Document:

Untitled Document

EXHIBIT 10.1

 

EXECUTION VERSION

AMENDMENT NO. 4 TO

THE AMENDED AND RESTATED

CREDIT
AGREEMENT

	
 

	
 

	
Dated as of July 25, 2007

	
 

                    AMENDMENT
NO. 4 TO THE AMENDED AND RESTATED CREDIT AGREEMENT
among SOTHEBY’S, a Delaware corporation (“Holdings”), SOTHEBY’S, INC., a
New York corporation (the “Company” and, together with Holdings, the “U.S.
Borrowers”), OATSHARE LIMITED, a company registered in England and Wales
with registration number 01737495 (“Oatshare”), SOTHEBY’S, a company
registered in England and Wales with registration number 00874867 (“Sotheby’s”
and, together with Oatshare, the “U.K. Borrowers”, and collectively with
the U.S. Borrowers, the “Borrowers”), each lender from time to time
party hereto (collectively, the “Lenders” and individually, a “Lender”)
and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender, L/C
Issuer and Foreign Currency Lead Lender.

                    PRELIMINARY
STATEMENTS:

                    (1)
The Borrowers, the Lenders and the Administrative Agent have entered into the
Amended and Restated Credit Agreement dated as of November 14, 2005, as amended
by Amendment No. 1 to the Amended and Restated Credit Agreement dated as of
February 3, 2006, Amendment No. 2 to the Amended and Restated Credit Agreement
dated as of May 18, 2006 and Amendment No. 3 to the Amended and Restated Credit
Agreement dated as of January 2, 2007 (as so amended, the “Credit Agreement”).
Capitalized terms not otherwise defined in this Amendment have the same
meanings as specified in the Credit Agreement.

                    (2)
The Borrowers and the Lenders have agreed to amend the Credit Agreement to
permit (i) Holdings to increase permitted dividend declarations and payments
and (ii) the Borrowers to increase their capital expenditures on the purchase
and refurbishment of real property located in England.

                    SECTION
1. Amendment to Credit Agreement. The Credit Agreement is, effective as
of the date hereof and subject to the satisfaction of the conditions precedent
set forth in Section 2, hereby amended as follows:

	
 

	
 

	
 

	
 

	
 

	
(a)

	
Section
 7.06(d) is hereby amended by:

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
deleting
 “40%” after clause (ii) and substituting therefore “50%”;

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
deleting
 “June 30, 2005” after clause (ii) and substituting therefore “July 1, 2007”;
 and

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
deleting the
 “and” at the end of Section 7.06(d).

1

	
 

	
 

	
 

	
 

	
 

	
(b)

	
Section
 7.06(e) is hereby amended by deleting the “.” at the end of clause (e) and
 substituting therefore “; and”.

	
 

	
 

	
 

	
 

	
(c)

	
Section 7.06
 is hereby amended by adding at the end of such Section a new clause (f) to
 read as follows:

	
 

	
 

	
 

	
 

	
 

	
          “(f) other
 Restricted Payments not exceeding $130,000,000 in the aggregate of Holdings,
 for any Restricted Payments made on or after July 1, 2007.”

	
 

	
 

	
 

	
 

	
 

	
(d)

	
Section 7.12
 is hereby amended by deleting “$10,000,000” in clause (b) of the proviso and
 substituting therefore “$50,000,000”.

                    SECTION
2. Conditions of Effectiveness. This Amendment shall become effective as
of the date first above written when, and only when, the Administrative Agent
shall have received (i) counterparts of this Amendment executed by each
Borrower and the Required Lenders or, as to any of the Lenders, advice
satisfactory to the Administrative Agent that such Lender has executed this
Amendment and (ii) the consent attached hereto (the “Consent”) executed
by each of the Guarantors. The effectiveness of this Amendment is conditioned
upon the accuracy of the factual matters described herein. This Amendment is
subject to the provisions of Section 10.01 of the Credit Agreement.

                    SECTION
3. Representations and Warranties of the Borrowers. Each Borrower hereby
represents and warrants that the representations and warranties contained in
each of the Loan Documents (as amended or supplemented to date, including
pursuant to this Amendment) are true and correct on and as of the date hereof,
before and after giving effect to this Amendment, as though made on and as of
such date (except for any such representation and warranty that, by its terms,
refers to an earlier date, in which case as of such earlier date).

                    SECTION
4. Reference to and Effect on the Loan Documents. (a) On and after the
effectiveness of this Amendment, each reference in the Credit Agreement to
“this Agreement”, “hereunder”, “hereof” or words of like import referring to the
Credit Agreement, and each reference in the Notes and each of the other Loan
Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like
import referring to the Credit Agreement, shall mean and be a reference to the
Credit Agreement, as amended by this Amendment.

                    
(b) The Credit Agreement, the Notes, and each of the other Loan Documents, as
specifically amended by this Amendment, are and shall continue to be in full
force and effect and are hereby in all respects ratified and confirmed.

                    
(c) The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power or
remedy of any Lender or the Administrative Agent under any of the Loan
Documents, nor constitute a waiver of any provision of any of the Loan
Documents.

                    SECTION
5. Costs, Expenses, Etc. Each Borrower agrees to pay on demand all costs
and expenses of the Administrative Agent in connection with the preparation,
execution, delivery and administration, modification and amendment of this
Amendment and the other

2

instruments
and documents to be delivered hereunder (including, without limitation, the
reasonable fees and expenses of counsel for the Administrative Agent) in
accordance with the terms of Section 10.04 of the Credit Agreement.

                    SECTION
6. Execution in Counterparts. This Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute but one and the same agreement. Delivery
of an executed counterpart of a signature page to this Amendment by telecopier
shall be effective as delivery of a manually executed counterpart of this
Amendment.

                    SECTION
7. Governing Law. This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

3

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

	
 

	
 

	
 

	
 

	
SOTHEBY’S

	
 

	
 

	
 

	
 

	
By:

	

	
 

	
 

	

	
 

	
Name:

	
William S.
 Sheridan

	
 

	
 

	

	
 

	
Title:

	
EVP and CFO

	
 

	
 

	

	
 

	
 

	
 

	
 

	
SOTHEBY’S, INC.

	
 

	
 

	
 

	
 

	
By:

	

	
 

	
 

	

	
 

	
Name:

	
William S.
 Sheridan

	
 

	
 

	

	
 

	
Title:

	
EVP and CFO

	
 

	
 

	

	
 

	
 

	
 

	
 

	
OATSHARE
 LIMITED

	
 

	
 

	
 

	
 

	
By:

	

	
 

	
 

	

	
 

	
Name:

	
William S.
 Sheridan

	
 

	
 

	

	
 

	
Title:

	
EVP and CFO

	
 

	
 

	

	
 

	
 

	
 

	
 

	
SOTHEBY’S

	
 

	
 

	
 

	
 

	
By:

	

	
 

	
 

	

	
 

	
Name:

	
William S.
 Sheridan

	
 

	
 

	

	
 

	
Title:

	
EVP and CFO

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
BANK OF
 AMERICA, N.A., as

	
 

	
 

	
Administrative
 Agent, L/C Issuer, Swing Line

	
 

	
 

	
Lender,
 Foreign Currency Lead Lender and Lender

	
 

	
By:

	

	
 

	
 

	

	
 

	
Name:

	
John
 Walkiewicz

	
 

	
Title:

	
Vice
 President

	
 

	
 

	
 

	
 

	
LASALLE BANK
 N.A.,

	
 

	
as Lender

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name:
 (ILLEGIBLE)

	
 

	
 

	
Title:
 (ILLEGIBLE)

	
 

	
 

	
 

	
 

	
HSBC BANK
 PLC,

	
 

	
as Lender

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
THE CIT
 GROUP/BUSINESS CREDIT, INC.,

	
 

	
as Lender

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
CITIBANK,
 N.A.,

	
 

	
as Lender

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
UNITED
 OVERSEAS BANK LIMITED,

	
 

	
NEW YORK
 AGENCY, as Lender

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
LASALLE BANK
 N.A.,

	
 

	
as Lender

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
HSBC BANK
 PLC,

	
 

	
as Lender

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name: PAUL
 [ILLEGIBLE]

	
 

	
 

	
Title:
 CORPORATE BANKING MANAGER

	
 

	
 

	
 

	
 

	
THE CIT
 GROUP/BUSINESS CREDIT, INC.,

	
 

	
as Lender

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
CITIBANK,
 N.A.,

	
 

	
as Lender

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
UNITED OVERSEAS
 BANK LIMITED,

	
 

	
NEW YORK
 AGENCY, as Lender

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
LASALLE BANK
 N.A.,

	
 

	
as Lender

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
HSBC BANK
 PLC,

	
 

	
as Lender

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
THE CIT
 GROUP/BUSINESS CREDIT, INC.,

	
 

	
as Lender

	
 

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name:
 Julianne Low

	
 

	
 

	
Title: Vice
 President

	
 

	
 

	
 

	
 

	
CITIBANK,
 N.A.,

	
 

	
as Lender

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
UNITED
 OVERSEAS BANK LIMITED,

	
 

	
NEW YORK
 AGENCY, as Lender

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
LASALLE BANK
 N.A.,

	
 

	
as Lender

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
HSBC BANK
 PLC,

	
 

	
as Lender

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
THE CIT
 GROUP/BUSINESS CREDIT, INC.,

	
 

	
as Lender

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
CITIBANK,
 N.A.,

	
 

	
as Lender

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name: Alan
 Ackbarali

	
 

	
 

	
Title: Vice
 President

	
 

	
 

	
 

	
 

	
UNITED
 OVERSEAS BANK LIMITED,

	
 

	
NEW YORK
 AGENCY, as Lender

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
COMERICA BANK,

	
 

	
as Lender

	
 

	
 

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name: Sarah R. West

	
 

	
 

	
Title:   Assistant Vice President

	
 

	
 

	
 

	
 

	
ISRAEL DISCOUNT BANK OF NEW
 YORK, 

	
 

	
as Lender

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
NORTH FORK BUSINESS CAPITAL

	
 

	
CORPORATION, as Lender

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
WEBSTER BUSINESS CREDIT
 CORPORATION,

	
 

	
as Lender

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
COMERICA BANK,

	
 

	
as Lender

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
ISRAEL DISCOUNT BANK OF NEW
 YORK, 

	
 

	
as Lender

	
 

	
 

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name: Andi Ballta

	
 

	
 

	
Title:   First Vice President

	
 

	
 

	
 

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name: Walter T. Duffy III

	
 

	
 

	
Title:   First Vice President

	
 

	
 

	
 

	
 

	
NORTH FORK BUSINESS CAPITAL

	
 

	
CORPORATION, as Lender

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
WEBSTER BUSINESS CREDIT
 CORPORATION,

	
 

	
as Lender

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
COMERICA BANK,

	
 

	
as Lender

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
ISRAEL DISCOUNT BANK OF NEW
 YORK, 

	
 

	
as Lender

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title: 

	
 

	
 

	
 

	
 

	
NORTH FORK BUSINESS CAPITAL

	
 

	
CORPORATION, as Lender

	
 

	
 

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name: Ronald D. Walker

	
 

	
 

	
Title:   Vice President

	
 

	
 

	
 

	
 

	
WEBSTER BUSINESS CREDIT
 CORPORATION,

	
 

	
as Lender

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
COMERICA BANK,

	
 

	
as Lender

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
ISRAEL DISCOUNT BANK OF NEW
 YORK, 

	
 

	
as Lender

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title: 

	
 

	
 

	
 

	
 

	
NORTH FORK BUSINESS CAPITAL

	
 

	
CORPORATION, as Lender

	
 

	
 

	
 

	
By

	
 

	
 

	
 

	

	
 

	
 

	
Name: 

	
 

	
 

	
Title: 

	
 

	
 

	
 

	
 

	
WEBSTER BUSINESS CREDIT
 CORPORATION,

	
 

	
as Lender

	
 

	
 

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name: Daniel C. Dupre

	
 

	
 

	
Title:   VP

CONSENT

Dated
as of July 25, 2007

                    Each
of the undersigned, as a Guarantor under the Credit Agreement referred to in the foregoing Amendment, hereby
consents to such
Amendment and hereby confirms and agrees that notwithstanding the effectiveness of such Amendment, the Guaranty
contained in the Credit Agreement is
and shall continue to be, in full force and effect and is hereby ratified and
confirmed in all respects, except that, on and after the effectiveness of such
Amendment, each reference in the
Loan Documents to “Credit Agreement”, ‘‘thereunder”, “thereof or words of like
import shall mean and be a reference to the
Credit Agreement, as amended by such Amendment.

	
 

	
 

	
 

	
 

	
GUARANTORS:

	
 

	
 

	
 

	
SOTHEBY’S FINE ART HOLDINGS,
 INC.

	
 

	
SOTHEBY’S FINANCIAL SERVICES, INC.

	
 

	
SOTHEBY’S FINANCIAL SERVICES

	
 

	
CALIFORNIA, INC.

	
 

	
OBERON, INC. 
THETA, INC.

	
 

	
SOTHEBY’S VENTURES, LLC

	
 

	
SOTHEBY’S ASIA, INC.

	
 

	
YORK WAREHOUSE, INC.

	
 

	
SPTC, INC.

	
 

	
SOTHEBY’S PARKE BERNET, INC. 

	
 

	
YORK AVENUE DEVELOPMENT, INC.

	
 

	
SOTHEBY’S THAILAND, INC.

	
 

	
SOTHEBY’S HOLDINGS
 INTERNATIONAL, INC.

	
 

	
SOTHEBY’S NEVADA, INC.

	
 

	
SOTHEBYS.COM AUCTIONS, INC.

	
 

	
SIBS, LLC

	
 

	
SOTHEBY’S. COM LLC

	
 

	
SOTHEBY’S RES, INC.

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name: William S. Sheridan

	
 

	
 

	
Title:   EVP and CFO

	
 

	
 

	
 

	
 

	
SOTHEBY’S

	
 

	
 

	
 

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name: William S. Sheridan

	
 

	
 

	
Title:   EVP and CFO

	
 

	
 

	
 

	
 

	
SOTHEBY’S, INC.

	
 

	
 

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name: William S. Sheridan

	
 

	
 

	
Title:   EVP and CFO

	
 

	
 

	
 

	
 

	
OATSHARE LIMITED

	
 

	
 

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name: William S. Sheridan

	
 

	
 

	
Title:   EVP and CFO

	
 

	
 

	
 

	
 

	
SOTHEBY’S

	
 

	
 

	
 

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name: William S. Sheridan

	
 

	
 

	
Title:   EVP and CFO

	
 

	
 

	
 

	
 

	
SOTHEBY’S FINANCIAL SERVICES LTD

	
 

	
 

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name: William S. Sheridan

	
 

	
 

	
Title:   EVP and CFO

	
 

	
 

	
 

	
 

	
CATALOGUE DISTRIBUTION COMPANY
 LIMITED

	
 

	
 

	
 

	
By

	

	
 

	
 

	

	
 

	
 

	
Name: William S. Sheridan

	
 

	
 

	
Title:   EVP and CFOUntitled Document

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:

1

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.

2

          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 

	

	
 

	

	
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.

3

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

	
 

	
 

	
 

	
 

	
SOTHEBY’S

	
 

	
 

	
 

	
 

	
By
	
/s/ Susan Alexander
	
 

	
 

	

	
 

	
 

	
 

	
 

	
Its:
	
Executive Vice President Worldwide Human Resources

	
 

	
 

	

4

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