Document:

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                                                                    Exhibit 10.7

                             EMPLOYMENT AGREEMENT

                                COINSTAR, INC.

                                      and

                               RICHARD STILLMAN

                           Dated as of June 18, 2001
<PAGE>

                             EMPLOYMENT AGREEMENT

     This Employment Agreement (this "Agreement"), dated as of June 18, 2001,
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 his 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 him, the following compensation:

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                                                                               1
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     4.1.     Base Salary

     Employee's compensation shall consist, in part, of an annual base salary of
Two Hundred Ten Thousand Dollars ($210,000) 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 his 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.

     4.3.     Acceleration of Stock Options

     One-hundred percent (100%) of Employee's unvested Coinstar options shall
immediately vest in the event Employee is terminated without Cause or terminates
for Good Reason during the term of this Agreement.

     4.4      Stay Bonus

     Employee shall receive a one-time bonus equal to three months' base salary
(net of applicable withholding) if Employee is employed by Employer on the
earlier of (i) December 1, 2001 and (ii) the date on which Employer hires a new
President and Chief Executive Officer (the "Primary Stay Bonus"); provided, that
in the event Employer has not hired a new President and Chief Executive Officer
by December 1, 2001, Employee shall receive an additional one-time bonus equal
to three months' base salary (net of applicable withholding) if Employee is
employed by Employer on the date on which Employer does hire a new President and
Chief Executive Officer ("Additional Stay Bonus").

5.   BENEFITS, OUTPLACEMENT AND OTHER SERVICES

     5.1.     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.

     5.2.     Outplacement and Other Services

     In the event of a termination without Cause or for Good Reason hereunder,
Employee shall be provided with outplacement services by the Lee Hecht Harrison
firm in an amount

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                                                                               2
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not to exceed Five Thousand Dollars ($5,000). Such services will be evidenced by
appropriate invoices and billed directly to Employer. Employee shall receive
reimbursement for professional tax planning services in an amount not to exceed
the cost of four (4) hours of such services in addition to the fifteen (15)
hours already authorized by the Compensation Committee of the board for option
exercise tax planning strategy services for members of the senior management
team.

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).

     6.2.     By Employee

     Employee may terminate his 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 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.

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                                                                               3
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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

     (i)      If Employer terminates Employee's employment without Cause prior
to the date on which Employer hires a new President and Chief Executive Officer,
Employee shall be entitled to receive (a) termination payments equal to nine (9)
months' annual base salary and (i) two times (2x) the amount of the Primary Stay
Bonus in the event Employee's employment is terminated effective prior to
December 1, 2001 or (ii) two times (2x) the amount of the Secondary Stay Bonus
in the event Employee's employment is terminated effective after December 1,
2001 and prior to the date on which Employer hires a new President and Chief
Executive Officer, 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 nine (9) months following the date the Employee
is terminated without Cause. Thereafter Employee may self-pay health insurance
under COBRA if he 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.

     (ii)     If Employer terminates Employee's employment without Cause after
the date on which the Employer hires a new President and Chief Executive Officer
and 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 April 1, 2002, or (ii) six (6)
months' annual base salary for any such termination thereafter, 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
(i) nine (9) months if Employee is terminated without Cause after the date on
which the Employer hires a new President and Chief Executive Officer and prior
to April 1, 2002, or (ii) six (6) months if Employee is terminated without Cause
thereafter. Thereafter Employee may self-pay health insurance under COBRA if he
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,

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                                                                               4
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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 (i) nine (9) months' annual base salary if
he terminates prior to April 1, 2002, or (ii) six (6) months' annual base salary
if he terminates thereafter, 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 (i) nine (9) months if Employee
terminates for Good Reason prior to April 1, 2002, or (ii) six (6) months if
Employee terminates for Good Reason thereafter. Thereafter Employee may self-pay
health insurance under COBRA if he 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 occurrence of any of the following events or
conditions and the failure of the Employer to cure such event or condition
within 30 days after receipt of written notice from the Employee:

     (a)  a change in the Employee's status, position or responsibilities
          (including reporting responsibilities) that, in the Employee's
          reasonable judgment, represents a substantial reduction in the status,
          position or responsibilities as in effect immediately prior thereto;
          the assignment to the Employee of any duties or responsibilities that,
          in the Employee's reasonable judgment, are materially inconsistent
          with such status, title, position or responsibilities; or any removal
          of the Employee from or failure to reappoint or reelect the Employee
          to any of such positions, except in connection with the termination of
          the Employee's employment for Cause, as a result of his total
          disability or death, or by the Employee other than for Good Reason;

     (b)  a reduction in the Employee's annual base salary;

     (c)  requiring the Employee (without the Employee's consent) to be based at
          any place outside a 50-mile radius of his place of employment, except
          for reasonably required travel on the Employer's business that is not
          materially greater than such travel requirements prior to the
          effective date of this Agreement;

     (d)  the Employer's failure to (i) continue in effect any material
          compensation or benefit plan (or the substantial equivalent thereof)
          in which the Employee was participating, or (ii) provide the Employee
          with compensation and benefits

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                                                                               5
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          substantially equivalent (in terms of benefit levels and/or reward
          opportunities) to those provided for under each material employee
          benefit plan, program and practice in effect immediately prior to the
          effective date of this Agreement;

     (e)  any material breach by the Employer of its obligations to the Employee
          under this Agreement;

     (f)  the termination of employment by Employee more than thirty (30) and
          less than one-hundred eighty (180) days following the hiring of a new
          President and Chief Executive Officer by Employer; or

     (g)  any purported termination of the Employee's employment or service
          relationship for Cause that is not in accordance with the definition
          of Cause under this Agreement.

     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
subparagraph 4.2 and 4.4 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:

     (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.

________________________________________________________________________________
                                                                               6
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     7.6      Non-payment

     In the event of any non-payment by Employer of any amount due under this
paragraph 7 in breach of this Agreement, which breach is not cured by Employer
within 15 days of the date such payment was due, Employee shall be entitled to
an amount equal to twice the amount of the amount which is not paid when due.

8.   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 Applicable
Period (as defined below) following termination of employment for whatever
reason, Employee agrees that he 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. For purposes of this paragraph 8, "Applicable Period" means (i) nine
(9) months, if Employee's employment terminates prior to April 1, 2002, or (ii)
six (6) months, if Employee's employment terminates on or after April 1, 2002.

     If, within the Applicable Period following the date of termination,
Employee violates this paragraph 8, Employee shall forfeit any remaining
termination payments provided under paragraph 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 Employee's
termination for Good Reason or without Cause.

     (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 8(c) are essential to Employer, that Employer would
not enter into this Agreement if it did not include this Section 8(c), and that
damages sustained by Employer as a result of a breach of this Section 8(c)
cannot be adequately

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                                                                               7
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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 8(c).

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 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 55/th/ Avenue South
                                    Mercer Island WA 98040

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

     Copy to:                       Perkins Coie LLP
                                    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.

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                                                                               8
<PAGE>

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 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.
Prior to the initiation of any arbitration hereunder, the parties shall engage
in mandatory mediation in the interest of expediting a prompt resolution of any
dispute. The Employer shall be responsible for payment of any and all costs and
fees of such mediation, including attorneys' fees for Employee, in an amount not
to exceed Ten Thousand Dollars ($10,000).

14.  AVAILABILITY AND CONSULTATION

     If Employee's employment with Employer terminates for any reason, Employee
will thereafter make herself 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 14.

15   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

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                                                                               9
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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.

16   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.

17   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.

18   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.

19   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.

20   ENTIRE AGREEMENT

     Except for (1) [that certain Proprietary Invention and Information
Agreement dated_________], and (2) the continuing rights, amended by paragraph 4
hereof, and obligations under Employee's existing stock option agreements, 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.

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                                                                              10
<PAGE>

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

                                              COINSTAR, INC.

/s/ Richard P. Stillman                       By:  /s/ William Ruckelshaus
RICHARD STILLMAN                              Its:  Compensation Committee Chair

________________________________________________________________________________
                                                                              11<PAGE>

                                                                    Exhibit 10.8

                                   AGREEMENT
                                   ---------

     THIS AGREEMENT (the "Agreement") dated as of June 14, 2001, is entered into
by and between JENS MOLBAK (hereinafter referred to as "Executive") and
COINSTAR, INC., a Delaware corporation (hereinafter referred to as "Coinstar").

                                   RECITALS

     A.  Executive is Chairman, founder and former Chief Executive Officer of
Coinstar.

     B.  Executive and Coinstar wish to enter into an agreement to resolve any
and all issues that may exist between them in connection with the employment
relationship and its planned termination and to provide for Executive's
consulting role with the Company following such termination.

     C.  Executive's employment at Meals.com, Inc. ("Meals.com"), a subsidiary
of Coinstar, will not impacted by this Agreement.

                                  AGREEMENTS

1.   EMPLOYMENT:  ENDING DATE AND RESPONSIBILITIES

     Executive's employment as Chairman of Coinstar will terminate effective
June 20, 2001 (the "Resignation Date"). Contemporaneous with the execution of
this Agreement, Executive will submit in writing his resignation from Coinstar
in a form substantially similar to the letter attached hereto as Exhibit A.

2.   SEVERANCE PAY AND BENEFITS

     Coinstar will pay Executive $500,000 (the "Severance Amount") following the
Resignation Date in accordance with the terms set forth herein. Such payment
shall be provided in equal monthly installments, less applicable deductions and
tax withholding, at regular payroll intervals during the two-year period
following the Resignation Date (the "Severance Period"). The Severance Amount
payable at any given payroll interval during the Severance Period will be
reduced by the gross amount of cash compensation (including severance payments,
if any) Executive receives as compensation for services provided to or in
connection with Meals.com (provided that Meals.com is a majority-owned
subsidiary of Coinstar) during or with respect to that payroll period. During
the Severance Period, Executive will be entitled to the following with respect
to health insurance benefits: for the 18 month period following the Resignation
Date (the "COBRA Period"), Executive elects, pursuant to COBRA and the related
provisions in the applicable Coinstar health insurance plans, to continue his
current health insurance benefits for himself and his dependents ("COBRA
Coverage") and Coinstar agrees to pay the monthly premium for such COBRA
Coverage ("COBRA Premium") during the COBRA Period. Coinstar agrees to provide
Executive reasonable assistance in obtaining alternative health insurance
coverage for final six months of the Severance Period and agrees to reimburse
Executive for the

                                                                               1
<PAGE>

premiums relating to such alternative coverage during such remaining six month
period in a monthly amount not to exceed the last monthly COBRA Premium paid by
Coinstar for COBRA Coverage. Notwithstanding the foregoing, if Executive obtains
health insurance benefits under another employer's plan ("Alternative Health
Plan Coverage"), Executive acknowledges that he shall thereafter no longer be
entitled to COBRA Coverage under Coinstar's plan; provided, however, that for
the remaining Severance Period Coinstar shall reimburse Executive for the
premiums relating to his dependents' Alternative Health Plan Coverage for which
he is personally responsible up to a maximum of the portion of the last monthly
COBRA Premium paid by Coinstar for his dependent's COBRA Coverage. All other
Coinstar benefits cease on the Resignation Date. In the event of any non-payment
by Coinstar of the Severance Amount in breach of this Agreement, which breach is
not cured by Coinstar within 15 days of the date such payment was due, Executive
shall be entitled to an amount equal to twice the portion of the Severance
Amount which is not paid when due.

3.   OTHER SERVICES; CONSULTING SERVICES

(a)  Upon the effectiveness of this Agreement (in accordance with Section 12),
Coinstar will provide Executive with a transition benefit of $50,000 to be used
(in Executive's sole discretion) for legal fees and expenses relating to the
negotiation and preparation of this Agreement, professional tax planning
services, and other costs and expenses relating to this Agreement, Executive's
resignation or Executive's transitional needs in connection with his
resignation.

(b)  Executive shall be available to provide consulting services to Coinstar
during the Severance Period as partial consideration for the Severance Amount.
The consulting services shall be provided at times and locations reasonably
requested by Coinstar; provided, however, that Coinstar agrees to use its best
efforts to schedule Executive's consulting services at times convenient for
Executive and consistent with his other business or occupational opportunities
and obligations; provided further, that requested consulting services shall
involve no more than four (4) trips outside of the Seattle/King County
metropolitan area per annum, shall not exceed an average of eight (8) hours per
month and shall not exceed 30 hours (not including travel time) in any one
month, in each case unless otherwise agreed. The consulting services shall be in
the nature of public appearances at trade shows, meeting with Coinstar's
customers, transition services, assistance in prosecution of Coinstar's patent
application and patent rights, other meetings to enhance Coinstar's business
plan or product lines, and other activities that are not inconsistent with the
duties historically performed by Executive for Coinstar while employed by
Coinstar. Coinstar agrees that, without Executive's prior consent, Executive
shall not be required to perform consulting services that would require Coinstar
to disclose to Executive, and Coinstar agrees to not disclose to Executive, any
nonpublic information regarding Coinstar that would reasonably be considered
material under applicable federal securities laws. Executive agrees not to
solicit from Coinstar any such material nonpublic information . Coinstar
acknowledges that Executive may perform services for third parties during the
Severance Period, provided that performing such services does not result in
violation of Section 9 of this Agreement. Coinstar agrees to indemnify and hold
Executive harmless from any expense, liability or loss (including reasonable
attorneys' fees) relating to any actual or threatened action, suit or proceeding
against Executive arising out of actions or omissions of Executive in his
capacity as a consultant

                                                                               2
<PAGE>

hereunder, except for such actions or omissions involving gross negligence or
willful misconduct.

4.   STOCK OPTIONS

     So long as Executive continues to provide consulting services to Coinstar
as contemplated by Section 3(b) hereof, Executive's unvested Coinstar options
shall vest in accordance with their current vesting schedules and the vested
portion of any such option may be exercised at any time during the current term
of such option. In the event Coinstar terminates Executive as a consultant for
any reason during the Severance Period, one hundred percent (100%) of
Executive's unvested Coinstar options will immediately vest and such options may
be exercised at any time for up to a period equal to two years and ninety days
from the Resignation Date; provided, however, that in no event shall a Coinstar
option held by the Executive be exercisable following the date that is ten years
after the date such option was granted to Executive. In the event Executive
terminates the consulting services for any reason during the Severance Period
other than following a material breach of this Agreement by Coinstar, in
addition to the other remedies Coinstar may have, the unvested portion of
Executive's Coinstar options shall expire and be not be exercisable and
Executive shall have 90 days from the date of such termination to exercise the
vested portion of his Coinstar options. At the completion of the Severance
Period, and assuming no prior termination of the consulting services has
occurred, one hundred percent of Executive's then unvested options will
immediately vest. In no event shall termination of consulting services by
Executive or Coinstar for any reason effect the duration of the Severance
Period.

5.   NON-DISPARAGEMENT OBLIGATION

     Executive and Coinstar shall refrain (and Coinstar shall cause its
officers, directors and employees to 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 this Agreement,
which comment would likely cause material damage or harm to the business
interests or reputation of Executive or Coinstar. Executive and Coinstar further
agree that each will refer to Executive's separation as a resignation in all
third party communications.

     Each of Executive and Coinstar acknowledges that the non-disparagement
provisions of this Section 5 are essential to the other party, that such other
party would not enter into this Agreement if it did not include this Section 5,
and that damages sustained by such other party as a result of a breach of this
Section 5 cannot be adequately quantified or remedied by damages alone.
Accordingly, each party shall be entitled to injunctive and other equitable
relief to prevent or curtail any breach of this Section 5.

6.   VALID CONSIDERATION

     Executive recognizes and agrees that Coinstar's commitments and
undertakings herein are not required by Coinstar's policies or procedures or by
any contractual obligation of Coinstar

                                                                               3
<PAGE>

and are solely as consideration for resolution of the severance arrangements
between Executive and Coinstar arising out of his employment.

7.   COMMUNICATIONS REGARDING AGREEMENT

     Executive shall not initiate communications regarding this Agreement,
except for communications with his attorneys, financial advisors, family, or
friends, or except as otherwise required by law. If asked by any person other
than the foregoing, Executive shall state only that he is stepping down as
Chairman of the Board and will act as a consultant to the Company. The
provisions of any press release by the Company relating to Executive's
resignation shall be subject to the prior approval of Executive, which approval
will not be withheld unreasonably and shall be given no later than 24 hours
after a draft of such press release is provided to Executive.

8.   GENERAL RELEASE OF CLAIMS; INDEMNIFICATION

     Each party (a "Releasing Party") expressly waives any claims against the
other party (a "Released Party") and releases the Released Party (including its
subsidiaries, officers, directors, stockholders, managers, agents and
representatives) from any claims the Releasing Party may have in any way
connected with Executive's employment with Coinstar and the scheduled
termination of his employment. It is understood that this release includes, but
is not limited to, any claims Executive may have 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
Coinstar'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 federal Age Discrimination in Employment Act,
the Washington Law Against Discrimination, or any other legal limitation on the
employment relationship. Executive represents that he has not filed any
complaints, charges or lawsuits against Coinstar with any governmental agency or
any court, and agrees that he will not initiate, assist or encourage any such
actions. 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. Executive's release of claims shall not affect any
indemnification rights or obligations to which he may be subject (including,
without limitation, in his capacity as an officer or director of any subsidiary
of Coinstar) under the indemnification agreement entered into July 1997 between
Executive and Coinstar. Coinstar represents that during the term of Executive's
employment as an officer or director of Coinstar (and in his capacity as an
officer or director of any subsidiary of Coinstar) he was covered by Coinstar's
primary directors' and officers' liability insurance and excess directors' and
officers liability insurance. In the event that Coinstar obtains control of
Meals.com, Coinstar agrees to cause Meals.com to enter into a mutual release on
terms substantially similar to the terms of this Section 8.

9.   NONCOMPETITION AND NONDISCLOSURE

     (a)  The nature of Executive's employment with Coinstar has given Executive
access to trade secrets and confidential information, including information
about its technology and customers. Therefore, except as provided in
subparagraph (b) below, during the Severance

                                                                               4
<PAGE>

Period, Executive will not engage in, be employed by, perform services for,
participate in the ownership (except that Executive may beneficially own up to
5% of the outstanding stock of a publicly traded company), 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 Coinstar as of the Resignation Date, or
(ii) the products or services which have been under research or development by
Coinstar during the term of Executive's employment, and which Coinstar is
demonstrably considering for further development or commercialization as of the
Resignation Date. The geographic scope of this restriction shall extend to
anywhere Coinstar is doing business, has done business or intends to do
business. Executive acknowledges that the restrictions are reasonable and
necessary for protection of the business and goodwill of Coinstar. The
restrictive provisions in this Section 9(a) shall not apply in the event
Coinstar unilaterally discontinues payment of the Severance Amount in breach of
this Agreement (provided that Executive notify Coinstar of such breach and
Coinstar be given a reasonable period of time to cure such breach), unless such
discontinuance is as a result of a material breach by Executive of the terms of
this Agreement.

     (b)  In the event Coinstar and Meals.com enter into a noncompetition
agreement after the date hereof (the "Meals Noncompete"), the restrictive
provisions of subparagraph (a) above shall be automatically amended so that they
are identical to the Meals Noncompete for so long as (i) Executive works full
time for Meals.com, (ii) such Meals Noncompete remains in full force and effect
and (iii) Executive and Meals.com strictly comply with the Meals Noncompete.
Should (i) Executive cease working for Meals.com, (ii) the Meals Noncompete not
remain in full force and effect or (iii) Executive and Meals.com not strictly
comply with the Meals Noncompete, the restrictive provisions of subparagraph (a)
will be automatically reinstated and in full force and effect.

     (c)  Without limiting the generality of the obligations set forth in that
certain Proprietary Information and Inventions Agreement dated February 26, 1991
between Skydeck Corporation (now know as Coinstar, Inc.) and the Executive (the
"Proprietary Information and Inventions Agreement"), Executive further will not
disclose any confidential information about Coinstar relating to its business,
technology, practices, products, marketing, sales, services, finances or legal
affairs.

10.  NON-INTERFERENCE WITH COMPANY'S EMPLOYMENT RELATIONSHIP

     Executive agrees that he will not directly or indirectly seek to induce the
departure of or hire away any current employees of Coinstar during the Severance
Period and for a period of twelve (12) months following the termination of the
Severance Period. In addition, he agrees not to interfere in any manner with the
employment relations between Coinstar and its other employees; provided, that in
the event any employee of Coinstar unilaterally approaches Executive to discuss
specifically employment or other business opportunities with Executive or any
business with which Executive is involved, Executive is free to engage with such
Coinstar employee; provided further, however, that the foregoing shall not be
deemed in any way to relieve Executive of his obligations under Section 9 of
this Agreement (including his obligations

                                                                               5
<PAGE>

under the Proprietary Information and Inventions Agreement) or any such Coinstar
employee of any legal or contractual obligations he or she may have to Coinstar.

11.  REAFFIRMATION OF PRIOR AGREEMENTS

     Executive agrees that he shall continue to be bound by the terms of the
Proprietary Information and Inventions Agreement, other than Sections 7 and 11
of that agreement, as if he were an employee during the time he furnishes
consulting services to Coinstar.

12.  REVIEW AND REVOCATION PERIOD; EFFECTIVE DATE

     Executive and Coinstar agree that he shall have twenty-one (21) days to
review this Agreement (although he may choose to execute it sooner) and consult
an attorney if he so chooses, during which time the proposed terms of this
Agreement shall not be amended, modified or revoked by Coinstar. Executive may
revoke this Agreement if he so chooses by providing written notice of his
decision to revoke this Agreement to Coinstar within seven (7) days following
the date he signs this Agreement. This Agreement shall become effective and
enforceable upon expiration of this seven (7) day revocation period.

13.  SEVERABILITY

     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.

14.  AVAILABILITY AND CONSULTATION

     Executive will make himself reasonably available to Coinstar and counsel
for Coinstar for the purpose of enabling Coinstar to defend against any legal
claims in which Coinstar determines he may have knowledge or information.

                                                                               6
<PAGE>

15.  REIMBURSEMENT OF CERTAIN EXPENSES

     Coinstar will reimburse Executive for reasonable out-of-pocket expenses
incurred in connection with any consultations under Section 14.

16.  CERTAIN COOPERATION

     Coinstar agrees to provide Executive or his agents with information
requested by Executive or his agents which is reasonably necessary to enable
Executive to effect any filings required under applicable securities laws or
which may reasonably be required by Executive in connection with the
unregistered sale or other transfer of Coinstar stock owned by Executive.
Coinstar further agrees, and shall cause its transfer agent, to process promptly
any stock transfers by Executive for which appropriate transfer documentation
(including, solely to the extent Rule 144 is applicable to such transfer,
seller's and broker's documents and legal opinions customarily required for
sales of restricted or control securities under Rule 144) is presented to the
Company's transfer agent by Executive or his agents.

17.  MEDIATION AND ARBITRATION

     Except for claims for specific performance or other equitable relief, 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
 ---------
Coinstar and Executive 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. Prior to the initiation of any arbitration
hereunder, the parties shall engage in mandatory mediation in the interest of
expediting a prompt resolution of any dispute.  Coinstar shall be responsible
for payment of any and all costs and fees of such mediation, including
attorneys' fees for Executive, in an amount not to exceed Ten Thousand Dollars
($10,000).

18.  SUCCESSORS AND ASSIGNS

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

19.  NON-ADMISSION

     This Agreement shall not be construed as an admission by either party
hereto of any wrongful act, and each party specifically denies any liability to
the other party. This Agreement is entered into by the parties solely for the
purpose of resolving all issues between Coinstar and Executive for all events
occurring on or before the date of execution of this Agreement.

                                                                               7
<PAGE>

20.  KNOWING AND VOLUNTARY AGREEMENT

     Executive represents and agrees that he has read this Agreement,
understands its terms and the fact that it releases any claim he might have
against Coinstar and its agents, understands that he has the right to consult an
attorney of his choice, acknowledges that he has in fact consulted an attorney,
and enters into this Agreement without duress or coercion from any source.

21.  ENTIRE AGREEMENT

     Except for (1) the continuing obligations of Executive under that certain
the Proprietary Invention and Information Agreement, and (2) the continuing
rights, amended by Section 4 hereof, and obligations under Executive's existing
stock option agreements, this Agreement sets forth the entire understanding
between Executive and Coinstar, superseding any prior agreements or
understandings, express or implied, pertaining to the terms of Executive's
employment with Coinstar. Executive acknowledges that in executing this
Agreement, he does not rely upon any representation or statement by any
representative or agent of Coinstar concerning the subject matter of this
Agreement.

22.  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 to the contrary.

                                                                               8
<PAGE>

                                    /s/ Jens Molbak
Dated: June 14, 2001                _________________________________
                                    Jens Molbak

                                    COINSTAR, INC.

Dated: June 14, 2001                By:   /s/ William Ruckelshaus
                                    Its:  Compensation Committee Chair

                                                                               9
<PAGE>

June 14, 2001

Board of Directors

Gentlemen:

I hereby resign my positions on the Board of Directors of Coinstar, Inc.,
Meals.com and Coinstar International, Inc.

I also hereby resign as Chairman of Coinstar, Inc. effective June 20, 2001, to
pursue other business opportunities.  I am giving you advance notice in order to
enable Coinstar to provide an orderly transition of my duties.

Sincerely,

/s/ Jens Molbak

Jens Molbak

                                                                              10

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