EXHIBIT 10.2

 

SECOND AMENDMENT TO
SOTHEBY’S AMENDED AND RESTATED
RESTRICTED STOCK PLAN

          THIS SECOND AMENDMENT to the Sotheby’s Amended and Restated Restricted
Stock Plan (“Second Amendment”), dated the seventh day of September, 2007 is
adopted by Sotheby’s, a Delaware corporation (the “Corporation”). All
capitalized terms used in this Second Amendment that are not defined herein
shall have the meanings ascribed to them in the Plan (as defined below).

RECITALS:

          A. The Sotheby’s Amended and Restated Restricted Stock Plan, as
amended (the “Plan”) was adopted by the Compensation Committee (the “Committee”)
of the Board of Directors of the Corporation in March, 2006 and approved by the
shareholders of the Corporation at the Corporation’s 2006 Annual Meeting of
Shareholders on May 8, 2006. The Plan was amended pursuant to a First Amendment
to Sotheby’s Amended and Restated Restricted Stock Plan, dated July 28, 2006.

          B. Pursuant to Section 8.1 of the Plan, the Committee has the
authority to amend the Plan. The Committee desires to and does hereby amend the
Plan, as hereinafter set forth, to authorize the grant of Restricted Stock
Entitlements to free share awards of the Corporation’s Common Stock that qualify
for preferential personal income tax and social security tax treatment under
French law.

          NOW, THEREFORE, the Plan is hereby amended by adding a new Article 12,
also referred to as the French Sub-Plan as follows:

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Article 12

     French Sub-Plan; For Individuals Who are French Resident Taxpayers and/or
Subject to the French Social Security Scheme in France

          All Awards granted under this Article 12 (also referred to as the
“French Sub-Plan”) to an Employee who is a French resident taxpayer and/or
subject to the French social security scheme in France shall comply with the
terms of this French Sub-Plan. The purpose of the French Sub-Plan is to grant
Restricted Stock Entitlements to free share awards of the Corporation’s Common
Stock that qualify for favorable income tax and social security tax treatment
under French law. In the event any other provision of the Plan conflicts with a
provision of this Article 12, the provision in Article 12 shall control with
respect to any Award granted under Article 12. No other Award granted under the
Plan shall be subject to the provisions of this Article 12.

          12.1 Definitions. The following terms shall have the following
meanings for purposes of this French Sub-Plan:

 

 

 

          (a) “Award” means, individually or collectively, a grant of Restricted
Stock Entitlements under this Article 12 to Employees who are French resident
taxpayers and/or subject to the French social security scheme in France.

 

 

 

          (b) “Disability” means a physical or mental condition corresponding to
the classification in the second or third categories laid down in Article L.
341-4 of the French Code de la Securite Sociale.

 

 

 

          (c) “Holding Period” means a 2 year period following the applicable
vesting date, during which the Employee may not sell his vested Restricted Stock
Entitlements in order to qualify for preferential income tax and social security
treatment under French law.

          12.2 Eligibility. An Award under the French Sub-Plan may be granted
only to an Employee who is a French resident taxpayer and/or subject to the
French social security scheme in France.

          12.3 Limitation on Grants Under the French Sub-Plan. Awards may not be
granted to an Employee who holds more than 10% of the Corporation’s outstanding
shares at the Date of Grant or an Employee who would hold more than 10% of the
Corporation’s outstanding shares following the Award grant.

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          12.4 Vesting Periods. Except in the case of the death or Disability of
the Employee, each Award granted under the French Sub-Plan shall vest in
accordance with the following schedule:

 

 

 

 

 

Completed Years of Employment

 

Cumulative

From Date of Grant

 

Vesting Percentage

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1

 

 

0

%

2

 

 

50

%

3

 

 

75

%

4

 or more

 

100

%

          A Participant shall be 100% vested in his Restricted Stock
Entitlements in the event his employment is terminated by reason of death or
Disability. In the event of death or Disability, the Holding Period described in
Section 12.5 will not apply but the black out restrictions on sale described in
Section 12.6 will continue to apply.

          12.5 Holding Periods. Awards granted under the French Sub-Plan shall
include a Holding Period of two (2) years following each vesting date of the
Restricted Stock Entitlements in order to qualify for special tax considerations
under French law.

          12.6 Restrictions on Sale – Black Out Periods. Following the
expiration of the Holding Period, Restricted Stock Entitlements may not be sold:

 

 

 

 

(a)

during the ten Business Days preceding and following the date on which the
Corporation’s consolidated accounts, or the annual accounts, are made public;
and

 

 

 

 

(b)

between (i) the date on which the directors and executive officers of the
Corporation have knowledge of information which, if made public, could have a
significant impact on the share price of the Common Stock; and (ii) the ten
Business Days following the date on which this information has been made public.

          12.7 Restrictions on Transfer. Restricted Stock Entitlements may not
be transferred, assigned, pledged or hypothecated in any manner whatsoever.

          12.8 Other Compliance with French Tax Law. Awards granted under the
French Sub-Plan must also comply with any other requirements set forth by the
French tax administration in effect at the Date of Grant of such Awards.

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          IN WITNESS WHEREOF, this Amendment is hereby executed as of the day
and year first above written.

 

 

 

 

SOTHEBY’S

 

 

 

 

By /s/ Susan Alexander

 

 

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Its: Executive Vice President Worldwide Human Resources

 

 

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