Document:

exv10w2

Exhibit 10.2

TRANSITION AGREEMENT

     This TRANSITION AGREEMENT (the “Agreement”) is entered into by and between Brian V. Turner
(“Mr. Turner” or “Employee”) and Coinstar, Inc., a Delaware corporation (“Employer” or “Company”)
as of March 31, 2009, modifying certain aspects of the employment relationship. Mr. Turner has
voluntarily resigned from his position as Chief Financial Officer of the Company. The resignation
is effective May 31, 2009 (“Resignation Date”).

1. EMPLOYMENT

     Mr. Turner will devote all of his productive time, ability, attention and effort to the
Company’s business and will skillfully serve its interests until the Resignation Date. The Company
will pay to Mr. Turner all of his accrued salary, less required
deductions, through the Resignation
Date.

2. TRANSITION PAYMENTS AND BENEFITS

     Mr. Turner will be paid a total of Four Hundred and Five Thousand Dollars ($405,000), less all
applicable deductions and tax withholdings, as of the Resignation Date. Payment shall be made to
Mr. Turner in twenty-four (24) substantially equal semi monthly installments at regularly scheduled
payroll intervals, beginning June 1, 2009, and continuing for eleven (11) consecutive months
thereafter; provided, however, that the installments that would normally be paid in the months of
June 2009 through December 2009, shall be accumulated without
interest and paid to Mr. Turner at the first regular payroll date in
January 2010. For purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”), each such installment shall be treated as a separate payment.

     Mr. Turner will also be eligible for a prorated bonus (based on the number of days in calendar year
2009 that Mr. Turner is employed by the Company compared to 365) equal to the bonus he otherwise
would have received had he remained employed on the payment date under the terms of the 2009
executive incentive compensation plan. Any bonus payable under the 2009 executive incentive
compensation plan (as finally determined by the Compensation Committee of the Company’s Board of
Directors) will be paid at the same time bonuses for other executives are paid in 2010.

     The vesting of Mr. Turner’s outstanding unvested stock options will be accelerated such that
all tranches of such options that would have become vested on or prior to May 31, 2010 will become
fully vested and exercisable on May 31, 2009. All of Mr. Turner’s vested unexercised stock options
outstanding on May 31, 2009, including the stock options so accelerated, will remain exercisable
until August 31, 2010, and to the extent not exercised will be cancelled as of 5:00 PM Pacific Time
on that date. The vesting of Mr. Turner’s outstanding time-vested restricted stock will be
accelerated such that all tranches of such restricted stock that would have become vested on or
prior to May 31, 2010 will become fully vested on May 31,

 

 

2009 so that the restrictions on such
shares will lapse and such shares will no longer be subject to forfeiture. The vesting of Mr.
Turner’s outstanding earned performance-based restricted stock will be accelerated such that all
tranches of such restricted stock will become fully vested on May 31, 2009 so that the restrictions
on such shares will lapse and such shares will no longer be subject to forfeiture. Mr. Turner’s
outstanding unearned performance-based restricted stock award will not be forfeited in connection
with the Resignation Date but will remain subject to determination by the Compensation Committee of
the Company’s Board of Directors after December 31, 2009 of the extent to which the shares covered
by such award have been earned up to the target level of such award; provided, however, that any
such earned shares shall not be subject to further time vesting and shall be prorated under this
Agreement based on the number of days in calendar year 2009 that Mr. Turner is employed by the
Company compared to 365 (the “net earned shares”) and that all shares subject to such award other
than the net earned shares will be thereafter forfeited; provided further, that if the Compensation
Committee determines that such award is earned above target, no additional shares will be issued to
Mr. Turner or taken into account in determining the net earned
shares. (For example, assuming Mr. Turner is employed though May 31,
2009, the number of days to be used in the calculation would be 151.)

3. NON-INTERFERENCE WITH COMPANY’S EMPLOYMENT RELATIONSHIP

     Mr. Turner agrees that he will not directly or indirectly seek to induce the departure of or
hire away any current employees of the Company for a period of one
(1) year from the Resignation
Date. In addition, Mr. Turner agrees not to interfere in any manner with the employment relations
between the Company and its other employees.

4. GENERAL WAIVER AND RELEASE OF CLAIMS

     Mr. Turner expressly waives any and all claims against the Company and releases the Company
(including its officers, directors, stockholders, employees, agents, and representatives) from any
and all claims, whether known or unknown, that he may have that in any way relate to the employment
relationship with the Company, including the termination of the employment relationship and any
disqualification of incentive stock options. It is understood that this release includes, but is
not limited to, any claims for wages, bonuses, employment benefits, or damages of any kind
whatsoever, arising out of any contracts, expressed or implied, any theory of wrongful discharge,
any legal restriction on the employment relationship or the Company’s right to terminate employees,
or any federal, state, or other governmental statute or ordinance, including, without limitation,
Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, or the Washington
Law Against Discrimination. Mr. Turner represents that he has not filed any complaints, charges,
or lawsuits against the Company with any governmental agency or any court, and agrees that he will
not initiate or encourage any such actions, and will not assist any such actions other than as
required by law. This waiver and release shall not waive or release any claims under this
Agreement or predicated on acts that occur after the date of execution of this Agreement.

5. REVIEW PERIOD AND REVOCATION PERIOD; EFFECTIVE DATE

     Mr. Turner acknowledges that his waiver and release hereunder of any rights he may have under
the Age Discrimination in Employment Act of 1967 (“ADEA”), including any amendments, is knowing and
voluntary. The Company and Mr. Turner agree that this waiver and release does not apply to any
rights or claims that may arise under the ADEA after the effective date of this Agreement. Mr.
Turner acknowledges that he has been advised by this

 

 

writing, as required by the Older Workers
Benefit Protection Act, that (a) he should consult with an attorney prior to executing this
Agreement; (b) he has twenty-one (21) days to consider this Agreement (although he may, by his own
choice, execute this Agreement earlier), during which time this Agreement will not be amended,
modified, or revoked by the Company; (c) he has seven (7) days following the execution of this
Agreement to revoke the Agreement by providing written notice to the Company; and (d) this
Agreement will not be effective until the expiration of the seven (7) day revocation period.
Should Mr. Turner elect to revoke this Agreement, he must do so by sending a certified letter,
return receipt requested, to: Coinstar, Inc., 1800 114th Avenue SE, Bellevue, WA 98004, Attn:
General Counsel.

6. SUCCESSORS AND ASSIGNS

     This Agreement will bind and inure to the benefit of the parties and their respective legal
representatives, successors, and assigns.

7. KNOWING AND VOLUNTARY AGREEMENT

     Mr. Turner represents and agrees that he (a) has read this Agreement; (b) understands its
terms and the fact that it releases any claim he might have against the Company and its officers,
directors, stockholders, employees, agents, and representatives; (c) understands that he has the
right to consult an attorney of his choice; and (d) enters into this Agreement without duress or
coercion from any source.

8. ENTIRE AGREEMENT

     This Agreement sets forth the entire understanding between Mr. Turner and the Company,
superseding any prior or contemporaneous agreements and understandings, written or oral, express or
implied, pertaining to Mr. Turner’s employment with the Company, and its termination; provided,
however, this Agreement does not modify or extinguish (i) Sections 4 and 10 of the Employment
Agreement executed by the parties on August 5, 2005, or (ii) the Proprietary and Invention
Agreement executed by Mr. Turner on May 1, 2003. The provisions of this Agreement are severable,
and if any part of it is found to be unlawful or unenforceable, the other provisions of this
Agreement shall remain fully valid and enforceable to the maximum extent consistent with applicable
law. The headings and subheadings in this Agreement are for convenience of reference and are not
intended to add substance to the terms of the Agreement. The parties agree and acknowledge that in
order to be enforceable, any modifications, changes, additions, or deletions to this Agreement must
be in writing and signed by both parties.

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 the Company and Mr. Turner or chosen in accordance with the AAA Rules,
except that the parties thereto shall have any right to discovery as would be permitted by the
Federal Rules of Civil Procedure for a period of 90 days following the commencement of such
arbitration and the arbitrator thereof shall resolve any dispute which arises in connection with
such discovery. The prevailing party shall be entitled to costs,

 

 

expenses and reasonable
attorneys’ fees, and judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof. This provision shall not preclude the Company from seeking court
enforcement or relief based upon an alleged violation of Mr. Turner’s obligations under any
noncompetition or non-disclosure agreement.

10. APPLICABLE LAW

     This Agreement and all obligations and duties under this Agreement shall be governed by and
interpreted according to the laws of the State of Washington, without regard to its choice of law
principles.

11. CODE SECTION 409A

     The Company makes no representations or warranties to Mr. Turner with respect to any tax,
economic or legal consequences of this Agreement or any payments or other benefits provided
hereunder, including without limitation under Code Section 409A, and no provision of this Agreement
shall be interpreted or construed to transfer any liability for failure to comply with Code Section
409A or any other legal requirement from Mr. Turner or any other person to the Company, any of its
subsidiaries or affiliates, or any other person. Mr. Turner, by executing this Agreement, shall be
deemed to have waived any claim against the Company, its subsidiaries and affiliates, and any other
person with respect to any such tax, economic or legal consequences. However, the parties intend
that this Agreement and the payments and other benefits provided hereunder shall be exempt from the
requirements of Code Section 409A to the maximum extent possible, whether pursuant to the
short-term deferral exception described in Treasury Regulation Section 1.409A-1(b)(4), or
otherwise. To the extent Code Section 409A is applicable to this Agreement (and such payments and
benefits), the parties intend that this Agreement (and such payments and benefits) shall comply
with the deferral, payout and other limitations and restrictions imposed under Code Section 409A.
Notwithstanding the foregoing or any other provision of this Agreement to the contrary, (i) this
Agreement shall be interpreted, operated and administered in a manner consistent with such
intentions, and (ii) neither the Company, nor any of its subsidiaries or affiliates, shall have any
liability to Mr. Turner or his beneficiaries should any payments made under this Agreement be
subject to any tax (including interest and penalties) that may be imposed under Code Section 409A.

12. AUTHORITY TO ENTER AGREEMENT

     The Company and Mr. Turner agree and warrant that the Company, for itself, and Mr. Turner, for
himself, have the authority to enter into this Agreement, and that by so doing the Company, for
itself, and Mr. Turner, for himself, are not violating any obligation to any third party or entity.
The individual signing this Agreement on behalf of the Company warrants and represents that he is
duly authorized to do so, has the legal capacity to do so, and that all corporate actions necessary
to authorize the execution, delivery and performance of this Agreement have been duly and validly
taken prior to the date hereof.

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates indicated below.

	 	 	 	 	 	 	 	 	 	 	 
	COINSTAR, INC.	 	 	 	BRIAN V. TURNER	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By 
	/s/ Paul D. Davis	 	 	 	/s/ Brian V. Turner	 	 	 	 
	 	 	 	 	 	 	 	 
	Its 

	Chief Executive Officerexv10w3

Exhibit 10.3

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

COINSTAR, INC.

and

PAUL DAVIS

Dated as of April 1, 2009

 

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (this “Agreement”), dated as of April 1, 2009,
between Coinstar, Inc., a Delaware corporation (“Employer”), and Paul Davis (“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 EXECUTIVE OFFICER

     1.1 Employment

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

     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 CEO under this Agreement shall begin as of the effective date
of this Agreement and shall continue until terminated pursuant to Section 2 of this Agreement (the
“Term”).

			
	 	 	 
	PAUL DAVIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT 4-1-09
	 	 1

 

 

     1.4 Compensation

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

     (a) Base Salary

     Employee’s compensation as CEO shall consist, in part, of an annual base salary of six
hundred thousand dollars ($600,000) 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 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 Section 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.

			
	 	 	 
	PAUL DAVIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT 4-1-09
	 	 2

 

 

     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 Section 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 Section 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 CEO, Employee and the
Company shall enter into an Amended and Restated Change of Control Agreement, in the form 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
Amended and Restated Change of Control Agreement, Employee’s rights upon termination will be
governed by the terms of the Amended and Restated 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
Section 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,
(b) any unpaid annual base salary which has accrued for services already performed as of the date
termination of Employee’s employment becomes effective and (c) a

			
	 	 	 
	PAUL DAVIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT 4-1-09
	 	 3

 

 

pro-rated cash bonus consistent with Section 1.4(b). All amounts payable pursuant to this
Section 3.1 (or pursuant to Section 3.2) shall be reduced for applicable deductions and tax
withholding. If, as a result of the termination of Employee’s employment without Cause, Employee
and Employee’s spouse and dependent children are eligible for and timely (and properly) elect to
continue coverage under Employer’s group health plan(s) in accordance with Code Section 4980B(f)
(“COBRA”), Employer shall pay the premium for such coverage for a period of twelve (12) months
following the date of Employee’s termination or until Employee is no longer entitled to COBRA
continuation coverage under Employer’s group health plan(s), whichever period is the shorter. 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 amounts payable pursuant to Section 3.1(b) and 3.2 hereof shall be paid to Employee at the
same time such amounts would have been paid to Employee had Employee’s employment not been
terminated (or at such earlier time as is required by law). All amounts payable pursuant to
Section 3.1(a) hereof shall be paid to Employee in twelve (12) equal monthly installments,
beginning with the month following the month containing the date of Employee’s termination and
continuing for eleven (11) consecutive months thereafter. For purposes of Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”), each such installment shall be treated as a
separate payment.

     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

			
	 	 	 
	PAUL DAVIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT 4-1-09
	 	 4

 

 

     (d) Any other material violation of any provision of this Agreement.

     3.5 Code Section 409A

     The Employer makes no representations or warranties to Employee with respect to any tax,
economic or legal consequences of this Agreement or any payments or other benefits provided
hereunder, including without limitation under Code Section 409A, and no provision of this Agreement
shall be interpreted or construed to transfer any liability for failure to comply with Code
Section 409A or any other legal requirement from Employee or any other person to the Employer, any
of its affiliates or any other person. Employee, by executing this Agreement, shall be deemed to
have waived any claim against the Employer, its affiliates and any other person with respect to any
such tax, economic or legal consequences. However, the parties intend that this Agreement and the
payments and other benefits provided hereunder shall be exempt from the requirements of Code
Section 409A to the maximum extent possible, whether pursuant to the short-term deferral exception
described in Treasury Regulation Section 1.409A-1(b)(4), the involuntary separation pay plan
exception described in Treasury Regulation Section 1.409A-1(b)(9)(iii), or otherwise. To the
extent Code Section 409A is applicable to this Agreement (and such payments and benefits), the
parties intend that this Agreement (and such payments and benefits) shall comply with the deferral,
payout and other limitations and restrictions imposed under Code Section 409A. Notwithstanding any
other provision of this Agreement to the contrary, this Agreement shall be interpreted, operated
and administered in a manner consistent with such intentions. Without limiting the generality of
the foregoing, and notwithstanding any other provision of this Agreement to the contrary, with
respect to any payments and benefits under this Agreement to which Code Section 409A applies, all
references in this Agreement to termination of Employee’s employment are intended to mean
Employee’s “separation from service,” within the meaning of Code Section 409A(a)(2)(A)(i). In
addition, if Employee is a “specified employee,” within the meaning of Code
Section 409A(a)(2)(B)(i), when he/she separates from service, within the meaning of Code
Section 409A(a)(2)(A)(i), then to the extent necessary to avoid subjecting Employee to the
imposition of any additional tax under Code Section 409A, amounts that would otherwise be payable
under this Agreement during the six-month period immediately following Employee’s separation from
service shall not be paid to Employee during such period, but shall instead be accumulated and paid
to Employee (or, in the event of Employee’s death, Employee’s estate) in a lump sum on the first
business day following the earlier of (a) the date that is six months after Employee’s separation
from service or (b) Employee’s death.

4. NONCOMPETITION, NONDISCLOSURE AND NONDISPARAGEMENT

     (a) The nature of Employee’s employment with Employer has given Employee access to trade
secrets and confidential information, including information about its technology and customers.
Therefore, during the one (1) year following termination of employment for whatever reason,
Employee will not engage in, be employed by, perform services for, participate in the ownership,
management, control or operation of, or otherwise

			
	 	 	 
	PAUL DAVIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT 4-1-09
	 	 5

 

 

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 Section 4, Employee
shall forfeit any remaining termination payments provided under Section 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 nor the Proprietary Information and Invention Agreement by Employee will violate or
conflict in any way with any other agreement by which Employee may be bound, or with any other
duties imposed upon Employee by corporate or other statutory or common law.

6. FORM OF NOTICE

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

			
	 	 	 
	PAUL DAVIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT 4-1-09
	 	 6

 

 

	 	 	 	 	 	 	 
	 

	 	If to Employee:
	 	Paul Davis
	 	 
	 

	 	 	 	[ADDRESS]
	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	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: Lynn E. Hvalsoe	 	 
	 

	 	 	 	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

			
	 	 	 
	PAUL DAVIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT 4-1-09
	 	 7

 

 

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

10. AVAILABILITY AND CONSULTATION

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

11. AMENDMENTS IN WRITING

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

12. APPLICABLE LAW

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

13. SEVERABILITY

     If any provision of this Agreement shall be held invalid, illegal or unenforceable in any
jurisdiction, for any reason, including, without limitation, the duration of such provision, its
geographical scope or the extent of the activities prohibited or required by it, then, to the full
extent permitted by law (a) all other provisions hereof shall remain in full force and effect in
such jurisdiction and shall be liberally construed in order to carry out the intent of the parties
hereto as nearly as may be possible, (b) such invalidity, illegality or unenforceability shall not
affect the validity, legality or enforceability of any other provision

			
	 	 	 
	PAUL DAVIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT 4-1-09
	 	 8

 

 

hereof, and (c) any court or
arbitrator having jurisdiction thereover shall have the power to reform such provision to the
extent necessary for such provision to be enforceable under applicable law.

14. HEADINGS

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

15. COUNTERPARTS

     This Agreement, and any amendment or modification entered into pursuant to Section 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 April
1, 2008, and the Amended and Restated Change of Control Agreement executed by the Employee on
April 1, 2009, 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/ Paul Davis
 

	 	 	 	By
	 	/s/ Donald R. Rench
 

	 	 
	Paul Davis
	 	 	 	 	 	 	 	 
	 

	 	 	 	Its
	 	General Counsel 
	 	 

			
	 	 	 
	PAUL DAVIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT 4-1-09
	 	 9

 

 

EXHIBIT A

AMENDED AND RESTATED CHANGE OF CONTROL AGREEMENT

			
	 	 	 
	PAUL DAVIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT 4-1-09
	 	 10

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