Document:

exv10w8

Exhibit 10.8

COINSTAR, INC.

LETTER AGREEMENT REGARDING RETENTION INCENTIVES

AND RELEASE

April 1, 2009

Gregg Kaplan

One Tower Lane, Suite 1200

Oakbrook Terrace, IL 60181

     This Letter Agreement (“Agreement”) confirms the agreement between Coinstar, Inc., a Delaware
corporation, (the “Company”), and the above-named person (“you” or “Employee”) with respect to
certain employment-related agreements. For purposes of this Agreement, “Company Party” means the
Company and any of the Company’s subsidiaries, including but not limited to Redbox Automated
Retail, LLC, a Delaware limited liability company (“Redbox”).

     1. Employment at Will. You will be employed at-will following the execution of this
Agreement, meaning that either you or the relevant Company Party that employs you may terminate the
employment relationship at any time for any reason, with or without cause.

     2. Incentives. The Compensation Committee of Coinstar’s Board of Directors has
granted you the following employment incentives subject to the terms and conditions set forth in
Exhibit A:

          (a) Stock Option. An option to acquire shares of Coinstar common stock in an amount
and for the exercise price set forth in the “Stock Option” section in Exhibit A, such option to
vest as specified in such “Stock Option” section.

          (b) Cash. Cash payments to be made in the amounts and at the times set forth in the
“Cash” section in Exhibit A.

     3. Termination of Certain Rights. In connection with the execution of this Agreement,
Employee acknowledges and agrees to the termination of any and all rights that Employee might
otherwise have or have had (a) pursuant to any prior offer letter to Employee from Redbox Automated
Retail, LLC, including but not limited to the offer letter dated May 31, 2006 and any related Class
B Interest Award Agreement entered into in connection therewith, and (b) to payment pursuant to
Schedule I, Paragraph 7 and/or Schedule I.A. of the Purchase and Sale Agreement dated as of
February 26, 2009 between the Company and Redbox Employee Equity Incentive Plan, LLC.

     4. Release.

          (a) In consideration for the grant of incentives as specified above and other benefits
provided in this Agreement, you release, waive and discharge each Company Party and their
respective directors, officers, employees and agents from any and all claims, liabilities or
obligations that you may have,
whether direct or indirect, known or unknown, contingent or accrued, arising in connection
with any agreements, activities or arrangements with or relating to any Company Party. This
release includes, but is not

 

 

limited to, any claims for wages, bonuses, employment benefits, stock
options, equity awards, or damages of any kind, arising out of any common law torts, arising out of
any contracts, any theory of retaliation, any theory of discrimination or harassment, or any
federal or state law, including, without limitation, Title VII of the Civil Rights Act of 1964 as
amended, the Civil Rights Act of 1991, the Civil Rights Act of 1866, 42 U.S.C. § 1981, the
Americans with Disabilities Act, the Age Discrimination in Employment Act, the Older Workers
Benefit Protection Act, the Family and Medical Leave Act, the Employee Retirement Income Security
Act, the Washington Law Against Discrimination, or any other legal limitation on or regulation of
the employment relationship. This waiver and release does not preclude you from filing a lawsuit
to enforce your rights under this Agreement and it does not release, waive or discharge claims
arising after the date of this Agreement.

          (b) You acknowledge that you have carefully read and fully understand all aspects of this
Agreement including the fact that this Agreement releases any claims that you might have against
any Company Party. You agree and acknowledge that you have not relied upon any representations or
statements not set forth in this Agreement or made by any Company Party or their agents and
representatives. You acknowledge that you have been advised to consult with an attorney prior to
executing the Agreement, and that you have either done so or you knowingly waive the right to do
so, and you now enter into this Agreement without duress or coercion from any source. You agree
that you have been provided the opportunity to consider for twenty-one (21) days whether to enter
into this Agreement, and you have voluntarily chosen to enter into it on this date. You may revoke
this Agreement for a period of seven (7) days following the execution of this Agreement; this
Agreement shall become effective following expiration of this seven (7) day period.

     5. Amendment. No amendment, modification, waiver, termination or discharge of the
terms of this Agreement will be valid unless set forth in a writing signed by you and the Company.

     6. Assignment. This Agreement is personal to you and shall not be assignable by you.
The Company or the relevant Company Party may assign its rights hereunder to (a) any corporation
resulting from any merger, consolidation or other reorganization to which the Company or the
relevant Company Party is a party, or (b) any corporation, partnership, association or other person
to which the Company or the relevant Company Party may transfer all or substantially all of the
assets and business of the Company or the relevant Company Party 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.

     7. 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 effect the validity, legality or enforceability of any other provision
hereof, and (c) any court having jurisdiction thereover shall have the power to reform such
provision to the extent necessary for such provision to be
enforceable under applicable law.

     8. Notices. All notices, requests and other communications called for by this
Agreement will be deemed to have been given if made in writing and delivered via (i) nationally
recognized overnight courier, or (ii) personal delivery, if to you at the address set forth above
and if to the Company at 1800 114th Avenue SE, Bellevue, WA 98004, Attn.: General Counsel, or other
addresses as either party specifies to the other.

     9. Tax Withholding. The Company shall be entitled to withhold from any amounts paid
hereunder such amounts as the Company determines are or may be required by law.

2

 

     10. Governing Law. The validity, performance and construction of this Agreement will
be governed by the laws of the State of Washington without regard to principles of conflicts of
laws.

[The remainder of this page is intentionally left blank.]

3

 

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	COINSTAR, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Paul D. Davis	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Paul D. Davis	 	 
	 

	 	 	 	Title:
	 	Chief Executive Officer
	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 	 
	AGREED AND ACCEPTED:
	 	 
	 
	 	 
	Employee:
	 	 
	 
	 	 
	/s/ Gregg Kaplan
	 	 
	 

Gregg Kaplan

	 	 

SIGNATURE PAGE TO LETTER AGREEMENT REGARDING RETENTION INCENTIVES

AND RELEASE

 

 

EXHIBIT A

TO LETTER AGREEMENT REGARDING RETENTION INCENTIVES

AND RELEASE

Gregg Kaplan

Stock Option

Subject to the applicable terms and conditions regarding such option, including but not limited to
the terms and conditions set forth at http://www.fidelity.com with respect thereto, you
have been granted an option to purchase 92,053 shares of Common Stock of the Company (the “Stock
Option”). The Stock Option is subject to the terms and conditions set forth in the Stock Option
Grant Notice, the Stock Option Agreement and the 1997 Amended and Restated Equity
Incentive Plan governing such option, including but not limited to the vesting schedule applicable
thereto; provided, however, that the Stock Option shall fully vest and be
exercisable if, before February 26, 2010, your employment or service relationship with the Company
is terminated without Cause or with Good Reason (defined below).

Cash

Subject to your continued employment or service relationship with the Company through

(a) February 26, 2010, at such time you will be paid a cash payment of $1,667,978.65,

(b) February 26, 2011, at such time you will be paid a cash payment of $588,698.35, and

(c) February 26, 2012, at such time you will be paid a cash payment of $294,349.17 ((a), (b) and (c), collectively, the “Cash Incentive”).

Notwithstanding the foregoing, if before February 26, 2010 your employment or service relationship
with the Company is terminated without Cause or with Good Reason (defined below), the Cash
Incentive shall vest in full and be payable without regard to continued employment or service
relationship.

Related Definitions

	 	•	 	The term “Cause” has the same definition as that contained in the Employment Agreement
dated on or about the date of this Agreement between you and the Company (including any
amendments or modifications thereto, the “Employment Agreement”).
	 
	 	•	 	The term “Good Reason” has the same definition as that contained in the Change of
Control Agreement dated on or about the date of this Agreement between you and the Company
(including any amendments or modifications thereto, the “Change of Control Agreement”).exv10w9

Exhibit 10.9

COINSTAR, INC.

LETTER AGREEMENT REGARDING RETENTION INCENTIVES

AND RELEASE

April 1, 2009

John Harvey

One Tower Lane, Suite 1200

Oakbrook Terrace, IL 60181

     This Letter Agreement (“Agreement”) confirms the agreement between Coinstar, Inc., a Delaware
corporation, (the “Company”), and the above-named person (“you” or “Employee”) with respect to
certain employment-related agreements. For purposes of this Agreement, “Company Party” means the
Company and any of the Company’s subsidiaries, including but not limited to Redbox Automated
Retail, LLC, a Delaware limited liability company (“Redbox”).

     1. Employment at Will. You will be employed at-will following the execution of this
Agreement, meaning that either you or the relevant Company Party that employs you may terminate the
employment relationship at any time for any reason, with or without cause.

     2. Incentives. The Compensation Committee of Coinstar’s Board of Directors has
granted you the following employment incentives subject to the terms and conditions set forth in
Exhibit A:

          (a) Stock Option. An option to acquire shares of Coinstar common stock in an amount
and for the exercise price set forth in the “Stock Option” section in Exhibit A, such option to
vest as specified in such “Stock Option” section.

          (b) Cash. Cash payments to be made in the amounts and at the times set forth in the
“Cash” section in Exhibit A.

     3. Termination of Certain Rights. In connection with the execution of this Agreement,
Employee acknowledges and agrees to the termination of any and all rights that Employee might
otherwise have or have had (a) pursuant to any prior offer letter to Employee from Redbox Automated
Retail, LLC, including but not limited to the offer letter dated May 31, 2006 and any related Class
B Interest Award Agreement entered into in connection therewith, and (b) to payment pursuant to
Schedule I, Paragraph 7 and/or Schedule I.A. of the Purchase and Sale Agreement dated as of
February 26, 2009 between the Company and Redbox Employee Equity Incentive Plan, LLC.

     4. Release.

          (a) In consideration for the grant of incentives as specified above and other benefits
provided in this Agreement, you release, waive and discharge each Company Party and their
respective directors, officers, employees and agents from any and all claims, liabilities or
obligations that you may have, whether direct or indirect, known or unknown, contingent or accrued,
arising in connection with any agreements, activities or arrangements with or relating to any
Company Party. This release includes, but is not

 

 

limited to, any claims for wages, bonuses, employment benefits, stock options, equity awards,
or damages of any kind, arising out of any common law torts, arising out of any contracts, any
theory of retaliation, any theory of discrimination or harassment, or any federal or state law,
including, without limitation, Title VII of the Civil Rights Act of 1964 as amended, the Civil
Rights Act of 1991, the Civil Rights Act of 1866, 42 U.S.C. § 1981, the Americans with Disabilities
Act, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Family
and Medical Leave Act, the Employee Retirement Income Security Act, the Washington Law Against
Discrimination, or any other legal limitation on or regulation of the employment relationship.
This waiver and release does not preclude you from filing a lawsuit to enforce your rights under
this Agreement and it does not release, waive or discharge claims arising after the date of this
Agreement.

          (b) You acknowledge that you have carefully read and fully understand all aspects of this
Agreement including the fact that this Agreement releases any claims that you might have against
any Company Party. You agree and acknowledge that you have not relied upon any representations or
statements not set forth in this Agreement or made by any Company Party or their agents and
representatives. You acknowledge that you have been advised to consult with an attorney prior to
executing the Agreement, and that you have either done so or you knowingly waive the right to do
so, and you now enter into this Agreement without duress or coercion from any source. You agree
that you have been provided the opportunity to consider for twenty-one (21) days whether to enter
into this Agreement, and you have voluntarily chosen to enter into it on this date. You may revoke
this Agreement for a period of seven (7) days following the execution of this Agreement; this
Agreement shall become effective following expiration of this seven (7) day period.

     5. Amendment. No amendment, modification, waiver, termination or discharge of the
terms of this Agreement will be valid unless set forth in a writing signed by you and the Company.

     6. Assignment. This Agreement is personal to you and shall not be assignable by you.
The Company or the relevant Company Party may assign its rights hereunder to (a) any corporation
resulting from any merger, consolidation or other reorganization to which the Company or the
relevant Company Party is a party, or (b) any corporation, partnership, association or other person
to which the Company or the relevant Company Party may transfer all or substantially all of the
assets and business of the Company or the relevant Company Party 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.

     7. 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 effect the validity, legality or enforceability of any other provision
hereof, and (c) any court having jurisdiction thereover shall have the power to reform such
provision to the extent necessary for such provision to be
enforceable under applicable law.

     8. Notices. All notices, requests and other communications called for by this
Agreement will be deemed to have been given if made in writing and delivered via (i) nationally
recognized overnight courier, or (ii) personal delivery, if to you at the address set forth above
and if to the Company at 1800 114th Avenue SE, Bellevue, WA 98004, Attn.: General Counsel, or other
addresses as either party specifies to the other.

     9. Tax Withholding. The Company shall be entitled to withhold from any amounts paid
hereunder such amounts as the Company determines are or may be required by law.

2

 

     10. Governing Law. The validity, performance and construction of this Agreement will
be governed by the laws of the State of Washington without regard to principles of conflicts of
laws.

[The remainder of this page is intentionally left blank.]

3

 

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	COINSTAR, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Paul D. Davis	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Paul D. Davis	 	 
	 

	 	 	 	Title:
	 	Chief Executive Officer
	 	 
	 

	 	 	 	 	 	 

	 	 

AGREED AND ACCEPTED:

Employee:

	 	 	 
	/s/
John Harvey

John Harvey

	 	 

SIGNATURE PAGE TO LETTER AGREEMENT REGARDING RETENTION INCENTIVES

AND RELEASE

 

 

EXHIBIT A

TO LETTER AGREEMENT REGARDING RETENTION INCENTIVES

AND RELEASE

John Harvey

Stock Option

Subject to the applicable terms and conditions regarding such option, including but not limited to
the terms and conditions set forth at http://www.fidelity.com with respect thereto, you
have been granted an option to purchase 18,050 shares of Common Stock of the Company (the “Stock
Option”). The Stock Option is subject to the terms and conditions set forth in the Stock Option
Grant Notice, the Stock Option Agreement and the 1997 Amended and Restated Equity
Incentive Plan governing such option, including but not limited to the vesting schedule applicable
thereto; provided, however, that the Stock Option shall fully vest and be
exercisable if, before February 26, 2010, your employment or service relationship with the Company
is terminated without Cause or with Good Reason (defined below).

Cash

Subject to your continued employment or service relationship with the Company through

(a) February 26, 2010, at such time you will be paid a cash payment of $327,054.64,

(b) February 26, 2011, at such time you will be paid a cash payment of $327,054.64, and

(c) February 26, 2012, at such time you will be paid a cash payment of $327,054.64 ((a), (b) and
(c), collectively, the “Cash Incentive”).

Notwithstanding the foregoing, if before February 26, 2010 your employment or service relationship
with the Company is terminated without Cause or with Good Reason (defined below), the Cash
Incentive shall vest in full and be payable without regard to continued employment or service
relationship.

Related Definitions

	 	•	 	The term “Cause” has the same definition as that contained in the Employment Agreement
dated as of June 1, 2009 between you and the Company (including any amendments or
modifications thereto, the “Employment Agreement”).
	 
	 	•	 	The term “Good Reason” has the same definition as that contained in the Change of
Control Agreement (attached as Exhibit A to the Employment Agreement) to be entered into
between you and the Company as of the effective date of the Employment Agreement (including
any amendments or modifications thereto, the “Change of Control Agreement”).

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