Document:

Exhibit

EXHIBIT 10.3

May 8, 2015

Jane Levine

Dear Jane:

This letter is to inform you that your compensation will be adjusted as follows:  

		
	•
	Your annual salary will be increased from $257,500 to $350,000 ($14,583.33 per semi-monthly pay period) effective as of January 1, 2015.  Your May 15, 2015 paycheck will reflect your increased salary and will include the retroactive portion of the increase that covers January through April, 2015.

		
	•
	Your total incentive target for 2015 will be increased from $140,000 to $200,000. This increase is effective January 1, 2015.  

		
	•
	Your BDA will remain at $3,000 per year.

In the event your employment is terminated under the terms of the Sotheby’s Inc. Severance Policy, your benefit will be $796,250.

Effective with the May 5, 2015 change to reporting to the Chief Executive Officer, you will now be considered an Executive Officer and subject to:

		
	•
	A stockholdings requirement (fixed number of shares) that will be determined by the Board of Directors for Executive Officers.  For equity grants commencing with your February 2016 award and going forward, 50% of the net shares that vest need to be held until you achieve the target ownership requirement.  Prior grants are not subject to this holding requirement.

		
	•
	Public filing requirements under Section 16 of the Securities Exchange Act.  Any equity awards or transactions in Sotheby’s stock will require your signature or designated power of attorney within two business days of the transaction.  Corporate Compensation will prepare these filings for your signature.

Also, consistent with other Executive Officers, for 2015 performance year and future years, any equity awarded will be granted in 100% performance share units (PSUs).

These compensation adjustments and the enhanced severance benefit amount are subject to you reaffirming the attached notice and non-compete agreement and confidentiality agreement.

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Please let me know if you have any questions.

Sincerely,

/S/ SUSAN ALEXANDER
Susan Alexander
Executive Vice President
Worldwide Head of Human ResourcesExhibit

EXHIBIT 10.4

August 13, 2015
VIA ELECTRONIC MAIL
Lisa Nadler

Dear Lisa:

I am pleased to offer you the position of SVP, Worldwide Head of Human Resources reporting to me, beginning September 1, 2015 or on a mutually agreeable date.
The significant components of the offer are described below:
Your annual salary will be four hundred and seventy thousand dollars ($470,000) payable semi-monthly on the 15th and last day of each calendar month or the preceding business day if either pay day falls on a holiday or a weekend. As an exempt employee, you will not be eligible for overtime compensation.
You will be eligible to participate in the Company’s incentive compensation program, under which awards are determined based on worldwide company profitability as well as your own performance. Your full year total incentive target is five hundred and seventy-five thousand dollars ($575,000), which will be prorated for 2015 to reflect the period of when you commence employment to December 31, 2015.  Your total incentive award will be divided between a cash bonus and equity award.  The actual amount of your annual incentive in respect of any calendar year depends on the performance of the Company and your individual performance, in each case, as determined by the Compensation Committee in its discretion in accordance with the annual incentive program, the performance and other metrics of which shall be communicated to you.  To be eligible for your incentive compensation you must be a full-time employee at the time bonuses are paid and have not given or been given notice.  Incentive compensation, if any, is paid/granted by March 15, following the end of the Company's fiscal year.  At all times your incentive opportunity will be governed by and subject to the terms and conditions of the Company’s incentive program(s) set forth annually and nothing contained herein restricts the Company’s rights to alter, amend or terminate these program(s) at any time. Equity grants are made pursuant to the terms of the Sotheby’s Amended and Restated Restricted Stock Unit Plan.
You will receive a one-time taxable signing bonus of two hundred and fifty thousand dollars ($250,000) to be paid in the first payroll following commencement of employment. This sign-on bonus is subject to 100% clawback if you voluntary terminate your employment with Sotheby’s within twelve (12) months of your hire date.
The Company will also recommend to the Board of Directors that upon commencement of employment you be awarded a one-time sign-on grant of restricted stock units with a grant date fair value of two hundred and fifty thousand dollars ($250,000) based on the closing price of the Company’s common stock on the New York Stock Exchange on the last trading day prior to grant. This grant will be made pursuant to the terms of the Sotheby’s Amended and Restated Restricted Stock Unit Plan and will vest in equal installments on each of the first, second, and third anniversaries of the date of grant.
It is anticipated that you will become an Executive Officer subject to appointment by the Board. A stockholdings requirement (fixed number of shares) will be determined by the Board of Directors based on your position and equity opportunity.  For any equity grants awarded upon or after your commencement of employment, 50% of the net shares that vest need to be held until you achieve the target ownership requirement.
You will be eligible for twenty (20) vacation days annually, prorated to reflect your start date. You will also be eligible for an additional week of paid holiday time, to be taken during the December holiday week of Friday, December 25, 2015 until Thursday, December 31, 2015.  Starting in 2016, you will be eligible for four (4) Summer Fridays to be taken between July 1st and August 31st.  
You will be eligible to participate in Sotheby’s health and welfare benefits when you commence employment.  Additionally, you will be eligible to participate in the 401(k) Retirement Savings Plan and Deferred Compensation Plan (“DC Plan”) as of the first day of the month following the completion of three full calendar months of service (if you start September 1, 2015, then your eligibility date would be December 1, 2015).

Sotheby’s offer of employment is based on your assurances to us that, by accepting employment with Sotheby’s, and by performing your obligations as a Sotheby’s employee, you will not be violating any agreements and/or duties, whether written or oral, with any other person, company or organization.  In particular, you represent and acknowledge that:
		
	(i)
	You have not taken and will not take or retain any documents or other property belonging to a previous employer or other organization or entity except to the extent you are legally permitted to take or retain such documents or property; 

		
	(ii)
	You have faithfully performed and will continue to perform all legal and ethical duties to any organization or entity with which you have such an obligation until that arrangement expires; 

		
	(iii)
	You will not use or disclose any trade secrets or confidential information belonging to any other organization or entity that has entrusted you with such information, even after your relationship with that organization ends.

Please note that this offer is contingent upon:
		
	(1)
	Your eligibility to work in the United States, 

		
	(2)
	The terms and conditions indicated in the “Request, Authorization, Consent and Release” you will sign in your employment application and the “Information Release” form you will sign and subsequent receipt by Sotheby’s of information that is deemed to be satisfactory,

		
	(3)
	Your signing Sotheby’s confidentiality agreement, and

		
	(4)
	Your signing the attached notice and non-competition agreement.  

Please note that your employment with Sotheby’s or its affiliated entity is at will. This means that the Company has the right to terminate your employment at any time just as you have the right to terminate your employment with Sotheby’s at any time with or without cause. Neither this letter nor any other Company document create any contractual right, either expressed or implied, for you to remain in Sotheby’s employment for any specific amount of time. Both you and the Company are bound by the notice and other provisions in your attached severance agreement that includes notice and non-solicitation obligations, but these obligations do not otherwise change the at will nature of your employment. 

*     *     *     *     *     *     *     *     *     *     *     *     *     *     *     *     *
Please confirm your acceptance of this offer, subject to all other terms and conditions set forth in this letter, by signing below and returning to me within one week.

We are all excited about you joining our team at Sotheby’s and look forward to working with you.  

Sincerely,

/S/ TAD SMITH
Tad Smith
President and Chief Executive Officer

I accept and agree to the terms stated above regarding my employment at Sotheby’s. I also acknowledge that I have received confirmation of my rate of pay and the regular pay days at the time I was hired by Sotheby’s. 

	
			
	/S/ LISA NADLER
	 
	8/15/16

	Lisa Nadler
	 
	DateExhibit

EXHIBIT 10.5

March 1, 2016

BY HAND
Michael Goss

Dear Mike:

I am pleased to offer you the position of EVP and Chief Financial Officer reporting to Tad Smith, President and Chief Executive Officer beginning March 28, 2016.
The significant components of the offer are described below:
Your annual salary will be seven hundred and fifty thousand dollars ($750,000) payable semi-monthly on the 15th and last day of each calendar month or the preceding business day if either pay day falls on a holiday or a weekend. As an exempt employee, you will not be eligible for overtime compensation.
You will have a target bonus of seven hundred and fifty thousand dollars ($750,000).  The actual amount of your bonus will be determined based on worldwide company profitability and your own performance with the maximum payout being 200% of target.  Your bonus will be provided to you at the same time all other Executives receive their annual bonus.  You will receive your bonus in the form of a grant of Restricted Stock Units that vest over a three year period (one-third each year with the first vest occurring in March, 2018) pursuant to the terms of the award agreement and the Restricted Stock Unit Plan.  Your 2016 bonus target will not be prorated.  This award is in lieu of a cash bonus.
You will also be eligible to participate in our long-term incentive program.  On an annual basis each February, the Board determines the form of long-term incentives and approves the value of long-term incentives granted to employees. Your annual long-term incentive target is seven hundred and fifty thousand dollars ($750,000).  Upon commencement of employment, you will be granted your full award for 2016 which will be in the form of performance based restricted stock units (Performance Share Units) with a three year cliff vest.  You will be eligible for further annual long term incentive awards beginning in February 2017 at the same time all Executive Officers receive their annual grant.    
As an Executive Officer, a stockholdings requirement (fixed number of shares) will be determined by the Board of Directors based on your position and equity opportunity.  For any equity grants awarded upon or after your commencement of employment, 50% of the net shares that vest need to be held until you achieve the target ownership requirement.
You will be allowed to maintain your position on certain outside boards in accordance with our Corporate Governance Guidelines.
You will be eligible for twenty (20) vacation days annually, prorated to reflect your start date. You will also be eligible for an additional week of paid holiday time, to be taken during the December holiday week.  Additionally, you will be eligible for four (4) Summer Fridays to be taken between July 1st and August 31st.  
You will be eligible to participate in Sotheby’s health and welfare benefits when you commence employment.  You also will be eligible to participate in the 401(k) Retirement Savings Plan and Deferred Compensation Plan (“DC Plan”) as of the first day of the month following the completion of three full calendar months of service.

Finally, you will also be covered under Sotheby’s Executive Severance Plan (“ESP”).  The ESP provides you with severance benefits in the event that you are terminated without cause or  in  a change in control.  You will be required to sign a letter agreeing to the terms of the ESP which contain certain non-competition, non-

solicitation and other obligations as a condition of participation.  The letter agreement and ESP are included with this offer letter.
Sotheby’s offer of employment is based on your assurances to us that, by accepting employment with Sotheby’s, and by performing your obligations as a Sotheby’s employee, you will not be violating any agreements and/or duties, whether written or oral, with any other person, company or organization.  In particular, you represent and acknowledge that:
		
	(i)
	You have not taken and will not take or retain any documents or other property belonging to a previous employer or other organization or entity except to the extent you are legally permitted to take or retain such documents or property; 

		
	(ii)
	You have faithfully performed and will continue to perform all legal and ethical duties to any organization or entity with which you have such an obligation until that arrangement expires; 

		
	(iii)
	You will not use or disclose any trade secrets or confidential information belonging to any other organization or entity that has entrusted you with such information, even after your relationship with that organization ends.

Please note that this offer is contingent upon:
		
	(1)
	Your eligibility to work in the United States, 

		
	(2)
	The terms and conditions indicated in the “Request, Authorization, Consent and Release” form you will sign and subsequent receipt by Sotheby’s of information that is deemed to be satisfactory,

		
	(3)
	Your signing Sotheby’s New Employee Confidentiality Agreement.  

Please note that your employment with Sotheby’s or its affiliated entity is at will. This means that the Company has the right to terminate your employment at any time just as you have the right to terminate your employment with Sotheby’s at any time with or without cause. Neither this letter nor any other Company document create any contractual right, either expressed or implied, for you to remain in Sotheby’s employment for any specific amount of time. Both you and the Company will be bound by the provisions in the ESP, but these obligations do not otherwise change the at will nature of your employment. 

*     *     *     *     *     *     *     *     *     *     *     *     *     *     *     *     *

Please confirm your acceptance of this offer, subject to all other terms and conditions set forth in this letter, by signing below and returning to me within one week.

We are all excited about you joining our team at Sotheby’s and look forward to working with you.  

Sincerely,

/S/ LISA NADLER
Lisa Nadler
Chief Human Resources Officer

I accept and agree to the terms stated above regarding my employment at Sotheby’s. I also acknowledge that I have received confirmation of my rate of pay and the regular pay days at the time I was hired by Sotheby’s. 

	
			
	/S/ MICHAEL GOSS
	 
	3/1/16

	Michael Goss
	 
	Date

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