Document:

Exhibit 10.1

FIRST AMENDMENT TO 

  SOTHEBY'S AMENDED AND RESTATED 

  RESTRICTED STOCK PLAN 

          THIS FIRST AMENDMENT to the Sotheby's Amended and Restated Restricted Stock Plan ("First Amendment"), dated the 28th day of July, 2006, is adopted by Sotheby's, a Delaware corporation (the "Corporation"). 

 RECITALS: 

           A.           The Sotheby’s Amended and Restated Restricted Stock Plan (the “Plan”) was adopted by the Compensation Committee of the Board of Directors of the Corporation in March, 2006 and approved by the shareholders
of the Corporation at the Corporation’s 2006 Annual Meeting of Shareholders on May 8, 2006. 

           B.           Pursuant to Section 8.1 of the Plan, the Corporation has the authority to amend the Plan.  The Corporation desires to and does hereby amend the Plan, as hereinafter set forth, to authorize the grant of Restricted Stock
Entitlements under the Plan to certain non-U.S. employees where the grant of Restricted Stock would result in adverse tax consequences under non-U.S. tax law. 

           NOW, THEREFORE, the Plan is hereby amended as follows: 

           1.           Section 2.28 of the Plan is amended in its entirety by substituting the following: 

  “2.28 Restricted Stock and
        Restricted Stock Entitlements. Restricted
        Stock means those shares of Common Stock made the subject of any Award
        granted pursuant to the Plan. Restricted Stock Entitlements means an
        award of Restricted Stock Entitlements, rather than Restricted Stock,
        is made under the Plan to certain non-U.S. employees for tax reasons.
        Restricted Stock Entitlements are described in Section 6.5. ” 

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          2.           A new Section 6.5 of the Plan is added as follows: 

  “6.5 Restricted Stock Entitlements. The
      Compensation Committee may cause the Corporation to award Restricted Stock
      Entitlements in lieu of a grant of shares of Restricted Stock to certain
      non-U.S. employees where the grant of Restricted Stock would result in
      adverse tax consequences to such non-U.S. employees. Restricted Stock Entitlements
      entitle holders to call, without payment, for the relevant number of shares
      of Common Stock at the applicable vesting date. Non-U.S. employees who
      are awarded Restricted Stock Entitlements are deemed to have called for
      these shares of Common Stock that vest on the applicable vesting date determined
      under Section 7.3 and as set forth in such participant’s Restricted
      Stock Entitlement Agreement. Restricted Stock Entitlements shall be subject
      to all of the same terms and conditions of the Plan as Restricted Stock;
      provided, however, that voting and dividend rights under Section 6.4 do
      not apply to Restricted Stock Entitlements. Accordingly, all references
      in this Plan to Restricted Stock also include Restricted Stock Entitlements
      with the exception of Section 6.4 as noted above. Once the applicable vesting
      date has occurred and any other restriction has lapsed, the Restricted
      Stock Entitlement is exchanged for an equivalent number of shares of Common
      Stock.”

          3.           The effective date of this Amendment is July 28, 2006 

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

 

  	
        SOTHEBY'S  
	 	 

  
	By: 	/s/ Susan Alexander
	 	 
	Its: 	 EVP,
      Worldwide Head of HR                    

  

2Exhibit 10.2

FORM OF  

  SOTHEBY'S

  AMENDED AND RESTATED RESTRICTED STOCK PLAN 

  RESTRICTED STOCK AGREEMENT 

          THIS AGREEMENT, entered into effective as of the <Day> day of <Month>, <Year> between SOTHEBY'S, a Delaware corporation (the "Corporation"), and <Full Name> (the
"Participant").  

WITNESSETH: 

          WHEREAS, the Board of Directors of the Corporation (the "Board") has established the Sotheby's Amended and Restated Restricted Stock Plan, (the "Plan") in order to provide
employees of the Corporation and its Subsidiaries with a favorable opportunity to acquire shares of the Corporation's Common Stock as an inducement to remain in the service of the Corporation or a Subsidiary and to promote the Participant’s
commitment to the success of the Corporation during such service. 

          NOW, THEREFORE, it is agreed as follows: 

          1.           Definitions and Incorporation. 
The terms used in this Agreement shall have the meanings given to such terms in the Plan. The Plan is hereby incorporated in and made an integral part of this Agreement as if fully set forth herein. In the event of any inconsistency between any
provision of the Plan and any provision of this Agreement, the provision of the Plan shall prevail.  The Participant hereby acknowledges that he or she has received a copy of the Plan. 

          2.           Grant of Restricted Stock.
Pursuant to the Plan, the Corporation hereby grants to the Participant effective as of <Date>, <No. of Shares> shares of Common Stock. 

          3.           Voting and Dividend Rights. 
Except as otherwise determined by the Compensation Committee, holders of Restricted Stock shall have the right to vote such shares and the right to receive any dividends with respect to such shares, whether or not the shares of Restricted Stock are
vested. 

          4.           Termination of Employment.  Except in the case of the death, Disability, or Retirement of the Participant, in the
event a Participant terminates employment prior to 100% vesting, the Participant’s rights with respect to any shares of Restricted Stock which are not vested shall be forfeited immediately and permanently.  A Participant shall be 100% vested in
his Restricted Stock in the event he terminates employment by reason of death, Disability or Retirement or in the event of a Change of Control of the Corporation (as defined in the Plan.) 

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          5.           Securities Law Requirements. 

          (a)           Regardless of whether the offering and sale of the shares of Common Stock under the Plan have been registered under the United States Securities Act of 1933, as amended (the
“Act”), or have been registered or qualified under the securities laws of any state, the Corporation may impose restrictions upon the sale, pledge, or other transfer of such shares (including the placement of appropriate legends on stock
certificates) if, in the judgment of the Corporation and its counsel, such restrictions are necessary or desirable in order to achieve compliance with the provisions of the Act, the securities laws of any state, or any other law. In the event that
the sale of such shares under the Plan is not registered under the Act but an exemption is available which requires an investment representation or other representation, the Participant shall be required to represent that such shares are being
acquired for investment, and not with a view to the sale or distribution thereof, and to make such other representations as are deemed necessary or appropriate by the Corporation and its counsel. 

          (b)           Stock certificates-evidencing such shares awarded under the Plan pursuant to an unregistered transaction shall bear the following restrictive legend and such other restrictive legends
as are required or deemed advisable under the provisions of any applicable law:

  “THE SALE OF THE
        SECURITIES REPRESENTED HEREBY HAS NOT BEEN REGISTERED UNDER THE SECURITIES
        ACT OF 1933 (THE “ACT”). ANY TRANSFER OF SUCH SECURITIES WILL
        BE INVALID UNLESS A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT
        AS TO SUCH TRANSFER OR, IN THE OPINION OF COUNSEL FOR THE ISSUER, SUCH
        REGISTRATION IS UNNECESSARY IN ORDER FOR SUCH TRANSFER TO COMPLY WITH
        THE ACT.” 

          Any determination by the Corporation and its counsel in connection with any of the matters set forth in this paragraph shall be conclusive as to all binding persons. 

          6.           Rights as an Employee. Nothing in the Plan or this Agreement shall be construed to give the Participant or any person
the right to remain in the employment of the Corporation or a Subsidiary or to affect the right of the Corporation or Subsidiary to terminate the Participant’s or such other person’s employment at any time with or without cause, it being
acknowledged, unless expressly provided otherwise in writing, that the Participant’s employment is “at will.” 

           7.           Inspection
        of Records. Copies of the
        Plan, records reflecting the Participant’s Restricted Stock award(s),
        and any other documents and records which the Participant is entitled
        by law to inspect shall be open to inspection by the Participant and
        his or her duly authorized representative(s) at the office of the Corporation
        at any reasonable business hour. 

           8.           Notices. Any
    notice to the Corporation contemplated by this Agreement shall be addressed
    to the attention of the Corporation’s Human Resource Department at 1334
    York Avenue, New York, New York 10021; and any notice to the Participant
    shall 

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be addressed to him or her at the address on file with the Corporation on the date hereof or at such other address as
he or she may hereafter designate in writing. 

          9.           Interpretation.  The interpretation, construction, performance, and enforcement of this Agreement and of the Plan
shall lie within the sole discretion of the Committee, and the Committee’s determinations shall be conclusive and binding on all interested persons. 

          10.         Choice
of Law.  This Agreement, and all
rights and obligations hereunder, shall be governed by the laws of the  State
of New York. 

               IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement, in the case of the Corporation by its duly authorized officer, as
of the day and year first above written. 

                 SOTHEBY’S 

      

      By:_________________________ 

      Its: 

      

      Dated:_______________________

      

      By:_________________________ 

                 Participant’s
      Signature 

      

      Dated:_______________________

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SCHEDULE 1 

	
Employee:
  	
<Full Name>
  
	
Date of Grant:
  	
<Date>
  
	
No. of Shares of
  	 

  
	
Restricted Stock Awarded:
  	
<Number of Shares>
  

RIGHT TO EXERCISE 

Subject to the terms of the Plan and the conditions set forth in this Agreement, the Restricted Stock awarded subject to this Agreement shall vest as follows: 

	
Number of Shares Vested
  	
Vesting Date
  
	 	 
	
<No of shares> (25% of shares)
  	
             <Date> (1st
 anniversary of date of grant)
  
	 	 
	
<No of shares> (25% of shares)
  	
             <Date> (2nd
 anniversary of date of grant)
  
	 	 
	
<No of shares> (25% of shares)
  	
             <Date> (3rd
 anniversary of date of grant)
  
	 	 
	
<No of shares> (25% of shares)
  	
             <Date> (4th
 anniversary of date of grant)
  

 

 

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