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EXHIBIT 10.3

EXECUTION COPY

AMENDMENT NO. 3 TO

THE AMENDED AND RESTATED

CREDIT AGREEMENT 

	
Dated as of January 2, 2007

     AMENDMENT NO. 3 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 and by Amendment No. 2 to the Amended and Restated Credit Agreement dated as of May 18, 2006 (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 a trustee, on behalf of the Company, to invest certain funds contributed to a grantor trust established by the
Company for purposes of setting aside assets to meet its obligations under the Sotheby’s Defined Contribution Plan (as defined below). 

     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) The defined term “Sotheby’s Deferred Compensation Plan” is hereby inserted in Section 1.01 after the defined term “Sotheby’s” to read as follows:
“‘Sotheby’s Deferred Compensation Plan’ means the Sotheby’s Deferred Compensation Plan dated as of January 1, 2007.”

     (b) Section 7.03 is hereby amended by (x) deleting the “and” at the end of clause (h), (y) deleting the “.” at the end of clause (i) and substituting therefore “; and” and (z) adding at the end
of such Section a new clause (j) to read as follows: 

	 

        	 
        	
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Sotheby’s – Amendment No. 3 to Amended and Restated Credit Agreement
        	 

     “(j) Investments by the trustee of the grantor trust established for purposes of setting aside assets to meet obligations of the Company under the Sotheby’s Deferred Benefits Compensation
Plan.”

     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 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

	 

        	 
        	
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Sotheby’s – Amendment No. 3 to Amended and Restated Credit Agreement
        	 

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. 

	 

        	 
        	
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Sotheby’s – Amendment No. 3 to Amended and Restated Credit Agreement
        	 

     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:  /s/ William S. Sheridan
                      

Name: William S. Sheridan               

Title: EVP & Chief Financial Officer 
	 	 
	 	SOTHEBY’S, INC.
	 	 
	 	By:  /s/ William S. Sheridan
                      

Name: William S. Sheridan               

Title: EVP & Chief Financial Officer 
	 	 
	 	OATSHARE LIMITED
	 	 
	 	By:  /s/ William S. Sheridan
                      

Name: William S. Sheridan               

Title: EVP & Chief Financial Officer 
	 	 
	 	SOTHEBY’S
	 	 
	 	By:  /s/ William S. Sheridan
                      

Name: William S. Sheridan               

Title: EVP & Chief Financial Officer 

	 

        	 
        	
Signature Page
        	 
	 

        	 
        	
Sotheby’s – Amendment No. 3 to Amended and Restated Credit Agreement
        	 

	 	BANK OF AMERICA, N.A., as

Administrative Agent, L/C Issuer, Swing Line

Lender, Foreign Currency Lead Lender and Lender
	 	 
	 	By:  /s/ John Walkiewicz
                         

Name: John Walkiewicz                  

Title: Vice President                        

	 

        	 
        	
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Sotheby’s – Amendment No. 3 to Amended and Restated Credit Agreement
        	 

	 	LASALLE BANK N.A.,

as Lender 

By  /s/ Steve Friedlander                

              Name: Steve Friedlander

      Title: S.V.P.
        
	 	 
	 	HSBC BANK PLC,

as Lender 

By  /s/ Paul Hagger                       

              Name: Paul Hagger

      Title: Corporate Banking Manager
        
	 	 
	 	THE CIT GROUP/BUSINESS CREDIT, INC., as Lender 

as Lender 

By  /s/ Julianne Low                       

              Name: Julianne Low

      Title: Vice President
        
	 	 
	 	CITIBANK, N.A.,

as Lender 

By  /s/ Alan Ackbarali                       

              Name: Alan Ackbarali

      Title: Vice President
        
	 	 
	 	UNITED OVERSEAS BANK LIMITED,

NEW YORK AGENCY, as Lender 

By                          
                               

              Name:

      Title: 
	 	 
	 	By                          
                               

              Name:

      Title: 

	 

        	 
        	
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Sotheby’s – Amendment No. 3 to Amended and Restated Credit Agreement
        	 

	 	COMERICA BANK,

as Lender 

By  /s/ Sarah R. West                       

              Name: Sarah R. West

      Title: Assistant Vice President
        
	 	 
	 	ISRAEL DISCOUNT BANK OF NEW YORK,

as Lender  

By  /s/ Andy Ballta                       

              Name: Andy Ballta

      Title: First Vice President
	 	 
	 	By  /s/ Patrick Doran                       

              Name: Patrick Doran

      Title: Assistant Vice President
	 	 
	 	NORTH FORK BUSINESS CAPITAL

CORPORATION, as Lender 

By  /s/ Ron Walker                       

              Name: Ron Walker

      Title: Vice President
        
	 	 
	 	WEBSTER BUSINESS CREDIT CORPORATION, as Lender 

as Lender 

By  /s/ Joe Zautro                       

              Name: Joe Zautro

      Title: Vice President
        

	 

        	 
        	
Signature Page
        	 
	 

        	 
        	
Sotheby’s – Amendment No. 3 to Amended and Restated Credit Agreement
        	 

CONSENT

Dated as of January 2, 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 /s/ William S. Sheridan           

              Name: William S. Sheridan

              Title: EVP & Chief Financial Officer
	 	 
	 	SOTHEBY’S

        By /s/ William S. Sheridan           

              Name: William S. Sheridan

              Title: EVP & Chief Financial Officer

	 

        	 
        	
Consent
        	 
	 

        	 
        	
Sotheby’s – Amendment No. 3 to Amended and Restated Credit Agreement
        	 

	 	SOTHEBY’S, INC.

By  /s/ William S. Sheridan                       

              Name: William S. Sheridan

      Title: EVP & Chief Financial Officert
        
	 	 
	 	OATSHARE LIMITED

By  /s/ William S. Sheridan                       

              Name: William S. Sheridan

      Title: EVP & Chief Financial Officer
	 	 
	 	SOTHEBY’S

By  /s/ William S. Sheridan                       

              Name: William S. Sheridan

      Title: EVP & Chief Financial Officer
	 	 
	 	SOTHEBY’S FINANCIAL SERVICES LTD.

By  /s/ William S. Sheridan                       

              Name: William S. Sheridan

      Title: EVP & Chief Financial Officer
        
	 	 
	 	CATALOGUE DISTRIBUTION COMPANY LIMITED 

By  /s/ William S. Sheridan                       

              Name: William S. Sheridan

      Title: EVP & Chief Financial Officer
        

	 

        	 
        	
Consent
        	 
	 

        	 
        	
Sotheby’s – Amendment No. 3 to Amended and Restated Credit AgreementEXHIBIT 10.4

 

SOTHEBY’S NEVADA, INC.

5600 Spring Mountain Road, Suite 104

Las Vegas, Nevada 89102

 

January 12, 2007

 

Acquavella Contemporary Art, Inc.

c/o Mr. William R. Acquavella

900 Pleasure Drive

Flanders, NY 11901

 

Dear Bill:

 

This letter agreement amends the Agreement of Partnership (the “Partnership Agreement”) of Acquavella Modern Art, a Nevada general partnership, dated May 29, 1990, between Sotheby’s Nevada, Inc., a Nevada Corporation (“Sotheby’s Partner”), and Acquavella Contemporary Art, Inc.,
a Nevada Corporation (“Acquavella Partner”).

 

By prior letters of amendment, we have agreed to extend the term of the Partnership Agreement through March 31, 2007. By this letter of amendment, we are agreeing to extend the term of the Partnership Agreement for one additional year through March 31, 2008. Accordingly, each of the Sotheby’s Partner and the Acquavella partner hereby agree to amend Section 1.5 (iii) of the Partnership Agreement, as heretofore amended, to
delete the references to March 31, 2007 and substitute therefor the date of “March 31, 2008.”

 

Except as amended hereby, the Partnership Agreement shall remain in full force and effect and is hereby ratified and confirmed.

 

Please sign this letter agreement in the space provided below. Upon execution on behalf of the Acquavella Partner, this letter agreement shall be effective as of the date of this letter.

 

SOTHEBY’S NEVADA, INC.

 

By: /s/ William S. Sheridan                

     William S. Sheridan, Chief Financial Officer

 

AGREED AND ACCEPTED

ACQUAVELLA CONTEMPORARY ART, INC.

 

By: /s/ William R. Acquavella                

     William R. Acquavella, President

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