall act in accordance with such instructions and promptly transfer such Escrow Shares to such designated successor. If no successor is so appointed, the Escrow Agent
may apply to a court of competent jurisdiction for such appointment. 

        14.    General.    

        (a)    Governing Law, Assigns.    This Agreement shall be governed by and construed in accordance with the internal
laws of the State of New York without regard to conflict-of-law and choice of law principles and shall be binding upon, and inure to the benefit of, the parties and their
respective successors and assigns. 

        (b)    Counterparts.    This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 

        (c)    Entire Agreement.    Except for the provisions of the Stock Purchase Agreement referenced herein, this
Agreement constitutes the entire understanding and agreement of the Parties with respect to the subject matter of this Agreement and supersedes all prior agreements or understandings, written or oral,
between the Parties with respect to the subject matter hereof. 

        (d)    Waivers.    No waiver by any party hereto of any condition or of any breach of any provision of this Escrow
Agreement shall be effective unless in writing. No waiver by any party of any such condition or breach, in any one instance, shall be deemed to be a further or continuing waiver of any such condition
or breach or a waiver of any other condition or breach of any other provision contained herein. 

        (e)    Amendment.    This Agreement may be amended only with the written consent of an LP Agent, the Escrow Agent and
the Shareholders' Agent. 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

8

 

        IN
WITNESS WHEREOF, the Parties have duly executed this Escrow Agreement as of the day and year first above written. 

	 	 	LIVEPERSON, INC.
	

 	
 	

By:	
 	

/s/  ROBERT P. LOCASCIO      
 Name: Robert P. LoCascio

Title: President
	

 	
 	
HUMANCLICK LTD.
	

 	
 	

By:	
 	

/s/  EITAN RON      
 Name: Eitan Ron

Title: CEO
	

 	
 	

By:	
 	

/s/  TAL GOLDBERG      
 Name: Tal Goldberg

Title: President
	

 	
 	
FIRST UNION NATIONAL BANK,
 as Escrow Agent
	

 	
 	

By:	
 	

/s/  MICHELLE MENA      
 Name: Michelle Mena

Title: Corporate Trust Officer
	

 	
 	
EITAN RON,

as Shareholders' Agent
	

 	
 	

By:	
 	

/s/  EITAN RON      

9

 
Schedule A

ESCROW SHARES  

	Name of Registered Holder
 
	 	Certificate Number
	 	Number of Shares

	Eitan Ron	 	 	 	260,717
	Tal Goldberg	 	 	 	260,717
	Halakoch Hane'eman

Hashmonim Vetisha Ltd.	 	 	 	17,230
	J. Even Ezra Ltd.	 	 	 	176,905
	Had-Noa Holdings Ltd.	 	 	 	6,821
	Gilbridge Holdings Ltd.	 	 	 	312,691
	Philippe Lang	 	 	 	17,341
	Max Herzberg	 	 	 	7,183

10

QuickLinks

EXHIBIT 10.7.3QuickLinks
 -- Click here to rapidly navigate through this document

 
 

EXHIBIT 10.7.4    
  

REPURCHASE OPTION AGREEMENT  

        THIS AGREEMENT is made this 12th day of October 2000, between LivePerson, Inc., a Delaware corporation (the "Company"), Eitan Ron and Tal Goldberg
(each a "Founder" and together, the "Founders"), and First Union National Bank, as Escrow Agent (the "Escrow Agent"). 

        WHEREAS,
reference is made to the Stock Purchase Agreement, dated as of the date hereof, by and among the Company, HumanClick Ltd. ("HumanClick") and the shareholders listed on
the signature pages thereto (the "Shareholders") (the "Purchase Agreement"), pursuant to which the shareholders, including the Founders, have agreed to exchange their shares of HumanClick for shares
of the Company's common stock, $0.001 par value per share (the "Common Stock"), of which 2,085,732 shares of Common Stock will be acquired by the Founders (the Founders' Stock); 

        WHEREAS,
the execution and delivery of this Agreement is a condition precedent to the transactions contemplated by the Purchase Agreement; and 

        WHEREAS,
the parties hereto desire to agree upon the terms upon which the Founders' Stock may be repurchased by the Company in the event a Founder's employment with HumanClick is
terminated. 

        NOW
THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter set forth, the parties hereto agree as follows: 

        1.    Repurchase Option.    

        (a)
In the event of (i) the voluntary termination which is not Good Reason termination, or (ii) involuntary termination for Cause, of a Founder's employment with or
services to HumanClick, the
Company shall have, upon the date of such termination (as reasonably fixed and determined by the Company), an irrevocable, exclusive option ("Repurchase Option") for a period of ninety
(90) days (subject to Section 1(d) hereof) from such date to repurchase, at a price equal to the lower of (i) the average closing price for a share of the Company's Common Stock
as quoted on the Nasdaq Stock Market for the 30 trading days following the date of such termination (the "Market Price") and (ii) seven dollars ($7.00) per share, all or any portion of such
Founders' Stock that are Unreleased Founders' Stock (as hereinafter defined). The Company may exercise its Repurchase Option by giving written notice to the applicable Founder (with a copy to the
Escrow Agent) and, at the option of the Company, (i) by delivering to such Founder a check in the amount of the repurchase price for the Founders' Stock being repurchased, or (ii) by
canceling such of the applicable Founder's indebtedness to the Company equal to the repurchase price for the Founders' Stock being repurchased, or (iii) a combination of (i) and
(ii) equal to the repurchase price for the Founders' Stock being repurchased. Upon delivery of such notice and payment of the repurchase price, the Company shall become the legal and beneficial
owner of the Founders' Stock being repurchased (and all rights and interests therein or relating thereto) and shall have the right to retain and transfer to its own name the number of shares of
Founders' Stock being repurchased. 

        (b)
Whenever the Company shall have the right to repurchase Founders' Stock hereunder, the Company may designate and assign one or more employees, officers, directors or shareholders of
the Company or other persons or organizations to exercise all or a part of the Repurchase Option and purchase all or a part of such Founders' Stock. 

        (c)
Notwithstanding the provisions of Section 1(a) hereunder, in the event of (a) the sale of all or substantially all of the assets of the Company, or (b) the
consummation of a consolidation or a merger in which the Company is not the surviving entity (other than a consolidation or merger in which the shareholders of the Company immediately before the
consolidation or merger hold, immediately after the consolidation or merger, securities representing more than 50% of the voting power and equity of the surviving entity) (such events, a
"Change-in-Control Event"), the Repurchase Option shall be exercisable by the Company or its successors and assigns at a per share price equal to the higher of: 

 

(i) the per share price paid in such transaction, and (ii) the lower of (x) the Market Price and (y) seven dollars ($7.00) per share. 

        (d)
Notwithstanding the provisions of Section 1(a) hereunder, in the event of the (i) voluntary termination which is not for Good Reason, or (ii) involuntary
termination for Cause, of a Founder's employment with or services to HumanClick, prior to the Termination Date (as that term is defined in that certain Escrow Agreement, dated of even date hereof, by
and among the Company, HumanClick Ltd., First Union National Bank (as Escrow Agent), and Eitan Ron (as Shareholders' Agent) (the "Escrow Agreement")), then the Repurchase Option period for any
Unreleased Founders' Stock that has been held in escrow pursuant to the Escrow Agreement shall end on the later of three
business days after (x) the date on which a Founder's shares are first released pursuant to Section 5(b) of the Escrow Agreement (the "Release Date") or (y) the date after the
Release Date on which there are no shares subject to Outstanding Claim Notices under the Escrow Agreement or (z) the date that is 30 days after the date of such termination. 

        2.    Release of Shares From Repurchase Option.    

        (a)
Seventy-five percent (75%) of each Founders' Stock shall be subject to the Company's Repurchase Option as of the Closing Date (as defined in the Purchase Agreement) (the
"Vesting Start Date"); provided that it is understood that such portion of each Founders' Stock shall be inclusive of the shares held in escrow pursuant to the Escrow Agreement. The Founders' Stock
subject to the Repurchase Option of each Founder shall be released from the Company's Repurchase Option as follows: (i) the portion (if any) of each Founder's shares subject to the Escrow
Agreement which have not been released to Indemnified Parties in satisfaction of Damages shall be released from the Company's Repurchase Option at the first anniversary of the Vesting Start Date; and
(ii) one-third of the shares of such Founder's Founders' Stock subject to the Repurchase Option shall be released from the Company's Repurchase Option at the second and third
anniversary of the Vesting Start Date (respectively), provided that in each case the applicable Founder's employment by or services to HumanClick has not been terminated voluntarily (excluding
voluntary termination for Good Reason) or for Cause prior to the date of any such release and the Company has not exercised its Repurchase Option pursuant to Section 1 hereunder. On the
termination of the employment of a Founder by HumanClick not for Cause or in case of termination due to death or disability or by the Founder for Good Reason, all Unreleased Founders' Stock held by
such Founder shall be immediately released from the Company's Repurchase Option and shall be delivered to such Founder. 

        (b)
Any of the shares of Founders' Stock which have not yet been released from the Company's Repurchase Option are referred to herein as "Unreleased Founders' Stock." Unreleased
Founders' Stock shall be deemed to exclude any shares released to any Indemnified Party or subject to Claim Notices on the Release Date under the Escrow Agreement; provided that if any shares subject
to a Claim Notice on the Release Date are to be subsequently released to the Founders (or a trustee) pursuant to the Escrow Agreement, such released shares shall then be deemed to be Unreleased
Founders' Stock until released from the Company's Repurchase Option pursuant to the terms of this Agreement and with joint written direction provided to the Escrow Agent executed by both parties in
the form attached hereto as Exhibit A.

        (c)
The shares of Founders' Stock which have been released from the Company's Repurchase Option shall be delivered to an Israeli trustee, the identity of which shall be delivered to the
Company and the Escrow Agent within 30 days of the date hereof (the "Israeli Trustee"), for the benefit of the applicable Founder at such Founder's request. 

        (d)
Employment with HumanClick constitutes at-will employment. This Agreement shall not confer upon any Founder any right with respect to continuation of employment by
HumanClick, nor shall it interfere with or affect in any manner the right or power of HumanClick, or a parent or subsidiary of HumanClick, to terminate any Founder's employment at any time or for any
reason, with or without 

2

 

Cause. For purposes of this Agreement, "Cause" and "Good Reason" shall have the meaning attributed to such term in such Founder's Employment Agreement (as defined in the Purchase Agreement). 

        3.    Restriction on Transfer.    Except for the escrow described in Section 4 or transfer of the Unreleased
Founders' Stock to the Company or its assignees contemplated by this Agreement, none of the shares of Unreleased Founders' Stock or any beneficial interest therein shall be transferred, encumbered or
otherwise disposed of in any way until the release of such Founders' Stock from the Repurchase Option in accordance with the provisions of this Agreement. 

        4.    Escrow of Shares.    

        (a)
The Founders' Stock subject to the Repurchase Option shall be held by the Escrow Agent, along with stock assignments executed by each Founder in blank, until the expiration of the
Company's option to repurchase such Founders' Stock as set forth above. The fees of the Escrow Agent shall be paid by the Company. 

        (b)
The Escrow Agent is hereby directed to permit transfer of the Founders' Stock only in accordance with this Agreement or instructions signed by both parties. In the event further
instructions are desired by the Escrow Agent, the Escrow Agent shall be entitled to rely upon directions executed by a majority of the authorized number of the Company's Board of Directors. The Escrow
Agent shall have no liability for any act or omission hereunder while acting in good faith in the exercise of the Escrow Agent's own judgment. In the event the Escrow Agent is directed to transfer the
Founders' Stock to the Founders, the Escrow Agent shall transfer such shares to the Israeli Trustee for the benefit of the applicable Founder with the joint written direction executed by both parties
in the form attached hereto as Exhibit A.

        (c)
If the Company or any assignee exercises its Repurchase Option hereunder, the Escrow Agent, upon receipt of written notice of such option exercise from the proposed transferee and a
written evidence that the amounts due for the shares have been paid to the Founder, shall take all steps necessary to accomplish such transfer. 

        (d)
When the Repurchase Option has been exercised or expires unexercised or a portion of the Founders' Stock has been released from such Repurchase Option, upon the applicable Founder's
request the Escrow Agent shall promptly cause a new certificate to be issued for such released Founders' Stock and shall deliver such certificate to the Israeli Trustee for the benefit of the
applicable Founder with the joint written direction executed by both parties in the form attached hereto as Exhibit A.

        (e)
Subject to the terms hereof, the applicable Founder shall have all the rights of a shareholder with respect to such Founders' Stock subject to the Repurchase Option while they are
held in escrow, including without limitation, the right to vote the shares of Founders' Stock subject to the Repurchase Option and receive any cash dividends declared thereon. If, from time to time
during the term of the Company's Repurchase Option, there is (i) any stock dividend, stock split or other change in the Founders' Stock subject to the Repurchase Option, or (ii) any
merger or sale of all or substantially all of the assets of or other acquisition of the Company, any and all new, substituted or additional securities to which each Founder is entitled by reason of
the Purchaser's ownership of the Shares shall be immediately subject to this escrow, deposited with the Escrow Agent and included thereafter as "Founders' Stock subject to the Repurchase Option" for
purposes of this Agreement and the Company's Repurchase Option. 

        5.    General Terms and Standards Regarding the Escrow Agent.    Notwithstanding any terms of this Agreement to the
contrary, each term of this Agreement, including without limitation each of the 

3

 

stated duties and responsibilities of the Escrow Agent set forth herein, shall be subject to the following terms and conditions: 

        (a)
The duties, responsibilities and obligations of the Escrow Agent shall be limited to those expressly set forth in this Agreement (and the duty to exercise reasonable care in the
physical safekeeping of any property held in escrow hereunder), and no implied duties, responsibilities or obligations shall be read into this Agreement against the Escrow Agent. Without limiting the
generality of the foregoing, the Escrow Agent shall have no duty to take action to preserve or exercise rights in any property held by it hereunder (including, without limitation, against prior
parties or otherwise). 

        (b)
The Escrow Agent shall not be subject to, bound by, charged with notice of or be required to comply with or interpret any agreement or document (including without limitation the
Purchase Agreement) between or among the interested parties (whether or not reference to any such other agreement or documents is expressed herein) other than this Agreement. 

        (c)
The Escrow Agent shall in no instance be under any duty to give any property held by it hereunder any greater degree of care than it gives its own similar property. The Escrow Agent
shall not be required to invest any funds held hereunder, and shall not be obligated to pay interest on uninvested funds. All amounts received by the Escrow Agent (and any credits to the Escrow
Account) shall be conditional upon collection (and actual receipt by the Escrow Agent of final payment). In no event shall the Escrow Agent have any obligation to advance funds. 

        (d)
The Escrow Agent may rely upon, and shall be protected in acting or refraining from acting upon, any written notice, instruction, statement, request, waiver, order, judgement,
certification, consent, receipt or other paper or document furnished to it (not only as to genuineness, but also as to its due
execution and validity, the genuineness of signatures appearing thereon and as to the truth and accuracy of any information therein contained), which it in good faith believes to be genuine and signed
or presented by the proper person. 

        (e)
Neither the Escrow Agent nor any of its directors, officers or employees shall be liable to anyone for any error of judgment, or for any act done or step taken or omitted to be taken
by it or any of its directors, officers or employees, or for any mistake of fact or law, or for anything which it, or any of its directors, officers or employees, may do or refrain from doing in
connection with or in the administration of this Agreement, unless and except to the extent the same constitutes gross negligence, bad faith or willful misconduct on the part of the Escrow Agent. In
no event shall the Escrow Agent be liable for any indirect, punitive, special or consequential damages, or any amount in excess of the value of the Unreleased Founders' Stock (as of the date of the
action or omission giving rise to liability). 

        (f)
The Escrow Agent shall not be deemed to have notice of any fact, claim or demand with respect hereto unless actually known by an officer charged with responsibility for administering
this Agreement or unless in writing received by the Escrow Agent and making specific reference to this Agreement. 

        (g)
No provision of this Agreement shall require the Escrow Agent to expend or risk its own funds, or to take any legal or other action hereunder which might in its judgement involve it
in, or require it to incur in connection with the performance of its duties hereunder, any expense or any financial liability unless it shall be furnished with indemnification acceptable to it. 

        (h)
Any permissive right of the Escrow Agent to take any action hereunder shall not be construed as duty. 

        (i)
All indemnifications contained in this Agreement shall survive the resignation or removal of the Escrow Agent, and shall survive the termination of this Agreement. 

        (j)
The Escrow Agent is not responsible for the recitals appearing in this Agreement. The recitals shall be deemed to be statements of the interested parties to this Agreement. 

4

 

        (k)
The Escrow Agent has no responsibility for the sufficiency of this Agreement for any purpose. Without limiting the foregoing, if any security interest is referred to herein, the
Escrow Agent shall have no responsibility for, and makes no representation or warranty as to, the creation, attachment or perfection of any such security interest or the sufficiency of this Agreement
therefor. 

        (l)
Nothing in this Agreement shall obligate the Escrow Agent to qualify to do business or act in any jurisdiction in which it is not presently qualified to do business, or be deemed to
impose upon the Escrow Agent the duties of a trustee. The duties of the Escrow Agent under this Agreement are strictly ministerial in nature. 

        (m)
In no event shall the Escrow Agent have any liability for any failure or inability of any of the interested parties to perform or observe his or its duties under the Agreement, or by
reason of a breach of this Agreement by either of the interested parties. In no event shall the Escrow Agent be obligated to take any action against any of the interested parties to compel performance
hereunder. 

        (n)
The Escrow Agent shall in no instance be obligated to commence, prosecute or defend any legal proceedings in connection herewith. The Escrow Agent shall be authorized and entitled,
however, in any instance to commence, prosecute or defend any legal proceedings in connection herewith, including without limitation any proceeding it may deem necessary to resolve any matter or
dispute, to obtain a necessary declaration of rights, or to appoint a successor upon resignation (and after failure by the interested parties to appoint a successor, as provided in Section 10). 

        (o)
Whenever the terms hereof call for any notice, payment or other action on a day which is not a business day, such payment or action may be taken, or such notice given, as the case
may be, on the next succeeding business day. As used herein, "business day" shall mean any day other than a Saturday or Sunday, or any other day on which the Escrow Agent is closed for business. 

        (p)
In the event of any ambiguity or uncertainty under this Agreement, or in any notice, instruction, or other communication received by the Escrow Agent hereunder, the Escrow Agent may,
in its reasonable discretion, refrain from taking action, and may retain the Unreleased Founders' Stock, until and unless it receives written instruction signed by all interested parties, or a
decision by a court of competent jurisdiction which eliminates such uncertainty or ambiguity. 

        (q)
If at any time Escrow Agent is served with any judicial or administrative order, judgement, decree, writ or other form of judicial administrative process which in any way relates to
or affects the Unreleased Founders' Stock (including but not limited to orders of attachment or garnishment or other forms of levies or injunctions or stays relating to the Unreleased Founders'
Stock), Escrow Agent is authorized to comply therewith in any manner as it or its legal counsel reasonably deems appropriate; and if the Escrow Agent complies with any such judicial or administrative
order, judgement, decree, writ or other form of judicial or administrative process, Escrow Agent shall not be liable to any of the Parties hereto or to any other person or entity notwithstanding that
though such order, judgement, decree, writ or process may be subsequently modified, annulled, set aside, vacated, found to have been without proper jurisdiction, or otherwise determined to have been
without legal force or effect. 

        (r)
The Escrow Agent shall have no liability for the actions or omissions of any transfer agent, book-entry depository, nominee, correspondent, subagent or subcustodian,
except to the extent that such action or omission of any transfer agent, book-entry depository, nominee, correspondent, subagent or subcustodian was caused by the Escrow Agent's own gross
negligence, bad faith or willful misconduct. 

        (s)
The parties understand that the Unreleased Founders' Stock is not subject to an effective registration statement at the time of this Agreement, and that the Escrow Agent shall not be
responsible for fluctuations in the market in connection with any transfer of the shares. 

5

 

        6.    Indemnification.    

        (a)    General.    Each of the Founders (jointly and severally as a group) and the Company, jointly and severally,
hereby covenant and agree to indemnify the Escrow Agent for, and to defend and hold harmless the Escrow Agent from and against, any and every loss, liability, damage, claim, cost and expense of any
nature incurred or suffered by the Escrow Agent and arising out of or in connection with this Agreement or the administration of this Agreement or the performance or observance by the Escrow Agent of
its responsibilities or services under this Agreement (including but not limited to reasonable attorneys fees and other costs and expenses of defending or preparing to defend against any claim or
liability), unless and except to the extent such loss, liability, damage, cost or expense shall be caused by the Escrow Agent's own willful misconduct, bad faith or gross negligence. 

        (b)    Tax-Related Matters.    Each of the Founders (jointly and severally as a group) and the Company,
jointly and severally, agree to assume any and all obligations imposed now or hereafter by any applicable tax law with respect to this Agreement, and, without limiting the generality of
Section 6(a) above, hereby agree to indemnify and hold the Escrow Agent harmless from and against any taxes, additions for late payment, interest, penalties and other expenses, that may be
assessed against the Escrow Agent on any payment or other activities under this Agreement. The Company and each of the Founders undertake to instruct the Escrow Agent in writing with respect to the
Escrow Agent's responsibility for withholding and other taxes, assessments or other governmental charges, certifications and governmental reporting in connection with its acting as Escrow Agent under
this Agreement. Each of the Founders (severally as a group) and the Company, jointly and severally, agree to indemnify and hold the Escrow Agent harmless from any liability on account of taxes,
assessments or other governmental charges, including without limitation the withholding or deduction of or the failure to withhold or deduct same, and any liability for failure to obtain proper
certifications or to properly report to governmental authorities, to which the Escrow Agent may be or become subject in connection with or which arises out of this Agreement, including costs and
expenses (including reasonable legal fees), interest and penalties. The interested parties shall each promptly provide Escrow Agent with appropriate IRS Forms W-9 for taxpayer
identification number certifications, or Forms W-8 for nonresident alien certifications in connection with any payments to be made to them. 

        7.    Legends.    The share certificate(s) evidencing the Founders' Stock issued hereunder shall be endorsed with the
following legends: 

	(a)
	Any
legend required to be placed thereon pursuant to the Purchase Agreement.

	(b)
	THE
SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF A REPURCHASE AGREEMENT BETWEEN THE COMPANY AND THE SHAREHOLDER, A COPY OF WHICH IS
ON FILE WITH THE SECRETARY OF THE COMPANY.

	(c)
	Any
legend required to be placed thereon by applicable state securities laws. 

        8.    Adjustment for Stock Split.    All references to the number of shares of Founders' Stock and the purchase price
of the shares of Founders' Stock in this Agreement shall be appropriately adjusted to reflect any stock split, stock dividend or other change in the Founders' Stock that may be made by the Company
after the date of this Agreement. 

        9.    Notices.    All notices, requests, demands, and other communications under this Agreement shall be in writing
and shall be deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given, on the first business day following the date of transmittal of
services via telecopy to the party to whom notice is to be given, or on the fifth day after mailing if mailed to the party to whom notice is to be given, by first class mail, registered or certified, 

6

 

postage prepaid, or by an internationally recognized courier service, and properly addressed as follows (or at such other address for a party as shall be specified by like notice): 

	To the Company at:	 	LivePerson, Inc.

462 Seventh Avenue

New York, New York 10018

Attention: Timothy E. Bixby
	

With a copy to:	
 	

Brobeck, Phleger & Harrison LLP

1633 Broadway, 47th Floor

New York, NY 10019

Attention: Brian Margolis, Esq.

Telecopy No.: (212) 586-7878
	

To the Founders:	
 	

Eitan Ron

c/o HumanClick Ltd.

P.O. Box 193

Bnei Zion, Israel 60910

Telecopier: (972) 9-741-2311
	

With a copy to:	
 	

Zellermayer, Pelossof, Adv.

Europe House

37 Shaul Hamelech

Tel Aviv, Israel 64928

Attention: Guy Even Ezra, Esq.

Telecopier: (972) 3-695-2884
	

To Escrow Agent at:	
 	

First Union National Bank

One World Trade Center, 47th Floor

New York, NY 10048

Attention: Corporate Trust Group

        Notwithstanding
anything herein to the contrary, any party may give any notice, request, demand, claim or other communication hereunder by personal delivery or telecopy, but no such
notice, request, demand, claim or other communication shall be deemed to have been duly given unless and until it actually is received by the party for whom it is intended. Any party may change the
address to which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other parties notice in the manner herein set forth. Copies of any notice,
request, demand, claim or other communication hereunder by personal delivery or telecopy given to the Escrow Agent by either party, shall be delivered to the other party as soon thereafter as
practicable. 

        10.    Successor Escrow Agent.    In the event the Escrow Agent becomes unavailable or unwilling to continue in its
capacity herewith, the Escrow Agent may resign and be discharged from its duties or obligations hereunder by delivering a resignation to the parties, not less than 60 days prior to the date
when such resignation shall take effect. The Company may appoint a successor Escrow Agent with the consent of the Founders, which shall not be unreasonably withheld. If, within such notice period, the
Company provides to the Escrow Agent written instructions with respect to the appointment of a successor Escrow Agent and directions for the transfer of any Unreleased Founders' Stock then held by the
Escrow Agent to such successor, the Escrow Agent shall act in accordance with such instructions and promptly transfer such Unreleased Founders' Stock to such designated successor. If no successor is
so appointed, the Escrow Agent may apply to a court of competent jurisdiction for such appointment. 

7

 

        11.    General Provisions.    

        (a)
This Agreement shall be governed by the internal laws of the State of New York without reference to such State's principles of conflicts of law. This Agreement and the Purchase
Agreement (including all exhibits and schedules thereto) represent the entire agreement between the parties with respect to the issuance and sale of the Purchaser Shares (as defined in the Purchase
Agreement) to the Shareholders, and may only be modified or amended in writing signed by all parties. 

        (b)
The rights and benefits of the Company under this Agreement shall be transferable to the Company's successor and assigns upon a Change-in-Control Event, or to
any one or more persons or entities with the prior written consent of the Founders, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by, the Company's
successors and assigns. The rights and obligations of the Founders under this Agreement may only be assigned with the prior written consent of the Company. 

        (c)
Either party's failure to enforce any provision or provisions of this Agreement shall not in any way be construed as a waiver of any such provision or provisions, nor prevent that
party thereafter from enforcing each and every other provision of this Agreement. The rights granted both parties herein are cumulative and shall not constitute a waiver of either party's right to
assert all other legal remedies available to it under the circumstances. 

        (d)
The Founders agree upon request to execute any further documents or instruments necessary or desirable to carry out the purposes or intent of this Agreement. 

        (e)
The Founders understand that each of the Founders (and not the Company) shall be responsible for each Founder's own federal, state, local or foreign tax liability and any of the
Founder's other tax consequences that may arise as a result of the transactions contemplated by this Agreement. The Founders shall rely solely on the determinations of the Founders' tax advisors or
their own determinations, and not on any statements or representations by the Company or any of its agents, with regard to all such tax matters. 

        (f)
The Company undertakes to execute the joint written direction in the form attached hereto as Exhibit A whenever required
pursuant to the terms of this Agreement. 

8

 

        IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first set forth above. 

	COMPANY	 	FOUNDERS
	

LivePerson, Inc.

a Delaware corporation	
 	

Eitan Ron
	

By:	
 	

/s/  ROBERT P. LOCASCIO      
 (Signature)	
 	

/s/  EITAN RON      
 (Signature)
	

Robert P. Locascio
 (Print Name)	
 	

Eitan Ron
 (Print Name)
	

President
 (Print Title if signing on behalf of an entity)	
 	

 
	
ESCROW AGENT	
 	

Tal Goldberg
	

First Union National Bank	
 	

/s/  TAL GOLDBERG      
 (Signature)
	

By:	
 	

/s/  MICHELLE MENA      
 (Signature)	
 	

Tal Goldberg
 (Print Name)
	

Michelle Mena
 (Print Name)	
 	

 
	

Corporate Trust Officer
 (Print Title if signing on behalf of an entity)	
 	

 

9

 
ASSIGNMENT SEPARATE FROM CERTIFICATE  

        FOR VALUE RECEIVED I,                        , hereby sell, assign
and transfer unto            ,            (            ) shares of the
Common Stock of
LivePerson, Inc. standing in my name of the books of said corporation represented by Certificate
No.                        herewith and do hereby irrevocably constitute and
appoint                
attorney to transfer the said stock on the books of the within named corporation with full power of substitution in the premises. 

	Dated:  	 	Signature:  

INSTRUCTION: Please do not fill in any blanks other than the signature line. The purpose of this assignment is to enable the Company to exercise its
"Repurchase Option" set forth in the Agreement without requiring additional signatures on the part of the Purchaser. 

10

 
EXHIBIT A  

[Date] 

First
Union National Bank

One World Trade Center, 47th Floor

New York, NY 10048 

RE:    First
Union National Bank as Escrow Agent for LivePerson, Inc.

    (the "Company") and Eitan Ron and Tal Goldberg (each, a "Founder")

Repurchase Option Agreement dated October 12, 2000 (the "Agreement") 

First
Union National Bank, as Escrow Agent, is hereby authorized to release to [Israeli Trustee], [Number of Shares], pursuant to Section
            of the Agreement. The Company and the Founder signing below agree to said release. 

        Shares
should be delivered to the [Israeli Trustee] in accordance with Section    of the Agreement. 

	By: LivePerson, Inc.	 	By: [Founder]
	

 [Name]

Authorized Representative	
 	

 [Name]

Authorized Representative
	

 Title	
 	

 Title

11

QuickLinks

EXHIBIT 10.7.4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]