Document:

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                                                                   EXHIBIT 10.14

                   [DIGITAL THEATER SYSTEMS, INC. LETTERHEAD]

<<DATE>>

<PR_GIVEN_NAME> <PR_SURNAME>
<PR_STREET_ADDRESS>
<PR_LOCALITY>, <PR_STATE_OR_PROVINCE> <PR_POSTAL_CODE>

                  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 <PR_GIVEN_NAME>:

         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.

<PAGE>

         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<PAGE>
                                                                   EXHIBIT 10.15

                          Digital Theater Systems, Inc.

            Digital Theater Systems, Inc. 2003 Equity Incentive Plan

                                 OPTION EXERCISE
                                       AND
                            STOCK PURCHASE AGREEMENT

                                  INSTRUCTIONS

1.       Read the entire Agreement carefully. This is a legally binding
         agreement between you and the Company.

2.       ITEMS A - C: insert your name and identifying information.

3.       ITEMS D-G: identify the stock option you want to exercise.

4.       ITEM H: identify how many shares you want to purchase.

5.       ITEM I: Calculate the Option Price by multiplying the share number in
         Item H by the purchase price per share in Item E.

6.       ITEM J: Confirm with the Company whether a tax withholding amount
         should be entered in this space.

7.       ITEM K: Add the Option Price in Item I to the tax withholding amount,
         if any, in Item J. Insert the resulting Purchase Price in Item K.

8.       ITEM L: Identify your approved method of payment for the Shares.

9.       SIGNATURES: Sign the Agreement in the space provided on page 10.
         IMPORTANT NOTE: If you are married, your spouse also is required to
         sign.

10.      Submit your fully completed and signed Agreement, together with payment
         of the Purchase Price, to [identify department, mailstop or person to
         receive option forms].

<PAGE>

                          Digital Theater Systems, Inc.

            Digital Theater Systems, Inc. 2003 Equity Incentive Plan

                               OPTION EXERCISE AND
                            STOCK PURCHASE AGREEMENT

                               Date:_____________

OPTIONHOLDER / PURCHASER

(A)      Name:_________________________________________________________________

(B)      Employee number:_______________________________________________________

(C)      Residence address:_____________________________________________________

         _______________________________________________________________________

         _______________________________________________________________________

STOCK OPTION

(D)      Option Shares (total) subject to this Option:__________________________

(E)      Purchase Price per Share:______________________________________________

(F)      Grant Date:____________________________________________________________

(G)      Option Control Number:_________________________________________________

OPTION SHARES PURCHASED UNDER THIS AGREEMENT

(H)      Shares purchased:______________________________________________________

(I)      Option Price [ (E) x (H) ]:____________________________________________

(J)      Tax withholding (if applicable):_______________________________________
                                               (to be calculated by Company)

(K)      Purchase Price [ (I) + (J) ]:__________________________________________

PAYMENT  METHOD (select one or more)

(L)      Cash or check (enclosed):______________________________________________

         Wire transfer:_________________________________________________________
                            (Identify sending bank and wire transfer number)

         "Cashless exercise":___________________________________________________
                     (Identify approved NASD broker-dealer and attach agreement)

         Other:_________________________________________________________________
                       (Attach Company approval for other form of payment)

                                        2
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1.       EXERCISE OF OPTION.

         1.1.     I am exercising my right to purchase the number of shares of
common stock of Digital Theater Systems, Inc. indicated on Line (H) by
exercising the option identified on Lines (D) through (G). The per share
purchase price of the option is indicated on Line (E) and the aggregate purchase
price of the shares I am purchasing is indicated on Line (I). I acknowledge that
I may be responsible for tax withholding on the shares, in which case the
aggregate purchase price would be as indicated on Line (K) (which the Company
will complete). The shares that I am purchasing by exercising my option are
referred to in this agreement as the "Shares". The total purchase price of the
shares is referred to in this agreement as the "Purchase Price". I acknowledge
that the option I am exercising was issued under and is subject to the rules of
the 2003 Equity Incentive Plan of Digital Theater Systems, Inc. (the "Plan").

         1.2.     With this signed agreement, I have submitted either (a) cash
or a check for the amount of the Purchase Price or (b) irrevocable wire transfer
instructions for the Purchase Price, or](c) a certificate or certificates (or
designation of such certificates if permitted by the Plan) representing shares
of company common stock that I have owned for at least six months if the shares
were acquired by me through exercise of an option, and that have a fair market
value (as determined in accordance with the Plan) as of this date equal to the
Purchase Price, or (d) one or more full recourse promissory notes, approved by
the Company, for a face amount equal to the Purchase Price (the "Note"). I
recognize that other forms of payment may be permitted by the written approval
of the Administrator.

2.       REPRESENTATIONS

         2.1.     TAXES. The Company has made no warranties or representations
to me with respect to the income tax consequences of the transactions
contemplated by this Agreement and I am not relying on the Company or its
representatives for an assessment of such tax consequences. I have had adequate
opportunity to consult with my personal tax advisor prior to submitting this
Agreement to the Company.

         2.2.     REPURCHASE. If the Shares are subject to a right of repurchase
in favor of the Company at their original purchase price when I cease to provide
services for the Company, or if I could be subject to suit under Section 16(b)
of the Securities Exchange Act of 1934 with respect to the purchase of the
Shares, I will execute and deliver to the Company a copy of the Acknowledgment
and Statement of Decision Regarding Election Pursuant to Section 83(b) of the
Internal Revenue Code (the "Acknowledgment") attached as Exhibit A. I
acknowledge that I am primarily responsible for filing any Section 83(b)
elections although the Company will, as an accommodation to me and without
assuming any liability, file a duplicate election if I promptly provide an
executed form with the Acknowledgement and Statement of Decision Regarding
Section 83(b). I will consult with my own tax advisor to determine if there is a
comparable election to file

                                        3
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in the state of where I reside and whether filing a federal or state Section
83(b) election is desirable under my circumstances.

         2.3.     DISQUALIFYING DISPOSITIONS OF ISO STOCK. I acknowledge that if
the Stock acquired by exercise of an Incentive Stock Option (as defined in
Section 2.1 of the Plan) is disposed of within two years after the Grant Date
(as defined in the Option Grant) or within one year after such exercise,
immediately prior to the disposition I will promptly notify the Company in
writing of the date and terms of the disposition and will provide such other
information regarding the disposition as the Company may reasonably require.

3.       MISCELLANEOUS PROVISIONS.

         3.1.     SUCCESSORS AND ASSIGNS. Subject to the limitations set forth
in this Agreement, the benefits and obligations of this Agreement will be
binding on the executors, administrators, heirs, legal representatives,
successors, and assigns of the parties.

         3.2.     COSTS. I will repay the Company for all costs and damages,
including incidental and consequential damages and attorney's fees, resulting
from any transfer of the Shares which is not in compliance with the provisions
of this Agreement.

         3.3.     GOVERNING LAW. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Delaware excluding those
laws that direct the application of the laws of another jurisdiction.

         3.4.     NOTICES. All notices and other communications under this
Agreement shall be in writing. Unless and until I am notified in writing to the
contrary, all notices, communications, and documents directed to the Company and
related to the Agreement, if not delivered by hand, shall be mailed, addressed
to:

                  Digital Theater Systems, Inc.Attention: Chief
                                Financial Officer

at the Company's published principal office location.

         3.5.     COMMUNICATIONS. Unless and until I notify the Company in
writing to the contrary, all notices, communications, and documents intended for
me and related to this Agreement, if not delivered by hand, shall be mailed to
my last known address as shown on the Company's books. Notices and
communications shall be mailed by first class mail, postage prepaid; documents
shall be mailed by registered mail, return receipt requested, postage prepaid.
All mailings and deliveries related to this Agreement shall be deemed received
when actually received, if by hand delivery, and three business days after
mailing, if by mail.

                                        4
<PAGE>

         3.6.     ARBITRATION. All disputes arising out of this Agreement will
be finally settled by arbitration in accordance with the then existing rules of
the American Arbitration Association. The arbitration will be conducted in the
county of Los Angeles. Judgment upon the award rendered by the arbitrators may
be entered in any court having jurisdiction over it; provided that nothing in
this Agreement shall prevent a party from applying to a court of competent
jurisdiction to obtain temporary relief pending resolution of the dispute
through arbitration. The parties agree that service of any notices in the course
of such arbitration at their respective addresses as provided for in this
agreement shall be valid and sufficient.

         3.7.     THIS IS NOT AN EMPLOYMENT CONTRACT. This Agreement is not to
be interpreted as a guarantee or contract of continuing employment.

                                       DIGITAL THEATER SYSTEMS

                                       By:    __________________________________

                                       Title: __________________________________

                           I hereby agree to be bound by all of the terms and
conditions of this Agreement and the Plan.

                                       _________________________________________
                                       Purchaser's signature

                                       _________________________________________
                                       Printed name

                           The purchaser's spouse indicates by the execution of
this Agreement his or her consent to be bound by the terms herein as to his or
her interests, whether as community property or otherwise, if any, in the Shares
hereby purchased.

                                       _________________________________________
                                       Purchaser's Spouse

                                        5
<PAGE>

Exhibits

Exhibit 7A        Acknowledgment and Statement of Decision Regarding Section
                  83(b) Election

Exhibit 7B        Section 83(b) Election

                                        6
<PAGE>

                               ACKNOWLEDGEMENT AND
                              STATEMENT OF DECISION
                        REGARDING SECTION 83(b) ELECTION

                  The undersigned, a purchaser of shares of Common Stock of
Digital Theater Systems, Inc. (the "Company") and a party to a Nonqualified
Stock Option Purchase Agreement with the Company (the "Agreement"), hereby
states as follows:

                  1. I ACKNOWLEDGE RECEIPT OF A COPY OF THE AGREEMENT AND THE
MEMORANDUM ENTITLED "TAX CONSEQUENCES OF PURCHASING RESTRICTED STOCK; FILING A
SECTION 83(b) ELECTION." I HAVE CAREFULLY REVIEWED THE AGREEMENT AND THE
MEMORANDUM.

                  2. I EITHER [CHECK AS APPLICABLE]:

         __ (a)   have consulted, and have been fully advised by, my tax advisor
                  __________________________, whose business address is

                  ______________________________________________________________

                  _____________________________________________________________,

                  regarding the federal, state, and local tax consequences of
                  purchasing shares under the Agreement, and particularly
                  regarding the advisability of making elections pursuant to
                  Section 83(b) of the Internal Revenue Code of 1986, (the
                  "Code"), and pursuant to any corresponding provisions of
                  applicable state laws; OR

         __ (b)   have knowingly chosen not to consult such a tax advisor.

               3. I HAVE DECIDED[CHECK AS APPLICABLE]:

         __ (a)   to make an election pursuant to Section 83(b) of the Code by
                  filing an election form with the appropriate tax authorities
                  within 30 days of the undersigned's purchase under the
                  Agreement, and am submitting to the Company, together with my
                  executed Agreement, three duplicate copies of executed
                  election forms; OR

         __ (b)   not to make an election pursuant to Section 83(b) of the Code.

<PAGE>

                  I ACKNOWLEDGE THAT, EVEN IF THE COMPANY FILES, OR ENGAGES
ANOTHER PARTY TO FILE, A DUPLICATE SECTION 83(b) ELECTION FORM WITH THE INTERNAL
REVENUE SERVICE AS AN ACCOMMODATION TO ME, I HAVE THE PRIMARY RESPONSIBILITY FOR
TIMELY FILING ANY SECTION 83(b) ELECTION WITH THE INTERNAL REVENUE SERVICE AND
ANY STATE REVENUE AUTHORITIES, AND WILL HOLD THE COMPANY AND ITS AGENTS HARMLESS
FROM ANY FAILURE TO TIMELY FILE A DUPLICATE COPY OF THE SECTION 83(b) ELECTION.

Date: ______________________                   _________________________________

                                   EXHIBIT 7A

<PAGE>

                          ELECTION UNDER SECTION 83(b)
                          OF THE INTERNAL REVENUE CODE

                  I hereby elect, under Section 83(b) of the Internal Revenue
Code, to include in gross income any excess of the fair market value of the
property described in paragraph 2, disregarding any lapse restrictions on that
property, over the amount I paid for such property, as described below.

         1. My name, address and taxpayer identification number are:

                  Name:                    _____________________________________

                  Address:                 _____________________________________
                                           _____________________________________
                                           _____________________________________

                  Social Security Number:  _____________________________________

         2. The property with respect to which this election is made consists of
            __________ shares of common stock (the "Shares") of Digital Theater
            Systems, Inc. (the "Company").

         3. The date on which the Shares were acquired was ______________, 2___,
            and the taxable year to which this election relates is calendar year
            ____________.

         4. The Shares are subject to the following restrictions: the right of
            the Company to repurchase the Shares at the lower of the initial
            purchase price or the price at the date of repurchase. This right
            lapses based on my continued performance of services over time.

         5. The fair market value of the Shares at the time of transfer
            (determined without regard to any restrictions other than
            restrictions which by their terms will never lapse) was $________
            per share.

         6. The amount paid for the Shares was $_______ per share.

         7. A copy of this election has been furnished to the Company. I am the
            person performing services and the transferee of the Shares.

_______________________________________          _______________________________
Signature                                        Date

The spouse of the taxpayer acknowledges the making of this election.

_______________________________________
Signature

                                                                Regular Election

<PAGE>

                            PROTECTIVE ELECTION UNDER
                   SECTION 83(b) OF THE INTERNAL REVENUE CODE
                            (INCENTIVE STOCK OPTION)

                  I hereby elect, under Section 83(b) of the Internal Revenue
Code, to include in gross income, with the effect and under the circumstances
described in paragraph 4, any excess of the fair market value of the property
described in paragraph 2, disregarding any lapse restrictions on that property,
over the amount I paid for such property.

1. My name, address and taxpayer identification number are:

                  Name:                    _____________________________________

                  Address:                 _____________________________________
                                           _____________________________________
                                           _____________________________________
                                           _____________________________________

                  Social Security Number:  _____________________________________

2. The property with respect to which the election is made consists of ______
   shares of common stock (the "Shares") of Digital Theater Systems, Inc. (the
   "Company").

3. The date on which the Shares were acquired was ____________, ____, and the
   taxable year to which this election relates is ________.

4. The Shares were acquired pursuant to my exercise of an incentive stock
   option. This filing is therefore made for the purpose of determining the
   amount of my adjustment under Section 56(b)(3) of the Internal Revenue Code
   with respect to my purchase of the Shares. This filing will also be effective
   for regular income tax purposes in the event that the option is determined
   not to qualify as an incentive stock option or I dispose (as defined in
   Section 424(c) of the Internal Revenue Code) of the Shares within either
   period described in Section 422(a)(1) of the Internal Revenue Code.

5. The Shares are subject to the following restrictions: the right of the
   Company to repurchase the Shares at the lower of the initial purchase price
   or the price on the date of repurchase. This right lapses based on my
   continued performance of services].

                                   EXHIBIT 7B

<PAGE>

6. The fair market value of the Shares at the time of transfer (determined
   without regard to any restrictions other than those which by their terms will
   never lapse) was $_______ per share.

7. The amount paid for the Shares was $_______ per share.

8. A copy of this election has been furnished to the Company. I am the person
   performing services and the transferee of the Shares.

_______________________________________          _______________________________
Signature                                        Date of Execution

The spouse of the taxpayer acknowledges the making of this election.

_______________________________________
Signature

                                   EXHIBIT 7B

<PAGE>

                                 SPOUSAL CONSENT

         I acknowledge that I have read the foregoing Option Exercise and Stock
Purchase Agreement (the "Agreement") and that I know its contents. I hereby
consent to and approve all of the provisions of the Agreement, and agree that
the shares of the Common Stock of Digital Theater Systems, Inc. purchased
thereunder (the "Shares") and any interest I may have in such Shares are subject
to all the provisions of the Agreement. I will take no action at any time to
hinder operation of the Agreement on these Shares or any interest I may have in
or to them.

                  ____________________________________  Date:___________
                  Signature of Optionee's spouse

                  ____________________________________

                  Spouse's Name - Typed or Printed

                  ____________________________________

                  Optionees's Name - Typed or Printed

                                   EXHIBIT 7B

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