Document:

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                                                                   Exhibit 10.11

                                COINSTAR, INC.

                          2000 EQUITY INCENTIVE PLAN

                           ADOPTED DECEMBER 14, 2000

1.   Purposes.

     (a)  The purpose of the Plan is to provide a means by which selected
Employees and Directors and Consultants may be given an opportunity to benefit
from increases in value of the common stock of the Company ("Common Stock")
through the granting of (i) Options, (ii) stock bonuses, and (iii) rights to
purchase restricted stock.

     (b)  The Company, by means of the Plan, seeks to retain the services of
persons who are now Employees, Directors or Consultants, to secure and retain
the services of new Employees, Directors and Consultants, and to provide
incentives for such persons to exert maximum efforts for the success of the
Company and its Affiliates.

     (c)  The Company intends that the Stock Awards issued under the Plan shall,
in the discretion of the Board or any Committee to which responsibility for
administration of the Plan has been delegated pursuant to subsection 3(c), be
either (i) Options granted pursuant to Section 6 hereof or (ii) stock bonuses or
rights to purchase restricted stock granted pursuant to Section 7 hereof.  All
Options shall be in such form as issued pursuant to Section 6, and a separate
certificate or certificates will be issued for shares purchased on exercise of
each type of Option.

2.   Definitions.

     (a)  "Affiliate" means any parent corporation or subsidiary corporation,
whether now or hereafter existing, as those terms are defined in Sections 424(e)
and (f) respectively, of the Code.

     (b)  "Board" means the Board of Directors of the Company.

     (c)  "Code" means the Internal Revenue Code of 1986, as amended.

     (d)  "Committee" means a Committee appointed by the Board in accordance
with subsection 3(c) of the Plan.

     (e)  "Company" means Coinstar, Inc., a Delaware corporation.

     (f)  "Consultant" means any person, including an advisor, engaged by the
Company or an Affiliate to render consulting services and who is compensated for
such services, provided that the term "Consultant" shall not include Directors
who are paid only a
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director's fee by the Company or who are not compensated by the Company for
their services as Directors.

     (g)  "Continuous Status as an Employee, Director or Consultant" means the
employment or relationship as a Director or Consultant is not interrupted or
terminated.  The Board, in its sole discretion, may determine whether Continuous
Status as an Employee, Director or Consultant shall be considered interrupted in
the case of:  (i) any leave of absence approved by the Board, including sick
leave, military leave, or any other personal leave; or (ii) transfers between
locations of the Company or between the Company, Affiliates or their successors.

     (h)  "Director" means a member of the Board.

     (i)  "Employee" means any person, including Officers and Directors,
employed by the Company or any Affiliate of the Company. Neither service as a
Director nor payment of a director's fee by the Company shall be sufficient to
constitute "employment" by the Company.

     (j)  "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     (k)  "Fair Market Value" means, as of any date, the value of the Common
Stock of the Company determined as follows:

          (1)  If the Common Stock is listed on any established stock exchange,
               or traded on the Nasdaq National Market or the Nasdaq SmallCap
               Market, the Fair Market Value of a share of Common Stock shall be
               the closing sales price for such stock (or the closing bid, if no
               sales were reported) as quoted on such exchange or market (or the
               exchange or market with the greatest volume of trading in Common
               Stock) on the day of determination, as reported in the Wall
               Street Journal or such other source as the Board deems reliable;

          (2)  In the absence of such markets for the Common Stock, the Fair
               Market Value shall be determined in good faith by the Board.

     (l)  "Non-Employee Director" means a Director who is not a current Employee
or Officer of the Company.

     (m)  "Officer" means a person who is an officer of the Company within the
meaning of Nasdaq Marketplace Rule 4460(i)(1)(A).

     (n)  "Option" means a stock option granted pursuant to the Plan that is not
intended to qualify as an incentive stock option within the meaning of Section
422 of the Code and the regulations promulgated thereunder.

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     (o)  "Option Agreement" means a written agreement between the Company and
an Optionee evidencing the terms and conditions of an individual Option grant.
Each Option Agreement shall be subject to the terms and conditions of the Plan.

     (p)  "Optionee" means a person to whom an Option is granted pursuant to the
Plan.

     (q)  "Plan" means this Coinstar, Inc. 2000 Equity Incentive Plan.

     (r)  "Stock Award" means any right granted under the Plan, including any
Option, any stock bonus and any right to purchase restricted stock.

     (s)  "Stock Award Agreement" means a written agreement between the Company
and a holder of a Stock Award evidencing the terms and conditions of an
individual Stock Award grant.  Each Stock Award Agreement shall be subject to
the terms and conditions of the Plan.

3.   Administration.

     (a)  The Plan shall be administered by the Board unless and until the Board
delegates administration to a Committee, as provided in subsection 3(c).

     (b)  The Board shall have the power, subject to, and within the limitations
of, the express provisions of the Plan:

          (1)  To determine from time to time which of the persons eligible
               under the Plan shall be granted Stock Awards; when and how each
               Stock Award shall be granted; whether a Stock Award will be an
               Option, a stock bonus, a right to purchase restricted stock or a
               combination of the foregoing; and the provisions of each Stock
               Award granted (which need not be identical), including the time
               or times when a person shall be permitted to receive stock
               pursuant to a Stock Award and the number of shares with respect
               to which a Stock Award shall be granted to each such person.

          (2)  To construe and interpret the Plan and Stock Awards granted under
               it, and to establish, amend and revoke rules and regulations for
               its administration.  The Board, in the exercise of this power,
               may correct any defect, omission or inconsistency in the Plan or
               in any Stock Award Agreement, in a manner and to the extent it
               shall deem necessary or expedient to make the Plan fully
               effective.

          (3)  To amend the Plan or a Stock Award as provided in Section 12.

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          (4)  Generally, to exercise such powers and to perform such acts as
               the Board deems necessary or expedient to promote the best
               interests of the Company, which are not in conflict with the
               provisions of the Plan.

     (c)  The Board may delegate administration of the Plan to a committee or
committees ("Committee") of one or more members of the Board.  If administration
is delegated to a Committee, the Committee shall have, in connection with the
administration of the Plan, the powers theretofore possessed by the Board (and
references in this Plan to the Board shall thereafter be to the Committee),
subject, however, to such resolutions, not inconsistent with the provisions of
the Plan, as may be adopted from time to time by the Board.  The Board may
abolish the Committee at any time and revest in the Board the administration of
the Plan.

4.   Shares Subject to the Plan.

     (a)  Subject to the provisions of Section 11 relating to adjustments upon
changes in stock, the stock that may be issued pursuant to Stock Awards shall
not exceed in the aggregate Seven Hundred Seventy Thousand (770,000) shares of
Common Stock.  If any Stock Award shall for any reason expire or otherwise
terminate, in whole or in part, without having been exercised in full (or vested
in the case of restricted stock awarded pursuant to Section 7), the stock not
acquired under such Stock Award shall revert to and again become available for
issuance under the Plan.

     (b)  The stock subject to the Plan may be unissued shares or reacquired
shares, bought on the market or otherwise.

     (c)  During the first three-year period commencing on the effective date of
the Plan, Officers and Directors of the Company shall not receive Options for
more than 40% of the shares of Common Stock underlying Options that are granted
during such three-year period.  Thereafter, on an annual basis, Officers and
Directors of the Company shall not receive Options for more than 40% of the
shares of Common Stock underlying Options that are granted during such one-year
period.

5.   Eligibility.

     Stock Awards may be granted only to Employees, Directors or Consultants.

6.   Option Provisions.

     Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate.  The provisions of separate
Options need not be identical, but each Option shall include (through
incorporation of provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions:

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     (a)  Term.  No Option shall be exercisable after the expiration of ten (10)
years from the date it was granted.

     (b)  Price.  The exercise price of each Option shall be not less than
eighty-five percent (85%) of the Fair Market Value of the stock subject to the
Option on the date the Option is granted.  Notwithstanding the foregoing, an
Option may be granted with an exercise price lower than that set forth in the
preceding sentence if such Option is granted pursuant to an assumption or
substitution for another option.

     (c)  Consideration.  The purchase price of stock acquired pursuant to an
Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash at the time the Option is exercised, or (ii) at
the discretion of the Board, (A) by tendering (either actually or, so long as
the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act,
by attestation) shares of Common Stock already owned by the Employee or
Consultant for at least six months (or any shorter period necessary to avoid a
charge to the Company's earnings for financial reporting purposes) that on the
day prior to the exercise date have a Fair Market Value equal to the aggregate
exercise price of the shares being purchased under the Option, (B) so long as
the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act,
delivery of a properly executed exercise notice, together with irrevocable
instructions to a brokerage firm designated by the Company to deliver promptly
to the Company the aggregate amount of sale or loan proceeds to pay the Option
exercise price and any withholding tax obligations that may arise in connection
with the exercise, all in accordance with the regulations of the Federal Reserve
Board; or (C) such other consideration as the Plan Administrator may permit.

     In addition, to assist an Optionee in acquiring shares of Common Stock
pursuant to an Option granted under the Plan, the Board, in its sole discretion,
may authorize, either at the date the Option is granted or at any time before
the acquisition of Common Stock pursuant to the Option, (i) the payment by an
Optionee of the purchase price of the Common Stock with a promissory note or
(ii) the guarantee by the Company of a full-recourse loan obtained by the
Optionee from a third party.  Subject to the foregoing, the Board shall in its
sole discretion specify the terms if any loans or loan guarantees, including the
interest rate and terms of and security for repayment.

     (d)  Transferability.  An Option may be transferred to the extent provided
in the Option Agreement; provided that if the Option Agreement does not
expressly permit the transfer of an Option, the Option shall not be transferable
except by will, by the laws of descent and distribution or pursuant to a
domestic relations order and shall be exercisable during the lifetime of the
person to whom the Option is granted only by such person or any transferee
pursuant to a domestic relations order.  Notwithstanding the foregoing, the
person to whom the Option is granted may, by delivering written notice to the
Company, in a form satisfactory to the Company, designate a third party who, in
the event of the death of the Optionee, shall thereafter be entitled to exercise
the Option.

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     (e)  Vesting. The total number of shares of stock subject to an Option may,
but need not, be allotted in periodic installments (which may, but need not, be
equal).  The Option Agreement may provide that from time to time during each of
such installment periods, the Option may become exercisable ("vest") with
respect to some or all of the shares allotted to that period, and may be
exercised with respect to some or all of the shares allotted to such period
and/or any prior period as to which the Option became vested but was not fully
exercised.  The Option may be subject to such other terms and conditions on the
time or times when it may be exercised (which may be based on performance or
other criteria) as the Board may deem appropriate.  The provisions of this
subsection 6(e) are subject to any Option provisions governing the minimum
number of shares as to which an Option may be exercised.

     (f)  Termination of Employment or Relationship as a Director or Consultant.
In the event an Optionee's Continuous Status as an Employee, Director or
Consultant terminates (other than upon the Optionee's death or disability), the
Optionee may exercise his or her Option (to the extent that the Optionee was
entitled to exercise it at the date of termination) but only within such period
of time ending on the earlier of (i) the date three (3)  months after the
termination of the Optionee's Continuous Status as an Employee, Director or
Consultant (or such longer or shorter period specified in the Option Agreement),
or (ii) the expiration of the term of the Option as set forth in the Option
Agreement.  If, after termination, the Optionee does not exercise his or her
Option within the time specified in the Option Agreement, the Option shall
terminate, and the shares covered by such Option shall revert to and again
become available for issuance under the Plan.

     An Optionee's Option Agreement may also provide that if the exercise of the
Option following the termination of the Optionee's Continuous Status as an
Employee, Director or Consultant (other than upon the Optionee's death or
disability) would be prohibited at any time solely because the issuance of
shares would violate the registration requirements under the Act, then the
Option shall terminate on the earlier of (i) the expiration of the term of the
Option as set forth in the first paragraph of this subsection 6(f), or (ii) the
expiration of a period of three months after the termination of the Optionee's
Continuous Status as an Employee, Director or Consultant during which the
exercise of the Option would not be in violation of such registration
requirements.

     (g)  Disability of Optionee.  In the event an Optionee's Continuous Status
as an Employee, Director or Consultant terminates as a result of the Optionee's
disability, the Optionee may exercise his or her Option (to the extent that the
Optionee was entitled to exercise it at the date of termination), but only
within such period of time ending on the earlier of (i) the date twelve (12)
months following such termination (or such longer or shorter period specified in
the Option Agreement), or (ii) the expiration of the term of the Option as set
forth in the Option Agreement.  If, at the date of termination, the Optionee is
not entitled to exercise his or her entire Option, the shares covered by the
unexercisable portion of the Option shall revert to and again become available
for issuance under the Plan.  If, after termination, the Optionee does not
exercise his or her Option within the time

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specified herein, the Option shall terminate, and the shares covered by such
Option shall revert to and again become available for issuance under the Plan.

     (h)  Death of Optionee. In the event of the death of an Optionee during, or
within a period specified in the Option after the termination of, the Optionee's
Continuous Status as an Employee, Director or Consultant, the Option may be
exercised (to the extent the Optionee was entitled to exercise the Option at the
date of death) by the Optionee's estate, by a person who acquired the right to
exercise the Option by bequest or inheritance or by a person designated to
exercise the option upon the Optionee's death pursuant to subsection 6(d), but
only within the period ending on the earlier of (i) the date twelve (12) months
following the date of death (or such longer or shorter period specified in the
Option Agreement), or (ii) the expiration of the term of such Option as set
forth in the Option Agreement.  If, at the time of death, the Optionee was not
entitled to exercise his or her entire Option, the shares covered by the
unexercisable portion of the Option shall revert to and again become available
for issuance under the Plan.  If, after death, the Option is not exercised
within the time specified herein, the Option shall terminate, and the shares
covered by such Option shall revert to and again become available for issuance
under the Plan.

     (i)  Early Exercise.  The Option may, but need not, include a provision
whereby the Optionee may elect at any time while an Employee, Director or
Consultant to exercise the Option as to any part or all of the shares subject to
the Option prior to the full vesting of the Option.  Any unvested shares so
purchased may be subject to a repurchase right in favor of the Company or to any
other restriction the Board determines to be appropriate.

     (j)  Re-Load Options.  Without in any way limiting the authority of the
Board to make or not to make grants of Options hereunder, the Board shall have
the authority (but not an obligation) to include as part of any Option Agreement
a provision entitling the Optionee to a further Option (a "Re-Load Option") in
the event the Optionee exercises the Option evidenced by the Option Agreement,
in whole or in part, by surrendering other shares of Common Stock in accordance
with this Plan and the terms and conditions of the Option Agreement.  Any such
Re-Load Option (i) shall be for a number of shares equal to the number of shares
surrendered as part or all of the exercise price of such Option; (ii) shall have
an expiration date which is the same as the expiration date of the Option the
exercise of which gave rise to such Re-Load Option; and (iii) shall have an
exercise price which is equal to one hundred percent (100%) of the Fair Market
Value of the Common Stock subject to the Re-Load Option on the date of exercise
of the original Option.

     There shall be no Re-Load Options on a Re-Load Option.  Any such Re-Load
Option shall be subject to the availability of sufficient shares under
subsection 4(a) and shall be subject to such other terms and conditions as the
Board may determine which are not inconsistent with the express provisions of
the Plan regarding the terms of Options.

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7.   Terms of Stock Bonuses and Purchases of Restricted Stock.

     Each stock bonus or restricted stock purchase agreement shall be in such
form and shall contain such terms and conditions as the Board shall deem
appropriate.  The terms and conditions of stock bonus or restricted stock
purchase agreements may change from time to time, and the terms and conditions
of separate agreements need not be identical, but each stock bonus or restricted
stock purchase agreement shall include (through incorporation of provisions
hereof by reference in the agreement or otherwise) the substance of each of the
following provisions as appropriate:

     (a)  Purchase Price.  The purchase price under each restricted stock
purchase agreement shall be such amount as the Board shall determine and
designate in such agreement, but in no event shall the purchase price be less
than eighty-five percent (85%) of the stock's Fair Market Value on the date such
award is made.  Notwithstanding the foregoing, the Board may determine that
eligible participants in the Plan may be awarded stock pursuant to a stock bonus
agreement in consideration for past services actually rendered to the Company
for its benefit.

     (b)  Transferability.  No rights under a stock bonus or restricted stock
purchase agreement shall be transferable except by will or the laws of descent
and distribution or, if the agreement so provides, pursuant to a domestic
relations order so long as stock awarded under such agreement remains subject to
the terms of the agreement.

     (c)  Consideration.  The purchase price of stock acquired pursuant to a
stock purchase agreement shall be paid either:  (i) in cash at the time of
purchase; (ii) at the discretion of the Board according to a deferred payment or
other arrangement with the person to whom the stock is sold; or (iii) in any
other form of legal consideration that may be acceptable to the Board in its
discretion.  Notwithstanding the foregoing, the Board to which administration of
the Plan has been delegated may award stock pursuant to a stock bonus agreement
in consideration for past services actually rendered to the Company or for its
benefit.

     (d)  Vesting.  Shares of stock sold or awarded under the Plan may, but need
not, be subject to a repurchase option in favor of the Company in accordance
with a vesting schedule to be determined by the Board.

     (e)  Termination of Continuous Status as an Employee, Director or
Consultant.  In the event a Participant's Continuous Status as an Employee,
Director or Consultant terminates, the Company may repurchase or otherwise
reacquire any or all of the shares of stock held by that person which have not
vested as of the date of termination under the terms of the stock bonus or
restricted stock purchase agreement between the Company and such person.

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8.   Covenants of the Company.

     (a)  During the terms of the Stock Awards, the Company shall keep available
at all times the number of shares of stock required to satisfy such Stock
Awards.

     (b)  The Company shall seek to obtain from each regulatory commission or
agency having jurisdiction over the Plan such authority as may be required to
issue and sell shares under Stock Awards; provided, however, that this
undertaking shall not require the Company to register under the Securities Act
of 1933, as amended (the "Securities Act") either the Plan, any Stock Award or
any stock issued or issuable pursuant to any such Stock Award.  If, after
reasonable efforts, the Company is unable to obtain from any such regulatory
commission or agency the authority which counsel for the Company deems necessary
for the lawful issuance and sale of stock under the Plan, the Company shall be
relieved from any liability for failure to issue and sell stock upon exercise of
such Stock Awards unless and until such authority is obtained.

9.   Use of Proceeds from Stock.

     Proceeds from the sale of stock pursuant to Stock Awards shall constitute
general funds of the Company.

10.  Miscellaneous.

     (a)  The Board shall have the power to accelerate the time at which a Stock
Award may first be exercised or the time during which a Stock Award or any part
thereof will vest pursuant to subsection 6(e) or 7(d), notwithstanding the
provisions in the Stock Award stating the time at which it may first be
exercised or the time during which it will vest.

     (b)  Neither an Employee, Director nor a Consultant nor any person to whom
a Stock Award is transferred in accordance with the Plan shall be deemed to be
the holder of, or to have any of the rights of a holder with respect to, any
shares subject to such Stock Award unless and until such person has satisfied
all requirements for exercise of the Stock Award pursuant to its terms.

     (c)  Nothing in the Plan or any instrument executed or Stock Award granted
pursuant thereto shall confer upon any Employee, Consultant or other holder of
Stock Awards any right to continue in the employ of the Company or any Affiliate
or to continue serving as a Consultant and Director, or shall affect the right
of the Company or any Affiliate to terminate the employment of any Employee with
or without notice and with or without cause, or the right to terminate the
relationship of any Consultant pursuant to the terms of such Consultant's
agreement with the Company or Affiliate or service as a Director pursuant to the
Company's By-laws.

     (d)  The Company may require any person to whom a Stock Award is granted,
or any person to whom a Stock Award is transferred in accordance with the Plan,
as a condition

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of exercising or acquiring stock under any Stock Award, (1) to give written
assurances satisfactory to the Company as to such person's knowledge and
experience in financial and business matters and/or to employ a purchaser
representative reasonably satisfactory to the Company who is knowledgeable and
experienced in financial and business matters, and that he or she is capable of
evaluating, alone or together with the purchaser representative, the merits and
risks of exercising the Stock Award; and (2) to give written assurances
satisfactory to the Company stating that such person is acquiring the stock
subject to the Stock Award for such person's own account and not with any
present intention of selling or otherwise distributing the stock. The foregoing
requirements, and any assurances given pursuant to such requirements, shall be
inoperative if (i) the issuance of the shares upon the exercise or acquisition
of stock under the Stock Award has been registered under a then currently
effective registration statement under the Securities Act, or (ii) as to any
particular requirement, a determination is made by counsel for the Company that
such requirement need not be met in the circumstances under the then applicable
securities laws. The Company may, upon advice of counsel to the Company, place
legends on stock certificates issued under the Plan as such counsel deems
necessary or appropriate in order to comply with applicable securities laws,
including, but not limited to, legends restricting the transfer of the stock.

     (e)  To the extent provided by the terms of a Stock Award Agreement, the
person to whom a Stock Award is granted may satisfy any federal, state or local
tax withholding obligation relating to the exercise or acquisition of stock
under a Stock Award by any of the following means or by a combination of such
means: (1) tendering a cash payment; (2) authorizing the Company to withhold
shares from the shares of the Common Stock otherwise issuable to the participant
as a result of the exercise or acquisition of stock under the Stock Award (up to
the employer's minimum required tax withholding rate); or (3) delivering to the
Company owned and unencumbered shares of the Common Stock of the Company having
a value equal to the tax withholding obligations (up to the employer's minimum
required tax withholding rate to the extent the Participant has held the
surrendered shares for less than six months).

11.  Adjustments upon Changes in Stock.

     (a)  If any change is made in the stock subject to the Plan, or subject to
any Stock Award, without the receipt of consideration by the Company (through
merger, consolidation, reorganization, recapitalization, reincorporation, stock
dividend, dividend in property other than cash, stock split, liquidating
dividend, combination of shares, exchange of shares, change in corporate
structure or other transaction not involving the receipt of consideration by the
Company), the Plan will be appropriately adjusted in the class(es) and maximum
number of shares subject to the Plan pursuant to subsection 4(a), and the
outstanding Stock Awards will be appropriately adjusted in the class(es) and
number of shares and price per share of stock subject to such outstanding Stock
Awards.  Such adjustments shall be made by the Board the determination of which
shall be final, binding and conclusive.  (The conversion of any convertible
securities of the Company shall not be treated as a "transaction not involving
the receipt of consideration by the Company".)

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     (b)  In the event of: (1)  a dissolution, liquidation or sale of
substantially all of the assets of the Company; (2)  a merger or consolidation
in which the Company is not the surviving corporation; or (3)  a reverse merger
in which the Company is the surviving corporation but the shares of the
Company's common stock outstanding immediately preceding the merger are
converted by virtue of the merger into other property, whether in the form of
securities, cash or otherwise, then to the extent permitted by applicable law:
(i) any surviving corporation or a parent of such surviving corporation shall
assume any Stock Awards outstanding under the Plan or shall substitute similar
Stock Awards for those outstanding under the Plan, or (ii) such Stock Awards
shall continue in full force and effect.  In the event any surviving corporation
or its parent refuses to assume or continue such Stock Awards, or to substitute
similar Stock Awards for those outstanding under the Plan, then, with respect to
Stock Awards held by persons then performing services as Employees, Directors or
Consultants the time during which such Stock Awards may be exercised shall be
accelerated, the vesting of such Stock Awards shall be accelerated and the Stock
Awards terminated if not exercised prior to such event.

12.  Amendment of the Plan and Stock Awards.

     (a)  The Board at any time, and from time to time, may amend the Plan.

     (b)  Rights under any Stock Award granted before amendment of the Plan
shall not be impaired by any amendment of the Plan unless (i) the Company
requests the consent of the person to whom the Stock Award was granted and (ii)
such person consents in writing.

     (c)  The Board at any time, and from time to time, may amend the terms of
any one or more Stock Awards; provided, however, that the rights under any Stock
Award shall not be impaired by any such amendment unless (i) the Company
requests the consent of the person to whom the Stock Award was granted and (ii)
such person consents in writing.

13.  Termination or Suspension of the Plan.

     (a)  The Board may suspend or terminate the Plan at any time. Unless sooner
terminated, the Plan shall terminate ten (10) years from the date the Plan is
adopted by the Board.  No Stock Awards may be granted under the Plan while the
Plan is suspended or after it is terminated.

     (b)  Rights and obligations under any Stock Award granted while the Plan is
in effect shall not be impaired by suspension or termination of the Plan, except
with the consent of the person to whom the Stock Award was granted.

14.  Effective Date of Plan.

     The Plan shall become effective on the date adopted by the Board.

                                      -11-<PAGE>

                                                                   Exhibit 10.12

                             EMPLOYMENT AGREEMENT

                                COINSTAR, INC.

                                      And

                               Richard Stillman

                                                   Dated as of November 17, 2000
<PAGE>

                             EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement"), dated as of November 17,
2000, between Coinstar, Inc., a Delaware corporation ("Employer"), and Richard
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 continue 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.       EMPLOYMENT

         Employer will continue to employ Employee and Employee will continue to
provide services to Employer as its Chief Operating Officer.

2.       ATTENTION AND EFFORT

         Employee will devote all of her productive time, ability, attention and
effort to Employer's business and will skillfully serve its interests during the
term of this Agreement.

3.       TERM

         Unless otherwise terminated pursuant to paragraph 6 of this Agreement,
Employee's term of employment under this Agreement shall expire on December 31,
2002.

4.       COMPENSATION

         During the term of this Agreement, Employer agrees to pay or cause to
be paid to Employee, and Employee agrees to accept in exchange for the services
rendered hereunder by her, the following compensation:

EMPLOYMENT AGREEMENT                                                           1
<PAGE>

         4.1.     Base Salary

         Employee's compensation shall consist, in part, of an annual base
salary of one hundred and ninety thousand dollars ($190,000) 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 annually by Employer's
Compensation Committee to determine in its discretion an appropriate increase in
the base salary.

         4.2.     Bonus

         Employee shall be eligible for and receive her annual cash bonus for
each calendar year during the term of this Agreement, provided Employer meets
performance targets applicable to such bonuses, and, provided further, any such
bonus shall be pro-rated in the event of a termination without Cause or for Good
Reason following December 31, 2000.

         4.3.     Acceleration of Stock Options

         Seventy-five percent (75%) of Employee's unvested Coinstar options
shall immediately vest in the event Employee is terminated without Cause prior
to December 31, 2001. Fifty percent (50%) of Employee's unvested Coinstar
options shall immediately vest if Employee terminates for Good Reason at any
time, or is terminated without Cause after December 31, 2001, but prior to
December 31, 2002.

5.       BENEFITS

         During the term of this Agreement, 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.

6.       TERMINATION

         Employment of Employee pursuant to this Agreement may be terminated as
follows, but in any case, the provisions of paragraph 8 hereof shall survive the
termination of this Agreement and the termination of Employee's employment
hereunder:

         6.1.     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).

EMPLOYMENT AGREEMENT                                                           2
<PAGE>

         6.2.     By Employee

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

         6.3.     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.

         6.4.     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 her 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.

7.       TERMINATION PAYMENTS

         In the event of termination of the employment of Employee, all
compensation and benefits set forth in this Agreement shall terminate except as
specifically provided in this paragraph 7:

         7.1.     Termination by Employer

         If Employer terminates Employee's employment without Cause prior to the
end of the term of this Agreement, Employee shall be entitled to receive (a)
termination payments equal to (i) nine (9) months' annual base salary in the
event of such termination prior to December 31, 2001, or (ii) six (6) months'
annual base salary for such termination prior to December 31, 2002, 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

EMPLOYMENT AGREEMENT                                                           3
<PAGE>

health insurance under COBRA if she elects to do so. All other Employer benefits
cease on the date of termination without Cause. If Employee is terminated by
Employer for Cause, Employee shall not be entitled to receive any of the
foregoing benefits, other than those set forth in clause (b) above. In the event
Employee obtains other employment during any salary continuation period
hereunder following a termination without Cause or for Good Reason, Employer's
obligation shall be offset by the amount of salary or pay received from such
other employment.

         7.2.     Termination by Employee

         In the case of the termination of Employee's employment by Employee for
other than Good Reason, Employee shall not be entitled to any payments
hereunder, other than those set forth in clause (b) of subparagraph 7.1 hereof.
In the case of a termination for Good Reason, Employee shall be entitled to
receive termination payments equal to the lesser of six (6) months' annual base
salary and the annual base salary Employee would have received if her employment
had continued until the end of the term of this Agreement. 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 for Good
Reason. Thereafter Employee may self-pay health insurance under COBRA if she
elects to do so. All other Employer benefits cease on the date of termination
for Good Reason. For purposes of this Agreement, "Good Reason" means the
assignment to Employee of any duties inconsistent in any significant respect
with Employee's position, authority, duties or responsibilities that results in
any material diminution in such position, authority, duties or responsibilities,
or the termination of employment by Employee more than 30 and less than180 days
following the hiring of a new President and Chief Executive Officer by Employer.

         7.3      Expiration of Term

         In the case of a termination of Employee's employment as a result of
the expiration of the term of this Agreement, Employee shall not be entitled to
receive any payments hereunder, other than those set forth in clause (b) of
subparagraph 7.1 and any bonus to which Employee may be entitled under Section
4.2 hereof.

         7.4      Payment Schedule

         All payments under this paragraph 7 shall be made to Employee at the
same interval as payments of salary were made to Employee immediately prior to
termination.

         7.5      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:

EMPLOYMENT AGREEMENT                                                           4
<PAGE>

                  (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 incident
         materially compromising Employee's reputation or ability to represent
         Employer with the public; 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.

8.       NONCOMPETITION AND NONDISCLOSURE

         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
the termination of employment without Cause or for Good Reason or for the period
of the severance payment, whichever is less, Employee agrees that she will not
divulge any confidential information or work directly or indirectly (as an
employee, consultant, advisor or owner) for any of the following businesses or
companies and their affiliates: Catalina Marketing Corporation, News America
Marketing, ScanCoin Corporation, Brinks, Inc., planet U and Valassis
Corporation.

         If within one year of the date of termination without Cause or for Good
Reason or for the severance payment period, whichever is less, Employee violates
this Section 8; Employee shall forfeit any remaining termination payments
provided under Section 7. In addition, the Board may require that Employee
forfeit to Employer any economic value realized upon exercise of options that
were accelerated in connection with the Employees termination for Good Reason or
without Cause.

9.       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.

10.      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 telecopy or other electronic facsimile transmission or by registered or
certified mail, return receipt requested, at the address set

EMPLOYMENT AGREEMENT                                                           5
<PAGE>

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 Stillman
                                      6870 West Mercer
                                      Way Mercer Island, Washington 98040

         If to Employer:              Coinstar, Inc.
                                      1800 114/th/ Avenue SE
                                      Bellevue, WA  98004

         Copy to:                     Perkins Coie
                                      Attn: Stephanie Daley-Watson
                                      1201 Third Ave., 40th Floor
                                      Seattle, WA  98101-3099

If notice is mailed, such notice shall be effective upon mailing, or if notice
is personally delivered or sent by telecopy or other electronic facsimile
transmission, it shall be effective upon receipt.

11.      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.

12.      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.

13.      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

EMPLOYMENT AGREEMENT                                                           6
<PAGE>

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.

14.      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.

15.      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.

16.      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.

17.      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.

EMPLOYMENT AGREEMENT                                                           7
<PAGE>

18.      COUNTERPARTS

         This Agreement, and any amendment or modification entered into pursuant
to paragraph 14 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.

19.      ENTIRE AGREEMENT

         This Agreement on and as of the date hereof constitutes the entire
agreement between Employer and Employee with respect to the subject matter
hereof and all prior or contemporaneous oral or written communications,
understandings or agreements between Employer and Employee with respect to such
subject matter, with the exceptions of any noncompetition or non-disclosure
agreement, are hereby superseded and nullified in their entireties.

         IN WITNESS WHEREOF, the parties have executed and entered into this
Agreement on the date set forth above.

EMPLOYEE                                            COINSTAR, INC.

/s/ Richard Stillman                                By /s/ Jens H. Molbak
-------------------------                              -------------------------
RICHARD STILLMAN                                    Its Chairman of the Board
                                                        ------------------------

EMPLOYMENT AGREEMENT                                                           8

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