Document:

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                                                                   EXHIBIT 10(a)

                        AMENDMENT NO. 2 dated as of July 30, 2002 to the Amended
            and Restated Credit Agreement dated as of July 10, 2001 (as amended,
            restated or otherwise modified from time to time, the "CREDIT
            AGREEMENT") among Sotheby's Holdings, Inc., a Michigan corporation
            ("HOLDINGS"), Sotheby's, Inc., a New York corporation, Oatshare
            Limited, a company registered in England, Sotheby's, a company
            registered in England, Sotheby's Global Trading GmbH, a company
            organized in Switzerland (each referred to individually as a
            "BORROWER" and collectively as the "BORROWERS"); the lenders from
            time to time party thereto (the "LENDERS"); and JPMorgan Chase Bank
            (f/k/a The Chase Manhattan Bank), a New York banking corporation, as
            administrative agent (in such capacity, the "ADMINISTRATIVE AGENT")
            and as collateral agent (in such capacity, the "COLLATERAL AGENT")
            for the Lenders and as the issuing bank.

            WHEREAS, the Borrowers are currently contemplating the sale of the
property subject to the Lien of the Chicago Mortgage (the "CHICAGO PROPERTY") to
a buyer to be determined for approximately $3,000,000 and have requested that
the Chicago Property be released from the Lien of the Collateral Agent upon such
sale;

            WHEREAS, the Borrowers have requested that the Lenders approve
certain amendments to the Credit Agreement;

            WHEREAS, the Borrowers have indicated that, concurrent with the
effectiveness of this Amendment, certain of the Borrowers will prepay Term Loans
in an aggregate principal amount of $30,000,000;

            WHEREAS, the undersigned Lenders are willing, on the terms and
subject to the conditions set forth herein, to approve such amendment to the
Credit Agreement;

            NOW, THEREFORE, in consideration of these premises and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Borrowers and the undersigned Lenders hereby agree as follows:

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            SECTION 1. DEFINED TERMS. Capitalized terms used but not defined
herein shall have the meanings assigned to such terms in the Credit Agreement.

            SECTION 2. AMENDMENT TO CREDIT AGREEMENT. The Credit Agreement is
hereby amended, effective as of the Amendment Effective Date (as defined in
Section 6), as follows:

            (a) AMENDMENT OF SECTION 1.01. (i) The definition of "CHICAGO
MORTGAGE" is hereby deleted in its entirety.

            (ii) The definition of "MORTGAGE" is hereby amended by removing the
reference therein to ", the Chicago Mortgage".

            (iii) The definition of "MORTGAGED PROPERTY" is hereby amended by
removing the reference therein to ", the property subject to the Chicago
Mortgage".

            (iv) The definition of "REVOLVING MATURITY DATE" is hereby amended
by replacing the reference therein to "August 11, 2002" with a reference to
"February 11, 2003".

            (v) The definition of "TERM MATURITY DATE" is hereby amended by
replacing the reference therein to "August 11, 2002" with a reference to
"February 11, 2003".

            (b) AMENDMENT OF SECTION 2.08. (i) Each reference in Section 2.08(a)
to "3.00" is hereby replaced with a reference to "3.50".

            (ii) Each reference in Section 2.08(b) to "2.00" is hereby replaced
with a reference to "2.50".

            (c) AMENDMENT OF SECTION 3.14. Paragraph (d) of Section 3.14 is
hereby amended and restated in its entirety as follows:

            "(d) The York Avenue Mortgage is, and the other Mortgages when
      executed and delivered will be, effective to create in favor of the
      Collateral Agent legal, valid and enforceable Liens on all right, title
      and interest of the grantors thereunder in and to the Mortgaged Properties
      and the proceeds thereof, and the York Avenue Mortgage constitutes, and
      the other Mortgages when filed in the appropriate offices will constitute,
      perfected first priority Liens on and security interests in, all right,
      title and interest of such grantors in and to the Mortgaged

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      Properties and the proceeds thereof, subject only to Liens existing on the
      date hereof and expressly permitted by Section 6.01."

            (d) AMENDMENT OF SECTION 6.08. Section 6.08 is hereby amended and
restated in its entirety as follows:

            "SECTION 6.08. ADJUSTED CONSOLIDATED NET WORTH. Permit Adjusted
      Consolidated Net Worth to be less than $160,000,000 on or prior to
      December 30, 2002 or less than $175,000,000 on and after December 31,
      2002."

            SECTION 3. RELEASE OF CHICAGO PROPERTY. The undersigned Lenders
hereby instruct the Collateral Agent to release the Chicago Property from the
Lien of the Chicago Mortgage upon the sale of such property.

            SECTION 4. PREPAYMENT OF TERM LOANS. The Borrowers hereby
acknowledge and agree that certain of the Borrowers have provided the
Administrative Agent with a notice of prepayment of Term Loans pursuant to
Section 2.12 of the Credit Agreement, which notices indicate that Term Loans in
an aggregate principal amount of $30,000,000 shall be prepaid concurrent with
the effectiveness of this Amendment.

            SECTION 5. REPRESENTATIONS AND WARRANTIES. To induce the other
parties hereto to enter into this Amendment, each of the Borrowers represents
and warrants to each of the Lenders and the Administrative Agent that, as of the
Amendment Effective Date:

            (a) this Amendment has been duly authorized, executed and delivered
by it and constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms;

            (b) after giving effect to this Amendment, the representations and
warranties of each of the Borrowers set forth in the Loan Documents are true and
correct on and as of the Amendment Effective Date with the same effect as though
made on and as of the Amendment Effective Date, except for representations and
warranties that expressly relate to an earlier date, which representations and
warranties were true and correct as of such earlier date; and

            (c) after giving effect to this Amendment, no Default or Event of
Default has occurred and is continuing.

                                       3
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            SECTION 6. EFFECTIVENESS. This Amendment shall become effective on
August 12, 2002 (the "AMENDMENT EFFECTIVE DATE"), provided that each of the
following conditions is satisfied:

            (a) The Administrative Agent (or its counsel) shall have received
copies hereof that, when taken together, bear the signatures of the Borrowers
and each of the Lenders.

            (b) The Administrative Agent shall have received all amounts due and
payable by the Borrowers under the Credit Agreement on or prior to the date
hereof, including, to the extent invoiced, reimbursement or payment of all
out-of-pocket expenses (including fees and disbursements of Cravath, Swaine &
Moore, counsel to the Administrative Agent).

            (c) The Borrowers shall have prepaid Term Loans in an aggregate
principal amount of $30,000,000 pursuant to the terms of Section 2.12 of the
Credit Agreement.

            (d) Each Lender shall have received an amendment fee in an amount
equal to 0.50% of the Revolving Commitment and outstanding Term Loans of such
Lender after giving effect to the prepayment of Term Loans referred to in
Section 4 hereof.

Notwithstanding anything contained in this Amendment or any other Loan Document
to the contrary, the amendments set forth in Sections 2(a)(i), 2(a)(ii),
2(a)(iii) and 2(c) shall become effective on the first date upon which each of
the conditions set forth in paragraphs (a)-(d) of this Section 6 is satisfied
and on which the sale of the Chicago Property is consummated.

            SECTION 7. APPLICABLE LAW. THIS AMENDMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

            SECTION 8. EFFECT OF AMENDMENT. Except as expressly set forth
herein, this Amendment shall not by implication or otherwise limit, impair,
constitute a waiver of, amend or otherwise affect the rights and remedies of the
Lenders or the Administrative Agent under the Credit Agreement or any other Loan
Document, and shall not alter, modify, amend or in any way affect any of the
terms, conditions, obligations, covenants or agreements contained in the Credit
Agreement or any other Loan Document, all of which are ratified and affirmed in
all respects and shall continue in full force and effect. Nothing herein shall
be deemed to entitle any party to any Loan Document to a

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consent to, or a waiver, amendment, modification or other change of, any of the
terms, conditions, obligations, covenants or agreements contained in the Credit
Agreement or any other Loan Document in similar or different circumstances. This
Amendment shall apply and be effective only with respect to the provisions of
the Credit Agreement specifically referred to herein. After the Amendment
Effective Date, any reference to the Credit Agreement shall mean the Credit
Agreement, as amended hereby. This Amendment shall constitute a "LOAN DOCUMENT"
for all purposes of the Credit Agreement and the other Loan Documents.

            SECTION 9. COUNTERPARTS. This Amendment may be executed in two or
more counterparts, each of which when so executed and delivered shall constitute
an original, but all of which when taken together shall constitute but one and
the same instrument. Delivery of an executed counterpart of a signature page of
this Amendment by facsimile transmission shall be as effective as delivery of a
manually executed counterpart of this Amendment.

            SECTION 10. COSTS AND EXPENSES. Holdings agrees to reimburse the
Administrative Agent for its reasonable out-of-pocket expenses in connection
with this Amendment, including the reasonable fees, charges and disbursements of
Cravath, Swaine & Moore, counsel for the Administrative Agent.

            SECTION 11. HEADINGS. Section headings used herein are for
convenience of reference only, are not part of this Amendment and are not to
affect the construction of, or to be taken into consideration in interpreting,
this Amendment.

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            IN WITNESS WHEREOF, the Borrowers and the undersigned Lenders have
caused this Amendment to be duly executed by their duly authorized officers, all
as of the date first above written.

                                    SOTHEBY'S HOLDINGS, INC.,

                                      by  /s/ William S. Sheridan
                                          ------------------------
                                          Name:   William S. Sheridan
                                          Title:  Executive Vice President
                                                  and Chief Financial Officer

                                    SOTHEBY'S, INC.,

                                      by  /s/ William S. Sheridan
                                          ------------------------
                                          Name: William S. Sheridan

                                    OATSHARE LIMITED,

                                      by  /s/ William S. Sheridan
                                          ------------------------
                                          Name: William S. Sheridan

                                    SOTHEBY'S,

                                      by  /s/ William S. Sheridan
                                          ------------------------
                                          Name: William S. Sheridan

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                                    SOTHEBY'S GLOBAL TRADING GmbH,

                                      by  /s/ Robert C. Wolcott
                                          ------------------------
                                          Name:  Robert C. Wolcott
                                          Title: Senior Vice President

                                      by  /s/ Michael L. Gillis
                                          ------------------------
                                          Name:  Michael L. Gillis
                                          Title: Senior Vice President,
                                                 Controller and Chief
                                                 Accounting Officer

                                    JPMORGAN CHASE BANK (F/K/A THE
                                    CHASE MANHATTAN BANK),
                                    individually and as Administrative
                                    Agent,

                                      by  /s/ Teri Streusand
                                          ------------------------
                                          Name:  Teri Streusand
                                          Title: Vice President

                                       7
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                                    SIGNATURE PAGE TO AMENDMENT NO. 2
                                    DATED AS OF JULY 30, 2002 TO THE
                                    SOTHEBY'S AMENDED AND RESTATED
                                    CREDIT AGREEMENT

                                    Name of Institution: HSBC BANK PLC

                                      by  /s/ Paul Hagger
                                          ------------------------
                                          Name:  Paul Hagger
                                          Title: Business Banking
                                                 Manager

                                    Name of Institution: COMERICA BANK

                                      by  /s/ Dan M. Roman
                                          ------------------------
                                          Name:  Dan M. Roman
                                          Title: First Vice President

                                    Name of Institution: BATTERY PARK,
                                    CDO LIMITED

                                      by  /s/ Richard W. Stewart
                                          ------------------------
                                          Name: Richard W. Stewart
                                          Title: Director

                                    Name of Institution: CLYDESDALE
                                    CLO 2001-1, LTD

                                      by  /s/ Richard W. Stewart
                                          ------------------------
                                          Name: Richard W. Stewart
                                          Title: Director

                                       8
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                                    Name of Institution: NOMURA BOND AND LOAN
                                    FUND

                                          By: UFJ Trust Company of New York as
                                          Trustee

                                          By: Nomura Corporate Research and
                                          Asset Management, Inc.
                                          Attorney in Fact

                                      by  /s/ Richard W. Stewart
                                          ------------------------
                                          Name: Richard W. Stewart
                                          Title: Director

                                    Name of Institution: KATONAH II, LTD

                                      by  /s/ Ralph Della Rocca
                                          ------------------------
                                          Name: Ralph Della Rocca
                                          Title: Authorized Officer, Katonah
                                          Capital, L.L.C. as Manager

                                    Name of Institution: FRANKLIN
                                    FLOATING RATE TRUST

                                      by  /s/ Richard D'Addario
                                          ------------------------
                                          Name: Richard D'Addario
                                          Title: Senior Vice President

                                       9
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                                    Name of Institution: FRANKLIN
                                    FLOATING RATE MASTER SERVICES

                                      by  /s/ Richard D'Addario
                                          ------------------------
                                          Name: Richard D'Addario
                                          Title: Senior Vice President

                                    Name of Institution: FRANKLIN
                                    FLOATING RATE DAILY ACCESS FUND

                                      by  /s/ Richard D'Addario
                                          ------------------------
                                          Name: Richard D'Addario
                                          Title: Senior Vice President

                                    Name of Institution: FRANKLIN CLO I, LTD

                                      by  /s/ Richard D'Addario
                                          ------------------------
                                          Name: Richard D'Addario
                                          Title: Senior Vice President

                                    Name of Institution: FRANKLIN CLO II, LTD

                                      by  /s/ Richard D'Addario
                                          ------------------------
                                          Name: Richard D'Addario
                                          Title: Senior Vice President

                                       10
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                                    Name of Institution: FRANKLIN CLO III, LTD

                                      by  /s/ Richard D'Addario
                                          ------------------------
                                          Name: Richard D'Addario
                                          Title: Senior Vice President

                                    Name of Institution: HELLER FINANCIAL, INC.

                                      by  /s/ W. Jerome McDermott
                                          ------------------------
                                          Name: W. Jerome McDermott
                                          Title: Duly Authorized
                                          Signatory

                                    Name of Institution: GENERAL
                                    ELECTRIC CAPITAL CORPORATION

                                      by  /s/ Gregory Hong
                                          ------------------------
                                          Name: Gregory Hong
                                          Title: Duly Authorized
                                          Signatory

                                    Name of Institution: BLACK DIAMOND
                                    CLO 2000-1 LTD

                                      by  /s/ Alan Corkish
                                          ------------------------
                                          Name: Alan Corkish
                                          Title: Director

                                       11
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                                    Name of Institution: BLACK DIAMOND
                                    INTERNATIONAL FUNDING, LTD

                                      by  /s/ Alan Corkish
                                          ------------------------
                                          Name: Alan Corkish
                                          Title: Director

                                    Name of Institution: DAVID L.
                                    BABSON & COMPANY, INC. AS
                                    COLLATERAL MANAGER FOR ELC
                                    (CAYMAN)LTD. 1999-II

                                      by  /s/ John W. Stelwagon
                                          ------------------------
                                          Name: John W. Stelwagon
                                          Title: Managing Director

                                    Name of Institution: THE BANK OF
                                    NOVA SCOTIA

                                      by  /s/ K.C. Clark
                                          ------------------------
                                          Name: K.C. Clark
                                          Title: Managing Director

                                    Name of Institution: LONG LANE
                                    MASTER TRUST IV

                                          By: Fleet National Bank as
                                         Trust Administrator

                                      by  /s/ Kevin Kearns
                                          ------------------------
                                          Name: Kevin Kearns
                                          Title: Managing Director

                                       12
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                                    Name of Institution: CANADIAN
                                    IMPERIAL BANK OF COMMERCE

                                      by  /s/ Stephanie Devane
                                          ------------------------
                                          Name: Stephanie Devane
                                          Title: Authorized Signatory

                                    Name of Institution: THE BANK OF NEW YORK

                                      by  /s/ Roger Grossman
                                          ------------------------
                                          Name: Roger A. Grossman
                                          Title: Vice President

                                    Name of Institution: SENIOR DEBT PORTFOLIO

                                          By: Boston Management and
                                          Research as Investment Advisor

                                      by  /s/ Barbara Campbell
                                          ------------------------
                                          Name: Barbara Campbell
                                          Title: Vice President

                                    Name of Institution: EATON VANCE
                                    SENIOR INCOME TRUST

                                          By: Eaton Vance Management as
                                          Investment Advisor

                                      by  /s/ Barbara Campbell
                                          ------------------------
                                          Name: Barbara Campbell
                                          Title: Vice President

                                       13
<Page>

                                    Name of Institution: EATON VANCE
                                    INSTITUTIONAL SENIOR LOAN FUND

                                          By: Eaton Vance Management as
                                          Investment Advisor

                                      by  /s/ Barbara Campbell
                                          ------------------------
                                          Name: Barbara Campbell
                                          Title: Vice President

                                    Name of Institution: OXFORD
                                    STRATEGIC INCOME FUND

                                          By: Eaton Vance Management as
                                          Investment Advisor

                                      by  /s/ Barbara Campbell
                                          ------------------------
                                          Name: Barbara Campbell
                                          Title: Vice President

                                    Name of Institution: EATON VANCE
                                    CDO III, LTD

                                          By: Eaton Vance Management as
                                          Investment Advisor

                                      by  /s/ Barbara Campbell
                                          ------------------------
                                          Name: Barbara Campbell
                                          Title: Vice President

                                    Name of Institution: GRAYSON & CO.

                                          By: Boston Management and
                                          Research as Investment Advisor

                                      by  /s/ Barbara Campbell
                                          ------------------------
                                          Name: Barbara Campbell
                                          Title: Vice President

                                       14
<Page>

                                    Name of Institution: EATON VANCE
                                    CDO IV, LTD

                                          By: Eaton Vance Management as
                                          Investment Advisor

                                      by  /s/ Barbara Campbell
                                          ------------------------
                                          Name: Barbara Campbell
                                          Title: Vice President

                                    Name of Institution: FIRST
                                    DOMINION FUNDING, I

                                      by  /s/ Andrew H. Marshak
                                          ------------------------
                                          Name: Andrew H. Marshak
                                          Title: Authorized Signatory

                                    Name of Institution: FIRST
                                    DOMINION FUNDING, II

                                      by  /s/ Andrew H. Marshak
                                          ------------------------
                                          Name: Andrew H. Marshak
                                          Title: Authorized Signatory

                                    Name of Institution: FIRST
                                    DOMINION FUNDING, III

                                      by  /s/ Andrew H. Marshak
                                          ------------------------
                                          Name: Andrew H. Marshak
                                          Title: Authorized Signatory

                                       15
<Page>

                                    Name of Institution: CSAM FUNDING II

                                      by  /s/ Andrew H. Marshak
                                          ------------------------
                                          Name: Andrew H. Marshak
                                          Title: Authorized Signatory

                                       16<Page>

                                                                   EXHIBIT 10(b)

                              EMPLOYMENT AGREEMENT

February 6, 2001

BY HAND
Mitchell Zuckerman
Sotheby's Holdings, Inc.
1334 York Avenue
New York, NY  10021

Dear Mitchell:

     This letter sets forth our understanding and agreement with respect to your
employment by Sotheby's Holdings, Inc. together with all of its subsidiaries and
related entities ("Sotheby's" or the "Company"). This Agreement is being
provided to you because you are a key employee at the Company, perform highly
specialized and unique duties for the Company, and could do substantial harm to
the Company if you left its employment, particularly during this present period
of uncertainty for the Company. Consequently, Sotheby's is offering you the
following terms and financial enhancements to ensure your continued employment
with and loyalty to the Company, and so that you will focus fully and
exclusively on your job duties at Sotheby's during this period.

(1)  TERM OF EMPLOYMENT.

     a)   You agree to continue as a full-time employee of Sotheby's and
          Sotheby's agrees to continue to employ you full-time, subject to the
          terms and conditions set forth herein (the "Agreement"), for a period
          beginning on the date hereof and ending twenty-four (24) months after
          the date hereof, unless extended in writing by both the Company and
          you or as otherwise provided in this Agreement.

     b)   This Agreement may be terminated:

          i)    upon mutual written agreement of the Company and you;

          ii)   at the option of the Company, upon written notice to you for
                Cause (as hereinafter defined);

          iii)  upon thirty (30) days' prior written notice by you for Good
                Reason (as hereinafter defined) within thirty (30) days after
                the existence of circumstances constituting Good Reason;

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          iv)   at the option of the Company in the event of your Permanent
                Disability (as hereinafter defined); or

          v)    automatically upon your death.

     c)   As used herein, the term "Cause" shall mean and be limited to:

          i)    conviction of a felony crime, or

          ii)   fraud, willful malfeasance or gross negligence in performance of
                your duties which is materially injurious to the Company.

          The Chief Executive Officer, in conjunction with the appropriate
          supervisor, shall determine, in their sole discretion, whether the
          occurrence or non-occurrence of an event constitutes Cause within the
          meaning of this Agreement. Such determination shall be final, binding
          and conclusive on the parties hereto.

     d)   As used herein, the term "Good Reason" shall mean, without your
          express written consent, the occurrence of any of the following
          events:

          i)    any failure by the Company to comply with the provisions of
                Paragraphs 3 or 4 of the Agreement; provided, however, that
                payment of the bonus amounts set forth in Subparagraph 4(b) from
                an External Source shall not be deemed to be a failure of the
                Company to comply with the provisions of Paragraph 4
                constituting Good Reason;

          ii)   your being required to relocate to a principal place of business
                more than thirty-five (35) miles outside New York, New York;

          iii)  any action by the Company that results in a material diminution
                in your position (except in connection with the termination of
                your employment for Cause or as a result of your death or
                Permanent Disability or temporarily as a result of your illness
                or other absence); or

          iv)   the failure of the Company's successor to assume this Agreement
                in accordance with Paragraph 20;

         provided, however, that the Company shall have thirty (30) days
         following the receipt of notice from you of the existence of
         circumstances constituting Good Reason to correct such circumstances.

     e)   As used herein, the term "Permanent Disability" shall mean, and be
          limited to, any physical or mental illness, disability or impairment
          that has prevented you from continuing the performance of your normal
          duties and responsibilities hereunder for a period in excess of six
          (6) consecutive months. For purposes of determining whether a
          Permanent Disability has occurred under this Agreement,

                                        2
<Page>

          the written determination thereof by a physician mutually acceptable
          to the Company and you or, if you and the Company cannot agree upon a
          physician, by a physician selected by agreement of a physician
          designated by the Company and a physician designated by you, shall be
          conclusive; provided, however that if such physicians cannot agree
          upon a third physician within thirty (30) days, such third physician
          shall be designated by the American Arbitration Association.

(2)  TITLE; RESPONSIBILITIES. You shall continue to serve as President of
     Sotheby's Financial Services, Inc. and Sotheby's Ventures, LLC. In addition
     to the foregoing, you agree to perform such other functions and
     responsibilities as may be reasonably requested by Sotheby's from time to
     time. Except as otherwise permitted by the Company, in accordance with
     Paragraph 12, during your employment with the Company, you shall devote
     substantially all of your business time (excluding periods of vacation and
     sick leave) and efforts to the performance of your functions and
     responsibilities hereunder.

(3)  COMPENSATION. In consideration for the services to be rendered by you to
     Sotheby's, you shall receive during the 24-month period of employment by
     Sotheby's after your execution of this Agreement, the following:

     a)   An annual base salary of $385,000, which shall be payable in
          appropriate installments to conform with the regular payroll dates for
          salaried personnel of Sotheby's. In the event your employment
          continues beyond the 24-month period after your execution of this
          Agreement, your base salary shall be reviewed thereafter on an annual
          basis (the first such review to take place effective as of the 25th
          month following the execution of this Agreement) and shall be subject
          to such adjustment as your supervisor(s) shall determine; and

     b)   In addition to the annual base salary, you will be eligible for:

          i)    An annual bonus composed of a 25% worldwide corporate financial
                performance target and a 75% individual performance target. Your
                2001 total bonus target is $250,000. You will be guaranteed a
                minimum bonus of $125,000 for each of 2001 and 2002.

          ii)   A private treaty bonus in the Company's discretion to reflect
                private treaty transactions you have initiated in excess of your
                departmental private treaty target.

          iii)  Continuation of the special annual payment made to you on
                September 1, 2000 and, as determined by the Company in its sole
                discretion, as long thereafter as is appropriate.

(4)  ADDITIONAL COMPENSATION IN CONSIDERATION FOR SPECIAL UNDERTAKINGS DURING
     THE 24-MONTH EMPLOYMENT PERIOD. In order to preserve stability and to
     assure your continued employment during this period of uncertainty for the
     Company, and because it is essential

                                        3
<Page>

     that during this period you focus fully and exclusively on your job duties
     for the Company, you agree to the following undertakings during the
     24-month period of employment by Sotheby's after execution of this
     Agreement, in exchange for the Special Additional Consideration set forth
     in Subparagraph 4(b) below.

     a)   Employee Undertakings

          i)    You agree to reaffirm and abide by your acknowledged fiduciary
                obligation to cooperate with the Company in the event of and in
                connection with matters relating to the Company including
                without limitation a restructuring (any business or capital
                restructuring), refinancing or sale of the Company or a
                significant interest therein (including but not limited to an
                actual or potential change of control) including, but not
                limited to, your obligations to:

                (a)  not disparage the Company or its assets to any third party;

                (b)  maintain your loyalty to the Company in all respects,
                     including without limitation, compliance with Paragraph 13;

                (c)  provide full and complete active cooperation in working
                     toward successful sale seasons and in otherwise assisting
                     in promoting the Company; and

                (d)  fully assist with any transition with respect to any
                     business or capital restructuring, refinancing or sale of
                     the Company or a significant interest therein.

          ii)   For the period beginning on the date hereof and ending 24 months
                after the date hereof, you agree to refrain from any substantive
                discussions, meetings or communications of any kind whatsoever
                with any other potential employer, including, but not limited
                to, an art auction house, art dealer or any other company,
                organization or entity in which you would perform similar duties
                and responsibilities to those you have performed at Sotheby's,
                regarding prospective employment for yourself during the
                24-month employment period. By entering into this Agreement, and
                agreeing to the special undertakings set forth herein, you agree
                that for this 24-month period you are knowingly and voluntarily
                foregoing the right to engage in such conduct in exchange for
                the consideration set forth herein, and you acknowledge the
                vital importance of these undertakings to the Company during
                this period.

     b)   Special Additional Consideration

                                        4
<Page>

          In consideration of the foregoing undertakings by you, the Company
          shall provide the following special additional consideration provided
          you do not breach this Agreement (except as stated in Subparagraph
          11(c)):

          i)    With respect to the special cash bonus of $300,000 payable
                February 28, 2002 and a leadership incentive bonus in the amount
                of $350,000 payable on February 28, 2002 and $350,000 payable on
                September 30, 2002, as set forth in my letters to you of May 10,
                2000 and October 16, 2000, Sotheby's shall provide a Guarantee
                (as hereinafter defined) of these payments. All other terms and
                conditions of these bonus payments set forth in the May 10, 2000
                and October 16, 2000 letters remain in effect.

          ii)   You will also receive an additional "commitment bonus" in the
                third quarter of 2001 in the amount of $300,000. Further,
                Sotheby's shall provide a Guarantee (as hereinafter defined) of
                this payment.

          iii)  You will also receive an additional "retention bonus" in the
                amount of $2,400,000, provided you do not breach this Agreement.
                This payment will be made in three (3) installments: 20% on July
                15, 2001, 20% on January 15, 2002 and 60% on January 15, 2003.
                Further, Sotheby's shall provide a Guarantee (as hereinafter
                defined) of these payments.

          iv)   Pursuant to the Sotheby's 1997 Stock Option Plan, an option to
                purchase 83,333 shares at an exercise price of $27 per share
                will be provided to you upon your execution of this Agreement.

     c)   The "Guarantee" mentioned in Subparagraph 4(b) shall refer to the
          guarantee in the form attached hereto.

     d)   The bonus amounts set forth in Subparagraph 4(b) have been developed
          based in part on the role you play in bringing business to the
          Company.

     e)   All bonus payments set forth in Subparagraphs 3(b)(iii) and 4(b) shall
          not be included for benefit contribution purposes under any qualified
          or non-qualified retirement plan including but not limited to the
          401(k) plan or Benefit Equalization Plan. These special payments are
          also not part of the bonus calculation in the event you are entitled
          to benefits under the Sotheby's, Inc. Severance Plan.

     f)   If, at any time during the 24-month employment period, you breach any
          of the undertakings set forth herein, you will return to the Company
          all of the "Special Additional Consideration" you may have received
          pursuant to Subparagraph 4(b) above, and will not thereafter be
          entitled to any further "Special Additional Consideration." In
          addition, payment of the "Special Additional Consideration" pursuant
          to Subparagraph 4(b) will not be made if, for any reason, you are not

                                        5
<Page>

          employed by the Company on the date such payment would otherwise be
          made, except as otherwise provided in Subparagraphs 11(a) or 11(b).

(5)  STOCK OPTIONS. Your options will continue to vest pursuant to the Sotheby's
     1997 Stock Option Plan, and you will continue to be eligible for further
     grants. The benefits provided in this Agreement are in addition to any
     stock options you have already received.

(6)  BENEFITS. You shall continue to be entitled, to the extent that your
     position, title, tenure, salary, age, health and other qualifications make
     you eligible, to participate in all employee benefit plans or programs now
     in effect or hereafter adopted by Sotheby's, including the Sotheby's, Inc.
     Severance Plan, medical, dental, disability, life insurance, stock options
     and pension benefits. Your participation in such plans or programs shall
     continue to be subject to the provisions, rules and regulations applicable
     thereto. Any benefits that you may become eligible for under the Sotheby's,
     Inc. Severance Plan shall be in addition to the other benefits specified in
     this Agreement. In the event you are entitled to benefits under the
     Sotheby's, Inc. Severance Plan, such benefits shall be paid under the terms
     of that plan in effect on the execution date of this Agreement regardless
     of whether that plan is modified during the term of this Agreement unless
     the modification results in an enhanced benefit to you in which case you
     would receive the enhanced benefit.

(7)  VACATION. You shall continue to be entitled to annual vacation time, with
     full pay, in accordance with the established policies of Sotheby's now or
     hereafter in effect for similarly situated employees but in no event less
     than the number of days to which you are presently entitled.

(8)  EXPENSES. You shall be authorized to incur reasonable and necessary
     expenses incurred in connection with Sotheby's business, including expenses
     for entertainment, travel and similar items in accordance with Sotheby's
     travel and entertainment policy. Sotheby's will reimburse you for all such
     expenses upon presentation by you monthly of an itemized account of such
     expenditures. Such expenditures, however, shall be subject at all times to
     the approval of Sotheby's in accordance with Sotheby's expense
     reimbursement policy.

(9)  CAR ALLOWANCE. You will be eligible to continue your current annual car
     allowance of $18,000 for 2001 and 2002.

(10) CONFIDENTIALITY AGREEMENT; SOTHEBY'S RULES AND POLICIES. As a condition to
     your continued employment by the Company, you shall continue to be bound by
     the Company's Confidentiality Agreement, Auction Rules, Compliance Policy,
     and the Conflict of Interest Policy and House Rules (collectively, the
     "Rules and Policies"). You acknowledge that you have read, understood and
     signed each of the foregoing.

(11) COMPENSATION UPON TERMINATION DURING THE 24-MONTH EMPLOYMENT PERIOD.

     a)   If during the 24-month employment period your employment by the
          Company is

                                        6
<Page>

          terminated by you for Good Reason in accordance with Subparagraph
          1(b)(iii) hereof, the Company shall pay or provide you with the
          following:

          i)    The sum of your base salary through the date of termination to
                the extent not theretofore paid, any declared and earned but
                unpaid bonus amount for the fiscal year ended December 31, 2001
                and reimbursement for any unreimbursed expenses incurred through
                the date of termination in accordance with Paragraph 8 ("Accrued
                Obligations");

          ii)   Continued payment of your base salary on a semi-monthly basis
                from the date of termination through the end of the 24-month
                employment period or the date six (6) months after the effective
                date of your termination, whichever is later;

          iii)  On, or within fifteen (15) days following the date of
                termination, a pro-rated bonus equal to the product of (x) the
                bonus payments set forth in Subparagraphs 3(b)(i) and 3(b)(ii)
                paid or earned and payable for the most recently completed
                fiscal year of the Company and (y) a fraction, the numerator of
                which is the number of days in the current fiscal year through
                the date of termination, and the denominator of which is 365
                (the "Pro-Rated Bonus"); and

          iv)   On, or within fifteen (15) days following the date of
                termination, payment of any portion of the "retention bonus"
                described in Subparagraph 4(b)(iii) not paid as of the date of
                termination.

          In addition, you will not be obligated to return to the Company any
          portion of the "Special Additional Consideration" you may have
          received pursuant to Subparagraph 4(b) above. Notwithstanding the
          foregoing, if during the 24-month employment period your employment by
          the Company is terminated and as a result of such termination you
          become eligible to receive payments and/or benefits under the
          Sotheby's, Inc. Severance Plan, then you shall not be entitled to
          receive the Pro-Rated Bonus in accordance with the provisions of
          Subparagraph 11(a)(iii).

     b)   If during the 24-month employment period your employment by the
          Company is terminated on account of your Permanent Disability or your
          death, the Company shall pay or provide you (or, in the event of your
          death, your estate) with the following:

          i)    Accrued Obligations;

          ii)   On, or within fifteen (15) days following the date of
                termination, a Pro-Rated Bonus; and

          iii)  On, or within fifteen (15) days following the date of
                termination, payment

                                        7
<Page>

                of any portion of the "retention bonus" described in
                Subparagraph 4(b)(iii) not paid as of the date of termination.

          In addition, you (or, in the event of your death, your estate) will
          not be obligated to return to the Company any portion of the "Special
          Additional Consideration" you may have received pursuant to
          Subparagraph 4(b) above.

     c)   If during the 24-month employment period your employment by the
          Company is terminated by the Company for Cause, this Agreement shall
          terminate without further obligation to you, except that the Company
          shall pay or provide you with the sum of your base salary through the
          date of termination to the extent not theretofore paid. You will not
          be eligible for any bonus or special payments including those in
          Subparagraphs 3(b) and 4(b) after the date of termination of your
          employment.

     d)   If during the 24-month employment period your employment by the
          Company is terminated in accordance with Subparagraphs 1(b)(i) hereof,
          the Company shall pay or provide you with the amounts mutually agreed
          on by the Company and you.

     e)   Any payments payable pursuant to this Paragraph 11 beyond Accrued
          Obligations shall only be payable if you deliver to the Company a
          release, as similarly required under the Sotheby's, Inc. Severance
          Plan, of all your claims (except with regard to claims for payments or
          benefits specifically payable or providable hereunder which are not
          yet paid as of the effective date of the release, claims for vested
          accrued benefits, claims under the Consolidated Omnibus Budget
          Reconciliation Act of 1985, as amended ("COBRA") or claims relating to
          any rights of indemnification under Paragraph 14) occurring up to the
          release date with regard to the Company and its respective past or
          present officers, directors and employees in such form as reasonably
          requested by the Company.

(12) EMPLOYMENT AFTER EXPIRATION OF THE 24-MONTH EMPLOYMENT PERIOD.

     a)   After expiration of the 24-month employment period under the terms of
          this Agreement, and provided that the Agreement is not extended or
          superseded by the mutual written consent of the parties in accordance
          with Subparagraph 1(a), you will be an employee at-will; provided,
          however, that (i) prior to resigning or retiring from the Company you
          will provide the Company with a least six (6) months' written notice
          of such resignation or retirement during which time the provisions of
          Paragraphs 3(a), 4(a)(i) and 12 through 22 shall continue, and (ii)
          prior to termination by the Company, the Company will provide you with
          at least six (6) months' written notice of termination following the
          24-month period herein during which time the provisions of Paragraphs
          3(a), 4(a)(i), 6, 10 and 12 through 22 shall continue.

                                        8
<Page>

     b)   In any event, after notice is given either by you or the Company
          pursuant to Subparagraph 12(a), you will remain an employee through
          the 6-month notice period (the "Notice Period"). After the expiration
          of the 24-month employment period provided for in this Agreement, you
          will continue to receive your base salary as set forth in Subparagraph
          3(a), and the provisions of Paragraphs 2, 4(a)(i), 5-8, 10, 12, 13 and
          15 through 22 will remain in effect. It is at the sole discretion of
          the Company whether you shall be required to continue to perform
          services for the Company during the Notice Period.

(13) NON-COMPETE AND NON-SOLICITATION AGREEMENT

     a)   Because of the importance of stability and confidentiality during this
          time of uncertainty for the Company, and because you have specialized,
          unique confidential knowledge vital to the Company, you agree that
          during the 24-month period after you enter into this Agreement (and
          regardless of whether your employment is terminated) and during the
          period you remain employed by the Company (including the Notice
          Period), you will not, without the consent of the Company, directly or
          indirectly, in New York, California, England, France or Switzerland
          engage directly or indirectly in the live or on-line auction business
          or in any other business in which the Company is engaged, whether such
          engagement by you is as an officer, director, proprietor, employee,
          partner, owner, consultant, advisor, agent, sales representative or
          other participation.

     b)   In addition to the foregoing, during the 24-month period after you
          enter into this Agreement and during the Notice Period, you agree that
          you will not, either alone or in concert with others, and will not
          cause another to in any such case directly or indirectly,

          i)    recruit, solicit or induce any Sotheby's employees to terminate
                their employment with Sotheby's;

          ii)   solicit the business of, do business with, or seek to do
                business with, any client of the Company;

          iii)  encourage or assist any competitor of the Company to solicit or
                service any client of the Company; or

          iv)   otherwise induce any client of the Company to cease doing
                business with, or lessen its business with, the Company.

     c)   The term "client" shall not include clients of Sotheby's with whom you
          had no dealings on behalf of Sotheby's, or clients you developed and
          maintained without any support or assistance, whether financial or
          otherwise, from Sotheby's, but shall include any person who has or has
          had business with the Company with whom you did have dealings as well
          as that person's estate, heirs and/or

                                        9
<Page>

          immediate family.

     d)   If at any time there is a judicial determination by any court of
          competent jurisdiction that the time period, geographical scope, or
          any other restriction contained in this Paragraph 13 is unenforceable
          against you, the provisions of this Paragraph 13 shall not be deemed
          void but shall be deemed amended to apply as to such maximum time
          period, geographical scope and to such other maximum extent as the
          court may judicially determine or indicate to be enforceable.

(14) INDEMNIFICATION. The Company shall maintain for your benefit director and
     officer liability insurance in the same amount and to the same extent as
     the Company covers similarly situated employees. In addition, to the extent
     not covered by director and officer liability insurance, you shall be
     indemnified by the Company against liability as an officer or director of
     the Company to the maximum extent permitted by applicable law. Your rights
     under this Paragraph 14 shall continue so long as you may be subject to
     such liability, whether or not this Agreement may have terminated prior
     thereto

(15) MISCELLANEOUS. You may not assign your rights or delegate your obligations
     under this Agreement. Sotheby's shall be entitled to withhold from any
     payments or deemed payments under this Agreement any amount of withholding
     required by law. This Agreement constitutes the entire agreement between
     you and Sotheby's concerning the subject matter of your employment, with
     the exception of letters and documents specifically referenced herein, and
     it supersedes all prior agreements including, but not limited to, any prior
     notice and non-compete agreements, written or oral, discussions, and
     negotiations on that subject (other than the letters and documents
     specifically referenced herein). Notwithstanding the foregoing, you
     authorize Sotheby's to deduct your payment for your executive mortgage loan
     and demand promissory note from your salary and bonus payment pursuant to
     Subparagraphs 3(a) and 3(b)(i) herein, which you acknowledge is for your
     benefit. All terms of your executive mortgage loan and demand promissory
     note remain in full force and effect. Any waiver or amendment of any
     provision of this Agreement must be done in writing and signed by both
     parties.

(16) LEGAL AND EQUITABLE REMEDIES. Sotheby's shall be entitled to enjoin a
     violation by you of any provision hereof. Moreover, the parties hereto
     acknowledge that the damages suffered by Sotheby's as a result of any
     violation of this Agreement may be difficult to ascertain. Accordingly, the
     parties agree that in the event of a breach of this Agreement by you,
     Sotheby's shall be entitled to specific enforcement by injunctive relief of
     your obligations to Sotheby's. The remedies referred to above shall not be
     deemed to be exclusive of any other remedies available to Sotheby's,
     including to enforce the performance or observation of the covenants and
     agreements contained in this Agreement.

(17) SEVERABILITY. If at any time there is a judicial determination by any court
     of competent jurisdiction that any provision of this Agreement is
     unenforceable against you, the other provisions of this Agreement shall not
     be rendered void but shall be deemed amended to

                                       10
<Page>

     apply as to such maximum extent as the court may judicially determine or
     indicate to be enforceable under New York law.

(18) CONFIDENTIALITY. You shall not disclose this Agreement or the contents
     thereof to anyone other than (i) your legal or financial advisor, provided
     that you give to each such person to whom disclosure is made notice of the
     confidentiality provisions of this Agreement and each agrees to keep the
     existence, terms and conditions of this Agreement fully confidential or
     (ii) except as required by law or with the prior written approval of
     Sotheby's.

(19) CHOICE OF LAW/CHOICE OF FORUM. This Agreement shall be governed by,
     construed and enforced in accordance with the laws of the State of New York
     irrespective of the principles of conflicts of law, and you consent to the
     jurisdiction of the state and federal courts situated in New York City for
     the purpose of adjudicating any dispute relating to this Agreement.

(20) BINDING ON SUCCESSOR COMPANY. This Agreement shall remain in effect and
     binding upon any successor or assign of Sotheby's including any entity that
     (whether directly or indirectly, by purchase, merger, reorganization,
     consolidation, acquisition of property or stock, liquidation or otherwise)
     is the survivor of the Company or that acquires the Company and/or
     substantially all the assets of the Company in accordance with the
     operation of law, and such successor entity shall be deemed the "Company"
     for purposes of this Agreement. In the situations set forth in this
     Paragraph 20, if this Agreement is not assumed as a matter of law, the
     Company will require its assumption by the successor entity.

(21) REPRESENTATION BY COUNSEL. The parties have each been represented by
     counsel of their own choosing in negotiating this Agreement.

(22) NOTICES. For the purpose of this Agreement, notices and all other
     communications provided for in this Agreement shall be in writing and shall
     be delivered personally or mailed by United States certified or registered
     mail, return receipt requested, postage prepaid, addressed to you at the
     address set forth on the initial page of this Agreement and to the Company
     at Sotheby's, Inc., 1334 York Avenue, New York, New York 10021, Attention:
     General Counsel, or to such other address as either party may have
     furnished to the other in writing in accordance herewith. Any such notice
     shall be deemed given when so delivered personally, or, if mailed, five (5)
     days after the date of deposit in the United States mail, except that
     notice of change of address shall be effective only upon receipt.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       11
<Page>

     Please review this Agreement carefully and, if it correctly states our
agreement, sign and return to me the enclosed copy.

                                              Very truly yours,

                                              SOTHEBY'S HOLDINGS, INC.

                                              By: /s/ William F. Ruprecht
                                                  -----------------------
                                                  William F. Ruprecht
                                                  Chief Executive Officer

Read, accepted and agreed to this
7th day of February, 2001

/s/ Mitchell Zuckerman
----------------------
Mitchell Zuckerman

                                       12

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