Employment Agreement between Richard P. Stillman and the Registrant



  
 Exhibit 10.20 
  
 EMPLOYMENT AGREEMENT 
  
 COINSTAR, INC. 
  
 and 
  
 RICHARD P. STILLMAN 
  
 Dated as of January 1, 2004 







  
 EMPLOYMENT AGREEMENT

  
 This Employment Agreement (this “Agreement”),
dated as of January 1, 2004, between Coinstar, Inc., a Delaware corporation (“Employer”), and Richard P. Stillman (“Employee”); 
  
 W I T N E S S E T H: 
  
 WHEREAS, Employer and Employee wish to document certain understandings and agreements; and 
  
 WHEREAS, Employer desires to employ Employee upon the terms and conditions set forth herein; and 
  
 WHEREAS, Employee is willing to provide services to Employer upon the terms
and conditions set forth herein; 
  
 A G R E E M E N T S:

  
 NOW, THEREFORE, for and in consideration of the foregoing
premises and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, Employer and Employee hereby agree as follows: 
  

	1.	PRESIDENT 

  

	 	1.1	Employment 

  
 Employer will employ Employee and Employee will provide services to Employer as its President (“President”). 
  

	 	1.2	Attention and Effort 

  
 Employee will devote all of his productive time, ability, attention and effort to Employer’s business and will skillfully serve its interests during
the Term (as defined below). 
  

	 	1.3	Term 

  
 Employee’s term of employment as President under this Agreement shall begin as of the effective date of this Agreement and shall continue until terminated pursuant to paragraph 2 of this Agreement (the
“Term”). 
  


			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	1










	 	1.4	Compensation 

  
 During the Term, Employer agrees to pay or cause to be paid to Employee, and Employee agrees to accept in exchange for the services rendered hereunder by
him, the following compensation: 
  

	 	(a)	Base Salary 

  
 Employee’s compensation as President shall consist, in part, of an annual base salary of Two Hundred Eighty Three Thousand Four
Hundred Dollars ($283,400) before all customary payroll deductions. Such annual base salary shall be paid in substantially equal installments and at the same intervals as other officers of Employer are paid. Employee’s salary shall be reviewed
by Employer’s Compensation Committee as appropriate to determine in its discretion whether it is appropriate to increase the base salary. 
  

	 	(b)	Bonus 

  
 Employee shall be eligible for cash bonuses consistent with the existing program for senior managers, provided performance targets
applicable to such bonuses are met, and, provided further, any such bonus shall be pro-rated in the event of a termination without Cause. 
  

	 	1.4	Benefits 

  
 During the Term, Employee will be entitled to participate, subject to and in accordance with applicable eligibility requirements, in fringe benefit
programs as shall be provided from time to time by, to the extent required, action of Employer’s Board of Directors. 
  

	2.	TERMINATION 

  
 Employment of Employee pursuant to this Agreement may be terminated as follows, but in any case, the provisions of paragraph 4 hereof shall survive the
termination of this Agreement and the termination of Employee’s employment hereunder: 
  

	 	2.1	By Employer 

  
 With or without Cause (as defined below), Employer may terminate the employment of Employee at any time during the term of employment upon giving Notice
of Termination (as defined below). 
  


			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	2










	 	2.2	By Employee 

  
 Employee may terminate his employment at any time, for any reason, upon giving Notice of Termination. 
  

	 	2.3	Automatic Termination 

  
 This Agreement and Employee’s employment hereunder shall terminate automatically upon the death or total disability of Employee. The term
“total disability” as used herein shall mean Employee’s inability to perform the duties set forth in paragraph 1 hereof for a period or periods aggregating 180 calendar days in any 12-month period as a result of physical or
mental illness, loss of legal capacity or any other cause beyond Employee’s control, unless Employee is granted a leave of absence by the Employer. Employee and Employer hereby acknowledge that Employee’s ability to perform the duties
specified in paragraph 1 hereof is of the essence of this Agreement. Termination hereunder shall be deemed to be effective (a) at the end of the calendar month in which Employee’s death occurs or (b) immediately upon a determination by the
Employer of Employee’s total disability, as defined herein. 
  

	 	2.4	Termination in Connection With a Change in Control 

  
 Concurrent with the commencement of Employee’s employment hereunder as President, Employee and the Company shall enter into a Change of Control
Agreement, form of which is attached hereto as Exhibit A. Notwithstanding Sections 3.1 and 3.2 of this Agreement and in full substitution therefor, if Employee’s employment terminates under circumstances described in the Change of Control
Agreement, Employee’s rights upon termination will be governed by terms of the Change of Control Agreement and his right to termination payments under this Employment Agreement shall cease. 
  

	 	2.5	Notice 

  
 The term “Notice of Termination” shall mean at least 30 days’ written notice of termination of Employee’s employment, during
which period Employee’s employment and performance of services will continue; provided, however, that Employer may, upon notice to Employee and without reducing Employee’s compensation during such period, excuse Employee from
any or all of his duties during such period. The effective date of the termination of Employee’s employment hereunder shall be the date on which such 30-day period expires. 
  

	3.	TERMINATION PAYMENTS 

  
 In the event of termination of the employment of Employee during the Term, all compensation and benefits set forth in this Agreement shall terminate
except as specifically provided in this paragraph 3: 
  


			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	3










	 	3.1	Termination by Employer 

  
 If Employer terminates Employee’s employment without Cause during the Term, Employee shall be entitled to receive (a) termination payments equal to
twelve (12) months’ annual base salary, and (b) any unpaid annual base salary which has accrued for services already performed as of the date termination of Employee’s employment becomes effective. Such payment shall be provided in equal
monthly installments, less applicable deductions and tax withholding, at regular payroll intervals. Employer agrees to continue Employee’s health insurance benefits, including current dependent coverage, for twelve (12) months following the
date the Employee is terminated without Cause. Thereafter Employee may self-pay health insurance under COBRA if Employee elects to do so. All other Employer benefits cease on the date of termination without Cause. If Employee is terminated by
Employer for Cause during the Term, Employee shall not be entitled to receive any of the foregoing benefits, other than those set forth in Section 3.1(b) above. 
  


	 	3.2	Termination by Employee 

  
 In the case of the termination of Employee’s employment by Employee, Employee shall not be entitled to any payments hereunder, other than those set
forth in Section 3.1(b) hereof if such termination occurs during the Term. 
  

	 	3.3	Payment Schedule 

  
 All payments under this paragraph 3 shall be made to Employee at the same interval as payments of salary were made to Employee immediately prior to
termination. 
  

	 	3.4	Cause 

  
 Wherever reference is made in this Agreement to termination being with or without Cause, “Cause” is limited to the occurrence of one or
more of the following events: 
  
 (a) Failure or refusal to carry
out the lawful duties of Employee described in Section 1 hereof or any directions of the Board of Directors of Employer, which directions are reasonably consistent with the duties herein set forth to be performed by Employee; 
  
 (b) Violation by Employee of a state or federal criminal law involving the
commission of a crime against Employer or a felony; 
  
 (c)
Current use by Employee of illegal substances; deception, fraud, misrepresentation or dishonesty by Employee; any act or omission by Employee which substantially impairs Employer’s business, goodwill or reputation; or 
  
 (d) Any other material violation of any provision of this Agreement.

  


			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	4










	4.	NONCOMPETITION, NONDISCLOSURE AND NONDISPARAGEMENT 

  
 (a) The nature of Employee’s employment with Employer has given Employee access to trade secrets and confidential information, including information
about its technology and customers. Therefore, during the one (1) year following termination of employment for whatever reason, Employee will not engage in, be employed by, perform services for, participate in the ownership, management, control or
operation of, or otherwise be connected with, either directly or indirectly, any business or activity whose efforts are in competition with (i) the products or services manufactured or marketed by Employer at the time of this Agreement, or (ii) the
products or services which have been under research or development by Employer during the term of Employee’s employment, and which Employer has demonstrably considered for further development or commercialization. The geographic scope of this
restriction shall extend to anywhere Employer is doing business, has done business or intends to do business. Employee acknowledges that the restrictions are reasonable and necessary for protection of the business and goodwill of Employer.

  
 If, within one year of the date of termination, Employee
violates this paragraph 4, Employee shall forfeit any remaining termination payments provided under paragraph 3. 
  
 (b) Employee further agrees that he will not at any time disclose confidential information about Employer relating to its business, technology, practices,
products, marketing, sales, services, finances or legal affairs. 
  
 (c) Following termination of Employee for any reason, Employee and Employer shall refrain from making any derogatory comment in the future to the press or any individual or entity regarding the other that relates to their activities or
relationship prior to the date of termination, which comment would likely cause material damage or harm to the business interests or reputation of Employee or Employer. Employee acknowledges that the non-disparagement provisions of this Section 4(c)
are essential to Employer, that Employer would not enter into this Agreement if it did not include this Section 4(c), and that damages sustained by Employer as a result of a breach of this Section 4(c) cannot be adequately quantified or remedied by
damages alone. Accordingly, Employer shall be entitled to injunctive and other equitable relief to prevent or curtail any breach of this Section 4(c). 
  

	5.	REPRESENTATIONS AND WARRANTIES OF EMPLOYEE 

  
 Employee represents and warrants that neither the execution nor the performance of this Agreement by Employee will violate or conflict in any way with any
other agreement by which Employee may be bound, or with any other duties imposed upon Employee by corporate or other statutory or common law. 
  

	6.	FORM OF NOTICE 

  
 All notices given hereunder shall be given in writing, shall specifically refer to this Agreement and shall be personally delivered or sent by registered
or certified mail, return 

  


			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	5









 
receipt requested, at the address set forth below or at such other address as may hereafter be designated by notice given in compliance with the terms
hereof: 
  

			
	If to Employee:	  	Richard P. Stillman
		
	If to Employer:	  	Coinstar, Inc.
	 	  	1800 114th Avenue SE
	 	  	Bellevue, WA 98004
	 	  	Attn: Chief Executive Officer
	 	  	cc:     General Counsel
		
	Copy to:	  	Perkins Coie LLP
	 	  	Attn: Kurt Becker
	 	  	1201 Third Ave., 48th Floor
	 	  	Seattle, WA 98101-3099

  
 If notice is mailed,
such notice shall be effective upon mailing, or if notice is personally delivered, it shall be effective upon receipt. 
  

	7.	ASSIGNMENT 

  
 This Agreement is personal to Employee and shall not be assignable by Employee. Employer may assign its rights hereunder to (a) any corporation or other
entity resulting from any merger, consolidation or other reorganization to which Employer is a party or (b) any corporation, partnership, association or other person to which Employer may transfer all or substantially all of the assets and business
of Employer existing at such time. All of the terms and provisions of this Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns. 

 

	8.	WAIVERS 

  
 No delay or failure by any party hereto in exercising, protecting or enforcing any of its rights, titles, interests or remedies hereunder, and no course
of dealing or performance with respect thereto, shall constitute a waiver thereof. The express waiver by a party hereto of any right, title, interest or remedy in a particular instance or circumstance shall not constitute a waiver thereof in any
other instance or circumstance. All rights and remedies shall be cumulative and not exclusive of any other rights or remedies. 
  

	9.	ARBITRATION 

  
 Any controversies or claims arising out of or relating to this Agreement shall be fully and finally settled by arbitration in accordance with the
Commercial Arbitration Rules of the 

  


			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	6









 
American Arbitration Association then in effect (the “AAA Rules”), conducted by one arbitrator either mutually agreed upon by Employer and
Employee or chosen in accordance with the AAA Rules, except that the parties thereto shall have any right to discovery as would be permitted by the Federal Rules of Civil Procedure for a period of 90 days following the commencement of such
arbitration and the arbitrator thereof shall resolve any dispute which arises in connection with such discovery. The prevailing party shall be entitled to costs, expenses and reasonable attorneys’ fees, and judgment upon the award rendered by
the arbitrator may be entered in any court having jurisdiction thereof. This provision shall not preclude Employer from seeking court enforcement or relief based upon an alleged violation of Employee’s obligations under any noncompetition or
non-disclosure agreement. 
  

	10.	AVAILABILITY AND CONSULTATION 

  
 If Employee’s employment with Employer terminates for any reason, Employee will thereafter make himself reasonably available to Employer and counsel
for Employer for the purpose of enabling Employer to defend against any legal claims in which Employer determines he may have knowledge or information. Employer will reimburse Employee for reasonable out-of-pocket expenses incurred in connection
with any consultations under this Section 10. 
  

	11.	AMENDMENTS IN WRITING 

  
 No amendment, modification, waiver, termination or discharge of any provision of this Agreement, nor consent to any departure therefrom by either party
hereto, shall in any event be effective unless the same shall be in writing, specifically identifying this Agreement and the provision intended to be amended, modified, waived, terminated or discharged and signed by Employer and Employee, and each
such amendment, modification, waiver, termination or discharge shall be effective only in the specific instance and for the specific purpose for which given. No provision of this Agreement shall be varied, contradicted or explained by any oral
agreement, course of dealing or performance or any other matter not set forth in an agreement in writing and signed by Employer and Employee. 
  

	12.	APPLICABLE LAW 

  
 This Agreement shall in all respects, including all matters of construction, validity and performance, be governed by, and construed and enforced in
accordance with, the laws of the state of Washington, without regard to any rules governing conflicts of laws. 
  

	13.	SEVERABILITY 

  
 If any provision of this Agreement shall be held invalid, illegal or unenforceable in any jurisdiction, for any reason, including, without limitation, the
duration of such provision, its geographical scope or the extent of the activities prohibited or required by it, then, to the full extent permitted by law (a) all other provisions hereof shall remain in full force and effect in such jurisdiction and
shall be liberally construed in order to carry out the intent of the parties hereto as nearly as may be possible, (b) such invalidity, illegality or 

  


			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	7









 
unenforceability shall not affect the validity, legality or enforceability of any other provision hereof, and (c) any court or arbitrator having jurisdiction
thereover shall have the power to reform such provision to the extent necessary for such provision to be enforceable under applicable law. 
  

	14.	HEADINGS 

  
 All headings used herein are for convenience only and shall not in any way affect the construction of, or be taken into consideration in interpreting,
this Agreement. 
  

	15.	COUNTERPARTS 

  
 This Agreement, and any amendment or modification entered into pursuant to paragraph 11 hereof, may be executed in any number of counterparts, each of
which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute one and the same instrument. 
  

	16.	ENTIRE AGREEMENT 

  
 Except for the Proprietary Information and Invention Agreement executed by Employee on August 30, 1999, this Agreement sets forth the entire understanding
between Employee and Employer, superseding any prior agreements or understandings, express or implied, pertaining to the terms of Employee’s employment with Employer. Employee acknowledges that in executing this Agreement, he does not rely upon
any representation or statement by any representative or agent of Employer concerning the subject matter of this Agreement. 
  
 IN WITNESS WHEREOF, the parties have executed and entered into this Agreement on the date set forth above. 
  

							
	 	 	 	 	 COINSTAR, INC.

				
	/s/ RICHARD P. STILLMAN	 	 	 	By	 	/s/ KEITH D. GRINSTEIN
	
	 	 	 	 	 	

	      Richard P. Stillman	 	 	 	Its	 	Chairman of the Board of Directors

  


			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	8









 Exhibit A 
  

CHANGE OF CONTROL AGREEMENT 
  
 This Change of Control Agreement (this “Agreement”), dated as of January 1, 2004, is between Coinstar, Inc. (the “Employer”), and
Richard P. Stillman (the “Employee”). This Agreement is an exhibit to that certain Employment Agreement dated as of January 1, 2004 between the Employer and the Employee (the “Employment Agreement”). 
  
 The Board of Directors of the Employer (the “Board”) has determined
that it is in the best interests of the Employer and its stockholders to ensure that the Employer will have the continued dedication of the Employee, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined in
Appendix A to this Agreement, which is incorporated herein by this reference) of the Employer. The Board believes it is imperative to diminish the inevitable distraction of the Employee arising from the personal uncertainties and risks created by a
pending or threatened Change of Control, to encourage the Employee’s full attention and dedication to the Employer currently and in the event of any threatened or pending Change of Control, to encourage the Employee’s willingness to serve
a successor in an equivalent capacity, and to provide the Employee with reasonable compensation and benefits arrangements in the event that a Change of Control results in the Employee’s loss of equivalent employment. 
  
 In order to accomplish these objectives, the Board has caused the Employer to
enter into this Agreement. 
  

	1.	EMPLOYMENT 

  

	 	1.1	Certain Definitions 

  
 (a) “Effective Date” shall mean the first date during the Change of Control Period (as defined in Section 1.1(b)) on
which a Change of Control occurs. 
  
 (b)
“Change of Control Period” shall mean the period commencing on the date of this Agreement and ending on the second anniversary of the date the Employer gives notice to the Employee that the Change of Control Period shall be
terminated. 
  

	 	1.2	Employment Period 

  
 The Employer hereby agrees to continue the Employee in its employ or in the employ of its affiliated companies, and the Employee hereby agrees to remain
in the employ of the Employer or its affiliated companies, in accordance with the terms and provisions of this Agreement, for the period commencing on the Effective Date and continuing until terminated pursuant to paragraph 4 of this Agreement (the
“Employment Period”). 
  


			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	 










 EXHIBIT A 
  


	 	1.3	Position and Duties 

  
 During the Employment Period, the Employee’s position, authority, duties and responsibilities shall be at least reasonably commensurate in all
material respects with the most significant of those held, exercised and assigned at any time during the 90-day period immediately preceding the Effective Date. 
  


	 	1.4	Employment Status 

  
 If prior to the Effective Date the Employee’s employment with the Employer or its affiliated companies terminates, then the Employee shall have no
further rights under this Agreement. 
  

	2.	ATTENTION AND EFFORT 

  
 During the Employment Period, and excluding any periods of vacation and sick leave to which the Employee is entitled, the Employee will devote all of his
professional productive time, ability, attention and effort to the business and affairs of the Employer and the discharge of the responsibilities assigned to him hereunder, and will use his best efforts to perform faithfully and efficiently such
responsibilities. 
  

	3.	COMPENSATION 

  
 During the Employment Period, the Employer agrees to pay or cause to be paid to the Employee, and the Employee agrees to accept in exchange for the
services rendered hereunder by him, the following compensation: 
  

	 	3.1	Salary 

  
 The Employee shall receive an annual base salary (the “Annual Base Salary”), at least equal to the annual salary established by the Board prior
to the Effective Date for the fiscal year in which the Effective Date occurs. The Annual Base Salary shall be paid in substantially equal installments and at the same intervals as the salaries of other officers of the Employer are paid. 

 

	 	3.2	Bonus 

  
 Employee may be entitled to receive, in addition to the Annual Base Salary, an annual bonus in an amount to be determined by the Board of Directors of the
Employer in its sole discretion. 
  

	 	3.3	Benefits 

  
 During the Employment Period, the Employee shall be entitled to participate, subject to and in accordance with applicable eligibility requirements, in
such fringe benefit programs as shall be provided to other executive employees of the Employer and its affiliated companies from time to time during the Employment Period by action of the Board (or any 

  


			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	-2-










 EXHIBIT A 
  

 
person or committee appointed by the Board to determine fringe benefit programs and other emoluments). 
  

	 	3.4	Expenses 

  
 During the Employment Period, the Employee shall be entitled to receive prompt reimbursement for all reasonable employment expenses incurred by him in
accordance with the policies, practices and procedures of the Employer and its affiliated companies in effect for the employees of the Employer and its affiliated companies during the Employment Period or pursuant to an applicable travel policy.

  

	4.	TERMINATION 

  
 Employment of the Employee during the Employment Period may be terminated as follows but, in any case, the nondisclosure and noncompetition provisions set
forth in Section 4 of the Employment Agreement shall survive the termination of this Agreement and the termination of the Employee’s employment with the Employer: 
  

	 	4.1	By the Employer or the Employee 

  
 Upon giving Notice of Termination (as defined below), the Employer may terminate the employment of the Employee with or without Cause (as defined in the
Employment Agreement), and the Employee may terminate his employment for Good Reason (as defined below) or for any reason, at any time during the Employment Period. 
  

	 	4.2	Automatic Termination 

  
 This Agreement and the Employee’s employment during the Employment Period shall terminate automatically pursuant to Section 2.3 of the Employment
Agreement upon the death or total disability of the Employee. The Employee and the Employer hereby acknowledge that the Employee’s presence and ability to perform the duties specified in Section 1.3 hereof is of the essence of this Agreement.

  

	 	4.3	Notice of Termination 

  
 Any termination by the Employer or by the Employee during the Employment Period shall be communicated by Notice of Termination to the other party given
within 30 days in accordance with Section 2.5 of the Employment Agreement. The term “Notice of Termination” shall mean a written notice which (a) indicates the specific termination provision in this Agreement relied upon and (b) to the
extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Employee’s employment under the provision so indicated. The failure by the Employer to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Cause shall not waive any right of the Employer hereunder or preclude the Employer from asserting such fact or circumstance in enforcing the Employer’s rights hereunder.

  


			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	-3-










 EXHIBIT A 
  


	 	4.4	Date of Termination 

  
 During the Employment Period, “Date of Termination” means (a) if the Employee’s employment is terminated by reason of death, at the end of
the calendar month in which the Employee’s death occurs, and (b) in all other cases, five days after the date of personal delivery of or mailing of, as applicable, the Notice of Termination. The Employee’s employment and performance of
services will continue during such five-day period; provided, however, that the Employer may, upon notice to the Employee and without reducing the Employee’s compensation during such period, excuse the Employee from any or all of
his duties during such period. 
  

	5.	TERMINATION PAYMENTS 

  
 In the event of termination of the Employee’s employment during the Employment Period, all compensation and benefits set forth in this Agreement
shall terminate except as specifically provided in this Section 5. 
  

	 	5.1	Termination by the Employer for Other Than Cause or by the Employee for Good Reason 

  
 If the Employer terminates the Employee’s employment other than for Cause or the Employee terminates his employment for
Good Reason prior to the end of the Employment Period, the Employee shall be entitled to: 
  
 (a) Receive payment of the following accrued obligations (the “Accrued Obligations”): 
  
 (i) the Employee’s Annual Base Salary through the Date
of Termination to the extent not theretofore paid; 
  
 (ii) the product of (x) the Annual Bonus payable with respect to the fiscal year in which the Date of Termination occurs 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; and 
  
 (iii) any compensation previously deferred by the Employee (together with accrued interest or earnings thereon, if any) as such deferred compensation becomes payable under the deferral plan, and any accrued vacation pay, in each case to the
extent not theretofore paid; and 
  
 (b) an
amount as separation pay equal to the Employee’s Annual Base Salary. 
  

	 	5.2	Termination for Cause or Other Than for Good Reason 

  
 If the Employee’s employment shall be terminated by the Employer for Cause as defined in the Employment Agreement or by the Employee for other than
Good Reason 

  


			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	-4-










 EXHIBIT A 
  

 
during the Employment Period, this Agreement shall terminate without further obligation to the Employee other than the obligation to pay to the Employee his
Annual Base Salary through the Date of Termination plus the amount of any compensation previously deferred by the Employee (as such deferred compensation becomes payable under the deferral plan), in each case to the extent theretofore unpaid.

  

	 	5.3	Termination Because of Death or Total Disability 

  
 If the Employee’s employment is terminated by reason of the Employee’s death or total disability during the Employment Period, this Agreement
shall terminate automatically without further obligations to the Employee or his legal representatives under this Agreement, other than for payment of Accrued Obligations (which shall be paid to the Employee’s estate or beneficiary, as
applicable in the case of the Employee’s death). 
  

	 	5.4	Payment Schedule 

  
 Payments under Section 5.1(a) shall be paid to the Employee in a lump sum in cash within 30 days of the Date of Termination. Payments under Section 5.1(b)
shall be paid to Employee at regular scheduled payroll intervals over the twelve (12) month period following the Date of Termination. 
  

	 	5.5	Good Reason 

  
 For purposes of this Agreement, “Good Reason” means any of the following events or conditions and the failure to cure such event or condition
within 20 days after receipt of written notice from Employee: 
  
 (a) The assignment to the Employee of any duties inconsistent in any material respect with the Employee’s position, authority, duties or responsibilities as contemplated by Section 1.3 hereof or any other action
by the Employer which results in a diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated and inadvertent action not taken in bad faith and which is remedied by the Employer promptly after receipt
of notice thereof given by the Employee, and further excluding reasonable changes in particular duties and reporting responsibilities which may result from the Employer becoming part of a larger business organization at some future time provided
that such changes in the aggregate do not result in a material alteration in the Employee’s position, authority, duties or responsibilities; 
  
 (b) Any failure by the Employer to comply with any of the provisions of Section 3 hereof, other than an isolated and inadvertent failure
not occurring in bad faith and which is remedied by the Employer promptly after receipt of notice thereof given by the Employee; 
  
 (c) Any failure by the Employer to comply with and satisfy Section 7 of the Employment Agreement, provided that the Employer’s
successor has received at least ten days’ prior written notice from the Employer or the Employee of the requirements of Section 7 thereof; 
  


			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	-5-










 EXHIBIT A 
  

 (d) Any purported termination of the Employee’s employment that is not in
accordance with the definition of Cause under the Employment Agreement; or 
  
 (e) A relocation of the Employer’s principal executive offices to a location more than 50 miles from the Seattle metropolitan area, or the Employer’s requirement that the Employee be based anywhere other
than within 50 miles of the Seattle metropolitan area, except for required travel on the Employer’s business to an extent substantially consistent with the Employee’s position, duties and responsibilities. 
  

	6.	REPRESENTATIONS, WARRANTIES AND OTHER CONDITIONS 

  
 In order to induce the Employer to enter into this Agreement, the Employee represents and warrants to the Employer as follows: 
  

	 	6.1	No Violation of Other Agreements 

  
 The Employee represents that neither the execution nor the performance of this Agreement by the Employee will violate or conflict in any way with any
other agreement by which the Employee may be bound. 
  

	 	6.2	Reaffirmation of Obligations 

  
 The Employee hereby acknowledges and reaffirms the Employee Proprietary Information and Inventions Agreement previously executed by Employee on the date
hereof and Employee’s obligations under Section 4 of the Employment Agreement. 
  
 IN WITNESS WHEREOF, the parties have executed and entered into this Agreement on the date set forth above. 
  

			
	EMPLOYEE
	
	/s/ RICHARD P. STILLMAN
	

	Richard P. Stillman
	
	COINSTAR, INC.
		
	 By
	 	 /s/ KEITH D. GRINSTEIN

	 	 	

	 	 	 Its Chairman of the Board of Directors



  


			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	-6-









 APPENDIX A TO 
  
 CHANGE OF CONTROL AGREEMENT 
  

For purposes of this Agreement, a “Change of Control” shall mean: 
  
 (a) A “Board Change” which, for purposes of this Agreement, shall have occurred if individuals who, as of the date
of this Agreement, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election,
or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but
excluding for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person (as hereinafter defined) other than the Board; or 
  
 (b) The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of (i) 20% or more of either (A) the then outstanding shares of Common Stock of
the Employer (the “Outstanding Employer Common Stock”) or (B) the combined voting power of the then outstanding voting securities of the Employer entitled to vote generally in the election of directors (the “Outstanding Employer
Voting Securities”), in the case of either (A) or (B) of this clause (i), which acquisition is not approved in advance by a majority of the Incumbent Directors, or (ii) 33% or more of either (A) the Outstanding Employer Common Stock or (B) the
Outstanding Employer Voting Securities, in the case of either (A) or (B) of this clause (ii), which acquisition is approved in advance by a majority of the Incumbent Directors; provided, however, that the following acquisitions shall
not constitute a Change of Control: (w) any acquisition directly from the Employer or in connection with an offering of the Employer pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission,
(x) any acquisition by the Employer, (y) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Employer or any corporation controlled by the Employer or (z) any acquisition by any corporation pursuant to a
reorganization, merger or consolidation, if, following such reorganization, merger or consolidation, the conditions described in clauses (i), (ii) and (iii) of subsection (c) of this Appendix A are satisfied; or 
  
 (c) Consummation of a reorganization, merger or consolidation approved by the
stockholders of the Employer, in each case, unless, immediately following such reorganization, merger or consolidation, (i) more than 60% of, respectively, the then outstanding shares of common stock of the corporation resulting from such
reorganization, 

  


			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	 










 EXHIBIT A 
  

 
merger or consolidation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the
election of directors is then beneficially owned, directly or indirectly, by all or substantially all the individuals and entities who were the beneficial owners, respectively, of the Outstanding Employer Common Stock and the Outstanding Employer
Voting Securities immediately prior to such reorganization, merger or consolidation in substantially the same proportion as their ownership immediately prior to such reorganization, merger or consolidation of the Outstanding Employer Common Stock
and the Outstanding Employer Voting Securities, as the case may be, (ii) no Person (excluding the Employer, any employee benefit plan (or related trust) of the Employer or such corporation resulting from such reorganization, merger or consolidation
and any Person beneficially owning, immediately prior to such reorganization, merger or consolidation, directly or indirectly, 33% or more of the Outstanding Employer Common Stock or the Outstanding Voting Securities, as the case may be)
beneficially owns, directly or indirectly, 33% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such reorganization, merger or consolidation or the combined voting power of the then outstanding
voting securities of such corporation entitled to vote generally in the election of directors, and (iii) at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger or consolidation were
members of the Board at the time of the execution of the initial agreement providing for such reorganization, merger or consolidation; or 
  
 (d) Consummation of the following events approved by the stockholders of the Employer (i) a complete liquidation or dissolution of the Employer or (ii)
the sale or other disposition of all or substantially all the assets of the Employer, other than to a corporation with respect to which immediately following such sale or other disposition, (A) more than 60% of, respectively, the then outstanding
shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all
or substantially all the individuals and entities who were the beneficial owners, respectively, of the Outstanding Employer Common Stock and the Outstanding Employer Voting Securities immediately prior to such sale or other disposition in
substantially the same proportion as their ownership, immediately prior to such sale or other disposition, of the Outstanding Employer Common Stock and the Outstanding Employer Voting Securities, as the case may be, (B) no Person (excluding the
Employer, any employee benefit plan (or related trust) of the Employer or such corporation and any Person beneficially owning, immediately prior to such sale or other disposition, directly or indirectly, 33% or more of the Outstanding Employer
Common Stock or the Outstanding Employer Voting Securities, as the case may be) beneficially owns, directly or indirectly, 33% or more of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of
the then outstanding voting securities of such corporation entitled to vote generally in the election of directors and (C) at least a majority of the members of the board of directors of such corporation were approved by a majority of the members of
the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such sale or other disposition of assets of the Employer. 
  


			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	-2-










 EXHIBIT A 
  

 Notwithstanding the foregoing, there shall not be a Change of Control if, in advance of such event,
the Employee agrees in writing that such event shall not constitute a Change of Control. 
  


			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	-3-