Document:

Exhibit 10.1

EXECUTION COPY

AMENDMENT NO. 3 TO CREDIT AGREEMENT

          This
AMENDMENT NO. 3 TO CREDIT AGREEMENT (this “Amendment”), dated as of May
5, 2010, by and among Sotheby’s, a Delaware corporation (“Parent”),
Sotheby’s, Inc., a New York corporation (“Sotheby’s, Inc.”), Sotheby’s
Financial Services, Inc., a Nevada corporation (“SFS Inc.”), Sotheby’s
Financial Services California, Inc., a Nevada corporation (“SFS California”),
Oberon, Inc., a Delaware corporation (“Oberon”), Theta, Inc., a Delaware
corporation (“Theta”), Sotheby’s Ventures, LLC, a New York limited
liability company (“Ventures LLC”), Oatshare Limited, a company
registered in England (“Oatshare”), Sotheby’s, a company registered in
England (“Sotheby’s U.K.”), and Sotheby’s Financial Services Limited, a
company registered in England (“SFS Ltd.” and, collectively with Parent,
Sotheby’s, Inc., SFS Inc., SFS California, Oberon, Theta, Ventures LLC,
Oatshare and Sotheby’s U.K., the “Borrowers”), General Electric Capital
Corporation, a Delaware corporation (in its individual capacity, “GE Capital”),
as a Lender and as Agent for the Lenders and the Fronting Lender (in such
capacity, the “Agent”), and the other Lenders signatory hereto, amends
that certain Credit Agreement, dated as of August 31, 2009 (as amended by
Amendment No. 1 thereto, dated as of December 17, 2009, and Amendment No. 2
thereto, dated as of February 25, 2010, the “Credit Agreement”), by and
among the Borrowers, other Credit Parties signatory thereto, the Agent, the
Fronting Lender, and the Lenders. Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed to such terms in Annex
A to the Credit Agreement. 

RECITALS

          A.
The Borrowers have requested that the Lenders amend the Credit Agreement as set
forth herein. 

          B. The
Agent and the Lenders signatory hereto have agreed, on the terms and conditions
set forth below, to so amend the Credit Agreement. 

AGREEMENT

          NOW,
THEREFORE, in consideration of the continued performance by the Borrowers and
each other Credit Party of their respective promises and obligations under the
Credit Agreement and the other Loan Documents, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Borrowers, the other Credit Parties signatory hereto, the Lenders signatory
hereto and the Agent hereby agree as follows: 

          1. Amendment
to Credit Agreement. Subject to the satisfaction of the conditions
precedent set forth in Paragraph 2 of this Amendment, the Credit
Agreement is hereby amended as follows: 

          (a)
Section 1.6(g) of the Credit Agreement is hereby amended and restated as
follows: 

	
  

 	
  

 
	
  

 	
  (g) unless Agent shall have otherwise
 agreed, that by its terms is not due and payable within 18 months; provided
 that, Art Loans that by their terms are due

 

	
  

 	
  

 
	
  

 	
 and payable after 18 months but within 24
 months shall not be excluded as “Eligible Art Loans” pursuant to this clause
 to the extent the outstanding principal balance of such Eligible Art Loans
 does not exceed $100,000,000 in the aggregate; 

 
	
  

 	
  

 
	
           (b)
 Section 3.19 of the Credit Agreement is hereby amended and restated as
 follows: 

 
	
  

 	
  

 
	
           3.19 Deposit.
 

 
	
  

 	
  

 
	
  

 	
           Disclosure
 Schedule (3.19) lists all banks and other financial institutions at which
 any Credit Party maintains deposit or other accounts, and such Schedule
 correctly identifies the name, address and telephone number of each
 depository, the name in which the account is held, a description of the purpose
 of the account, the complete account number therefor and whether such account
 contains amounts payable to consignors representing proceeds of the sale of
 consigned Works of Art. 

 
	
  

 	
  

 
	
  

 	
 (c) Section
 5.14 of the Credit Agreement is hereby amended and restated as follows: 

 
	
  

 	
  

 
	
           5.14 New
 Subsidiaries. 

 
	
  

 	
  

 
	
  

 	
           Upon
 (i) any Person becoming a Subsidiary of any Credit Party or (ii) any
 Subsidiary of any Credit Party becoming a Domestic Subsidiary or a Foreign
 Subsidiary organized under the laws of England, (a) if such Person is a
 Domestic Subsidiary or a Foreign Subsidiary organized under the laws of
 England, such Person shall become party to this Agreement as a Credit Party
 by executing a joinder agreement and delivering, along with such executed
 joinder agreement, such organizational and authorization documentation and
 legal opinions as are reasonably requested by Agent, in each case, in form
 and substance reasonably satisfactory to Agent; (b) if such Person is a
 Domestic Subsidiary, such Person shall become party to the Domestic
 Subsidiary Guaranty, the U.S. Security Agreement, the U.S. Pledge Agreement
 and such further Collateral Documents as Agent shall reasonably request; (c)
 if such Person is a Foreign Subsidiary organized under the laws of England,
 such Person shall become party to a Guaranty with respect to the Obligations
 of the U.K. Borrowers and such Collateral Documents as Agent shall reasonably
 request; and (d) the outstanding Stock of such Person shall be pledged to
 Agent, for the benefit of the Secured Parties, pursuant to such Collateral
 Documents as Agent shall reasonably request; provided, that, (i) so
 long as SPTC Delaware shall not create, incur, assume or permit to exist any
 Indebtedness or Guaranteed Indebtedness or any Lien on or with respect to any
 of its properties or assets (whether now owned or hereafter acquired), SPTC
 Delaware shall not be required to execute or become a party to any Loan
 Documents, and (ii) the York Avenue Owner shall not be required to execute or
 become a party to any Loan Documents. 

 

2

	
  

 	
  

 
	
           (d)
 Section 6.14 of the Credit Agreement is hereby amended and restated as
 follows:

 
	
  

 	
  

 
	
  

 	
 6.14 Change of Corporate Name, State of Incorporation or Location;
 Change of Fiscal Year.

 
	
  

 	
  

 
	
  

 	
           No
 U.S. Credit Party shall (a) change its name as it appears in official filings
 in the state of its incorporation or other organization, (b) change its chief
 executive office or principal place of business or the location of its
 records concerning the Collateral, (c) change the type of entity that it is,
 (d) change its organization identification number, if any, issued by its
 state of incorporation or other organization, or (e) change its jurisdiction
 of incorporation or organization or incorporate or organize in any additional
 jurisdictions, in each case, without at least thirty (30) days (or such
 shorter period as Agent shall consent to in writing) prior written notice to
 Agent and after Agent’s written acknowledgment that any reasonable action
 requested by Agent in connection therewith, including to continue the
 perfection of any Liens in favor of Agent, on behalf of Lenders, in any
 Collateral, has been completed or taken; provided, that any such new
 location shall be in the continental United States. No Sotheby Entity shall
 change its Fiscal Year.

 
	
  

 	
  

 
	
           (e) The
 definition of “U.K. Subsidiary Guarantors” in Annex A of the Credit
 Agreement is hereby amended and restated as follows:

 
	
  

 	
  

 
	
  

 	
  “U.K. Subsidiary Guarantors” means
 each Subsidiary of Parent organized under the laws of England that is not a
 U.K. Borrower or an Immaterial Subsidiary.

 
	
  

 	
  

 
	
           (f)
 Clause (a) in Annex G of the Credit Agreement is hereby amended
 and restated as follows: 

 
	
  

 	
  

 
	
  

 	
  (a) Maximum Capital Expenditures.
 During each Fiscal Year, Parent and its Subsidiaries on a consolidated basis
 shall not make Capital Expenditures (other than portions of such Capital
 Expenditures financed by the Lenders hereunder) during such Fiscal Year in
 excess of the amount set forth below opposite such Fiscal Year:

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Fiscal Year

 	
  

 	
  

 	
 Maximum Capital Expenditure

 	
  

 
	

 

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2009

 	
  

 	
 $

 	
 17,000,000

 	
  

 
	
 2010

 	
  

 	
 $

 	
 22,000,000

 	
  

 
	
 Any subsequent Fiscal Year

 	
  

 	
 $

 	
 17,000,000

 	
  

 

	
  

 	
  

 
	
  

 	
 Notwithstanding the foregoing, (i) Capital
 Expenditures of Parent and its Subsidiaries made prior to the Closing Date
 during the 2009 Fiscal Year in connection with the purchase of Real Estate
 located at 1334 York Avenue, New York, New York 10021, in an aggregate amount
 not to exceed $88,000,000, shall not be counted toward the aggregate amount available
 for Parent and its Subsidiaries to make Capital Expenditures during the 2009
 Fiscal Year, and (ii) 

 

3

	
  

 	
  

 
	
  

 	
 to the extent that Parent and its
 Subsidiaries on a consolidated basis make Capital Expenditures of less than
 $17,000,000 during any Fiscal Year (the “Current Fiscal Year”), the
 aggregate amount available for Parent and its Subsidiaries to make Capital
 Expenditures during the immediately subsequent Fiscal Year pursuant to this clause
 (a) shall be increased by an amount equal to the lesser of (x) the excess
 of $17,000,000 over the amount of Capital Expenditures made by Parent and its
 Subsidiaries on a consolidated basis during the Current Fiscal Year, and (y)
 $8,500,000. 

 
	
  

 	
  

 
	
           (g) Disclosure
 Schedule (3.19) of the Credit Agreement is hereby amended and restated as
 set forth in Schedule I hereto. Notwithstanding anything to the
 contrary in the Credit Agreement, Agent hereby consents to the prior
 establishment of the Deposit Accounts set forth in Schedule I hereto, to the
 extent Agent has received a Blocked Account Agreement on or prior to the date
 hereof with respect to each such Deposit Account that is required to be
 subject to a Blocked Account Agreement pursuant to Annex C to the Credit
 Agreement. 

 
	
  

 	
  

 
	
           2.
 Effectiveness of this Amendment; Conditions Precedent. 

 
	
  

 	
  

 
	
           (a) The
 provisions of this Amendment (other than Paragraph 1(a) hereof) shall
 be deemed to have become effective as of the date of this Amendment, but such
 effectiveness shall be expressly conditioned upon Agent’s receipt of a
 counterpart of this Amendment executed and delivered by duly authorized
 officers of each Borrower, each Credit Party, the Requisite Lenders and
 Agent. 

 
	
  

 	
  

 
	
           (b) The
 provisions of Paragraph 1(a) of this Amendment shall be deemed to have
 become effective as of the date of this Amendment, but such effectiveness
 shall be expressly conditioned upon (a) Agent’s receipt of a counterpart of
 this Amendment executed and delivered by duly authorized officers of each
 Borrower, each Credit Party, the Supermajority Lenders and Agent, and (b)
 Agent’s receipt, on behalf of each Lender that delivers to Agent on or prior
 to the date hereof a counterpart of this Amendment executed by such Lender,
 of an amendment fee equal to 0.10% of such Lender’s Commitment as of the date
 hereof. 

 
	
  

 	
  

 
	
           3.
 Miscellaneous. 

 
	
  

 	
  

 
	
           (a) Headings.
 The various headings of this Amendment are inserted for convenience of
 reference only and shall not affect the meaning or interpretation of this
 Amendment or any provisions hereof. 

 
	
  

 	
  

 
	
           (b) Counterparts.
 This Amendment may be executed by the parties hereto in several counterparts,
 each of which shall be deemed to be an original and all of which together
 shall be deemed to be one and the same instrument. Delivery of an executed
 counterpart of a signature page to this Amendment by facsimile transmission
 shall be effective as delivery of a manually executed counterpart thereof. 

 
	
  

 	
  

 
	
           (c) Interpretation.
 No provision of this Amendment shall be construed against or interpreted to
 the disadvantage of any party hereto by any court or other governmental or
 judicial authority by reason of such party’s having or being deemed to have
 structured, drafted or dictated such provision. 

 

4

            (d) Representations,
Warranties and Covenants. Each Credit Party hereby represents and warrants
that, as of the date hereof: 

	
  

 	
  

 
	
  

 	
           (i) this
 Amendment and the Credit Agreement as amended by this Amendment, constitute
 the legal, valid and binding obligations of such Credit Party, enforceable
 against it in accordance with their respective terms except as enforceability
 may be limited by applicable bankruptcy, insolvency or similar laws affecting
 the enforcement of creditor’s rights generally or by equitable principles
 relating to enforceability; 

 
	
  

 	
  

 
	
  

 	
           (ii) its
 execution, delivery and performance of this Amendment and its performance of
 the Credit Agreement as amended by this Amendment, to the extent a party
 thereto, have been duly authorized by all necessary corporate action and do
 not: (1) contravene the terms of any of such Credit Party’s charter, bylaws
 or operating agreement, as applicable, (2) violate any law or regulation, or
 any order or decree of any court or Governmental Authority; (3) conflict with
 or result in the breach or termination of, constitute a default under or
 accelerate or permit the acceleration of any performance required by, any
 indenture, mortgage, deed of trust, lease, agreement or other instrument to
 which any Sotheby Entity is a party or by which any Sotheby Entity or any of
 its property is bound, (4) result in the creation or imposition of any Lien
 upon any of the property of any Sotheby Entity other than those in favor of
 Agent, on behalf of itself and the other Secured Parties, pursuant to the
 Loan Documents; or (5) require the consent or approval of any Governmental
 Authority or any other Person that has not already been obtained; and 

 
	
  

 	
  

 
	
  

 	
           (iii)
 after giving effect to this Amendment, (1) no Default or Event of Default has
 occurred and is continuing and (2) all of the representations and warranties
 of such Credit Party contained in the Credit Agreement and in each other Loan
 Document to which it is a party (other than representations and warranties
 which, in accordance with their express terms, are made only as of an earlier
 specified date) are true and correct as of the date of such Credit Party’s
 execution and delivery hereof or thereof as though made on and as of such
 date. 

 

          (e) Governing
Law. THIS AMENDMENT SHALL BE GOVERNED BY,
AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE
OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY
APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

          (f) Effect.
Upon the effectiveness of this Amendment, each reference in the Credit
Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import
shall mean and be a reference to the Credit Agreement as amended hereby and
each reference in the other Loan Documents to the Credit Agreement,
“thereunder,” “thereof,” or words of like import shall mean and be a reference
to the Credit Agreement as amended hereby. Except as expressly provided in this
Amendment, all of the terms, conditions and provisions of the Credit Agreement
and the other Loan Documents shall remain the same. Each Credit Party hereby
represents and warrants to each Lender and the Agent that all authorizations,
consents and approvals of such Credit Party’s board of directors, shareholders,
members or any other Persons necessary to permit such Borrower to execute and
deliver this Amendment and to perform its obligations hereunder and under the
Credit Agreement as amended hereby, and to permit the Lenders and the 

5

Agent to enforce such obligations, have been obtained. This Amendment
shall constitute a Loan Document for purposes of the Credit Agreement. 

          (g) No
Novation or Waiver. Except as specifically set forth in this Amendment, the
execution, delivery and effectiveness of this Amendment shall not (a) limit,
impair, constitute a waiver by, or otherwise affect any right, power or remedy
of, the Agent or any Lender under the Credit Agreement or any other Loan
Document, (b) constitute a waiver of any provision in the Credit Agreement or
in any of the other Loan Documents or of any Default or Event of Default that
may have occurred and be continuing or (c) alter, modify, amend or in any way
affect any of the terms, conditions, obligations, covenants or agreements
contained in the Credit Agreement or in any of the other Loan Documents, all of
which are ratified and affirmed in all respects and shall continue in full
force and effect. 

          (h) Agent’s
Expenses. The Borrowers hereby jointly and severally agree to promptly
reimburse Agent for all of the reasonable out-of-pocket expenses, including,
without limitation, attorneys’ and paralegals’ fees, it has heretofore or
hereafter incurred or incurs in connection with the preparation, negotiation
and execution of this Amendment. 

******

6

          IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day
and year first above written.

	
  

 	
  

 
	
 SOTHEBY’S,

 
	
 a Delaware corporation

 
	
  

 	
  

 
	
 By: 

 	
           /s/ Michael
 L. Gillis

 
	
  

 	

 

 
	
 Name:
 Michael L. Gillis

 
	
 Title: SVP,
 Treasurer

 
	
  

 	
  

 
	
 SOTHEBY’S, INC.

 
	
  

 	
  

 
	
 By:

 	
           /s/ Michael
 L. Gillis

 
	
  

 	

 

 
	
 Name:
 Michael L. Gillis

 
	
 Title: SVP,
 Treasurer

 
	
  

 	
  

 
	
 SOTHEBY’S FINANCIAL SERVICES, INC.

 
	
 SOTHEBY’S FINANCIAL SERVICES CALIFORNIA,
 INC.

 
	
 OBERON, INC.

 
	
 THETA, INC.

 
	
 SOTHEBY’S VENTURES,
 LLC

 
	
  

 	
  

 
	
 By:

 	
           /s/ Michael
 L. Gillis

 
	
  

 	

 

 
	
 Name:
 Michael L. Gillis

 
	
 Title: SVP,
 Treasurer

 

	
  

 	
  

 
	
 OATSHARE LIMITED

 
	
  

 
	
 By: 

 	
           /s/ William
 S. Sheridan

 
	
  

 	

 

 
	
 Name:
 William S. Sheridan

 
	
 Title: EVP
 & Chief Financial Officer

 
	
  

 
	
 SOTHEBY’S,

 
	
 a company registered in England

 
	
  

 
	
 By:

 	
           /s/ William
 S. Sheridan

 
	
  

 	

 

 
	
 Name:
 William S. Sheridan

 
	
 Title: EVP
 & Chief Financial Officer

 
	
  

 
	
 SOTHEBY’S FINANCIAL SERVICES LIMITED

 
	
  

 
	
 By:

 	
           /s/ William
 S. Sheridan

 
	
  

 	

 

 
	
 Name:
 William S. Sheridan

 
	
 Title: EVP
 & Chief Financial Officer 

 

Signature Page to

Amendment No. 3 

	
  

 	
  

 	
  

 
	
  

 	
 GENERAL
 ELECTRIC CAPITAL

 
	
  

 	
 CORPORATION,
 as the Agent and a
 Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
     /s/
 Daniel T. Eubanks

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Daniel T. Eubanks

 
	
  

 	
 Title: DULY AUTHORIZED
 SIGNATORY

 

Signature Page to

Amendment No. 3

	
  

 	
  

 	
  

 
	
  

 	
 HSBC BANK
 PLC, as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
     /s/
 Paul Hagger

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Paul Hagger

 
	
  

 	
 Title: Global Relationship
 Manager

 

Signature Page to

Amendment No. 3

	
  

 	
  

 	
  

 
	
  

 	
 HSBC BANK
 USA, NATIONAL

 
	
  

 	
 ASSOCIATION,
 as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
     /s/
 Randolph Cates

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Randolph Cates

 
	
  

 	
 Title: VP, Sr. Relationship
 Manager

 

Signature Page to

Amendment No. 3

	
  

 	
  

 	
  

 
	
  

 	
 JPMORGAN
 CHASE BANK, N.A.,

 
	
  

 	
 as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
     /s/
 Kim Nguyen

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Kim Nguyen

 
	
  

 	
 Title: Vice President

 

Signature Page to

Amendment No. 3

	
  

 	
  

 	
  

 
	
  

 	
 THE
 PRIVATEBANK AND TRUST

 
	
  

 	
 COMPANY, as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
     /s/
 Mitchell Rasky

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Mitchell Rasky

 
	
  

 	
 Title: Managing Director

 

Signature Page to

Amendment No. 3

	
  

 	
  

 	
  

 
	
  

 	
 TD BANK,
 N.A., as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
     /s/
 Stephen A. Caffrey

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Stephen A. Caffrey

 
	
  

 	
 Title: Vice President

 

Signature Page to

Amendment No. 3

	
  

 	
  

 	
  

 
	
  

 	
 BANK OF
 AMERICA, N.A., as a
 Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
     /s/
 Edwin B. Cox, Jr

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Edwin B. Cox, Jr.

 
	
  

 	
 Title: Senior Vice
 President

 

Signature Page to

Amendment No. 3

	
  

 	
  

 	
  

 
	
  

 	
 COMERICA
 BANK, as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
     /s/ Chris Rice

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Chris Rice

 
	
  

 	
 Title: Corporate Banking
 Officer

 

Signature Page to

Amendment No. 3

	
  

 	
  

 	
  

 
	
  

 	
 ISRAEL
 DISCOUNT BANK OF NEW

 
	
  

 	
 YORK, as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
     /s/ Richard Tripaldi

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Richard Tripaldi

 
	
  

 	
 Title: Vice President

 
	
  

 	
  

 
	
  

 	
 By:

 	
     /s/ David Acosta

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: David Acosta

 
	
  

 	
 Title: Senior Vice
 President

 

Signature Page to

Amendment No. 3

	
  

 	
  

 
	
 Acknowledged and Agreed

 
	
 as of the date first above written:

 
	
  

 
	
 SOTHEBYS.COM LLC, as a Credit Party

 

	
  

 	
  

 	
  

 
	
 By:

 	
 /s/ William
 S. Sheridan

 
	
  

 	

 

 	

 

 
	
 Name:
 William S. Sheridan

 
	
 Title: EVP
 & Chief Financial Officer

 

	
  

 
	
 SOTHEBY’S FINE ART HOLDINGS, INC.

 
	
 SOTHEBY’S ASIA, INC.

 
	
 YORK WAREHOUSE, INC.

 
	
 SPTC, INC.

 
	
 SOTHEBY 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,

 
	
 each as a
 Credit Party

 

	
  

 	
  

 	
  

 
	
 By:

 	
 /s/ Michael
 L. Gillis

 
	
  

 	

 

 	

 

 
	
 Name:
 Michael L. Gillis

 
	
 Title: SVP,
 Treasuer

 
	
  

 	
  

 
	
 SUNRISE LIQUORS & WINES, INC., as a
 Credit Party

 

	
  

 	
  

 	
  

 
	
 By:

 	
 /s/ Richard
 C. Buckley

 
	
  

 	

 

 	

 

 
	
 Name:
 Richard C. Buckley

 
	
 Title:
 Executive Vice President

 
	
  

 	
  

 	
  

 
	
 CATALOGUE DISTRIBUTION COMPANY LIMITED, as a
 Credit Party

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
 /s/ William
 S. Sheridan

 
	
  

 	

 

 	

 

 
	
 Name:
 William S. Sheridan

 
	
 Title: EVP
 & Chief Financial Officer

 

Signature Page to

Amendment No. 3

SCHEDULE IExhibit 10(a)

	
  

 	
  

 	
  

 	
  

 
	
 

 	
 Murray D. Martin 

 	
  

 	
 Pitney Bowes Inc.

 
	
 Chairman, President and

 	
  

 	
 MSC 65-27

 
	
 Chief Executive Officer

 	
  

 	
 1 Elmcroft Road

 
	
  

 	
  

 	
  

 	
 Stamford, CT

 
	
  

 	
  

 	
  

 	
 06926-0700

 
	
  

 	
  

 	
  

 	
 T: 203.351.6900 

 
	
  

 	
  

 	
  

 	
 F: 203.351.6876

 
	
  

 	
  

 	
  

 	
 murray.martin@pb.com 

 
	
  

 	
  

 	
  

 	
 www.pb.com

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 June 21, 2010

 

Ms. Vicki O’Meara 

Dear Vicki,

I
am pleased to confirm your appointment to the position of Executive Vice
President & President, PBMS and Government and Postal Affairs effective
July 5, 2010, reporting directly to me. The terms of your compensation and
benefits associated with your new role are as follows:

	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 Your
 base salary will be $500,000.00 paid on a semi-monthly basis.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 You
 will receive a promotional sign on cash award in the gross amount of
 $50,000.00.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Your
 position is currently eligible to earn an annual incentive award with a
 target opportunity of 80% of your base salary and a maximum of 138%. The
 actual payment is determined based on the performance results of Pitney Bowes
 Inc. The Board also may consider your individual performance in determining
 your annual incentive. Payments of the incentive plan in February 2011 for
 the 2010 performance period will be prorated based on your transition date.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 Your
 position is eligible for a long-term incentive with a potential value of up to
 $850,000.00. Your long-term incentive is comprised of a combination of
 Restricted Stock Units (RSUs), Stock Options and Cash Incentive Units (ClUs),
 or other incentive vehicles. The actual dollar value used to calculate your
 award is determined based on your performance and expected future
 contributions to Pitney Bowes. The issuance of a long-term incentive is not
 guaranteed and is usually granted in February. The Company periodically
 conducts market reviews of its compensation structure and reserves the right
 to amend, modify or terminate its long-term incentive program without prior
 notice.

 
	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 You
 will continue to be eligible for four weeks vacation annually.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.

 	
 You
 will continue to be covered by the Pitney Bowes Inc. Executive Stock Ownership
 Policy which requires you to attain a target ownership level of two times
 base salary over a five year period.

 
	
  

 	
  

 	
  

 
	
  

 	
 7.

 	
 You
 will continue to be eligible to receive financial counseling and related
 services under the Executive Financial Counseling Program. Your maximum
 annual benefit will be $7,500.00.

 
	
  

 	
  

 	
  

 
	
  

 	
 8.

 	
 You
 will continue to be eligible for participation in a Deferred Incentive
 Savings Plan that will enable you to defer all or part of your future annual
 and long-term cash incentive awards with significant tax advantages.

 
	
  

 	
  

 	
  

 
	
  

 	
 9.

 	
 You
 will continue to be eligible for a comprehensive flexible benefits program. 

 

 

	
  

 	
  

 
	
 Engineering
 the flow of communicationTM

 	
  

 

37

In conjunction with this
appointment, please review and sign the attached Proprietary Interest
Protection Agreement.

Please confirm your
acceptance of these terms by signing below and returning a signed copy to me by
no later than July 2, 2010.

	
  

 
	
 Best regards,

 
	
  

 
	
 Murray D. Martin

 
	
 Chairman, President and
 Chief Executive Officer

 
	
 Pitney Bowes Inc.

 

	
  

 	
  

 
	
 cc:

 	
 Johnna G. Torsone,
 Executive Vice President & Chief Human Resources Officer 

 Carole Hynes, Executive Compensation 

 Susan Johnson, Strategic Talent Management

 

	
  

 	
  

 
	
  

 	
  

 
	
 Agreed/Vicki O’Meara/Date

 	
  

 

38

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