Form of Restricted Stock Award and Restated Equity Incentive Plan



 Exhibit 10.1 
  
 COINSTAR, INC. 
  
 NOTICE OF RESTRICTED STOCK AWARD 
 1997 AMENDED AND RESTATED EQUITY INCENTIVE PLAN 
  
 Date:
                 , 200_ 
  
 To:
                                 
  
 You have been granted an award of restricted stock (the
“Restricted Stock Award”) by Coinstar, Inc. (the “Company”). This Restricted Stock Award is subject to the terms of the enclosed Restricted Stock Award Agreement and the Company’s 1997 Amended and
Restated Equity Incentive Plan (the “Plan”). Except as expressly provided otherwise in the Restricted Stock Award Agreement, the Restricted Stock Award is limited by and subject to the express terms and conditions of the
Plan. Defined terms in the Plan shall have the same meaning in this Notice of Restricted Stock Award, except where the context otherwise requires. By accepting this Restricted Stock Award, you accept it subject to the terms of this Notice of
Restricted Stock Award and the enclosed Restricted Stock Award Agreement. 
  
 The basic terms of the Restricted Stock Award are summarized as follows: 
  

	1.	Number of Shares:                      

  

	2.	Grant Date:                      

  

	3.	Fair Market Value Per Share (Informational, for tax purposes):
                     

  

	4.	Vesting 

  
 The Restricted Stock Award is subject to forfeiture upon varying circumstances relating to your termination of employment with the Company. The
restrictions on the shares will lapse and the shares will no longer be subject to forfeiture according to the following schedule: 
  

			
	 Date on Which Portion of
 Restricted Stock
Award Is No
 Longer Subject to Forfeiture
	  	 Portion of Restricted
 Stock Award No
Longer
 Subject to Forfeiture

	  
         __________________
	  	  
         _______________

	  
         __________________
  
	  	  
         _______________
  

	        __________________	  	        _______________








 COINSTAR, INC. 
  
 RESTRICTED STOCK AWARD AGREEMENT 
  
 Pursuant to your Notice of Restricted Stock Award, (the “Grant Notice”) the Company has awarded you
an award of restricted stock (the “Restricted Stock Award”) under its 1997 Amended and Restated Equity Incentive Plan (the “Plan”) for the number of shares of the Company’s Common Stock indicated
in your Grant Notice. The Grant Notice, the Plan and this Restricted Stock Award Agreement (this “Agreement”) govern the terms of the award. Capitalized terms not explicitly defined in this Agreement but defined in the Plan
shall have the same definitions as in the Plan. 
  
 1. Vesting 

 
 Shares that have vested and are no longer subject to forfeiture according
to the vesting schedule set forth in the Grant Notice are referred to herein as “Vested Shares.” Shares that are not vested and remain subject to forfeiture under the preceding schedule are referred to herein as
“Unvested Shares.” The Unvested Shares will vest (and to the extent so vested cease to be Unvested Shares remaining subject to forfeiture) in accordance with the vesting schedule set forth in the Grant Notice. Collectively,
the Unvested Shares and the Vested Shares are referred to herein as the “Shares.” 
  
 2. Transfer Restrictions 
  
 Any sale, transfer, assignment, encumbrance, pledge, hypothecation, conveyance in trust, gift, transfer by bequest, devise or descent, or other transfer or disposition of any kind, whether voluntary or by operation of law, directly or
indirectly, of Unvested Shares shall be strictly prohibited and void, except by will or the laws of descent and distribution. 
  
 3. Status of Participant 
  
 You will be recorded as a stockholder of the Company with respect to the Shares. 
  
 4. Securities Law Compliance 
  
 4.1 You represent and warrant that you (a) have been furnished with all information which you deem necessary to evaluate the merits and risks of
receipt of the Shares, (b) have had the opportunity to ask questions and receive answers concerning the information received about the Shares and the Company, and (c) have been given the opportunity to obtain any additional information you deem
necessary to verify the accuracy of any information obtained concerning the Shares and the Company. 
  
 4.2 You hereby agree that you will in no event sell or distribute all or any part of the Shares unless (a) there is an effective registration
statement under the Securities Act of 1933, as amended (the “Securities Act”) and applicable state securities laws covering any 








 
such transaction involving the Shares or (b) the Company receives an opinion of your legal counsel (concurred in by legal counsel for the Company) stating
that such transaction is exempt from registration or the Company otherwise satisfies itself that such transaction is exempt from registration. You understand that the Company has no obligation to you to register the Shares with the Securities and
Exchange Commission and has not represented to you that it will so register the Shares. 
  
 4.3 You confirm that you have been advised, prior to your receipt of the Shares, that neither the offering of the Shares nor any offering materials have been reviewed by any administrator under the Securities
Act or any other applicable securities act. 
  
 4.4 You
hereby agree to indemnify the Company and hold it harmless from and against any loss, claim or liability, including attorneys’ fees or legal expenses, incurred by the Company as a result of any breach by you of, or any inaccuracy in, any
representation, warranty or statement made by you in this Agreement or the breach by you of any terms or conditions of this Agreement. 
  
 5. Termination of Employment; Company Transaction 
  
 5.1 Termination of Employment 
  
 Except as provided in Section 5.2 below, in the event your Continuous Status as an Employee, Director or Consultant terminates for any reason, including
without limitation, your voluntary termination, termination by the Company, or the occurrence of your death, disability or retirement, the Unvested Shares shall be forfeited by you without payment of any further consideration to you. 
  
 5.2 Company Transaction 
  
 In the event of a merger, reorganization or sale of substantially all of the
assets of the Company, the Plan Administrator, may, in its sole discretion, do one or more of the following: (i) arrange to have the surviving or successor entity or any parent entity thereof assume the Restricted Stock Award or grant a replacement
restricted stock award with appropriate adjustments in the number and kind of securities issuable thereunder; (ii) accelerate the vesting schedule to which the Restricted Stock Award is subject; or (iii) cancel Unvested Shares in exchange for cash
payment upon such terms and conditions as determined by the Board at the time of the event. 
  
 6. Section 83(b) Election for Restricted Stock Award; Independent Tax Advice 
  
 You understand that under Section 83(a) of the Internal Revenue Code of 1986 (the “Code”), the fair market value of the Unvested
Shares on the date the forfeiture restrictions lapse will be taxed, on the date such forfeiture restrictions lapse, as ordinary income subject to payroll and withholding tax and tax reporting, as applicable. For this purpose, the term
“forfeiture restrictions” means the right of the Company to receive back any Unvested Shares upon termination of your employment with the Company. You understand that you may elect 

  

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under Section 83(b) of the Code to be taxed at ordinary income rates on the fair market value of the Unvested Shares at the time they are acquired, rather
than when and as the Unvested Shares cease to be subject to the forfeiture restrictions. Such election (an “83(b) Election”) must be filed with the Internal Revenue Service within 30 days from the grant date of the
Restricted Stock Award. 
  
 You understand that there are
significant risks associated with the decision to make and 83(b) Election. If you make an 83(b) Election and the Unvested Shares are subsequently forfeited to the Company, you will not be entitled to a deduction for any ordinary income previously
recognized as a result of the 83(b) Election. If you make an 83(b) Election and the value of the Unvested Shares subsequently declines, the 83(b) Election may cause you to recognize more compensation income than you would have otherwise recognized.
On the other hand, if the value of the Unvested Shares increases and you have not made an 83(b) Election, you may recognize more compensation income than you would have if you had made the election. 
  
 THE FORM FOR MAKING AN 83(b) ELECTION IS ATTACHED TO THIS AGREEMENT AS
EXHIBIT B. YOU UNDERSTAND THAT, IF YOU DECIDE TO MAKE AN 83(b) ELECTION, IT IS YOUR RESPONSIBILITY TO FILE SUCH AN ELECTION WITH THE INTERNAL REVENUE SERVICE AND THAT FAILURE TO FILE SUCH AN ELECTION WITHIN THE 30-DAY PERIOD MAY RESULT IN THE
RECOGNITION OF ORDINARY INCOME BY YOU AS THE FORFEITURE RESTRICTIONS LAPSE. You further understand that an additional copy of such election form should be filed with your federal income tax return for the calendar year in which the date of
this Agreement falls. You acknowledge that the foregoing is only a summary of the federal income tax laws that apply to the award of the Shares under this Agreement and does not purport to be complete. YOU FURTHER ACKNOWLEDGE THAT THE COMPANY HAS
DIRECTED YOU TO SEEK INDEPENDENT ADVICE REGARDING THE APPLICABLE PROVISIONS OF THE CODE AND THE INCOME TAX LAWS OF ANY MUNICIPALITY, STATE OR FOREIGN COUNTRY IN WHICH YOU MAY RESIDE. 
  
 You agree to execute and deliver to the Company with this Agreement a copy of the Acknowledgment and Statement of
Decision Regarding Section 83(b) Election (the “Acknowledgment”) attached hereto as Exhibit A. You further agree that if you choose to make an 83(b) Election with the Internal Revenue Service, you will also deliver to the
Company with this signed Agreement a signed copy of the 83(b) Election. 
  
 You acknowledge that determining the actual tax consequences to you of receiving or disposing of the Shares may be complicated. These tax consequences will depend, in part, on your specific situation and may also
depend on the resolution of currently uncertain tax law and other variables not within the control of the Company. You are aware that you should consult a competent and independent tax advisor for a full understanding of the specific tax
consequences to you of receiving or disposing of the Shares. Prior to executing this Agreement, you either have consulted with a competent tax advisor independent of the Company to obtain tax advice concerning the Shares in light of your specific
situation or have had the opportunity to consult with such a tax advisor but have chosen not to do so. 
  

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 7. Book Entry Registration of the Shares 
  
 The Company will issue the Shares by registering the Shares in book entry form with the Company’s transfer agent in
your name and the applicable restrictions will be noted in the records of the Company’s transfer agent and in the book entry system. No certificate(s) representing all or a part of the Shares will be issued until the Shares become Vested
Shares. 
  
 8. Stop-Transfer Notices 
  
 You understand and agree that, in order to ensure compliance with the
restrictions referred to in this Agreement, the Company may issue appropriate “stop-transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same
effect in its own records. The Company will not be required to (a) transfer on its books any Shares that have been sold or transferred in violation of the provisions of this Agreement or (b) treat as the owner of the Shares, or otherwise accord
voting, dividend or liquidation rights to, any transferee to whom the Shares have been transferred in contravention of this Agreement. 
  
 9. Tax Withholding 
  
 As a condition to the removal of restrictions from your Vested Shares registered in book entry form with the Company’s transfer agent, you agree to
make arrangements satisfactory to the Company for the payment of any federal, state, local or foreign withholding tax obligations that arise either upon receipt of the Shares or as the forfeiture restrictions on any Shares lapse. You may satisfy
such withholding obligation by any of the following means or a combination thereof: (a) tendering a cash payment, (b) authorizing the Company to withhold shares from the shares of Common Stock otherwise issuable pursuant to the Restricted Stock
Award (up to the employer’s minimum tax withholding rate) or (c) delivering to the Company already owned and unencumbered shares of Common Stock (up to the employer’s minimum required tax withholding rate to the extent the shares have been
held for less than six months). Notwithstanding the previous sentence, you acknowledge and agree that the Company and any Affiliate has the right to deduct from payments of any kind otherwise due to you any federal, state, local or foreign taxes of
any kind required by law to be withheld with respect to the Restricted Stock Award. 
  
 10. General Provisions 
  
 10.1 Notices 
  
 Whenever any notice is required
or permitted hereunder, such notice must be in writing and personally delivered or sent by mail. Any notice required or permitted to be delivered hereunder shall be deemed to be delivered on the date on which it is personally delivered, or, whether
actually received or not, on the third business day after it is deposited in the United States mail, certified or registered, postage prepaid, addressed to the person 

  

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who is to receive it at the address that such person has theretofore specified by written notice delivered in accordance herewith. The Company or Participant
may change, by written notice to the other, the address previously specified for receiving notices. Notices delivered to the Company shall be addressed as follows: 
  

			
	Company:	  	Coinstar, Inc.
	 	  	Attn: General Counsel
	 	  	1800 114th Avenue SE
	 	  	Bellevue, WA 98004

  
 10.2 No Waiver

  
 No waiver of any provision of this Agreement will be
valid unless in writing and signed by the person against whom such waiver is sought to be enforced, nor will failure to enforce any right hereunder constitute a continuing waiver of the same or a waiver of any other right hereunder. 
  
 10.3 Undertaking 
  
 You hereby agree to take whatever additional action and execute whatever
additional documents the Company may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either you or the Shares pursuant to the express provisions of this Agreement. 
  
 10.4 Entire Contract 
  
 This Agreement, the Grant Notice and the Plan constitute the entire contract
between the parties hereto with regard to the subject matter hereof and supersede all prior oral or written agreements on the subject. This Agreement is made pursuant to the provisions of the Plan and will in all respects be construed in conformity
with the express terms and provisions of the Plan. 
  
 10.5
Successors and Assigns 
  
 The provisions of this Agreement
will inure to the benefit of, and be binding on, the Company and its successors and assigns and you and your legal representatives, heirs, legatees, distributees, assigns and transferees by operation of law, whether or not any such person will have
become a party to this Agreement and agreed in writing to join herein and be bound by the terms and conditions hereof. 
  
 10.6 Counterparts 
  
 This Agreement may be executed in two or more counterparts, each of which will be deemed an original, but which, upon execution, will constitute one and
the same instrument. 
  

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 10.7 Governing Law 
  
 The provisions of the Grant Notice and this Agreement shall be governed by the laws of the state of Washington, without giving effect to principles of
conflicts of law. 
  

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 IN WITNESS WHEREOF, the parties have executed this Agreement dated as of
                    , 200  . 
  

			
	COINSTAR, INC.
		
	By:	 	 
		
	Name:	 	 
		
	Title:	 	 
	
	 [NAME OF RECIPIENT]
  

	
	 
	Recipient’s Signature


  

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 EXHIBIT A 
  
 ACKNOWLEDGMENT AND STATEMENT OF DECISION 
 REGARDING SECTION 83(b) ELECTION 
  
 The undersigned, a recipient of              shares of common stock of Coinstar, Inc., a Delaware corporation (the “Company”), pursuant to a restricted stock award
granted under the Company’s 1997 Amended and Restated Equity Incentive Plan (the “Plan”), hereby states as follows: 
  
 1. The undersigned acknowledges receipt of a copy of the Restricted Stock Award Agreement and the Plan relating to the offering of such shares. The
undersigned has carefully reviewed the Plan and the Restricted Stock Award Agreement pursuant to which the award was granted. 
  
 2. The undersigned either (check and complete as applicable) 
  

			
	(a)             	 	has consulted, and has been fully advised by, the undersigned’s own tax advisor,
                                        ,
whose business address is
                                        ,
regarding the federal, state and local tax consequences of receiving shares under the Plan, and particularly regarding the advisability of making an election pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the
“Code”), and pursuant to the corresponding provisions, if any, of applicable state law, or
		
	(b)             	 	has knowingly chosen not to consult such a tax advisor.

  
 3. The undersigned
hereby states that the undersigned has decided (check as applicable) 
  

			
	(a)             	 	to make an election pursuant to Section 83(b) of the Code, and is submitting to the Company, together with the undersigned’s executed Restricted Stock Award Agreement, an executed form
entitled “Election Under Section 83(b) of the Internal Revenue Code of 1986”, or
		
	(b)             	 	not to make an election pursuant to Section 83(b) of the Code.

  
 4. Neither the Company
nor any subsidiary or representative of the Company has made any warranty or representation to the undersigned with respect to the tax consequences of the undersigned’s acquisition of shares under the Plan or of the making or failure to make an
election pursuant to Section 83(b) of the Code or the corresponding provisions, if any, of applicable state law. 
  
  

			
	Dated:                     	 	 
	 	 	Recipient
		
	 	 	 
	 	 	Print Name








 EXHIBIT B 
  
 ELECTION UNDER SECTION 83(b) 
 OF THE INTERNAL REVENUE CODE OF 1986 
  
 The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code, to include in taxpayer’s gross income for the current taxable year the amount of any compensation taxable to
taxpayer in connection with taxpayer’s receipt of the property described below: 
  

	1.	The name, address, taxpayer identification number and taxable year of the undersigned are as follows: 

  
 NAME OF TAXPAYER:
                                       
                      
  
 ADDRESS:
                                        
                                        
   
  
           __________________________________________ 
  
 IDENTIFICATION NO. OF TAXPAYER:
                                 
  
 TAXABLE YEAR:
                         
  

	2.	The property with respect to which the election is made is described as follows:
                     shares of the Common Stock of Coinstar, Inc., a Delaware corporation (the “Company”).


  

	3.	The date on which the property was transferred is:
                                        
                 

  

	4.	The property is subject to the following restrictions: 

  
 The property is subject to a forfeiture right pursuant to which the Company can reacquire the Shares if for any reason taxpayer’s services with the
Company are terminated. The Company’s right to receive back the shares lapses as follows:
                                . 
  

	5.	The aggregate fair market value at the time of transfer, determined without regard to any restriction other than a restriction which by its terms will never lapse, of such property
is: $                         

  

	6.	The amount (if any) paid for such property is:
$                         

  
 The undersigned has submitted a copy of this statement to the person for whom the services were performed in connection with
the undersigned’s receipt of the above-described property. The undersigned is the person performing the services in connection with the transfer of said property. 
  
 The undersigned understands that the foregoing election may not be revoked except with the consent of the Commissioner of
Internal Revenue. 
  

					
	Dated:                     	  	 
	 	 	 	  	Taxpayer








 DISTRIBUTION OF COPIES 
  

	1.	File original with the Internal Revenue Service Center where the taxpayer’s income tax return will be filed. Filing must be made by no later than 30 days after the date of
grant. 

  

	2.	Attach one copy to the taxpayer’s income tax return for the taxable year in which the property was transferred. 

  

	3.	Mail one copy to the Company at the following address: 

  
 Coinstar, Inc. 
 1800 114th Avenue SE 
 Bellevue, WA 98004