Redbox 2006 Annual Report Download - page 72

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COINSTAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
YEARS ENDED DECEMBER 31, 2006, 2005, AND 2004
cause a delay in manufacturing and a possible slow-down of growth, which could have a materially adverse
affect on future operating results.
NOTE 16: RELATED PARTY TRANSACTIONS
Randall J. Fagundo, President of our entertainment services subsidiary, is a member of a limited liability
company which has agreed to lease to Coinstar a 31,000 square foot building located in Louisville, Colorado.
The terms of the agreement provide for a ten year lease term, commencing March 1, 2003, at monthly rental
payments ranging from $25,353 for the first year to $33,076 for the tenth year, together with additional payments
in respect of the tenant’s proportionate share of the maintenance and insurance costs and property tax
assessments for the leased premises. We believe that the terms of this lease are comparable to those that would be
entered into between unrelated parties on an arms’ length basis.
Levine Investments Limited Partnership (“Levine Investments”), a shareholder of Coinstar, agreed to lease
to Coinstar three buildings located in Arlington Heights, Illinois, Van Nuys, California and Chandler, Arizona.
The terms of these agreements, commencing November 1, 2005, provide for monthly rental payments ranging
from $16,250 to $22,000, together with additional payments in respect of the tenant’s proportionate share of the
maintenance and insurance costs and property tax assessments for the leased premises. As of December 31, 2006,
two of the three leases, Chandler and Arlington Heights, were terminated. We believe that the terms of these
leases are comparable to those that would be entered into between unrelated parties on an arms’ length basis.
Approximately $448,000 and $1.8 million of our accounts receivable balance is due from a related party of
our e-payment subsidiary, as of December 31, 2006 and 2005, respectively. This receivable arose in the ordinary
course of business and relates to the purchase of prepaid air time.
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