Exhibit 10.25
October 4, 2005
Kevin Yeaman
Dear Kevin,
It is my distinct pleasure to confirm to you our
offer to join Dolby Laboratories, Inc. (“Dolby”) as
Vice President, Chief Financial Officer, reporting to me. Your
annualized starting base salary will be $335,000, payable bi-weekly
(in accordance with our 9/80 work schedule). Your date of hire will
be Monday, October 24, 2005.
150,000 nonstatutory options for you to purchase
shares of Dolby’s common stock under the Dolby Laboratories,
Inc. 2005 Stock Plan (the “Plan”) will be recommended
to Dolby’s Board of Directors. Once approved, your options
will have an exercise price equal to the fair market value of the
common stock as of the close of the markets on the date of the
award. Options may be awarded only by the Board and are subject to
the standard terms and conditions of the Plan and the execution of
the award agreement.
You are eligible to participate in the Dolby
Annual Incentive Plan (“DAIP”) for the fiscal year that
begins October 1, 2005. You are eligible to receive a total
DAIP target award of fifty-five percent (55%) of your annual
base salary. This total is comprised of a five percent
(5%) discretionary profit sharing component target and a fifty
percent (50%) performance reward component target. Further,
seventy-five percent (75%) of the performance reward component
is calculated based on company performance and twenty-five percent
(25%) is tied to your individual performance. Subject to your
continued employment with Dolby, your first incentive target payout
(if any) of the profit sharing component would be in January 2007
for the fiscal year ended September 2006 prorated to your date of
hire. Subject to your continued employment with Dolby, your first
incentive target payout (if any) of the performance reward
component would be in January 2007 for the fiscal year ended
September 2006.
This offer also includes a sign-on bonus of
$50,000, payable at the end of the first pay period in January,
2006. The sign-on bonus will be repayable to Dolby should you
voluntarily terminate your employment within twelve months of your
hire date. Please be advised that your sign-on bonus will be
subject to federal and state taxation. For specific tax
information, please refer to the IRS website or contact your tax
advisor.
Performance and Development Evaluations are
completed annually by December. You will first be eligible
for
