Document:

exv10w25

Exhibit 10.25

2009 INCENTIVE COMPENSATION PLAN

FOR SECTION 16 OFFICERS

The 2009 Incentive Compensation Plan for Section 16 Officers (the “Plan”) is a cash bonus plan in
which executives of Coinstar, Inc. (the “Company”) who are subject to Section 16 of the Securities
Exchange Act of 1934 are eligible to participate. The Plan provides discretionary cash bonuses
based on the achievement of goals relating to the performance of the Company, the management team’s
performance and individual performance. The performance period for the Plan is January 1, 2009 to
December 31, 2009 (the “Performance Period”).

The Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”)
administers the Plan. The Compensation Committee, in its sole discretion, selects the individuals
who will participate in the Plan and the actual bonus (if any) payable to each participant. The
target bonus for each participant is determined as a percentage of such participant’s base salary,
ranging from 30% to 60%, as determined by the Compensation Committee in its sole discretion (the
"Target Bonus”).

Payout under the Plan will be determined as follows:

1. Eighty percent (80%) will be based on the Compensation Committee’s discretion after evaluating
the Company’s achievement of the following performance measures:

	 	 	 	 	 	 	 
	Performance Measure	 	Minimum Goal Range	 	Weighting
	Earnings Before Interest, Tax,
Depreciation and Amortization (EBITDA)

	 	$185M-$195M
	 	 	50.0	%
	Revenue

	 	$1.2B-$1.3B
	 	 	50.0	%

In the sole discretion of the Compensation Committee, once the minimum of the range is achieved for
a particular performance measure, participants under the Plan may receive between 0% and 200% of
the portion of the Target Bonus applicable to that performance measure, based on the applicable
weighting for that performance measure.

The minimum goal ranges above exclude the effects of any acquisitions completed during the
Performance Period and will be adjusted for any divestitures for the Performance Period.

2. Twenty percent (20%) will be based on the Compensation Committee’s discretion after evaluating
the management team’s and/or individual performance for the entire year, based on any criteria that
the Compensation Committee determines to be appropriate in its sole discretion. The Company’s
Chief Executive Officer will make recommendations to the Compensation Committee regarding
individual bonuses under this component (with the exception of the Chief Executive Officer bonus).
The Compensation Committee will then review and approve all individual bonuses. Participants under
the Plan may receive between 0% and 200% of the portion of the Target Bonus applicable to this
component.

 

 

The Compensation Committee may, in its sole discretion, make adjustments to the payouts under the
Plan as a result of extraordinary events and/or conditions that either positively or negatively
impact the Company’s performance.

Unless specifically provided otherwise in a written agreement between the Company and a
participant, a participant must be continuously employed by the Company from January 1, 2009
through December 31, 2009 to be eligible for payment under this Plan. A participant hired after
January 1, 2009 and employed through December 31, 2009 may receive a pro-rated bonus payment. A
participant who meets these eligibility requirements will be eligible to receive a bonus, even if
the participant is not employed by the Company on the date the bonus payment is made. Payment of
each bonus will be made as soon as practicable after the end of the Performance Period. Bonuses
will be paid in cash in a single lump sum, subject to payroll taxes and tax withholding.

Each bonus that may become payable under the Plan will be paid solely from the general assets of
the Company. Nothing in the Plan should be construed to create a trust or to establish or evidence
any participant’s claim of any right to payment of a bonus other than as an unsecured general
creditor with respect to any payment to which a participant may be entitled.

No participant will have any claim to a bonus under the Plan, and the Compensation Committee will
have no obligation for uniformity of treatment of participants under the Plan. Furthermore,
nothing in the Plan will be deemed to limit in any way the Compensation Committee’s full discretion
to determine whether to grant any bonuses hereunder.

The Compensation Committee reserves the right to unilaterally amend, modify or terminate the Plan
at any time, including amending the Plan as it deems necessary or desirable to avoid adverse tax
consequences under Section 409A of the Internal Revenue Code of 1986, as amended.

The Plan is subject to the Company’s Policy on Reimbursement of Incentive Payments.exv10w26

Exhibit 10.26

FORM OF FIRST AMENDMENT TO

CHANGE OF CONTROL AGREEMENT

     This First Amendment (this “Amendment”) to the Change of Control Agreement (the “Change of Control
Agreement”), dated as of                     , between Coinstar, Inc., a Delaware corporation (“Employer”), and
                     (“Employee”) is entered into on                     , 2008.

     WHEREAS, Employer and Employee wish to document an amendment to the Change of Control Agreement;

     NOW, THEREFORE, for good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, Employer and Employee hereby agree that, effective January 1, 2009, the Change
of Control Agreement shall be amended as follows:

     1. Section 1.3 is amended to read as follows:

     1.3 Duties, Authority and Responsibility

     During the Employment Period, the Employee’s 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.

     2. Section 4.4 is amended to read as follows:

     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, the end of the calendar month in which the Employee’s
death occurs, and (b) in all other cases, the later of (i) five days after the date of
personal delivery of or mailing of, as applicable, the Notice of Termination, and (ii) the
date on which the Employee separates from service, within the meaning of Section
409A(a)(2)(A)(i) of the Internal Revenue Code of 1986, as a mended (the “Code”). 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.

     3. Section 5.1(c) is amended to read as follows:

(c) If, as a result of the termination of the Employee’s employment, the Employee and the
Employee’s spouse and dependent children are eligible for and timely (and properly) elect
to continue coverage under the Employer’s group health plan(s) in

 

 

accordance with Code
Section 4980B(f) (“COBRA”), the Employer shall pay the premium for such coverage for a
period of twelve (12) months following the Date of Termination or until the Employee is no
longer entitled to COBRA continuation coverage under the Employer’s group health plan(s),
whichever period is the shorter.

     4. Section 5.4 is amended to read as follows:

     5.4 Payment Schedule

     Payments under Section 5.1(a), 5.2 and 5.3 (other than payments of deferred compensation,
which shall be paid in accordance with the provisions of the plan
under which such compensation was deferred) 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 the Employee in twelve (12) equal monthly installments, beginning with the month
following the month containing the Date of Termination and continuing for eleven (11)
consecutive months thereafter. For purposes of Code Section 409A, each installment payable
pursuant to Section 5.1(b) and this Section 5.4 shall be treated as a separate payment.

     5. Section 5.5 is amended to read as follows:

     5.5 Good Reason

     (a) For purposes of this Agreement, subject to Section 5.5(b), “Good Reason” means the
occurrence of any of the following events or conditions without the Employee’s express
written consent:

     (i) A diminution in the Employee’s Annual Base Salary;

     (ii) A diminution in the Employee’s authority, duties or responsibilities as contemplated
by Section 1.3 hereof, excluding for this purpose 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 authority, duties or
responsibilities;

     (iii) A relocation of the Employee’s principal place of employment to a location more than
50 miles from the Seattle metropolitan area, , except for required travel on the Employer’s
business to an extent substantially consistent with the Employee’s duties and
responsibilities; or

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     (iv) Any other action or inaction by the Employer that constitutes a material breach by the
Employer of this Agreement.

     (b) Notwithstanding any provision in this Agreement to the contrary, termination of
employment by the Employee will not be for Good Reason unless (i) the Employee notifies the
Employer in writing of the occurrence or existence of the event or condition which the
Employee believes constitutes good Reason within 90 days of the occurrence or initial
existence of such event or condition (which notice specifically identifies such event or
condition), (ii) the Employer fails to remedy such event or condition within 30 days after
the date on which it receives such notice (the “Remedial Period”), and (iii) the Employee
actually terminates employment within 90 days after the expiration of the Remedial Period
and before the Employer remedies such event or condition. If the Employee terminates
employment before the expiration of the Remedial Period or after the Employer remedies the
event or condition (even if after the end of the Remedial Period), then the Employee’s
termination will not be considered to be for Good Reason.

     6. Section 7 is amended to read as follows:

     7. SECTION 409A COMPLIANCE

     The Employer makes no representations or warranties to the Employee with respect to any
tax, economic or legal consequences of this Agreement or any payments or other benefits
provided hereunder, including without limitation under Code Section 409A, and no provision
of this Agreement shall be interpreted or construed to transfer any liability for failure
to comply with Code Section 409A or any other legal requirement from the Employee or any
other person to the Employer, any of its affiliates or any other person. The Employee, by
executing this Agreement, shall be deemed to have waived any claim against the Employer,
its affiliates and any other person with respect to any such tax, economic or legal
consequences. However, the parties intend that this Agreement and the payments and other
benefits provided hereunder shall be exempt from the requirements of Code Section 409A to
the maximum extent possible, whether pursuant to the short-term deferral exception
described in Treasury Regulation Section 1.409A-1(b)(4), the involuntary separation pay
plan exception described in Treasury Regulation Section 1.409A-1(b)(9)(iii), or otherwise.
To the extent Code Section 409A is applicable to this Agreement (and such payments and
benefits), the parties intend that this Agreement (and such payments and benefits) shall
comply with the deferral, payout and other limitations and restrictions imposed under Code
Section 409A. Notwithstanding any other provision of this Agreement to the contrary, this
Agreement shall be interpreted, operated and administered in a manner consistent with such
intentions. Without

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limiting the generality of the foregoing, and notwithstanding any
other provision of this Agreement to the contrary, with respect to any payments and
benefits under this Agreement to which Code Section 409A applies, all references in this
Agreement to termination of the Employee’s employment are intended to mean the Employee’s
“separation from service,” within the meaning of Code Section 409A(a)(2)(A)(i). In
addition, if the Employee is a “specified employee,” within the meaning of Code Section
409A(a)(2)(B)(i), when the Employee separates from service, within the meaning of Code
Section 409A(a)(2)(A)(i), then to the extent necessary to avoid subjecting the Employee to
the imposition of any additional tax under Code Section 409A, amounts that would otherwise
be payable under this Agreement during the six-month period immediately following the
Employee’s separation from service shall not be paid to the Employee during such period,
but shall instead be accumulated and paid to the Employee (or, in the event of the
Employee’s death, the Employee’s estate) in a lump sum on the first business day following
the earlier of (a) the date that is six months after the Employee’s separation from service
or (b) the Employee’s death.

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

	 	 	 	 	 	 	 
	 	 	COINSTAR, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	[Employee]

	 	Its	 	 	 	 
	 

	 	 	 	 	 	 

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