EXHIBIT 10.14
[DIGITAL THEATER SYSTEMS, INC. LETTERHEAD]
<>
,
RE: GRANT OF [INCENTIVE][NONSTATUTORY] STOCK OPTION
Option Shares:____________________ Grant Date:________________
Price per share:__________________ Vesting Base Date:_________
Fully-Vested Date:_________
Option control no.:_______________ Expiration Date:___________
Dear :
I am pleased to confirm that the Company has granted you an option to
purchase shares of our common stock under the Digital Theater Systems, Inc. 2003
Equity Incentive Plan. To accept your stock option, please sign the enclosed
copy of this letter and return it to {department name, mail-stop}{in the
envelope provided}.
GENERAL TERMS
Your option is intended to be [an incentive][a nonstatutory] option.
The basic terms of your option grant are identified in the information block at
the top of this offer letter, but other important terms and conditions are
described in the plan. We encourage you to carefully review the plan, a copy of
which is [enclosed] [available on request from our {Stock Administrator}{Human
Resources Department}][and on the intranet at _________].
PURCHASE AND PAYMENT
Subject to the plan, your option vests (becomes exercisable) in equal
installments of twenty-five percent (25%) of the Option Shares on and after each
of the first four anniversaries of the date hereof, calculated to the closest
whole share, so that all shares will become purchasable on the Fully-Vested Date
shown above.
If you decide to purchase shares under this option, you will be
required to submit a completed exercise agreement on a form approved by the
Company, together with payment for the shares. You may pay for the shares (plus
any associated withholding taxes) using cash, a check, a wire transfer or any
other form of payment listed in section 6.4(c) of the plan and permitted by the
Administrator at the time you wish to exercise. Shares available under this
option must be purchased, if at all, no later than the Expiration Date.
[Specify any other special provisions.]
We value your efforts and look forward to your continued contribution.
Sincerely,
[CEO name]
[CEO title]
I ACCEPT THIS OPTION AND AGREE TO THE TERMS OF THIS OFFER LETTER AND THE PLAN.
_______________________________ _____________, 200_
Optionee signature Date