Document:

2012 INCENTIVE COMPENSATION PLAN FOR SECTION 16 OFFICERS

 Exhibit 10.3 
 COINSTAR, INC. 
 2012 INCENTIVE COMPENSATION PLAN 

FOR SECTION 16 OFFICERS 
 The 2012 Incentive Compensation Plan for Section 16 Officers (the “Plan”) is a cash bonus plan in which executives of Coinstar, Inc. (the “Company”) who are subject
to Section 16 of the Securities Exchange Act of 1934 are eligible to participate. The Plan provides incentive cash bonuses based on the achievement of goals relating to the performance of the Company, the management team’s performance and
individual performance. The performance period for the Plan is January 1, 2012 to December 31, 2012 (the “Performance Period”). 
 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, ranging from 40% to 90%, as
determined by the Compensation Committee in its sole discretion (the “Target Bonus”). 
 Payout under the Plan
will be determined as follows: 
 1. Eighty percent (80%) will be based on the achievement of the following performance
measures during the Performance Period: 
  

					
	 Performance Measure
	  	Weighting	 	
Targets & Potential Payouts

	 Direct Contribution Margin (DCM)*
	  	50.0%	 	See Appendix
	 Revenue
	  	50.0%	 	See Appendix

  
  

 

	*	Direct Contribution Margin is defined as Net Income before taxes and stock based compensation. 

The targets and results will be adjusted for any acquisitions or divestitures completed during the Performance Period. Participants under
the Plan may receive between 0% and 200% of the portion of the Target Bonus applicable to this component. 
 2. Twenty percent
(20%) will be based on the Compensation Committee’s discretion after evaluating the management team’s and/or 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 (with the exception of the Chief Executive Officer bonus). 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. 

 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. 
 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, 2012 through
December 31, 2012 to be eligible for payment under this Plan. A participant hired after January 1, 2012 and employed through December 31, 2012 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. 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 by March 15, 2013. Bonuses will be paid in cash in a single lump sum, subject to payroll taxes and tax withholding. 
 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.Offer Letter from the Company to Arvind Parthasarathi, dated January 13, 2012

 Exhibit 10.1 
 January 13, 2012 
 Dear Arvind, 
 We are very pleased to extend an offer for you to join Cray Inc. as a Senior Vice President and General Manager of Knowledge Management, reporting to me. This position is located in the Bay area (or
Seattle) with a starting date of February 6, 2012. Your starting salary will be $310,000 annually (salary is payable bi-weekly and is referred to in annual terms as a convenience and does not constitute a commitment of continued employment).

 The Company will also pay you a signing bonus of $40,000 as soon as practical following your hire date. In the event you voluntarily leave
the Company or are terminated for “Cause” (as defined in the Executive Severance Policy) within the first twelve months of employment, you must repay the net value of the $40,000 signing bonus received after withholding, plus Cray’s
associated social security tax, in full within 14 days of your termination date. You hereby agree that Cray may withhold as much of this repayment obligation as is feasible from any final payments due to you (including but not limited to unpaid
salary, vacation accrual, and/or unreimbursed expenses), and that you will reimburse any remainder within 14 days of your termination date. 

In addition, you are eligible to participate in the Cray Employee Bonus Plan. Your target award for 2012 is 60% of eligible base salary (prorated for the
percentage of the year you are employed at Cray). The amount of the final award is determined by company and organization performance as well as your individual performance to goals (we will define your individual goals during your first month of
employment). 
 In connection with your hire, you will receive an initial time-vested grant of 100,000 restricted shares (25% vesting at the end
of years 1, 2, 3 and 4; subject to continuous service requirements). You are eligible for our currently planned equity grant in August 2012, and that grant will likely be in-line with your level and performance at the Company. Both grants will
be pursuant to the applicable Cray equity plan, subject to formal approval of each grant by the Compensation Committee of Cray’s Board of Directors. Equity grants are typically made as of the seventh day of the month following the month
employment commences. Obviously, we all hope that Cray prospers and that the Company’s stock reflects that success. 
 As a full time
employee, you will be eligible for the standard full-time employee benefits package, which currently includes: 
  

	 	•	 	 Medical, Dental, Vision, Short and Long Term Disability, Life, Flexible Spending and Employee Assistance Plan 

 

	 	•	 	 401k Plan 

  

	 	•	 	 Paid sick leave 

  

	 	•	 	 Executive severance and Change of Control Plan (copy attached) 

 

	 	•	 	 Education/tuition reimbursement program 

  

	 	•	 	 As a corporate officer we do not track vacation time; you may take time-off as is needed/desired and appropriate without having significant impact on
job performance. 

 Your salary and benefits are subject to change by the Company at any time, with or without cause or advance
notice. 
 As a condition of employment, all new employees are required to present documentation that confirms their identity and eligibility
for employment in the United States. On your first day of employment with Cray, you will be asked to execute an “Employment Eligibility Certification”** attesting to such. Your employment is further conditioned on executing our standard
Confidentiality Agreement, and confirming that you have read our corporate ethics, stock trading, and foreign business policies (attached). 

This offer is contingent upon successful completion of a pre-employment background investigation. 

This employment opportunity, which Cray offers, is of indefinite duration and will continue as long as both you and Cray consider it of mutual benefit.
Either you or Cray are free to terminate the employment relationship at will (without cause) and at any time. 
 Cray Inc. is dedicated to
helping customers solve the most demanding, most crucial computing problems – creating new materials and life-saving drugs, predicting severe weather and climate changes, analyzing complex data structures, safeguarding national security,
designing the cars and trucks we drive, and a host of other applications that benefit humanity by advancing the frontiers of science and engineering. 
 To indicate your acceptance of this offer, please sign and return one copy of this letter to my fax number. If you have any questions, please feel free to call me at 206-701-2000. 

I am looking forward to having you be one of our top leaders at Cray and driving one of our most important initiatives! 

Sincerely, 
 /s/ Peter J. Ungaro 

Peter J. Ungaro 
 President and CEO 

Cray Inc. 
  

									
	Accepted By:	 	 /s/ Arvind Parthasarathi
	 		 	Date:	 	 January 13, 2012

		 	Arvind Parthasarathi	 		 		 	

  

	**	This includes I-9 and E-Verify 

An Affirmative Action, Equal Opportunity EmployerOffer Letter from the Company to William C. Blake, dated March 26, 2012

 Exhibit 10.2 
 March 26, 2012 
 Dear Bill, 
 We are very pleased to extend an offer for you to join Cray Inc. as a Senior Vice President and Chief Technology Officer, reporting to me. This position is located in Seattle with a starting date of
April 30, 2012. Your starting salary will be $270,000 annually (salary is payable bi-weekly and is referred to in annual terms as a convenience and does not constitute a commitment of continued employment). 

In addition, you are eligible to participate in the Cray Employee Bonus Plan. Your target award for 2012 is 65% of eligible base salary (prorated for the
percentage of the year you are employed at Cray). The amount of the final award is determined by company and organization performance as well as your individual performance to goals (we will define your individual goals during your first month of
employment). 
 In connection with your hire, you will receive initial time-vested grants of 70,000 restricted shares (25% vesting at the end of
years 1, 2, 3 and 4; subject to continuous service requirements). You will also be eligible for an equity grant in 2013, and that grant will likely be in-line with your level and performance at the Company. All grants are pursuant to the
applicable Cray equity plan, subject to formal approval of each grant by the Compensation Committee. The price of your grant will be the closing market price of our Common Stock on the trading day the date the shares vest. Equity grants are
typically made as of the seventh day of the month following the month employment commences. Obviously, we all hope that Cray prospers and that the Company’s stock reflects that success. 
 As a full time employee, you will be eligible for the standard full-time employee benefits package, which currently includes: 

 

	 	•	 	 Medical, Dental, Vision, Short and Long Term Disability, Life, Flexible Spending and Employee Assistance Plan 

 

	 	•	 	 401k Plan 

  

	 	•	 	 Paid sick leave 

  

	 	•	 	 Education/tuition reimbursement program 

 Your salary and benefits are subject to change by the Company at any time, with or without cause or advance notice. 
 As a condition of employment, all new employees are required to present documentation that confirms their identity and eligibility for employment in the United States. On your first day of employment with
Cray, you will be asked to execute an “Employment Eligibility Certification”* attesting to such. Your employment is further conditioned on executing our standard Confidentiality Agreement. 

This offer is contingent upon successful completion of a pre-employment background investigation. 

 This employment opportunity, which Cray offers, is of indefinite duration and will continue as long as both
you and Cray consider it of mutual benefit. Either you or Cray are free to terminate the employment relationship at will (without cause) and at any time. 
 Cray Inc. is dedicated to helping customers solve the most demanding, most crucial computing problems – creating new materials and life-saving drugs, predicting severe weather and climate changes,
analyzing complex data structures, safeguarding national security, designing the cars and trucks we drive, and a host of other applications that benefit humanity by advancing the frontiers of science and engineering. 

To indicate your acceptance of this offer, please sign and return one copy of this letter to my confidential fax number. If you have any questions,
please feel free to call me at 206-701-2000. 
 Sincerely, 
 /s/ Peter J. Ungaro 
 Peter J. Ungaro 
 President and CEO 
 Cray Inc. 

 

									
	Accepted By:	 	 /s/ William C. Blake
	 		 	Date:	 	 April 1, 2012

		 	William C. Blake	 		 		 	

  

	*	This includes I-9 and E-Verify 

An Affirmative Action, Equal Opportunity Employer

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