Document:

Employment Agreement between Richard P. Stillman and the Registrant

  
 Exhibit 10.20 
  
 EMPLOYMENT AGREEMENT 
  
 COINSTAR, INC. 
  
 and 
  
 RICHARD P. STILLMAN 
  
 Dated as of January 1, 2004 

  
 EMPLOYMENT AGREEMENT

  
 This Employment Agreement (this “Agreement”),
dated as of January 1, 2004, between Coinstar, Inc., a Delaware corporation (“Employer”), and Richard P. 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 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.	PRESIDENT 

  

	 	1.1	Employment 

  
 Employer will employ Employee and Employee will provide services to Employer as its President (“President”). 
  

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

			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	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 President shall consist, in part, of an annual base salary of Two Hundred Eighty Three Thousand Four
Hundred Dollars ($283,400) before all customary payroll deductions. Such annual base salary shall be paid in substantially equal installments and at the same intervals as other officers of Employer are paid. Employee’s salary shall be reviewed
by Employer’s Compensation Committee as appropriate to determine in its discretion whether it is appropriate to increase the base salary. 
  

	 	(b)	Bonus 

  
 Employee shall be eligible for cash bonuses consistent with the existing program for senior managers, 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. 
  

	 	1.4	Benefits 

  
 During the Term, Employee will be entitled to participate, subject to and in accordance with applicable eligibility requirements, in fringe benefit
programs as shall be provided from time to time by, to the extent required, action of Employer’s Board of Directors. 
  

	2.	TERMINATION 

  
 Employment of Employee pursuant to this Agreement may be terminated as follows, but in any case, the provisions of paragraph 4 hereof shall survive the
termination of this Agreement and the termination of Employee’s employment hereunder: 
  

	 	2.1	By Employer 

  
 With or without Cause (as defined below), Employer may terminate the employment of Employee at any time during the term of employment upon giving Notice
of Termination (as defined below). 
  

			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	2

	 	2.2	By Employee 

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

	 	2.3	Automatic Termination 

  
 This Agreement and Employee’s employment hereunder shall terminate automatically upon the death or total disability of Employee. The term
“total disability” as used herein shall mean Employee’s inability to perform the duties set forth in paragraph 1 hereof for a period or periods aggregating 180 calendar days in any 12-month period as a result of physical or
mental illness, loss of legal capacity or any other cause beyond Employee’s control, unless Employee is granted a leave of absence by the Employer. Employee and Employer hereby acknowledge that Employee’s ability to perform the duties
specified in paragraph 1 hereof is of the essence of this Agreement. Termination hereunder shall be deemed to be effective (a) at the end of the calendar month in which Employee’s death occurs or (b) immediately upon a determination by the
Employer of Employee’s total disability, as defined herein. 
  

	 	2.4	Termination in Connection With a Change in Control 

  
 Concurrent with the commencement of Employee’s employment hereunder as President, Employee and the Company shall enter into a Change of Control
Agreement, form of which is attached hereto as Exhibit A. Notwithstanding Sections 3.1 and 3.2 of this Agreement and in full substitution therefor, if Employee’s employment terminates under circumstances described in the Change of Control
Agreement, Employee’s rights upon termination will be governed by terms of the Change of Control Agreement and his right to termination payments under this Employment Agreement shall cease. 
  

	 	2.5	Notice 

  
 The term “Notice of Termination” shall mean at least 30 days’ written notice of termination of Employee’s employment, during
which period Employee’s employment and performance of services will continue; provided, however, that Employer may, upon notice to Employee and without reducing Employee’s compensation during such period, excuse Employee from
any or all of his duties during such period. The effective date of the termination of Employee’s employment hereunder shall be the date on which such 30-day period expires. 
  

	3.	TERMINATION PAYMENTS 

  
 In the event of termination of the employment of Employee during the Term, all compensation and benefits set forth in this Agreement shall terminate
except as specifically provided in this paragraph 3: 
  

			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	3

	 	3.1	Termination by Employer 

  
 If Employer terminates Employee’s employment without Cause during the Term, Employee shall be entitled to receive (a) termination payments equal to
twelve (12) months’ annual base salary, and (b) any unpaid annual base salary which has accrued for services already performed as of the date termination of Employee’s employment becomes effective. Such payment shall be provided in equal
monthly installments, less applicable deductions and tax withholding, at regular payroll intervals. Employer agrees to continue Employee’s health insurance benefits, including current dependent coverage, for twelve (12) months following the
date the Employee is terminated without Cause. Thereafter Employee may self-pay health insurance under COBRA if Employee elects to do so. All other Employer benefits cease on the date of termination without Cause. If Employee is terminated by
Employer for Cause during the Term, Employee shall not be entitled to receive any of the foregoing benefits, other than those set forth in Section 3.1(b) above. 
  

	 	3.2	Termination by Employee 

  
 In the case of the termination of Employee’s employment by Employee, Employee shall not be entitled to any payments hereunder, other than those set
forth in Section 3.1(b) hereof if such termination occurs during the Term. 
  

	 	3.3	Payment Schedule 

  
 All payments under this paragraph 3 shall be made to Employee at the same interval as payments of salary were made to Employee immediately prior to
termination. 
  

	 	3.4	Cause 

  
 Wherever reference is made in this Agreement to termination being with or without Cause, “Cause” is limited to the occurrence of one or
more of the following events: 
  
 (a) Failure or refusal to carry
out the lawful duties of Employee described in Section 1 hereof or any directions of the Board of Directors of Employer, which directions are reasonably consistent with the duties herein set forth to be performed by Employee; 
  
 (b) Violation by Employee of a state or federal criminal law involving the
commission of a crime against Employer or a felony; 
  
 (c)
Current use by Employee of illegal substances; deception, fraud, misrepresentation or dishonesty by Employee; any act or omission by Employee which substantially impairs Employer’s business, goodwill or reputation; or 
  
 (d) Any other material violation of any provision of this Agreement.

  

			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	4

	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 be connected with, either directly or indirectly, any business or activity whose efforts are in competition with (i) the products or services manufactured or marketed by Employer at the time of this Agreement, or (ii) the
products or services which have been under research or development by Employer during the term of Employee’s employment, and which Employer has demonstrably considered for further development or commercialization. The geographic scope of this
restriction shall extend to anywhere Employer is doing business, has done business or intends to do business. Employee acknowledges that the restrictions are reasonable and necessary for protection of the business and goodwill of Employer.

  
 If, within one year of the date of termination, Employee
violates this paragraph 4, Employee shall forfeit any remaining termination payments provided under paragraph 3. 
  
 (b) Employee further agrees that he will not at any time disclose confidential information about Employer relating to its business, technology, practices,
products, marketing, sales, services, finances or legal affairs. 
  
 (c) Following termination of Employee for any reason, Employee and Employer shall refrain from making any derogatory comment in the future to the press or any individual or entity regarding the other that relates to their activities or
relationship prior to the date of termination, which comment would likely cause material damage or harm to the business interests or reputation of Employee or Employer. Employee acknowledges that the non-disparagement provisions of this Section 4(c)
are essential to Employer, that Employer would not enter into this Agreement if it did not include this Section 4(c), and that damages sustained by Employer as a result of a breach of this Section 4(c) cannot be adequately quantified or remedied by
damages alone. Accordingly, Employer shall be entitled to injunctive and other equitable relief to prevent or curtail any breach of this Section 4(c). 
  

	5.	REPRESENTATIONS AND WARRANTIES OF EMPLOYEE 

  
 Employee represents and warrants that neither the execution nor the performance of this Agreement by Employee will violate or conflict in any way with any
other agreement by which Employee may be bound, or with any other duties imposed upon Employee by corporate or other statutory or common law. 
  

	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 

  

			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	5

 
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 P. Stillman
		
	If to Employer:	  	Coinstar, Inc.
	 	  	1800 114th Avenue SE
	 	  	Bellevue, WA 98004
	 	  	Attn: Chief Executive Officer
	 	  	cc:     General Counsel
		
	Copy to:	  	Perkins Coie LLP
	 	  	Attn: Kurt Becker
	 	  	1201 Third Ave., 48th Floor
	 	  	Seattle, WA 98101-3099

  
 If notice is mailed,
such notice shall be effective upon mailing, or if notice is personally delivered, it shall be effective upon receipt. 
  

	7.	ASSIGNMENT 

  
 This Agreement is personal to Employee and shall not be assignable by Employee. Employer may assign its rights hereunder to (a) any corporation or other
entity resulting from any merger, consolidation or other reorganization to which Employer is a party or (b) any corporation, partnership, association or other person to which Employer may transfer all or substantially all of the assets and business
of Employer existing at such time. All of the terms and provisions of this Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns. 

 

	8.	WAIVERS 

  
 No delay or failure by any party hereto in exercising, protecting or enforcing any of its rights, titles, interests or remedies hereunder, and no course
of dealing or performance with respect thereto, shall constitute a waiver thereof. The express waiver by a party hereto of any right, title, interest or remedy in a particular instance or circumstance shall not constitute a waiver thereof in any
other instance or circumstance. All rights and remedies shall be cumulative and not exclusive of any other rights or remedies. 
  

	9.	ARBITRATION 

  
 Any controversies or claims arising out of or relating to this Agreement shall be fully and finally settled by arbitration in accordance with the
Commercial Arbitration Rules of the 

  

			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	6

 
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. 
  

	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 

  

			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	7

 
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. 
  

	14.	HEADINGS 

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

	15.	COUNTERPARTS 

  
 This Agreement, and any amendment or modification entered into pursuant to paragraph 11 hereof, may be executed in any number of counterparts, each of
which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute one and the same instrument. 
  

	16.	ENTIRE AGREEMENT 

  
 Except for the Proprietary Information and Invention Agreement executed by Employee on August 30, 1999, 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/ RICHARD P. STILLMAN	 	 	 	By	 	/s/ KEITH D. GRINSTEIN
	
	 	 	 	 	 	

	      Richard P. Stillman	 	 	 	Its	 	Chairman of the Board of Directors

  

			
	RICHARD P. STILLMAN EMPLOYMENT AGREEMENT	  	8

 Exhibit A 
  

CHANGE OF CONTROL AGREEMENT 
  
 This Change of Control Agreement (this “Agreement”), dated as of January 1, 2004, is between Coinstar, Inc. (the “Employer”), and
Richard P. Stillman (the “Employee”). This Agreement is an exhibit to that certain Employment Agreement dated as of January 1, 2004 between the Employer and the Employee (the “Employment Agreement”). 
  
 The Board of Directors of the Employer (the “Board”) has determined
that it is in the best interests of the Employer and its stockholders to ensure that the Employer will have the continued dedication of the Employee, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined in
Appendix A to this Agreement, which is incorporated herein by this reference) of the Employer. The Board believes it is imperative to diminish the inevitable distraction of the Employee arising from the personal uncertainties and risks created by a
pending or threatened Change of Control, to encourage the Employee’s full attention and dedication to the Employer currently and in the event of any threatened or pending Change of Control, to encourage the Employee’s willingness to serve
a successor in an equivalent capacity, and to provide the Employee with reasonable compensation and benefits arrangements in the event that a Change of Control results in the Employee’s loss of equivalent employment. 
  
 In order to accomplish these objectives, the Board has caused the Employer to
enter into this Agreement. 
  

	1.	EMPLOYMENT 

  

	 	1.1	Certain Definitions 

  
 (a) “Effective Date” shall mean the first date during the Change of Control Period (as defined in Section 1.1(b)) on
which a Change of Control occurs. 
  
 (b)
“Change of Control Period” shall mean the period commencing on the date of this Agreement and ending on the second anniversary of the date the Employer gives notice to the Employee that the Change of Control Period shall be
terminated. 
  

	 	1.2	Employment Period 

  
 The Employer hereby agrees to continue the Employee in its employ or in the employ of its affiliated companies, and the Employee hereby agrees to remain
in the employ of the Employer or its affiliated companies, in accordance with the terms and provisions of this Agreement, for the period commencing on the Effective Date and continuing until terminated pursuant to paragraph 4 of this Agreement (the
“Employment Period”). 
  

			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	 

 EXHIBIT A 
  

	 	1.3	Position and Duties 

  
 During the Employment Period, the Employee’s position, authority, duties and responsibilities shall be at least reasonably commensurate in all
material respects with the most significant of those held, exercised and assigned at any time during the 90-day period immediately preceding the Effective Date. 
  

	 	1.4	Employment Status 

  
 If prior to the Effective Date the Employee’s employment with the Employer or its affiliated companies terminates, then the Employee shall have no
further rights under this Agreement. 
  

	2.	ATTENTION AND EFFORT 

  
 During the Employment Period, and excluding any periods of vacation and sick leave to which the Employee is entitled, the Employee will devote all of his
professional productive time, ability, attention and effort to the business and affairs of the Employer and the discharge of the responsibilities assigned to him hereunder, and will use his best efforts to perform faithfully and efficiently such
responsibilities. 
  

	3.	COMPENSATION 

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

	 	3.1	Salary 

  
 The Employee shall receive an annual base salary (the “Annual Base Salary”), at least equal to the annual salary established by the Board prior
to the Effective Date for the fiscal year in which the Effective Date occurs. The Annual Base Salary shall be paid in substantially equal installments and at the same intervals as the salaries of other officers of the Employer are paid. 

 

	 	3.2	Bonus 

  
 Employee may be entitled to receive, in addition to the Annual Base Salary, an annual bonus in an amount to be determined by the Board of Directors of the
Employer in its sole discretion. 
  

	 	3.3	Benefits 

  
 During the Employment Period, the Employee shall be entitled to participate, subject to and in accordance with applicable eligibility requirements, in
such fringe benefit programs as shall be provided to other executive employees of the Employer and its affiliated companies from time to time during the Employment Period by action of the Board (or any 

  

			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	-2-

 EXHIBIT A 
  

 
person or committee appointed by the Board to determine fringe benefit programs and other emoluments). 
  

	 	3.4	Expenses 

  
 During the Employment Period, the Employee shall be entitled to receive prompt reimbursement for all reasonable employment expenses incurred by him in
accordance with the policies, practices and procedures of the Employer and its affiliated companies in effect for the employees of the Employer and its affiliated companies during the Employment Period or pursuant to an applicable travel policy.

  

	4.	TERMINATION 

  
 Employment of the Employee during the Employment Period may be terminated as follows but, in any case, the nondisclosure and noncompetition provisions set
forth in Section 4 of the Employment Agreement shall survive the termination of this Agreement and the termination of the Employee’s employment with the Employer: 
  

	 	4.1	By the Employer or the Employee 

  
 Upon giving Notice of Termination (as defined below), the Employer may terminate the employment of the Employee with or without Cause (as defined in the
Employment Agreement), and the Employee may terminate his employment for Good Reason (as defined below) or for any reason, at any time during the Employment Period. 
  

	 	4.2	Automatic Termination 

  
 This Agreement and the Employee’s employment during the Employment Period shall terminate automatically pursuant to Section 2.3 of the Employment
Agreement upon the death or total disability of the Employee. The Employee and the Employer hereby acknowledge that the Employee’s presence and ability to perform the duties specified in Section 1.3 hereof is of the essence of this Agreement.

  

	 	4.3	Notice of Termination 

  
 Any termination by the Employer or by the Employee during the Employment Period shall be communicated by Notice of Termination to the other party given
within 30 days in accordance with Section 2.5 of the Employment Agreement. The term “Notice of Termination” shall mean a written notice which (a) indicates the specific termination provision in this Agreement relied upon and (b) to the
extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Employee’s employment under the provision so indicated. The failure by the Employer to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Cause shall not waive any right of the Employer hereunder or preclude the Employer from asserting such fact or circumstance in enforcing the Employer’s rights hereunder.

  

			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	-3-

 EXHIBIT A 
  

	 	4.4	Date of Termination 

  
 During the Employment Period, “Date of Termination” means (a) if the Employee’s employment is terminated by reason of death, at the end of
the calendar month in which the Employee’s death occurs, and (b) in all other cases, five days after the date of personal delivery of or mailing of, as applicable, the Notice of Termination. The Employee’s employment and performance of
services will continue during such five-day period; provided, however, that the Employer may, upon notice to the Employee and without reducing the Employee’s compensation during such period, excuse the Employee from any or all of
his duties during such period. 
  

	5.	TERMINATION PAYMENTS 

  
 In the event of termination of the Employee’s employment during the Employment Period, all compensation and benefits set forth in this Agreement
shall terminate except as specifically provided in this Section 5. 
  

	 	5.1	Termination by the Employer for Other Than Cause or by the Employee for Good Reason 

  
 If the Employer terminates the Employee’s employment other than for Cause or the Employee terminates his employment for
Good Reason prior to the end of the Employment Period, the Employee shall be entitled to: 
  
 (a) Receive payment of the following accrued obligations (the “Accrued Obligations”): 
  
 (i) the Employee’s Annual Base Salary through the Date
of Termination to the extent not theretofore paid; 
  
 (ii) the product of (x) the Annual Bonus payable with respect to the fiscal year in which the Date of Termination occurs and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of
Termination, and the denominator of which is 365; and 
  
 (iii) any compensation previously deferred by the Employee (together with accrued interest or earnings thereon, if any) as such deferred compensation becomes payable under the deferral plan, and any accrued vacation pay, in each case to the
extent not theretofore paid; and 
  
 (b) an
amount as separation pay equal to the Employee’s Annual Base Salary. 
  

	 	5.2	Termination for Cause or Other Than for Good Reason 

  
 If the Employee’s employment shall be terminated by the Employer for Cause as defined in the Employment Agreement or by the Employee for other than
Good Reason 

  

			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	-4-

 EXHIBIT A 
  

 
during the Employment Period, this Agreement shall terminate without further obligation to the Employee other than the obligation to pay to the Employee his
Annual Base Salary through the Date of Termination plus the amount of any compensation previously deferred by the Employee (as such deferred compensation becomes payable under the deferral plan), in each case to the extent theretofore unpaid.

  

	 	5.3	Termination Because of Death or Total Disability 

  
 If the Employee’s employment is terminated by reason of the Employee’s death or total disability during the Employment Period, this Agreement
shall terminate automatically without further obligations to the Employee or his legal representatives under this Agreement, other than for payment of Accrued Obligations (which shall be paid to the Employee’s estate or beneficiary, as
applicable in the case of the Employee’s death). 
  

	 	5.4	Payment Schedule 

  
 Payments under Section 5.1(a) shall be paid to the Employee in a lump sum in cash within 30 days of the Date of Termination. Payments under Section 5.1(b)
shall be paid to Employee at regular scheduled payroll intervals over the twelve (12) month period following the Date of Termination. 
  

	 	5.5	Good Reason 

  
 For purposes of this Agreement, “Good Reason” means any of the following events or conditions and the failure to cure such event or condition
within 20 days after receipt of written notice from Employee: 
  
 (a) The assignment to the Employee of any duties inconsistent in any material respect with the Employee’s position, authority, duties or responsibilities as contemplated by Section 1.3 hereof or any other action
by the Employer which results in a diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated and inadvertent action not taken in bad faith and which is remedied by the Employer promptly after receipt
of notice thereof given by the Employee, and further excluding reasonable changes in particular duties and reporting responsibilities which may result from the Employer becoming part of a larger business organization at some future time provided
that such changes in the aggregate do not result in a material alteration in the Employee’s position, authority, duties or responsibilities; 
  
 (b) Any failure by the Employer to comply with any of the provisions of Section 3 hereof, other than an isolated and inadvertent failure
not occurring in bad faith and which is remedied by the Employer promptly after receipt of notice thereof given by the Employee; 
  
 (c) Any failure by the Employer to comply with and satisfy Section 7 of the Employment Agreement, provided that the Employer’s
successor has received at least ten days’ prior written notice from the Employer or the Employee of the requirements of Section 7 thereof; 
  

			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	-5-

 EXHIBIT A 
  

 (d) Any purported termination of the Employee’s employment that is not in
accordance with the definition of Cause under the Employment Agreement; or 
  
 (e) A relocation of the Employer’s principal executive offices to a location more than 50 miles from the Seattle metropolitan area, or the Employer’s requirement that the Employee be based anywhere other
than within 50 miles of the Seattle metropolitan area, except for required travel on the Employer’s business to an extent substantially consistent with the Employee’s position, duties and responsibilities. 
  

	6.	REPRESENTATIONS, WARRANTIES AND OTHER CONDITIONS 

  
 In order to induce the Employer to enter into this Agreement, the Employee represents and warrants to the Employer as follows: 
  

	 	6.1	No Violation of Other Agreements 

  
 The Employee represents that neither the execution nor the performance of this Agreement by the Employee will violate or conflict in any way with any
other agreement by which the Employee may be bound. 
  

	 	6.2	Reaffirmation of Obligations 

  
 The Employee hereby acknowledges and reaffirms the Employee Proprietary Information and Inventions Agreement previously executed by Employee on the date
hereof and Employee’s obligations under Section 4 of the Employment Agreement. 
  
 IN WITNESS WHEREOF, the parties have executed and entered into this Agreement on the date set forth above. 
  

			
	EMPLOYEE
	
	/s/ RICHARD P. STILLMAN
	

	Richard P. Stillman
	
	COINSTAR, INC.
		
	 By
	 	 /s/ KEITH D. GRINSTEIN

	 	 	

	 	 	 Its Chairman of the Board of Directors

  

			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	-6-

 APPENDIX A TO 
  
 CHANGE OF CONTROL AGREEMENT 
  

For purposes of this Agreement, a “Change of Control” shall mean: 
  
 (a) A “Board Change” which, for purposes of this Agreement, shall have occurred if individuals who, as of the date
of this Agreement, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election,
or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but
excluding for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person (as hereinafter defined) other than the Board; or 
  
 (b) The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of (i) 20% or more of either (A) the then outstanding shares of Common Stock of
the Employer (the “Outstanding Employer Common Stock”) or (B) the combined voting power of the then outstanding voting securities of the Employer entitled to vote generally in the election of directors (the “Outstanding Employer
Voting Securities”), in the case of either (A) or (B) of this clause (i), which acquisition is not approved in advance by a majority of the Incumbent Directors, or (ii) 33% or more of either (A) the Outstanding Employer Common Stock or (B) the
Outstanding Employer Voting Securities, in the case of either (A) or (B) of this clause (ii), which acquisition is approved in advance by a majority of the Incumbent Directors; provided, however, that the following acquisitions shall
not constitute a Change of Control: (w) any acquisition directly from the Employer or in connection with an offering of the Employer pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission,
(x) any acquisition by the Employer, (y) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Employer or any corporation controlled by the Employer or (z) any acquisition by any corporation pursuant to a
reorganization, merger or consolidation, if, following such reorganization, merger or consolidation, the conditions described in clauses (i), (ii) and (iii) of subsection (c) of this Appendix A are satisfied; or 
  
 (c) Consummation of a reorganization, merger or consolidation approved by the
stockholders of the Employer, in each case, unless, immediately following such reorganization, merger or consolidation, (i) more than 60% of, respectively, the then outstanding shares of common stock of the corporation resulting from such
reorganization, 

  

			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	 

 EXHIBIT A 
  

 
merger or consolidation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the
election of directors is then beneficially owned, directly or indirectly, by all or substantially all the individuals and entities who were the beneficial owners, respectively, of the Outstanding Employer Common Stock and the Outstanding Employer
Voting Securities immediately prior to such reorganization, merger or consolidation in substantially the same proportion as their ownership immediately prior to such reorganization, merger or consolidation of the Outstanding Employer Common Stock
and the Outstanding Employer Voting Securities, as the case may be, (ii) no Person (excluding the Employer, any employee benefit plan (or related trust) of the Employer or such corporation resulting from such reorganization, merger or consolidation
and any Person beneficially owning, immediately prior to such reorganization, merger or consolidation, directly or indirectly, 33% or more of the Outstanding Employer Common Stock or the Outstanding Voting Securities, as the case may be)
beneficially owns, directly or indirectly, 33% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such reorganization, merger or consolidation or the combined voting power of the then outstanding
voting securities of such corporation entitled to vote generally in the election of directors, and (iii) at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger or consolidation were
members of the Board at the time of the execution of the initial agreement providing for such reorganization, merger or consolidation; or 
  
 (d) Consummation of the following events approved by the stockholders of the Employer (i) a complete liquidation or dissolution of the Employer or (ii)
the sale or other disposition of all or substantially all the assets of the Employer, other than to a corporation with respect to which immediately following such sale or other disposition, (A) more than 60% of, respectively, the then outstanding
shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all
or substantially all the individuals and entities who were the beneficial owners, respectively, of the Outstanding Employer Common Stock and the Outstanding Employer Voting Securities immediately prior to such sale or other disposition in
substantially the same proportion as their ownership, immediately prior to such sale or other disposition, of the Outstanding Employer Common Stock and the Outstanding Employer Voting Securities, as the case may be, (B) no Person (excluding the
Employer, any employee benefit plan (or related trust) of the Employer or such corporation and any Person beneficially owning, immediately prior to such sale or other disposition, directly or indirectly, 33% or more of the Outstanding Employer
Common Stock or the Outstanding Employer Voting Securities, as the case may be) beneficially owns, directly or indirectly, 33% or more of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of
the then outstanding voting securities of such corporation entitled to vote generally in the election of directors and (C) at least a majority of the members of the board of directors of such corporation were approved by a majority of the members of
the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such sale or other disposition of assets of the Employer. 
  

			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	-2-

 EXHIBIT A 
  

 Notwithstanding the foregoing, there shall not be a Change of Control if, in advance of such event,
the Employee agrees in writing that such event shall not constitute a Change of Control. 
  

			
	RICHARD P. STILLMAN CHANGE OF CONTROL AGREEMENT	  	-3-Performance Incentive Plan

 1 
  

 Exhibit 10.2 
  
 KELLY SERVICES, INC. 
 PERFORMANCE INCENTIVE
PLAN 
  
 (As Amended and Restated by Action of the Board of
Directors) 
 (March 29, 1996) 
  
 As Amended: 
 July 29, 2003 
 April 14, 2000 
  
 Section 1 — Purposes 
  
 This KELLY SERVICES, INC. PERFORMANCE INCENTIVE PLAN (the “Plan”) provides for long-term incentive compensation to certain key officers and
employees of Kelly Services, Inc. (the “Company”) or any Affiliated Entity, based upon such officers’ and employees’ contributions to the long-term growth and profitability of the Company. Long-term incentives encourage
identification with stockholder concerns, as well as current and continuing interest in the development and financial success of the Company. The Plan is also intended to assist the Company and Affiliated Entities in attracting and retaining
officers and employees of superior ability and promise. 
  
 Section 2 — Certain Additional Definitions and Rules of Construction 
  
 (a) The terms set forth in quotation marks below have the following meanings under the Plan: 
  
 “Additional Shares” means immediately vested
shares of Company Stock awarded pursuant to Section 9(c) of the Plan. 
  
 “Affiliated Entity” means a corporation, partnership or other business enterprise in which the Company directly or indirectly has a significant equity interest under United States generally accepted
accounting principles. 
  
 “Award”
means a Restricted Award, Performance Award, award of Additional Shares, Option, SAR or Foreign Award granted under the Plan. 
  
 “Board” means the Board of Directors of the Company. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Committee” means the Compensation Committee of
the Board (or, if no Board committee so named is in existence at a relevant time, such other Board committee as the Board shall have specified), which Board committee shall have at least two members, none of the members of which shall be eligible to
receive any Award while serving on such committee (nor shall any member have received any Award at any time within one year prior to appointment to such committee), and all members of which shall otherwise be “disinterested persons” as
that term is used in Securities and Exchange Commission Rule 16b-3 (or any successor provision in effect at the time). 
  
 “Company Stock” means the Class A Common Stock, $1.00 par value, of the Company. 
  
 “Deferred Compensation Plan” means a plan of the
Company or an Affiliated Entity which permits an Employee granted an Award of Share Units voluntarily to defer receipt of stock that otherwise would be payable in settlement of the Award, the terms of which plan satisfy any and all conditions
necessary to be satisfied to facilitate exemption of all compensation payable in connection with Performance Share Unit Awards from the deduction limit imposed by Section 162(m). 
  
 “Disabled” means the total and permanent inability of an Employee by reason of sickness or injury
to perform the material duties of such Employee’s regular occupation with his or her Employer where such inability has existed for at least six continuous months. 
  
 “Disability” means the condition of being Disabled. 

 2 
  

 “Employee” means an employee of the Company or an Affiliated Entity.

  
 “Employer” means the Company or the
Affiliated Entity which employs an Employee at any given time. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Fair Market Value” means (1) as of any given date on which Company Stock is authorized for quotation in the National
Association of Securities Dealers, Inc. Automated Quotation System (“NASDAQ”) as a NASDAQ National Market System Security, the closing sale price for a share of Company Stock reported by NASDAQ for such date (or, if no sale is so reported
for such date, for the latest preceding date on which such a sale was so reported) and (2) as of any other given date, the fair market value of a share of Company Stock as determined in good faith by the Committee. 
  
 “Foreign Award” means an award granted pursuant to
Section 10 of the Plan. 
  
 “Incentive Stock
Option” or “ISO” means an Option that meets the requirements of Section 422 of the Code (or any successor provision in effect at a relevant time) and that is identified as intended to be an ISO in the written agreement evidencing the
Option. 
  
 “Nonqualified Stock Option”
or “NQSO” means an Option that is not an ISO. 
  
 “Option” means an Option to purchase Company Stock granted pursuant to Section 6 of the Plan. 
  
 “Over-10% Owner” means an owner of over 10% of the total combined outstanding voting power of all classes of capital stock of
the Company. 
  
 “Performance Award”
means an award of Performance Shares or Performance Share Units. 
  
 “Performance Shares” and “Performance Share Units” mean, respectively, shares of Company Stock and Share Units granted under Section 9 of the Plan which, until vested, are subject to forfeiture.

  
 “Restoration Option” has the
meaning set forth in Section 6(f) of the Plan. 
  
 “Restricted Award” means an award of Restricted Shares or Restricted Share Units. 
  
 “Restricted Shares” and “Restricted Share Units” mean, respectively, shares of Company Stock and Share Units granted
under Section 8 of the Plan which, until vested, are subject to forfeiture. 
  
 “Rule 16b-3” means Securities and Exchange Commission Rule 16b-3, as amended. 
  
 “Section 16 Reporting Person” means a person required by Section 16 of the Exchange Act and related rules to file reports
concerning such person’s ownership of and transactions in Company equity securities. 
  
 “Section 162(m)” means Section 162(m) of the Code (or such successor section as may be in effect at a given time), together with
the regulations of the U.S. Department of the Treasury promulgated thereunder. 
  
 “Senior Executive Officer” means an Employee who is an officer of the Company at or above the rank of Vice President.

  
 “Share Unit” means a unit available
for award under the Plan which: (1) upon vesting or payout, shall entitle the holder to receive from the Company for each Share Unit vested or paid, a share of Company Stock, and (2) until settled after vesting, or until forfeited, shall entitle the
holder to be paid by the Company in cash, as and when the same is paid to holders of Company Stock, the equivalent of any cash dividend on Company Stock to which the holder would have been entitled if, on the date of grant of such Share Unit, the
grantee of the Share Unit has instead been granted a Restricted Share or Performance Share. 

 3 
  

 “Stock Appreciation Right” or “SAR” means a right granted pursuant to
Section 7 of the Plan which, upon exercise, shall entitle the holder to receive from the Company the Fair Market Value of a share of Company Stock on the exercise date, minus the Fair Market Value of such a share on the date of grant of the Option
to which such right is related. 
  
 (b) All references herein to
the “issuance” of shares, to shares “issued” or “issuable,” and the like, are intended to include transfers of previously issued shares held in the treasury of the Company (“treasury shares”), as well as new
issuances of authorized but previously unissued shares as determined from time to time by the Board. 
  
 Section 3 — Administration 
  
 The Plan shall be administered by the Committee which, subject to such limitations as are expressly set forth in the Plan, shall, by majority vote, grant
Awards and determine the type, amount and other terms and conditions of each Award. The Committee shall have authority to prescribe the forms of written agreements to evidence Awards, to interpret the Plan and the provisions of such agreements, to
adopt administrative rules and procedures concerning administration of the Plan and to take such other action as it determines to be necessary, advisable, appropriate or convenient for the administration of the Plan in accordance with its purposes.
The Committee may delegate to the chief executive officer of the Company, if also a director, some or all of its authority to grant Awards under the Plan to Employees who are not Section 16 Reporting Persons, in which case actions taken by the chief
executive officer pursuant to such delegated authority shall have the same effect as if taken by the Committee. The Committee may delegate performance of record-keeping and other ministerial functions concerning the Plan and its day-to-day
operations to such persons as it may specify from time to time. 
  
 Section 4 — Eligibility for Awards; No Requirement of Uniformity 
  
 Any type of Award may be granted to any Employee at any time, except that Foreign Awards may only be granted to such Employees as are permissible grantees
under Section 10 of the Plan. The type, amount and other terms and conditions of an Award made to a grantee at any given time need not be the same as for any other Award granted then or at any other time to the same or any other grantee. 

 
 Section 5 — Maximum Number of Shares 
  
 At any given time, the maximum number of shares of Company Stock which may
be issued as Restricted Shares or Units, Performance Shares or Units, Additional Shares or similar Foreign Awards and made subject to future issuance in settlement of Options (whether or not with related SARs), Share Units or Foreign Awards shall be
10% of the number of shares of Company Stock that were outstanding (exclusive of treasury shares) as of the end of the immediately preceding Company fiscal year (rounded downward, if necessary to eliminate fractional shares), 
  
 (a) minus the sum of: 
  
 (1) the number of shares awarded as Restricted Shares,
Performance Shares or Additional Shares during the period consisting of the immediately preceding four complete fiscal years of the Company and its then-current fiscal year to date (the “Adjustment Period”); 
  
 (2) the number of Share Units awarded during the Adjustment
Period; 
  
 (3) the number of shares made subject
to Options granted (including Restoration Options arising) during the Adjustment Period; and 
  
 (4) the total number of shares issued as Foreign Awards, and the maximum number of shares which in the future may be issued in settlement
of Foreign Awards, granted during the Adjustment Period, 
  
 (b)
plus the sum of: 
  
 (1) the number of shares as
to which Options have expired or terminated during the Adjustment Period for any reason other than exercise of such Options or of related SARs: 
  
 (2) the number of shares as to which Restricted Awards and Performance Awards granted during the Adjustment Period have since been
forfeited and not vested; and 

 4 
  

 (3) the number of shares transferred to the Company (actually or constructively) to
satisfy the exercise price of an outstanding Option during the Adjustment Period. 
  
 In addition to the foregoing, in no event may the total number of shares covered by outstanding ISOs plus the number of shares issued in settlement of exercised ISOs, whenever granted, exceed 4,000,000 shares.

  
 Any stock options, SARs or other equity-based awards assumed
by the Company in a merger or acquisition of another company shall not count against the shares available for Award under the Plan. 
  
 Section 6 — Options 
  
 (a) Incentive Stock Options and Nonqualified Stock Options. At the time of grant of an Option, it shall be specified whether it is intended to be
an Incentive Stock Option or a Nonqualified Stock Option, and the agreement evidencing such Option shall designate the Option accordingly. In connection with the grant of any Option intended to be an ISO, the Committee may prescribe such terms and
conditions, other than those specified in the Plan, as it deems desirable to qualify the Option as an incentive stock option under the Code. If for any reason an Option (or any portion thereof) intended by the Committee to be an ISO nevertheless
does not so qualify, either at the time of grant or subsequently, such failure to qualify shall not invalidate the Option (or such portion), and instead the nonqualified portion (or, if necessary, the entire Option) shall be deemed to have been
granted as a Nonqualified Stock Option irrespective of the manner in which it is designated in the Option agreement. 
  
 (b) Number of Shares and Exercisability. The number of shares subject to an Option, the time at which the Option or any portion thereof first
becomes exercisable (which time may, but need not, be coincident with the date of grant) and the latest date on which the Option may be exercised (the “expiration date”) shall be as specified at the time of grant; provided, however,
that the expiration date for any ISO granted to an Over-10% Owner may be no later than five years, and the expiration date for any other Option may be no later than ten years, after the date of grant of the Option and provided further that the
maximum number of shares which may be granted as Options (whether or not in tandem with SARs) during any consecutive five calendar years to any single Employee shall be 750,000, subject to adjustment under Section 12 of the Plan. The Committee may,
in its discretion, accelerate the exercisability of any Option (or Option portion) at any time or provide for automatic acceleration of exercisability of any Option (or portion) upon the occurrence of such events as it may specify, except that no
acceleration of exercisability of an ISO or any portion thereof shall be effective without the consent of the Option holder if such acceleration would cause the ISO or any other ISO of such holder (or any portion thereof) to become a Nonqualified
Stock Option. During the lifetime of the grantee of an Option, the Option may be exercised only by the grantee or the grantee’s legal representative. 
  
 (c) Exercise Price. Unless a higher price is specified at the time of grant, the per share exercise price of each Option shall be the Fair Market
Value of a share of Company Stock on the date of grant, except that the per share exercise price of any ISO granted to an Over-10% Owner shall be at least equal to 110% of such Fair Market Value on the grant date. 
  
 (d) Exercise Procedures and Payment. The holder of an exercisable
Option (or Option portion) may exercise it in whole or in part by complying with such procedures for exercise as are then in effect and tendering payment in full of the aggregate exercise price for the number of shares in respect of which the Option
is then being exercised. Except to the extent further restricted or limited at the time of grant, payment may be made (1) entirely in cash or (2) by delivery of whole shares of Company Stock owned by the Option holder and the balance in cash. Shares
delivered in payment shall be valued at their Fair Market Value on the date of delivery. 
  
 (e) Effect of Termination of Employment upon Options Granted to Employees. At the time Options are granted, the Committee shall establish provisions for the exercisability of Options following termination of
employment. Such provisions shall include the period of time, if any, after termination of employment during which Options shall be exercisable and whether or not Options which have not yet vested shall be exercisable. No Option shall be exercisable
after its expiration date or, if earlier, the tenth anniversary of its date of grant and any exercise following termination of employment shall be subject to the provision of Section 11(c). 

 5 
  

 (f) Restoration Options. At the time of grant of an Option (for purposes of this paragraph an
“original Option”) that is not itself a Restoration Option (as hereinafter defined), or at the time a Restoration Option arises, or at any other time while the grantee continues to be eligible for Awards and the original or Restoration
Option (the “prior Option”) is outstanding, the Committee may provide that the prior Option also shall carry with it a right to receive another Option (a “Restoration Option”) if, earlier than six months before the expiration
date of the prior Option, the grantee exercises the prior Option (or a portion thereof) while still an Employee and pays all or some of the relevant exercise price in shares of Company Stock that have been owned by the grantee for at least six
months prior to exercise. In addition to any other terms and conditions (including additional limitations on exercisability) that the Committee deems appropriate, each Restoration Option shall be subject to the following: 
  
 (1) the number of shares subject to the Restoration Option
shall be the lesser of (i) the number of whole shares delivered in exercise of the prior Option or (ii) the number of shares of Company Stock which may be made subject to future issuance in settlement of Options pursuant to Section 5 of the Plan and
the per person grant limits set forth in Section 6(b) at the time the Restoration Option arises; 
  
 (2) the Restoration Option automatically shall arise and be granted (if ever) at the time of payment of the relevant exercise price in
respect of the prior Option; 
  
 (3) the per
share exercise price of the Restoration Option shall be the Fair Market Value of a share of Company Stock on the date the Restoration Option arises; 
  
 (4) the expiration date of the Restoration Option shall be the same as that of the prior Option; 
  
 (5) the Restoration Option shall first become exercisable
six months after it arises; and 
  
 (6) the
Restoration Option shall be a Nonqualified Stock Option. 
  
 Section 7 — Stock Appreciation Rights 
  
 (a) Grant, Exercisability and Termination. At the time of grant of an Option, or at any time while the Option is outstanding and the Option holder continues to be eligible to receive Awards, Stock Appreciation
Rights may be granted to the holder with respect to some or all of the shares covered by the Option. The only persons entitled to exercise such SARs shall be the holder of the related Option or such holder’s legal representative, and the
expiration date of such SARs shall be the same as that of the related Option. SARs shall be exercisable if (and only if) and to the extent that the related Option is then exercisable, except that SARs shall not be exercisable by a Section 16
Reporting Person at any time within six months after the date on which the SARs were granted even if the related Option is then exercisable. Exercise of SARs shall automatically terminate the related Option with respect to that number of shares
which equals the number of SARs being exercised, and exercise, cancellation or termination of an Option shall automatically terminate that number of related SARs which equals the number of shares with respect to which the Option is being exercised,
canceled or terminated. 
  
 (b) Exercise Procedures and
Settlement Elections. Exercisable SARs may be exercised at any time in accordance with such exercise procedures as are then in effect. Except to the extent further restricted at the time of grant, at or prior to exercise of SARs, the holder may
elect to have the exercised SARs settled (1) entirely in cash, (2) to the extent possible, in whole shares of Company Stock and the balance in cash, or (3) partially in cash in an amount specified by the holder and the balance in whole shares of
Company Stock plus cash in lieu of any fractional share. If no election is made, the SARs shall be settled in any of the foregoing manners as the Committee shall determine. For purposes of settlement, shares of Company Stock shall be valued as of
the settlement date. 
  
 Section 8 —
Restricted Awards 
  
 (a) Restriction Period. At the time
of grant of a Restricted Award, the Committee shall establish a period of no less than twelve months with respect to such Restricted Award, which period (the “restriction period”) shall commence as of the date of grant. 

 6 
  

 (b) Vesting and Forfeiture. If the grantee of a Restricted Award remains an Employee throughout
the applicable restriction period, the entire Restricted Award shall be fully vested and no longer subject to forfeiture as of the end of the restriction period. If the grantee ceases to be an Employee at any time during the restriction period due
to death or Disability (or, due to retirement with the Employer’s consent), that percentage of the total number of Restricted Shares and/or Restricted Share Units comprising such Award which equals the percentage of the entire restriction
period by then elapsed shall be vested, and the remainder of such Award shall be forfeited, unless the Committee determines to waive such forfeiture, in which event the entire Restricted Award shall be vested. If the grantee otherwise ceases to be
an Employee during the restriction period, the entire Restricted Award shall be forfeited, except that, if the Committee determines that such waiver is in the Company’s best interests, the Committee may waive forfeiture and thereby vest a
portion of the Award (but in no event more than automatically would have vested if the grantee had died). 
  
 (c) Other Matters. Restricted Shares comprising a Restricted Award shall be issued to the grantee as promptly as practicable after grant of the
Restricted Award, but the certificates representing such Restricted Shares shall bear an appropriate legend and shall be held by the Company, and any and all non-cash dividends or other distributions upon such Restricted Shares shall be retained and
held by the Company, pending vesting or forfeiture of such Restricted Shares. Such retained non-cash dividends and other distributions upon a Restricted Share thereafter shall be vested or forfeited, as the case may be, upon the vesting or
forfeiture of such Restricted Share and, in the case of non-cash dividends and other distributions which vest, shall be distributed to the holder of the Restricted Shares as promptly as practicable after the vesting date. Subject to the Plan’s
limitations on available shares, and except to the extent further limited by the Committee in connection with a given Award of Restricted Share Units (which limitations may be imposed by the Committee at the time of grant of the Award or at any
other time while the Award is unvested and the grantee is still an Employee), an Award of Restricted Share Units which vests shall be settled in cash, whole shares of Company Stock (valued at their Fair Market as of the settlement date), or a
combination thereof, as the Committee shall determine. The holder of any Award of Restricted Share Units who is eligible to participate in a Deferred Compensation Plan may make an advance election, in accordance with the terms of such Deferred
Compensation Plan, to defer settlement of any portion of his or her Restricted Share Unit Award that thereafter becomes payable in stock; otherwise, Restricted Share Units which vest shall be settled in full as soon as practicable after the vesting
date. 
  
 Section 9A — Performance Awards
and Additional Shares in General 
  
 (a) Performance Period
and Goals. At the time of grant of a Performance Award, the Committee shall establish a period of not less than one year nor more than five years with respect to such Performance Award, which period (the “performance period”) shall
commence as of the first day of the Company fiscal year in which such Award is granted, if it is granted during the first fiscal quarter of such fiscal year, and otherwise shall commence as of the date of grant. At the time of grant of the
Performance Award, the Committee also shall establish one or more business performance goals for the applicable performance period and, if more than one has been established, the weight to be given each such goal (collectively, “performance
goals”). The performance goals initially established with respect to a Performance Award may be modified and adjusted during the performance period in light of previously unforeseen transactions, events or circumstances occurring after the
initial performance goals are established. 
  
 (b) Vesting and
Forfeiture. As soon as practicable following the end of the performance period for a Performance Award, the Committee shall determine the extent to which the performance goals for that Award were attained. If the Committee determines that the
performance goals have been fully attained, and if the grantee of the Performance Award has remained an Employee throughout the performance period and up to the first anniversary of the grant date occurring after the end of the performance period
(the “Grant Anniversary”), the entire Performance Award shall, upon such determination, be fully vested and no longer subject to forfeiture. If the grantee has remained an Employee throughout the performance period and to the Grant
Anniversary but the Committee determines that the performance goals were only partially met, or were not met, the Committee nevertheless may determine to permit vesting of all or a portion of the Performance Award, whereupon such Award or portion
shall be vested, but any portion of the Award not so vested shall be forfeited. If the grantee ceases to be an Employee at any time during the performance period or through the Grant Anniversary, the consequences thereof shall be the same as if the
Performance Award had been a Restricted Award and the performance period a restriction period. 
  
 (c) Additional Shares. Following the end of the performance period, the Committee may recommend a grant of Additional Shares to the grantee of a Performance Award if the grantee is then an Employee and the
Committee determines that satisfaction of the performance goals for such Performance Award so warrants. Additional Shares awarded to a grantee shall be immediately vested and shall be issued to the grantee as soon as practicable after the grant.

 7 
  

 (d) Other Matters. The provisions of Section 8(c) of the Plan concerning issuance of Restricted
Shares, concerning retention of non-cash dividends and other distributions thereon, and concerning subsequent vesting and distribution, or forfeiture, of such non-cash dividends and other distributions also shall apply to Performance Shares, and the
provisions thereof concerning settlement of Restricted Share Units also shall apply to Performance Share Units. 
  
 Section 9B — Performance Awards to Senior Executive Officers 
  
 (a) Special Provisions Applicable. In order to facilitate exemption of compensation paid in connection with
Performance Awards to Senior Executive Officers from the tax deduction limit imposed by Section 162(m), the special provisions set forth in this Section 9B shall apply to all such Awards, notwithstanding any other provision of the Plan to the
contrary. Except as superseded by this Section 9B, all provisions of the Plan applicable to Performance Awards also shall apply to such Awards granted to Senior Executive Officers. 
  
 (b) Timing of Grants. Performance Awards may be granted to Senior Executive Officers only during the first quarter of
a Company fiscal year. 
  
 (c) Limits on Award Amounts.
Subject to the general limits on Award amounts set forth in Section 5 and the adjustment provisions of Section 12, the maximum number of Performance Shares and/or Performance Share Units that may be granted to any given Senior Executive Officer
with respect to a single performance period is 25,000. 
  
 (d)
Performance Objectives and Payout Schedules. At or prior to the grant of any Performance Award to a Senior Executive Officer, the Committee shall establish one or more objectively determinable performance goals for the Award relating to one
or more of the following areas of Company performance over the relevant performance period: earnings per share of Company Stock; revenue growth; operating income; net income, before or after taxes; operating cash flow; return on revenues, assets or
equity; customer or employee retention; or an index of customer satisfaction. At the same time, the Committee shall establish a “payout” schedule for the Performance Award, which shall range from 100 percent of the Performance Shares
and/or Performance Share Units constituting the Award (if actual Company results for the performance period at least equal the performance goal(s) established) to zero percent of such Award (if actual Company results for the period do not at least
equal a minimum amount or level specified by the Committee) and shall be structured so as to permit objective determination of payouts over the full range of actual Company results. In connection with establishment of the performance goal(s) for a
Performance Award to a Senior Executive Officer, the Committee shall specify which (if any) types or categories of extraordinary, unusual, non-recurring, or other items or events shall be excluded or otherwise not taken into account when actual
Company results relating to such goal(s) are calculated, and the only adjustments in actual Company results which thereafter shall be permissible for purposes of applying the established payout schedule for the Performance Award shall be objectively
determinable adjustments for the items or events so specified. 
  
 (e) No Discretion to Increase Awards or Waive Forfeitures. In connection with the grant of a Performance Award to a Senior Executive Officer, the Committee may establish other preconditions to payout of the Award, including
preconditions the satisfaction of which may call for subjective determinations by the Committee. In addition, the payout on any Performance Award granted to a Senior Executive Officer as calculated pursuant to the payout schedule established for the
Award may be reduced by the Committee to the extent it deems appropriate if, in the Committee’s judgment, the individual performance of the Senior Executive Officer during the performance period has not warranted the payout so calculated.
However, for so long as Section 162(m) may require, in no event shall the payout on any Performance Award granted to a Senior Executive Officer exceed the payout permissible under the Award’s payout schedule, and in no event shall any
Additional Shares be granted to any Senior Executive Officer. 
  
 (f) Effect of Employment Termination. If a Performance Award is granted to a Senior Executive Officer and prior to the third anniversary of the award date the grantee ceases to be an Employee due to the grantee’s death,
Disability, or retirement with the Employer’s consent, that percentage of the total number of Performance Shares and/or Performance Share Units comprising such Award which equals the percentage of the entire performance period by then elapsed
shall be unaffected by the employment termination and the unaffected portion of the Award subsequently shall vest or be forfeited or canceled in accordance with the payout schedule, any preconditions, and the provisions of the Plan applicable to the
original Award. Except as provided in the preceding sentence, if the grantee of a Performance Award, granted while a Senior Executive Officer, ceases to be an Employee before the Grant Anniversary, the entire Award shall be forfeited. 

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 (g) Stockholder Approval Requirements. Those aspects of the Plan concerning Performance Awards to
Senior Executive Officers for which stockholder approval is required under Section 162(m) shall be disclosed to and submitted for approval by the Company’s stockholders at its 1996 annual meeting, and any grants of Performance Awards to Senior
Executive Officers occurring prior to such meeting shall be subject to such approval and shall be canceled and of no effect if such approval is not obtained. If such approval is obtained, those aspects of the Plan concerning subsequent grants of
Performance Awards to Senior Executive Officers for which additional stockholder approval may become required under Section 162(m) also shall be disclosed to and submitted for approval by the Company’s stockholders as and to the extent so
required. In no event may any Performance Award be granted to a Senior Executive Officer unless, either any and all of such stockholder approval requirements as Section 162(m) then would impose concerning the Award already have been satisfied, or
the Award is granted subject to such approval. The term of the performance-based Performance Share Award criteria under the Plan as herein amended and restated, assuming approval by the stockholders, will be for five years of awards, 1996 through
2000, unless soon terminated or amended by the Board. Any amendment that would materially change the “class of employees” covered, the “performance measure” or individual award maximum would be subject to further stockholder
approval. 
  
 Section 10 — Foreign Awards

  
 The Committee may modify the terms of any type of Award
described in Section 6, 7, 8 or 9A of the Plan for grant to an Employee who is subject to tax or similar laws of a country other than the United States and may grant such modified Award, and structure and grant other types of awards related to
appreciation in value of Company Stock, to such an Employee, to the extent that the Committee determines that doing so is necessary or advisable in order to provide such grantee with benefits and incentives comparable (to the extent practically
possible) to those which would be provided the grantee by an Award under Section 6, 7, 8 or 9A if the grantee were not subject to such foreign laws. 
  
 Section 11 — Certain Provisions Generally Applicable to Awards 
  
 (a) Award Agreements. Each Award granted under the Plan (other than any award of Additional Shares and any similar
Foreign Award unless the Committee otherwise determines) shall be evidenced by a written agreement setting forth (including, to the extent appropriate, by incorporating applicable provisions of the Plan) the type, amount and other terms and
conditions of such Award, including, in addition to such terms and conditions as are expressly required to be determined by the Committee, all such other terms and conditions not inconsistent with the Plan as the Committee shall have specified with
respect to such Award. 
  
 (b) Transfer Restrictions; Potential
Forfeiture. No Option or SAR, no unvested Performance Award or Restricted Award, no Foreign Award similar to any of the foregoing, and none of the rights or privileges conferred by any such Award may be sold, assigned, pledged, hypothecated or
otherwise transferred in any manner whatsoever, except that, if the Committee determines that such transfer will not violate any requirements of the Securities and Exchange Commission or the Internal Revenue Service, the Committee may permit an
intervivos transfer by gift to or for the benefit of a family member of the grantee. Any attempt to sell, assign, pledge, hypothecate or otherwise transfer any such Award or any of the rights and privileges conferred thereby contrary to the
provisions of the Plan shall be void and unenforceable against the Company. 
  
 (c) Overriding Precondition; Potential Forfeiture. It shall be an overriding precondition to the vesting of each Performance Award, Restricted Award and similar Foreign Award and the exercisability of each
Option, SAR and similar Foreign Award: (1) that the grantee of such Award not engage in any activity that, in the opinion of the Committee, is in competition with any activity of the Company or any Affiliated Entity or otherwise inimical to the best
interests of the Company (except that employment with any entity at the request of the Company and employment that has been specifically approved by the Committee shall not be considered an activity in competition with or, in itself, otherwise
inimical to the Company or any Affiliated Entity) and (2) that the grantee furnish the Committee with all such information concerning satisfaction of the foregoing condition as the Committee shall reasonably request. If the Committee makes a
determination that a grantee, whether while still an Employee or afterward, has engaged in any such competitive or otherwise inimical activity, such determination shall operate to immediately cancel all then outstanding Options, SARs and similar
Foreign Awards, and as an immediate forfeiture of all then unvested Restricted Awards, Performance Awards and similar Foreign Awards, theretofore granted to the grantee. 

 9 
  

 (d) Tax Withholding. The Committee may make provision for withholding of shares otherwise issuable
upon the grant, exercise, vesting or settlement of Awards, including by permitting grantees or other holders to request or to elect such withholding and/or by permitting grantees or other holders to tender other shares of Company Stock owned by such
grantee or holder (including Additional Shares, vested Performance Shares and vested Restricted Shares), as a means of satisfying tax withholding obligations arising in connection with the grant, exercise, vesting or settlement of Awards. If the
Committee determines to grant the right to make any such election to a grantee or holder, the Committee may condition, limit or qualify such election right in any manner it deems appropriate. 
  
 (e) Stockholder Status. Neither the grantee of an Award, nor any other
person to whom the Award or the grantee’s rights thereunder may pass, shall be, or have any rights or privileges of, a holder of shares of Company Stock, in respect of any shares issuable pursuant to or in settlement of such Award, unless and
until certificates representing such shares have been issued in the name of such grantee or other person. 
  
 (f) No Change in Employment Status. Neither the establishment of the Plan, the eligibility of any Employee to be granted Awards, the grant of any
Award to an Employee, nor any provisions of the Plan or such Award is intended or shall be construed as altering the at-will nature of any Employee’s employment by the Company or any Affiliated Entity. 
  
 Section 12 — Adjustments upon Changes in Capitalization

  
 In the event of a reorganization or recapitalization, merger,
consolidation or similar transaction involving the Company, a stock-on-stock dividend or split, spin-off, reverse split or combination of Company Stock, a rights offering, or any other change in the corporate or capital structure of the Company, the
Board shall make such adjustments as it may deem appropriate in the number and kind of shares available for issuance in the aggregate and to any individual under and pursuant to the Plan (including in settlement of ISOs), the number and kind of
shares covered by outstanding Options and the per share exercise price of such Options, the numbers of outstanding SARs and Share Units and the terms of Foreign Awards. Any adjustment with respect to an ISO in connection with a transaction to which
Section 424(a) of the Code (or any successor provisions then in effect) applies shall be made in accordance therewith unless the Board specifically determines otherwise. 
  
 Section 13 — Effectiveness, Duration, Amendment, Suspension and Termination 
  
 The Plan shall become effective upon approval by the stockholders of the
Company entitled to vote thereon, as provided in the Board resolutions adopting the Plan, and shall continue thereafter until terminated by the Board as hereinafter provided. The Board may amend, suspend or terminate the Plan or any portion thereof
at any time, but no such Board action shall adversely affect the rights of any grantee or other holder of any Award then outstanding or unvested without the consent of such grantee or holder. 
  
 Adopted by the Board of Directors of the Company: March 29, 1996.

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