Document:

Exhibit

EXHIBIT 10.1
OUTERWALL INC.
2016 INCENTIVE COMPENSATION PLAN
FOR CHIEF EXECUTIVE OFFICER

SUMMARY
The 2016 Incentive Compensation Plan for Chief Executive Officer (the “Plan”) is a cash bonus plan for the Chief Executive Officer (the “CEO”) of Outerwall Inc. (the “Company”).  The Plan provides an incentive cash bonus based on the achievement of goals relating to the performance of the Company and individual performance.  The performance period for the Plan is January 1, 2016 to December 31, 2016 (the "Performance Period"). 

OVERVIEW
The Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) administers the Plan. The Compensation Committee, in its sole discretion, selects the individuals who will participate in the Plan and the actual bonus (if any) payable to each participant.  The target bonus for each participant is determined as a percentage of such participant’s base salary, as determined by the Compensation Committee in its sole discretion (the "Target Bonus").

ELIGIBILITY REQUIREMENTS
Unless specifically provided otherwise in a written agreement between the Company and a participant, a participant must be continuously employed by the Company from January 1, 2016 through December 31, 2016 to be eligible for payment under the Plan.  A participant hired after January 1, 2016 and employed through December 31, 2016 may receive a pro-rated bonus payment.  A participant who meets these eligibility requirements will be eligible to receive a bonus, even if the participant is not employed by the Company on the date the bonus payment is made.  

BONUS PAYOUT
Payout under the Plan will be determined as follows: 
1.  Eighty percent (80%) will be based on the achievement of the following Company performance measures during the Performance Period.  
	
					
	Performance Measures 
	1st Half Weighting1
	2nd Half Weighting1
	Total
	Targets & Potential Payout

	Outerwall Direct Contribution Margin Percent 2
	35%
	35%
	70%
	See Appendix

	Outerwall Revenue
	15%
	15%
	30%
	See Appendix

1  Achievement for Outerwall Direct Contribution Margin Percent and Outerwall Revenue will be determined for each six month period in the Performance    Period, with potential achievement ranging from 0% to 200% for each measure and the aggregate payout. 1st Half is January 1 to June 30, 2016.  2nd Half is July 1 to December 31, 2016.
2  Direct Contribution Margin Percent is defined as Direct Contribution Margin divided by Revenue.  
2.  Twenty percent (20%) will be based on the Compensation Committee’s discretion after evaluating the participant’s individual performance during the Performance Period, based on any criteria that the Compensation Committee determines to be appropriate in its sole discretion.  The Compensation Committee will review and approve all individual bonuses.  Participants under the Plan may receive between 0% and 200% of the portion of the Target Bonus applicable to this component.
In aggregate, participants under the Plan may receive between 0% and 200% of the Target Bonus.
The Compensation Committee may, in its sole discretion, make adjustments to the payouts under the Plan as a result of extraordinary events and/or conditions that either positively or negatively impact the Company's performance.
Payment of each bonus will be made as soon as practicable after the end of the Performance Period, but in any event will be made no later than March 15, 2017.  Bonuses will be paid in cash in a single lump sum, subject to payroll taxes and tax withholding.

OTHER
Each bonus that may become payable under the Plan will be paid solely from the general assets of the Company.  Nothing in the Plan should be construed to create a trust or to establish or evidence any participant’s claim of any right to payment of a bonus other than as an unsecured general creditor with respect to any payment to which a participant may be entitled.
No participant will have any claim to a bonus under the Plan, and the Compensation Committee will have no obligation for uniformity of treatment of participants under the Plan.  Furthermore, nothing in the Plan will be deemed to limit in any way the Compensation Committee's full discretion to determine whether to grant any bonuses hereunder.
The Compensation Committee reserves the right to unilaterally amend, modify or terminate the Plan at any time, including amending the Plan as it deems necessary or desirable to avoid adverse tax consequences under Section 409A of the Internal Revenue Code of 1986, as amended.
The Plan is subject to the Company's Policy on Reimbursement of Incentive Payments.Exhibit

EXHIBIT 10.2
OUTERWALL INC.
2016 INCENTIVE COMPENSATION PLAN
FOR EXECUTIVE LEADERS
SUMMARY
The 2016 Incentive Compensation Plan for Executive Leaders (the “Plan”) is a cash bonus plan in which Outerwall Inc. (the “Company”) Line of Business (the “LOB”) and Shared Services Unit (the “SSU”) Leaders are eligible to participate.  The Plan provides cash bonuses based on the achievement of goals relating to the performance of the Company, the performance of a particular line of business or shared service unit, and individual performance.  The performance period for the Plan is January 1, 2016 to December 31, 2016 (the "Performance Period"). 

OVERVIEW
The Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) administers the Plan. The Compensation Committee, in its sole discretion, selects the individuals who will participate in the Plan and the actual bonus (if any) payable to each participant.  The target bonus for each participant is determined as a percentage of such participant’s base salary,  as determined by the Compensation Committee in its sole discretion (the "Target Bonus").

ELIGIBILITY REQUIREMENTS
Unless specifically provided otherwise in a written agreement between the Company and a participant, a participant must be continuously employed by the Company from January 1, 2016 through December 31, 2016 to be eligible for payment under the Plan.  A participant hired after January 1, 2016 and employed through December 31, 2016 may receive a pro-rated bonus payment.  A participant who meets these eligibility requirements will be eligible to receive a bonus, even if the participant is not employed by the Company on the date the bonus payment is made.  

BONUS PAYOUT
Payout under the Plan will be determined as follows: 
1.  Eighty percent (80%) will be based on the achievement of the following Company performance measures during the Performance Period and modified up or down by the LOB or SSU Score, as determined by the Compensation Committee in its sole discretion.  
	
					
	Performance Measures 
	1st Half Weighting1
	2nd Half Weighting1
	Total
	Targets & Potential Payout

	Outerwall Direct Contribution Margin Percent 2
	35%
	35%
	70%
	See Appendix

	Outerwall Revenue
	15%
	15%
	30%
	See Appendix

	LOB or SSU Score (Modifier)3
	 
	 
	 
	 

1 Achievement for Outerwall Direct Contribution Margin Percent and Outerwall Revenue will be determined for each six month period in the Performance Period, with potential achievement ranging from 0% to 200% for each measure and the aggregate payout. 1st Half is January 1 to June 30, 2016.  2nd Half is July 1 to December 31, 2016.
2  Direct Contribution Margin Percent is defined as Direct Contribution Margin divided by Revenue.  
3  The LOB or SSU Score, as applicable, is a discretionary measure guided by results on revenue, profitability, and overall LOB or SSU performance during the Performance Period.  
2.  Twenty percent (20%) will be based on the Compensation Committee’s discretion after evaluating a participant’s individual performance during the Performance Period, based on any criteria that the Compensation Committee determines to be appropriate in its sole discretion.  The Company's Chief Executive Officer will make recommendations to the Compensation Committee regarding individual bonuses under this component.  The Compensation Committee will then review and approve all individual bonuses.  Participants under the Plan may receive between 0% and 200% of the portion of the Target Bonus applicable to this component.
In aggregate, participants under the Plan may receive between 0% and 200% of the Target Bonus.
The Compensation Committee may, in its sole discretion, make adjustments to the payouts under the Plan as a result of extraordinary events and/or conditions that either positively or negatively impact the Company's performance.

Payment of each bonus will be made as soon as practicable after the end of the Performance Period, but in any event will be made no later than March 15, 2017.  Bonuses will be paid in cash in a single lump sum, subject to payroll taxes and tax withholding.

OTHER
Each bonus that may become payable under the Plan will be paid solely from the general assets of the Company.  Nothing in the Plan should be construed to create a trust or to establish or evidence any participant’s claim of any right to payment of a bonus other than as an unsecured general creditor with respect to any payment to which a participant may be entitled.
No participant will have any claim to a bonus under the Plan, and the Compensation Committee will have no obligation for uniformity of treatment of participants under the Plan.  Furthermore, nothing in the Plan will be deemed to limit in any way the Compensation Committee's full discretion to determine whether to grant any bonuses hereunder.
The Compensation Committee reserves the right to unilaterally amend, modify or terminate the Plan at any time, including amending the Plan as it deems necessary or desirable to avoid adverse tax consequences under Section 409A of the Internal Revenue Code of 1986, as amended.
The Plan is subject to the Company's Policy on Reimbursement of Incentive Payments.Exhibit

EXHIBIT 10.3

February 4, 2014

Dear James,

Outerwall is pleased to offer you the position of President, Coinstar, reporting directly to Scott Di Valerio, Chief Executive Officer of Outerwall Inc. (“Outerwall”) effective March 11, 2014.  This letter will serve to confirm our understanding of your acceptance of this position.

Salary

Effective March 11, 2014, your compensation will be based on an annual salary of $300,000, less all required withholding for taxes and social security. You will be paid bi-weekly (26 times per year). 

Bonus Program

You are also eligible to participate in Outerwall's 2014 Incentive Plan for LOB Leaders as administered by the Compensation Committee of the Board of Directors (the “Committee”).  As of the effective date of this promotion, your target bonus opportunity will be 50% of eligible earnings.  The bonus will be based on company performance and performance goals agreed upon by you and our CEO Scott Di Valerio.

Long-Term Incentive Program

You are eligible to participate in Outerwall’s Long Term Incentive Plan (LTIP).  Your LTIP award is also administered by the Committee and the value of the 2014 LTIP will be approximately $300,000.  The LTIP award is summarized as follows:

		
	•
	The LTIP will consist of approximately fifty percent (50%) performance-based restricted stock (PBRS) and fifty percent (50%) time-based restricted stock.  

		
	•
	The number of restricted stock awards will be determined based on the closing price of Outerwall stock (Nasdaq: OUTR) on the date of grant.  

		
	•
	The terms of the 2014 PBRS award will be consistent with those of other senior executives, and it is expected that the Committee will determine the final terms of the 2014 PBRS awards in February of 2014.  It is anticipated that the PBRS award will vest over 3 years, with 65% of the award vesting after 2 years and the remaining 35% of the award vesting after three years.

All equity will be subject to the terms of the Company’s 2011 Incentive Plan (“Equity Incentive Plan”) and the respective grant and award agreements.  The equity grants are subject to Compensation Committee approval and equity availability.

Benefits

You will continue to be eligible for your current Outerwall benefits.  

At-Will Employment

You may terminate your employment with Outerwall at any time and for any reason whatsoever simply by notifying Outerwall. Likewise, Outerwall may terminate your employment at any time and for any reason whatsoever, with or without cause. This at-will employment relationship cannot be changed except in writing signed by Outerwall’s CEO.

Start Date

Your anticipated Start Date is March 11, 2014.

James, if you agree with and accept the terms of this offer of employment, please sign and return one copy of this letter to our office via fax or email by close of business on February 5, 2014.  Congratulations on your promotion, we look forward to an exciting future.

Sincerely,
	
		
	By:
	/s/ Raquel Karls

	Name:
	Raquel Karls

	Title:
	Chief Human Resources Officer

	 
	 

	Accepted by:

	By:
	/s/ James Gaherity

	Name:
	James Gaherity

	Date:
	February 4, 2014

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