Employment Agreement



 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
  
 COINSTAR, INC. 
  
 and 
  
 BRIAN
V. TURNER 
  
 Dated as of August 5, 2005 







 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (this “Agreement”), dated as of August 5, 2005, between Coinstar, Inc., a Delaware
corporation (“Employer”), and Brian V. Turner (“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.	CHIEF FINANCIAL OFFICER 

  

	 	1.1	Employment 

  
 Employer will employ Employee and Employee will provide services to Employer as its Chief Financial Officer (“CFO”). 
  

	 	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 CFO 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”). 
  


			
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	 	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 CFO shall consist, in part, of an annual base salary of two hundred seventy thousand four hundred dollars
($270,400) 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 executive officers, 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. 
  

	 	1.5	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). 
  

	 	2.2	By Employee 

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


			
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	 	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 CFO, 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: 
  

	 	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 

  


			
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tax withholding, at regular payroll intervals. Employee shall also be entitled to payment of a pro-rated cash bonus consistent Section 1.3(b). Any pro-rated
bonus payment due Employee shall be calculated and paid at the same time as the Company’s other executive officers. 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, good will or reputation; or 
  
 (d) Any other material violation of any provision of this Agreement.

  

	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 

  


			
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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. 
  


			
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	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 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:
	  	Brian V. Turner
		
	 If to Employer:
	  	 Coinstar, Inc.
 1800 114th Avenue SE
 Bellevue, WA
98004
 Attn: Chairman of the Board of Directors
 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 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 

  


			
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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 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. 
  


			
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	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 May 1, 2003, 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/ BRIAN V. TURNER
	 	 	 	 By 
	 	 /s/ DAVID W. COLE

	 BRIAN V. TURNER
	 	 	 	 Its 
	 	 Chief Executive Officer


  


			
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