Document:

2005 Stock Plan

 Exhibit 10.4 
  
 DOLBY LABORATORIES, INC. 
  
 2005 STOCK PLAN 
  

	 	1.	Purposes of the Plan. The purposes of this Plan are: 

  

	 	•	to attract and retain the best available personnel for positions of substantial responsibility, 

  

	 	•	to provide additional incentive to Employees, Directors and Consultants, and 

  

	 	•	to promote the success of the Company’s business. 

  
 The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock, Stock Appreciation Rights, Deferred Stock Units,
Performance Units and Performance Shares. 
  

	 	2.	Definitions. As used herein, the following definitions will apply: 

  
 (a) “Administrator” means the Board or any of its Committees as will be administering the Plan, in
accordance with Section 4 of the Plan. 
  
 (b) “Applicable
Laws” means the requirements relating to the administration of equity-based awards or equity compensation programs under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on
which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan. 
  

(c) “Award” means, individually or collectively, a grant under the Plan of Options, SARs, Restricted Stock, Deferred Stock Units,
Performance Units, or Performance Shares. 
  
 (d) “Award
Agreement” means the written or electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan. 
  
 (e) “Awarded Stock” means the Common Stock subject to an
Award. 
  
 (f) “Board” means the Board of
Directors of the Company. 
  
 (g) “Cause” means,
with respect to the termination by the Company or a Related Entity of a Participant, that such termination is for “Cause” as such term is expressly defined in a then-effective written agreement between the Participant and the Company or a
Related Entity, or in the absence of such then-effective written agreement and definition, is based on, in the determination of the Administrator, the Participant’s: (i) refusal or failure to act in 

 accordance with any specific, lawful direction or order of the Company or a Related Entity; (ii) unfitness or
unavailability for service or unsatisfactory performance (other than as a result of Disability); (iii) performance of any act or failure to perform any act in bad faith and to the detriment of the Company or Related Entity; (iv) dishonesty,
intentional misconduct or material breach of any agreement with the Company or Related Entity; or (v) commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person. At least 30 days prior to the termination
of the Participant’s service pursuant to (i) or (ii) above, the Company or Related Entity shall provide the Participant with notice of the Company’s or Related Entity’s intent to terminate, the reason therefor, and an opportunity for
the Participant to cure such defects in his or her service to the Company’s or Related Entity’s satisfaction. During this 30 day (or longer) period, no Award issued to the Participant under the Plan may be exercised or purchased.

  
 (h) “Change in Control” means the occurrence
of any of the following events: 
  
 (i) Any “person”
(as such term is used in Sections 13(d) and 14(d) of the Exchange Act) other than a Permitted Transferee (as defined in the Company’s Amended and Restated Certificate of Incorporation) becomes the “beneficial owner” (as defined in
Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; or 
  
 (ii) The consummation of the sale or disposition by the Company of all or
substantially all of the Company’s assets; or 
  
 (iii) A
change in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” means directors who either (A) are Directors as of the
effective date of the Plan, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Directors at the time of such election or nomination (but will not include an individual whose election
or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company); or 
  
 (iv) The consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in
the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of
the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation. 
  
 (i) “Code” means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code
herein will be a reference to any successor or amended section of the Code. 
  
 (j) “Committee” means a committee of Directors or other individuals satisfying Applicable Laws appointed by the Board in accordance with Section 4 of the Plan. 
  

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 (k) “Common Stock” means the Class A Common Stock of the Company, or in the case of
certain Stock Appreciation Rights or Performance Units, the cash equivalent thereof. 
  
 (l) “Company” means Dolby Laboratories, Inc., a Delaware corporation, or any successor thereto. 
  
 (m) “Consultant” means any person, including an advisor, engaged by the Company or a Related Entity to render services to such entity.

  
 (n) “Deferred Stock Unit” means an Award that
the Administrator permits to be paid in installments or on a deferred basis pursuant to Sections 4 and 11 of the Plan. 
  
 (o) “Director” means a member of the Board. 
  
 (p) “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code, provided that in the case of Awards
other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time to time.

  
 (q) “Dividend Equivalent” means a credit,
made at the discretion of the Administrator, to the account of a Participant in an amount equal to the cash dividends paid on one Share for each Share represented by an Award held by such Participant. 
  
 (r) “Employee” means any person, including Officers and
Directors, employed by the Company or a Related Entity. Neither service as a Director nor payment of a director’s fee by the Company or Related Entity will be sufficient to constitute “employment” by the Company or Related Entity.

  
 (s) “Exchange Act” means the Securities
Exchange Act of 1934, as amended. 
  
 (t) “Fair Market
Value” means, as of any date and unless the Administrator determines otherwise, the value of Common Stock determined as follows: 
  
 (i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market
or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the day of determination, as
reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
  
 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of
Common Stock will be the mean between the high bid and low asked prices for the Common Stock for the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 
  

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 (iii) In the absence of an established market for the Common Stock, the Fair Market Value will be
determined in good faith by the Administrator. 
  
 (iv)
Notwithstanding the preceding, for federal, state, and local income tax reporting purposes and for such other purposes as the Administrator deems appropriate, the Fair Market Value shall be determined by the Administrator in accordance with uniform
and nondiscriminatory standards adopted by it from time to time. 
  
 (u) “Good Reason” means the occurrence following a Change in Control of any of the following events or conditions unless consented to by the Participant: 
  
 (i) a reduction in the Participant’s base salary to a level below that in effect at any time within six (6) months
preceding the consummation of a Change in Control or at any time thereafter; or 
  
 (ii) requiring the Participant to be based at any place outside a 50-mile radius from the Participant’s job location or residence prior to the Change in Control except for reasonably required travel on business
which is not materially greater than such travel requirements prior to the Change in Control. 
  
 (v) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 
  
 (w) “Inside Director” means a Director who is an Employee.

  
 (x) “Nonstatutory Stock Option” means an
Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option. 
  
 (y) “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder. 
  
 (z)
“Option” means a stock option granted pursuant to the Plan. 
  
 (aa) “Outside Director” means a Director who is not an Employee. 
  
 (bb) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.

  
 (cc) “Participant” means the holder of an
outstanding Award. 
  
 (dd) “Performance Goals”
means the goal(s) determined by the Administrator (in its discretion) to be applicable to a Participant with respect to an Award. As determined by the Administrator, the Performance Goals applicable to an Award may provide for a targeted level or
levels of achievement using certain Company or individual performance measures. The Performance Goals may differ from Participant to Participant and from Award to Award. Any criteria used may be measured, as applicable, (i) in absolute terms, (ii)
in relative terms 
  

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 (including, but not limited to, passage of time and/or against another company or companies), (iii) on a per-share basis,
(iv) against the performance of the Company as a whole or a segment of the Company, and (v) on a pre-tax or after-tax basis. 
  
 (ee) “Performance Share” means an Award granted to a Service Provider pursuant to Section 10 of the Plan. 
  
 (ff) “Performance Unit” means an Award granted to a Service
Provider pursuant to Section 10 of the Plan. 
  
 (gg)
“Period of Restriction” means the period during which the transfer of Shares of Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based
on the passage of time, continued service, the achievement of Performance Goals, and/or the occurrence of other events as determined by the Administrator. 
  
 (hh) “Plan” means this 2005 Stock Plan. 
  
 (ii) “Registration Date” means the effective date of the first registration statement that is filed by the Company and declared effective
pursuant to Section 12(g) of the Exchange Act, with respect to any class of the Company’s securities. 
  
 (jj) “Related Entity” means any Parent, Subsidiary and any business, corporation, partnership, limited liability company or other entity
in which the Company, a Parent or a Subsidiary holds a substantial ownership interest, directly or indirectly. 
  
 (kk) “Restricted Stock” means Shares issued pursuant to a Restricted Stock award under the Plan or issued pursuant to the early exercise
of an Option. 
  
 (ll) “Rule 16b-3” means Rule
16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan. 
  
 (mm) “Section 16(b) “ means Section 16(b) of the Exchange Act. 
  
 (nn) “Service Provider” means an Employee, Director or Consultant. 
  
 (oo) “Share” means a share of the Common Stock, as adjusted
in accordance with Section 15 of the Plan. 
  
 (pp) “Stock
Appreciation Right” or “SAR” means an Award, granted alone or in connection with an Option, that pursuant to Section 9 of the Plan is designated as a SAR. 
  
 (qq) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined
in Section 424(f) of the Code. 
  
 (rr) “Unvested
Awards” shall mean Options or Restricted Stock that (i) were granted to an individual in connection with such individual’s position as a Service Provider and (ii) are still subject to vesting or lapsing of Company repurchase rights or
similar restrictions. 
  

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	 	3.	Stock Subject to the Plan. 

  
 (a) Stock Subject to the Plan. Subject to the provisions of Section 15 of the Plan, the maximum aggregate number of Shares that may be issued under
the Plan is 6,000,000. Any Shares subject to Awards with a per Share price equal to or greater than 100% of Fair Market Value on the date of grant shall be counted against the numerical limits of this Section 3 as one Share for every Share subject
thereto. Except as provided in the previous sentence, any Shares or units subject to Awards with a per Share or unit price lower than 100% of Fair Market Value on the date of grant shall be counted against the numerical limits of this Section 3 as
2.0 Shares for every one Share subject thereto and shall be counted as 2.0 Shares for every one Share returned to or deemed not issued from the Plan pursuant to this Section 3. The Shares may be authorized, but unissued, or reacquired Common Stock.
Shares shall not be deemed to have been issued pursuant to the Plan with respect to any portion of an Award that is settled in cash. Upon payment in Shares pursuant to the exercise or settlement of an Award, the number of Shares available for
issuance under the Plan shall be reduced only by the number of Shares actually issued in such payment. If a Participant pays the exercise price (or purchase price, if applicable) of an Award or pays the applicable withholding taxes related to the
Award through the tender of Shares, the number of Shares so tendered shall again be available for issuance pursuant to future Awards under the Plan. 
  
 (b) Lapsed Awards. If any outstanding Award expires or is terminated or canceled without having been exercised or settled in full, or if Shares
acquired pursuant to an Award subject to forfeiture or repurchase are forfeited or repurchased by the Company, the Shares allocable to the terminated portion of such Award or such forfeited or repurchased Shares shall again be available for grant
under the Plan. 
  

	 	4.	Administration of the Plan. 

  
 (a) Procedure. 
  
 (i) Multiple Administrative Bodies. Different Committees with respect to different groups of Service Providers may administer the Plan.

  
 (ii) Section 162(m). To the extent that the
Administrator determines it to be desirable or necessary to qualify Awards granted hereunder as “performance-based compensation” within the meaning of Section 162(m) of the Code, the Plan will be administered by a Committee of two or more
“outside directors” within the meaning of Section 162(m) of the Code. 
  
 (iii) Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder will be structured to satisfy the requirements for exemption under
Rule 16b-3. 
  
 (iv) Other Administration. Other than as
provided above, the Plan will be administered by (A) the Board or (B) a Committee, which committee will be constituted to satisfy Applicable Laws. 
  

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 (v) Delegation of Authority for Day-to-Day Administration. Except to the extent prohibited by
Applicable Law, the Administrator may delegate to one or more individuals the day-to-day administration of the Plan and any of the functions assigned to it in this Plan. Such delegation may be revoked at any time. 
  
 (b) Powers of the Administrator. Subject to the provisions of the
Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion: 
  
 (i) to determine the Fair Market Value; 
  
 (ii) to select the Service Providers to whom Awards may be granted hereunder; 
  
 (iii) to determine the number of Shares to be covered by each Award granted
hereunder; 
  
 (iv) to approve forms of agreement for use under
the Plan; 
  
 (v) to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised (which may be based on performance criteria), any
vesting acceleration or waiver of forfeiture or repurchase restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator, in its sole discretion, will
determine; 
  
 (vi) to construe and interpret the terms of the
Plan and Awards granted pursuant to the Plan; 
  
 (vii) to
prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of satisfying applicable foreign laws including qualifying for preferred tax treatment under
applicable foreign tax laws; 
  
 (viii) to modify or amend each
Award (subject to Section 17(c) of the Plan), including the discretionary authority to extend the post-termination exercisability period of Awards longer than is otherwise provided for in the Plan; 
  
 (ix) to allow Participants to satisfy withholding tax obligations by
electing to have the Company withhold from the Shares or cash to be issued upon exercise, settlement or vesting of an Award that number of Shares or cash having a Fair Market Value equal to the minimum amount required to be withheld. The Fair Market
Value of any Shares to be withheld will be determined on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares or cash withheld for this purpose will be made in such form and under such
conditions as the Administrator may deem necessary or advisable; 
  

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 (x) to authorize any person to execute on behalf of the Company any instrument required to effect the
grant of an Award previously granted by the Administrator; 
  
 (xi) to allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant under an Award; 
  
 (xii) to determine whether Awards will be settled in Shares, cash or in any combination thereof; 
  
 (xiii) to determine whether Awards will be adjusted for Dividend
Equivalents; 
  
 (xiv) to establish a program whereby Service
Providers designated by the Administrator can reduce compensation otherwise payable in cash in exchange for Awards under the Plan; 
  
 (xv) to impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by a Participant or
other subsequent transfers by the Participant of any Shares issued as a result of or under an Award, including without limitation, (A) restrictions under an insider trading policy, and (B) restrictions as to the use of a specified brokerage firm for
such resales or other transfers; and 
  
 (xvi) to make all other
determinations deemed necessary or advisable for administering the Plan. 
  
 (c) Effect of Administrator’s Decision. The Administrator’s decisions, determinations and interpretations will be final and binding on all Participants and any other holders of Awards. 
  
 5.     Eligibility. Nonstatutory Stock
Options, Restricted Stock, Stock Appreciation Rights, Performance Units, Performance Shares and Deferred Stock Units may be granted to Service Providers. Incentive Stock Options may be granted only to Employees. 
  

	 	6.	Limitations. 

  
 (a) ISO $100,000 Rule. Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.
However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year (under all plans
of the Company and a Related Entity) exceeds $100,000, such Options will be treated as Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive Stock Options will be taken into account in the order in which they were granted. The
Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares is granted. 
  
 (b) No Rights as a Service Provider. Neither the Plan nor any Award shall confer upon a Participant any right with respect to continuing his or her
relationship as a Service Provider, nor shall they interfere in any way with the right of the Participant or the right of the Company or a Related Entity to terminate such relationship at any time, with or without cause. 
  

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	 	7.	Stock Options. 

  
 (a) Term of Option. The term of each Option will be stated in the Award Agreement. In the case of an Incentive Stock Option, the term will be ten
(10) years from the date of grant or such shorter term as may be provided in the Award Agreement. Moreover, in the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns stock
representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or a Related Entity, the term of the Incentive Stock Option will be five (5) years from the date of grant or such shorter term as may
be provided in the Award Agreement. 
  
 (b) Option Exercise
Price. The per Share exercise price for the Shares to be issued pursuant to exercise of an Option will be determined by the Administrator; provided, however that in the case of an Incentive Stock Option and a Nonstatutory Stock Option intended
to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code, the per Share exercise price will be no less than 100% of the Fair Market Value per Share on the date of grant. Notwithstanding the foregoing,
in the case of an Incentive Stock Option granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or a Related
Entity, the per Share exercise price will be no less than 110% of the Fair Market Value per Share on the date of grant. 
  
 (c) Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator will fix the period within which the Option may be
exercised and will determine any conditions that must be satisfied before the Option may be exercised. 
  
 (d) Form of Consideration. The Administrator will determine the acceptable form of consideration for exercising an Option, including the method of
payment. In the case of an Incentive Stock Option, the Administrator will determine the acceptable form of consideration at the time of grant. Such consideration to the extent permitted by Applicable Laws may consist entirely of: 
  
 (i) cash; 
  
 (ii) check; 
  
 (iii) promissory note; 
  
 (iv) other Shares which meet the conditions established by the Administrator to avoid adverse accounting consequences (as determined by the
Administrator); 
  
 (v) consideration received by the Company
under a cashless exercise program implemented by the Company in connection with the Plan; 
  

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 (vi) a reduction in the amount of any Company liability to the Participant; 
  
 (vii) any combination of the foregoing methods of payment; or 
  
 (viii) such other consideration and method of payment for the issuance of
Shares to the extent permitted by Applicable Laws. 
  
 (e)
Exercise of Option. 
  
 (i) Procedure for Exercise;
Rights as a Stockholder. Any Option granted hereunder will be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. An Option may not
be exercised for a fraction of a Share. 
  
 An Option will be
deemed exercised when the Company receives: (x) written or electronic notice of exercise (in accordance with the Award Agreement) from the person entitled to exercise the Option, and (y) full payment for the Shares with respect to which the Option
is exercised (together with any applicable withholding taxes). Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an
Option will be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a
duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Awarded Stock, notwithstanding the exercise of the Option. The Company will issue (or cause to
be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 15 of the Plan or the
applicable Award Agreement. 
  
 Exercising an Option in any
manner will decrease the number of Shares thereafter available for sale under the Option, by the number of Shares as to which the Option is exercised. 
  
 (ii) Termination of Relationship as a Service Provider. If a Participant ceases to be a Service Provider, other than upon the Participant’s
death or Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of termination (but in no event later than the expiration of
the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for three (3) months following the Participant’s termination. Unless otherwise provided
by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the Participant does not
exercise his or her Option within the time specified by the Administrator, the Option will terminate, and the Shares covered by such Option will revert to the Plan. 
  

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 (iii) Disability of Participant. If a Participant ceases to be a Service Provider as a result of
the Participant’s Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination (but in no event later than the
expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following the Participant’s termination. Unless
otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the
Participant does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan. 
  
 (iv) Death of Participant. If a Participant dies while a Service Provider, the Option may be exercised following the
Participant’s death within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of death (but in no event may the option be exercised later than the expiration of the term of such Option
as set forth in the Award Agreement), by the Participant’s designated beneficiary, provided such beneficiary has been designated prior to Participant’s death in a form acceptable to the Administrator. If no such beneficiary has been
designated by the Participant, then such Option may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the Option is transferred pursuant to the Participant’s will or in accordance with the
laws of descent and distribution. In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following Participant’s death. Unless otherwise provided by the Administrator, if at the time
of death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will immediately revert to the Plan. If the Option is not so exercised within the time specified herein, the Option will
terminate, and the Shares covered by such Option will revert to the Plan. 
  

	 	8.	Restricted Stock. 

  
 (a) Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant
Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion, will determine. 
  
 (b) Restricted Stock Agreement. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction,
the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, will determine. Unless the Administrator determines otherwise, Shares of Restricted Stock will be held by the Company as escrow agent
until the restrictions on such Shares have lapsed. 
  
 (c)
Transferability. Except as provided in this Section 8, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction. 
  
 (d) Other Restrictions. The Administrator, in its sole discretion, may
impose such other restrictions on Shares of Restricted Stock as it may deem advisable or appropriate. 
  

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 (e) Removal of Restrictions. Except as otherwise provided in this Section 8, Shares of Restricted
Stock covered by each Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period of Restriction. The Administrator, in its discretion, may accelerate the time at which any
restrictions will lapse or be removed. 
  
 (f) Voting
Rights. During the Period of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise. 
  
 (g) Dividends and Other Distributions. During the Period of
Restriction, Service Providers holding Shares of Restricted Stock will be entitled to receive all dividends and other distributions paid with respect to such Shares unless otherwise provided in the Award Agreement. If any such dividends or
distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid. 
  
 (h) Return of Restricted Stock to Company. On the date set forth in
the Award Agreement, the Restricted Stock for which restrictions have not lapsed will revert to the Company and again will become available for grant under the Plan. 
  

	 	9.	Stock Appreciation Rights. 

  
 (a) Grant of SARs. Subject to the terms and conditions of the Plan, a SAR may be granted to Service Providers at any time and from time to time as
will be determined by the Administrator, in its sole discretion. 
  
 (b) Number of Shares. The Administrator will have complete discretion to determine the number of SARs granted to any Service Provider. 
  
 (c) Exercise Price and Other Terms. The Administrator, subject to the provisions of the Plan, will have complete discretion to determine the terms
and conditions of SARs granted under the Plan. 
  
 (d) Exercise
of SARs. SARs will be exercisable on such terms and conditions as the Administrator, in its sole discretion, will determine. 
  
 (e) SAR Agreement. Each SAR grant will be evidenced by an Award Agreement that will specify the exercise price, the term of the SAR, the conditions
of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine. 
  
 (f) Expiration of SARs. An SAR granted under the Plan will expire upon the date determined by the Administrator, in its sole discretion, and set
forth in the Award Agreement. Notwithstanding the foregoing, the rules of Sections 7(e)(ii), 7(e)(iii) and 7(e)(iv) also will apply to SARs. 
  
 (g) Payment of SAR Amount. Upon exercise of an SAR, a Participant will be entitled to receive payment from the Company in an amount determined by
multiplying: 
  
 (i) The difference between the Fair Market
Value of a Share on the date of exercise over the exercise price; times 
  

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 (ii) The number of Shares with respect to which the SAR is exercised. 
  
 At the discretion of the Administrator, the payment upon SAR exercise may be
in cash, in Shares of equivalent value, or in some combination thereof. 
  

	 	10.	Performance Units and Performance Shares. 

  
 (a) Grant of Performance Units/Shares. Subject to the terms and conditions of the Plan, Performance Units and Performance Shares may be granted to
Service Providers at any time and from time to time, as will be determined by the Administrator, in its sole discretion. The Administrator will have complete discretion in determining the number of Performance Units and Performance Shares granted to
each Participant. 
  
 (b) Value of Performance
Units/Shares. Each Performance Unit will have an initial value that is established by the Administrator on or before the date of grant. Each Performance Share will have an initial value equal to the Fair Market Value of a Share on the date of
grant. 
  
 (c) Performance Objectives and Other Terms. The
Administrator will set performance objectives or other vesting provisions (including, without limitation, continued status as a Service Provider) in its discretion which, depending on the extent to which they are met, will determine the number or
value of Performance Units/Shares that will be paid out to the Service Providers. The time period during which the performance objectives must be met will be called the “Performance Period.” Each Award of Performance Units/Shares will be
evidenced by an Award Agreement that will specify the Performance Period, and such other terms and conditions as the Administrator, in its sole discretion, will determine. The Administrator may set Performance Goals based upon the achievement of
Company-wide, divisional, or individual goals, applicable federal or state securities laws, or any other basis determined by the Administrator in its discretion. 
  
 (d) Earning of Performance Units/Shares. After the applicable Performance Period has ended, the holder of Performance
Units/Shares will be entitled to receive a payout of the number of Performance Units/Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives have
been achieved. After the grant of a Performance Unit/Share, the Administrator, in its sole discretion, may reduce or waive any performance objectives for such Performance Unit/Share. 
  
 (e) Form and Timing of Payment of Performance Units/Shares. Payment of earned Performance Units/Shares will be made
as soon after the expiration of the applicable Performance Period at the time determined by the Administrator. The Administrator, in its sole discretion, may pay earned Performance Units/Shares in the form of cash, in Shares (which have an aggregate
Fair Market Value equal to the value of the earned Performance Units/Shares at the close of the applicable Performance Period) or in a combination thereof. 
  

 -13- 

 (f) Cancellation of Performance Units/Shares. On the date set forth in the Award Agreement, all
unearned or unvested Performance Units/Shares will be forfeited to the Company, and again will be available for grant under the Plan. 
  
 11.     Deferred Stock Units. Deferred Stock Units shall consist of a Restricted Stock, Performance Share or Performance
Unit Award that the Administrator, in its sole discretion permits to be paid out in installments or on a deferred basis, in accordance with rules and procedures established by the Administrator. Deferred Stock Units may be settled, in the discretion
of the Administrator, in cash, Shares or a combination thereof. 
  
 12.     Outside Director Awards. Except as provided in Section 12(f), grants of Awards to Outside Directors pursuant to this Section 12 will be automatic and will be made in accordance with the following
provisions: 
  
 (a) Type of Option. All Options
granted pursuant to this Section 12 will be Nonstatutory Stock Options and, except as otherwise provided herein, will be subject to the other terms and conditions of the Plan. 
  
 (b) First Option. Each person who first becomes an Outside Director on or after the Registration Date automatically
will be granted an Option to purchase 20,000 Shares (the “First Option”) on the date on which such person first becomes an Outside Director, whether through election by the stockholders of the Company or appointment by the Board to fill a
vacancy; provided, however, that an Inside Director who ceases to be an Inside Director but who remains a Director will not receive a First Option. 
  
 (c) Subsequent Option. Each Outside Director automatically will be granted an Option to purchase 10,000 Shares (a “Subsequent Option”)
(i) on July 15, 2005, and (ii) on the date of each annual meeting of the stockholders of the Company beginning as of the first annual meeting of stockholders after the end of the Company’s 2005 fiscal year, provided, in each case, he or she is
then an Outside Director, and if as of each such date, he or she will have served on the Board for at least the preceding six (6) months. 
  
 (d) Terms. Except as provided in Section 12(f), the terms of each Option granted pursuant to this Section 12 will be as follows: 
  
 (i) The term of the Option will be ten (10) years. 
  
 (ii) The exercise price per Share will be 100% of the Fair Market Value per
Share on the date of grant of the Option. In the event that the date of grant of the Option is not a trading day, the exercise price per Share shall be the Fair Market Value on the next trading day immediately following the date of grant of the
Option. 
  
 (iii) Subject to Section 15 of the Plan, the First
Option will vest and become exercisable as to 1/3 of the Shares subject to the First Option on the first anniversary of its date of grant, and as to 1/3 of the Shares subject to the First Option each full anniversary thereafter, provided that the
Participant continues to serve as a Director on such dates; 
  

 -14- 

 (iv) Subject to Section 15 of the Plan, the Subsequent Option will vest and become exercisable as to 1/3
of the Shares subject to the Subsequent Option on the first anniversary of its date of grant, and as to 1/3 of the Shares subject to the Subsequent Option each full anniversary thereafter, provided that the Participant continues to serve as a
Director on such dates. 
  
 (e) Exercise of Options. An
Option granted pursuant to this Section 12 will expire upon the date determined by the Administrator, in its sole discretion, and set forth in the Award Agreement. Notwithstanding the foregoing, the rules of Sections 7(e)(ii), 7(e)(iii) and 7(e)(iv)
also will apply to such Option. To the extent that the Participant was not entitled to exercise an Option on the date of termination, or if he or she does not exercise such Option (to the extent otherwise so entitled) within the time specified
herein, the Option shall terminate. 
  
 (f) Amendment.
Notwithstanding the foregoing, the Administrator in its discretion may change the number of Shares subject to the First Options and Subsequent Options, may change the terms of such Options and may grant substitute Awards having an equivalent value
to such Options as determined by the Board on the date of grant. 
  
 13.    Leaves of Absence. Unless the Administrator provides otherwise, vesting of Awards granted hereunder will be suspended during any unpaid leave of absence and will resume on the date the Participant
returns to work on a regular schedule as determined by the Company. A Service Provider will not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the
Company and a Related Entity. For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of
absence approved by the Company is not so guaranteed, then three months following the 91st day of such leave any
Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option. 
  
 14.    Non-Transferability of Awards. Unless determined otherwise by the
Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only by
the Participant. If the Administrator makes an Award transferable, such Award will contain such additional terms and conditions as the Administrator deems appropriate. 
  

	 	15.	Adjustments; Dissolution or Liquidation; Merger or Change in Control. 

  
 (a) Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Shares, other
securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the
corporate structure of the Company affecting the Shares occurs such that an adjustment is determined by the Administrator (in its sole discretion) to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan, then the Administrator shall, in such manner as it may deem equitable, adjust the number and class of 
  

 -15- 

 Shares which may be delivered under the Plan, and the number, class, and price of Shares subject to outstanding Awards.
Notwithstanding the preceding, the number of Shares subject to any Award always shall be a whole number. 
  
 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator will notify each
Participant as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for a Participant to have the right to exercise his or her Award, to the extent applicable, until ten (10)
days prior to such transaction as to all of the Awarded Stock covered thereby, including Shares as to which the Award would not otherwise be exercisable. In addition, the Administrator may provide that any Company repurchase option or forfeiture
rights applicable to any Award shall lapse in full, and that any Award’s vesting schedule shall accelerate in full, provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has
not been previously exercised or vested, an Award will terminate immediately prior to the consummation of such proposed action. 
  
 (c) Merger or Change in Control. 
  
 (i) Stock Options and SARS. In the event of a merger or Change in Control, an outstanding Option or SAR may be (i) assumed or substituted with an
equivalent option or SAR of the successor corporation or a Parent or Subsidiary of the successor corporation, (ii) replaced with a cash incentive program of the successor corporation or a Parent or Subsidiary of the successor corporation, or (iii)
terminated. Unless determined otherwise by the Administrator, in the event that the successor corporation does not assume, substitute or replace a Participant’s Option or SAR, the Participant shall, immediately prior to the merger or Change in
Control, fully vest in and have the right to exercise such Option or SAR that is not assumed, substituted or replaced as to all of the Awarded Stock, including Shares as to which it would not otherwise be vested or exercisable. If an Option or SAR
is not assumed, substituted or replaced in the event of a merger or Change in Control, the Administrator shall notify the Participant in writing or electronically that the Option or SAR shall be exercisable, to the extent vested, for a period of up
to fifteen (15) days from the date of such notice, and the Option or SAR shall terminate upon the expiration of such period. For the purposes of this paragraph, the Option or SAR shall be considered assumed if, following the merger or Change in
Control, the option or stock appreciation right confers the right to purchase or receive, for each Share of Awarded Stock subject to the Option or SAR immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or
other securities or property) received in the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may,
with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option or SAR, for each Share of Awarded Stock subject to the Option or SAR, to be solely common stock of the successor corporation
or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or Change in Control. Notwithstanding anything herein to the contrary, an Award that vests, is earned or paid-out upon the
satisfaction of one or more Performance Goals will not be considered assumed if the 
  

 -16- 

 Company or its successor modifies any of such Performance Goals without the Participant’s consent; provided,
however, a modification to such Performance Goals only to reflect the successor corporation’s post-merger or post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption. 
  
 With respect to Options and SARs granted to an Outside Director, the
Participant shall, immediately prior to the merger or Change in Control, fully vest in and have the right to exercise such Options and SARs as to all of the Awarded Stock, including Shares as to which it would not otherwise be vested or exercisable.
With respect to Options and SARs granted to an Employee, the Employee, upon a termination of the Employee by the Company or a Related Entity without Cause or a resignation of the Employee with Good Reason, shall receive one year of additional
vesting for each full year of service performed for the Company or a Related Entity; provided, that such termination or resignation occurs within the twelve (12) month period following a Change in Control. 
  
 (ii) Restricted Stock, Performance Shares, Performance Units and Deferred
Stock Units. In the event of a merger or Change in Control, an outstanding Restricted Stock, Performance Share, Performance Unit or Deferred Stock Unit award may be (i) assumed or substituted with an equivalent Restricted Stock, Performance
Share, Performance Unit or Deferred Stock Unit award of the successor corporation or a Parent or Subsidiary of the successor corporation, (ii) replaced with a cash incentive program of the successor corporation or a Parent or Subsidiary of the
successor corporation, or (iii) terminated. Unless determined otherwise by the Administrator, in the event that the successor corporation refuses to assume, substitute or replace a Participant’s Restricted Stock, Performance Share, Performance
Unit or Deferred Stock Unit award, the Participant shall, immediately prior to the merger or Change in Control, fully vest in such Restricted Stock, Performance Share, Performance Unit or Deferred Stock Unit including as to Shares which would not
otherwise be vested. For the purposes of this paragraph, a Restricted Stock, Performance Share, Performance Unit and Deferred Stock Unit award shall be considered assumed if, following the merger or Change in Control, the award confers the right to
purchase or receive, for each Share subject to the Award immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change in Control by holders of Common
Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such
consideration received in the merger or Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received, for
each Share and each unit/right to acquire a Share subject to the Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger
or Change in Control. Notwithstanding anything herein to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more Performance Goals will not be considered assumed if the Company or its successor modifies any of
such Performance Goals without the Participant’s consent; provided, however, a modification to such Performance Goals only to reflect the successor corporation’s post-merger or post-Change in Control corporate structure will not be deemed
to invalidate an otherwise valid Award assumption. 
  

 -17- 

 With respect to Awards granted to an Outside Director, the Participant shall, immediately prior to the
merger or Change in Control, fully vest in such Awards, including Shares as to which it would not otherwise be vested. With respect to Awards granted to an Employee, the Employee, upon a termination of the Employee by the Company or a Related Entity
without Cause or a resignation of the Employee with Good Reason, shall receive one year of additional vesting for each full year of service performed for the Company or a Related Entity; provided, that such termination or resignation occurs within
the twelve (12) month period following a Change in Control. 
  
 16.     Date of Grant. The date of grant of an Award will be, for all purposes, the date on which the Administrator makes the determination granting such Award, or such other later date as is
determined by the Administrator. Notice of the determination will be provided to each Participant within a reasonable time after the date of such grant. 
  
 17.     Term of Plan. Subject to Section 22 of the Plan, the Plan will become effective upon its adoption by the
Board. It will continue in effect for a term of ten (10) years unless terminated earlier under Section 18 of the Plan. 
  
 18.     Amendment and Termination of the Plan. 
  
 (a) Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan. 
  
 (b) Stockholder Approval. The Company will obtain stockholder approval
of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws. Other than pursuant to Section 15, the Company also will obtain stockholder approval before implementing a program to reduce the exercise price of
outstanding Options and/or SARs through a repricing or Award exchange. 
  
 (c) Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan will impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which
agreement must be in writing and signed by the Participant and the Company. Termination of the Plan will not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior
to the date of such termination. 
  

	 	19.	Conditions Upon Issuance of Shares. 

  
 (a) Legal Compliance. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and
delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for the Company with respect to such compliance. 
  

(b) Investment Representations. As a condition to the exercise or receipt of an Award, the Company may require the person exercising or
receiving such Award to represent and warrant at the time of any such exercise or receipt that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for
the Company, such a representation is required. 
  

 -18- 

 20.    Severability. Notwithstanding any contrary provision of the Plan
or an Award to the contrary, if any one or more of the provisions (or any part thereof) of this Plan or the Awards shall be held invalid, illegal or unenforceable in any respect, such provision shall be modified so as to make it valid, legal and
enforceable, and the validity, legality and enforceability of the remaining provisions (or any part thereof) of the Plan or Award, as applicable, shall not in any way be affected or impaired thereby. 
  
 21.    Inability to Obtain Authority. The
inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, will relieve the Company of
any liability in respect of the failure to issue or sell such Shares as to which such requisite authority will not have been obtained. 
  
 22.    Stockholder Approval. The Plan will be subject to approval by the stockholders of the Company within
twelve (12) months after the date the Plan is adopted. Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws. 
  

 -19-Senior Executive Supplemental Retirement Plan

 Exhibit 10.6 
  
 DOLBY LABORATORIES, INC. 
 SENIOR EXECUTIVE 
 SUPPLEMENTAL RETIREMENT PLAN 
  
 Effective Date: October 1, 1994 
  

 DOLBY LABORATORIES, INC. 
 SENIOR EXECUTIVE RETIREMENT PLAN 
  
 TABLE OF CONTENTS 
  

					
	 SECTION

	  	PAGE

			
	 1.
	  	 PURPOSE OF THE PLAN
	  	1
			
	 2.
	  	 DEFINITIONS
	  	 
			
	 2.1
	  	 Account
	  	1
	 2.2
	  	 Beneficiary
	  	1
	 2.3
	  	 Board
	  	1
	 2.4
	  	 Change in Control
	  	1
	 2.5
	  	 Committee
	  	2
	 2.6
	  	 Company
	  	2
	 2.7
	  	 Compensation
	  	2
	 2.8
	  	 Disability
	  	2
	 2.9
	  	 Effective Date
	  	2
	 2.10
	  	 Insolvency
	  	2
	 2.11
	  	 Investment Fund
	  	2
	 2.12
	  	 Participant
	  	2
	 2.13
	  	 Plan
	  	2
	 2.14
	  	 Plan Year
	  	2
	 2.15
	  	 Projected Average Monthly Compensation
	  	2
	 2.16
	  	 Senior Executive
	  	3
	 2.17
	  	 Termination Date
	  	3
	 2.18
	  	 Trust
	  	3
	 2.19
	  	 Trustee
	  	3
	 2.20
	  	 Valuation Date
	  	3
	 2.21
	  	 Year of Benefit Service
	  	3
	 2.22
	  	 Year of Service
	  	3
			
	 3.
	  	 ADMINISTRATION OF THE PLAN
	  	 
			
	 3.1
	  	 Generally
	  	3
	 3.2
	  	 Recordkeeping Responsibility
	  	3
			
	 4.
	  	 ELIGIBILITY
	  	 
			
	 4.1
	  	 Participation
	  	4

  

					
	 4.2
	  	 Cessation of Participation
	  	4
			
	 5.
	  	 CONTRIBUTIONS
	  	 
			
	 5.1
	  	 Target Benefit
	  	4
	 5.2
	  	 Crediting of Contributions
	  	5
	 5.3
	  	 Time for Making Contributions
	  	5
			
	 6.
	  	 INVESTMENT OF ACCOUNTS
	  	 
			
	 6.1
	  	 Investment Direction
	  	6
	 6.2
	  	 Allocation of Income
	  	6
			
	 7.
	  	 DISTRIBUTION
	  	 
			
	 7.1
	  	 Termination
	  	7
	 7.2
	  	 Death Benefit
	  	7
	 7.3
	  	 Methods of Distribution
	  	7
			
	 8.
	  	 BENEFICIARY
	  	 
			
	 8.1
	  	 Designation of Beneficiary
	  	7
	 8.2
	  	 Automatic Designation
	  	8
			
	 9.
	  	 PARTICIPANT’S RIGHTS HELD IN “RABBI” TRUST
	  	8
			
	 10.
	  	 TIME OF ALLOCATION
	  	8
			
	 11.
	  	 VESTING OF PLAN BENEFITS
	  	8
			
	 12.
	  	 MISCELLANEOUS PROVISIONS
	  	 
			
	 12.1
	  	 Nonassignability
	  	8
	 12.2
	  	 No Enlargement of Employment Rights
	  	9
	 12.3
	  	 Applicable Law
	  	9
	 12.4
	  	 Gender and Number
	  	9
			
	 13.
	  	 AMENDMENTS AND TERMINATION
	  	 
			
	 13.1
	  	 Generally
	  	9
	 13.2
	  	 Distribution Upon Termination
	  	9
			
	 14.
	  	 EXPENSES
	  	10
			
	 15.
	  	 EXECUTION
	  	10

  

 DOLBY LABORATORIES, INC. 
 SENIOR EXECUTIVE 
 SUPPLEMENTAL RETIREMENT PLAN 
  
 Section 1. Purpose of the Plan. 
  
 Dolby Laboratories, Inc. (“Company”) wishes to provide to certain
executives of Dolby a vehicle by which selected senior executives may fulfill their pension expectations. The purpose of this Plan is to provide certain senior executives employed by the Company in the United States with the opportunity to receive a
retirement income benefit in addition to any benefits provided under other Company sponsored plans. 
  
 Section 2. Definitions. 
  
 Except as otherwise indicated, all definitions in this Plan shall have the meaning as indicated below: 
  
 2.1 “Account” means the account maintained for a Participant to record his interest under the Plan. An Account may not be encumbered or
assigned by a Participant or any Beneficiary. 
  
 2.2
“Beneficiary” means, any person or entity determined as such under Section 8 who is entitled to receive payments under the Plan because of the death of a Participant. 
  
 2.3 “Board” means, the Board of Directors of the Company. 
  
 2.4 “Change of Control” shall mean the purchase or other
acquisition by any person, entity or group of persons, within the meaning of section 13(d) or 14(d) of the Securities Exchange Act of 1934 (“Act”), or any comparable successor provisions, or beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Act) of 30 percent or more of either the outstanding shares of common stock or the combined voting power of Company’s then outstanding voting securities entitled to vote generally, or the approval by the stockholders
of Company of a reorganization, merger, or consolidation, in each case, with respect to which persons who were stockholders of Company immediately prior to such reorganization, merger or 

  

 Page 1 

 
consolidation do not immediately thereafter, own more than 50 percent of the combined voting power entitled to vote generally in the election of directors of
the reorganized, merged or consolidated Company’s then outstanding securities, or a liquidation or dissolution of Company or of the sale of all or substantially all of Company’s assets. 
  
 2.5 “Committee” means the administrative Committee of three
(3) persons (or such other number as the Board may designate) who shall be appointed by, and who shall serve at the pleasure of, the Board as outlined in Section 3. 
  
 2.6 “Company” means Dolby Laboratories, Inc. and its wholly owned subsidiaries. 
  
 2.7 “Compensation” means with respect to any Participant the
total base compensation paid to a Participant by the Company for a Plan Year. 
  
 2.8 “Disability” means a medically determinable physical or mental impairment which can be expected to result in death or to be of long and indefinite duration and which keeps a Participant from
engaging in any substantial gainful employment. The determination of any Disability under this Plan shall be determined by a licensed physician chosen by the Company. 
  
 2.9 “Effective Date” means October 1, 1994. 
  
 2.10 “Insolvency” means either if (i) Company is unable to pay its debts as they become due, or (ii)
Company is subject to a pending proceeding as a debtor under the United States Bankruptcy Code. 
  
 2.11 “Investment Fund” means such investment funds or vehicles as may be selected by the Committee for the investment of Account balances
under the Plan. 
  
 2.12 “Participant” means any
Senior Executive or former Senior Executive who is participating in the Dolby Laboratories, Inc. Senior Executive Supplemental Retirement Plan. 
  
 2.13 “Plan” means the Dolby Laboratories, Inc. Senior Executive Supplemental Retirement Plan as set forth in this document. 

 
 2.14 “Plan Year” means the twelve month period beginning
October 1 and ending September 30. The first Plan Year is the year beginning October 1, 1994. 
  
 2.15 “Projected Average Monthly Compensation” means a Participant’s monthly Compensation averaged over the thirty-six (36) consecutive months of service in the final three Plan Years preceding
his attainment of age 65. For purposes of this Plan, Projected Average 

  

 Page 2 

 
Monthly Compensation shall be based on the Participant’s annualized rate of Compensation as of June 1, 1995, increased by 5% per annum for each future
Plan Year after September 30, 1995. 
  
 2.16 “Senior
Executive” means an employee of the Company that has been designated eligible to participate in this Plan. 
  
 2.17 “Termination Date” means the date a Participant is no longer treated as employed by the Company on account of his quitting,
discharge, death, Disability, or any other reason. 
  
 2.18
“Trust” means the nonqualified “Rabbi” trust created by the Trustee and Company under the terms of the Plan. 
  
 2.19 “Trustee” means the person or persons named under the Trust as trustees. 
  
 2.20 “Valuation Date” means the last day of the Plan Year or
the last day of each calendar quarter or month, as the Plan Committee may determine. 
  
 2.21 “Year of Benefit Service” means a Plan Year in which a Participant is credited with 1,000 hours of service as an employee with the Company. Participant will also be credited with 1/12 of a Year
of Benefit Service to the nearest full calendar month of employment with the Company during the Plan Year in which such Participant dies or suffers a Disability provided that such Plan Year precedes the Plan Year containing the Participant’s
65th birthday. 
  
 2.22 “Year of Service” means a
Plan Year in which an employee is credited with at least 1,000 hours of service by the Company. 
  
 Section 3. Administration of the Plan. 
  
 3.1 Generally. The Plan shall be administered by the Plan Committee comprised of three (3) persons (or such other number as designated by the board of directors of the Company) who shall be appointed by the
Board of Directors of the Company. All decisions required to be made involving the interpretation, application and administration of the Plan shall be resolved by majority vote either at a meeting or in writing without a meeting. 
  
 3.2 Recordkeeping Responsibility. The Plan Committee shall have the
primary responsibility for record keeping with respect to Plan benefits and for filing such written notices and/or reports as may be required by the Department of Labor. 
  

 Page 3 

 Section 4. Eligibility. 
  
 4.1 Participation. Participation in this Plan shall be limited to Employees who are designated by the Company’s
Board of Directors as executives eligible to participate in the Plan. 
  
 4.2 Cessation of Participation. A Participant’s status as such will cease as of his Termination Date, or the date he otherwise ceases to be a Participant as determined by the Board of Directors, provided, however, the term
“Participant” will include any former Participant who has not received all payments to which he is entitled under the Plan under Section 7. 
  
 Section 5. Contributions. 
  
 5.1 Target Benefit. The Company will contribute amounts on behalf of each Participant which are projected to fund an assumed monthly target benefit
payable to each Participant beginning at age 65, payable in the form of a joint and 50% to survivor annuity, equal to the product of (i) and (ii): 
  

	 	(i)	2.00% of the Participant’s Projected Average Monthly Compensation, determined as of June 1, 1995, 

  
 multiplied by 
  

	 	(ii)	a Participant’s total expected Years of Benefit Service up to 30 years, computed to the nearest full calendar month of completed service. 

  
 For this purpose, expected Years of Benefit Service includes all Years of Benefit Service
rendered prior to October 1, 1994, and all Years of Benefit Service expected to be rendered after September 30, 1994 on the assumption the Participant will render at least 1,000 hours of service as a Participant in each year. 
  
 The contributions will be determined by using a 8% per annum interest rate, post-retirement
mortality based on the 1983 Group Annuity Mortality Table, and an assumption that each Participant is male with a spouse three years younger. Notwithstanding anything to the contrary, 

  

 Page 4 

 
a Participant’s target benefit is not guaranteed, and the Participant’s Account balance will vary according to the investment performance of the
Trust. At Plan inception, a Participant’s Account will be comprised of two components: 
  

	 	(1)	Past Service Component: which is the actuarial present value of the target benefit based on Years of Benefit Service and monthly rate of Compensation as of June 1, 1995. This
past service component shall be contributed to the Trust by the Company on or after October 1, 1994. To the extent contributions are made after October 1, 1994, they shall be adjusted (increased) with interest at 8% per annum.

  

	 	(2)	Future Service Component: which is a level annual Company contribution amount to be contributed to the Trust at the end of each Plan Year ending prior to the
Participant’s attainment of age 65. The present value of the annual future service contributions for each Participant shall be equal to the difference between the present value of Participant’s projected target benefit at age 65, and the
past service component, both determined as of October 1, 1994. 

  
 5.2 Crediting of Contributions. The Plan Committee shall establish and maintain an Account for each Participant. As of the last day of each Plan Year, for each Participant who is employed by the Company on such
date, the Trustee shall allocate the contribution determined under Section 5.1. No contribution shall be allocated to an Account of a Participant who is not employed on the last day of the Plan Year, except that a Participant is entitled to receive
a pro-rata contribution for such Plan Year where a partial Year of Benefit Service is credited under Section 2.21. 
  
 5.3 Time for Making Contributions. The Company will make annual contributions for each Plan Year, with such payments to be allocated among
Participants’ Accounts by the Plan Committee as of the last day of the Plan Year. The Company’s annual contribution may be made 

  

 Page 5 

 
in one or more installments, payable as of the end of the Plan Year, and adjusted for interest attributable to the timing of the installment in relation to
the end of the Plan Year. 
  
 Section 6. Investment of Accounts.

  
 6.1 Investment Direction. 
  
 (a) Unless the Board of Directors of the Company elects
otherwise, the Trustee may invest the Trust solely in Investment Funds selected by the Participants. The Plan Committee or the Board of Directors of the Company shall have the right to determine, from time to time, the options that shall be offered
with respect to the investment of such Accounts, including percentage increments in which such Accounts may be divided among Investment Funds, the maximum number of Investment Funds in which they may invest their Accounts at one time, the times and
effective dates of elections to change investment of such Accounts, the Investment Fund(s) in which such Accounts will be held in the event an investment election is not made, the administrative costs to be charged to individuals for processing of
investment election changes and any other elements affecting the investment of Accounts. 
  
 (b) If the Participant has not directed the Trustee or Plan Committee to invest his Accounts in selected Investment Funds, then the
Trustee may invest such Participant’s Account in a money market type Investment Fund until such direction from the Participant is obtained. 
  
 6.2 Allocation of Income. If a Participant so designates the investment of his Accounts in Investment Funds to the Trustee or the Plan Committee,
his Account will be credited with investment earnings based upon the performance of each Participant’s investment elections, until the Account has been fully distributed to a Participant or to the Beneficiary or Beneficiaries designated by the
Participant in writing delivered to the Company. Pending complete distribution to a Participant, assets in Accounts will be Company assets and income derived thereon will be income to the Company. 
  

 Page 6 

 Section 7. Distribution. 
  
 7.1 Termination. Upon termination of the services or employment of a Participant with the Company for any reason
other than death, the Participant will be entitled to the value of his Account balance determined as of the Valuation Date immediately preceding his Termination Date. Earnings or losses of the Investment Fund(s) will continue to be allocated to a
Participant’s Account as long as he has an Account balance as of any Valuation Date following his Termination Date. 
  
 7.2 Death Benefit. Upon termination of a Participant’s service or employment with the Company by reason of his death, the Participant’s
designated Beneficiary will be entitled to receive all amounts credited to the Account of the Participant as of the date of his death that have not yet been distributed. Said amounts shall be payable in a single lump sum. Upon the death of a former
Participant prior to complete distribution to him of the entire balance of his Account (and after his Termination Date), the balance of his Account on the date of his death shall be payable to the Participant’s designated Beneficiary pursuant
to Section 7.3. 
  
 7.3 Methods of Distribution. The
Company, in its discretion, shall direct distribution of the amounts credited to a Participant’s Account, including investment income credited thereon pursuant to Section 6, to a Participant or his Beneficiary pursuant to the preceding Sections
7.1 or 7.2, in a single lump sum. 
  
 Section 8. Beneficiary.

  
 8.1 Designation of Beneficiary. Each Participant
may designate, by filing a form provided by the Plan committee, a Beneficiary or Beneficiaries to receive any payment in the event of the Participant’s death. A Participant who has filed a designation of Beneficiary may revoke or change it at
any time by filing a new form with the Plan Committee. 
  

 Page 7 

 8.2 Automatic Designation. Unless otherwise notified, the Beneficiary of a married Participant
will automatically be his spouse, and the Beneficiary of an unmarried Participant will be his estate. 
  
 Section 9. Participant’s Rights Held in “Rabbi” Trust. 
  
 The Company shall establish and maintain a “Rabbi” Trust which shall be an irrevocable trust in which the Company shall deposit deferred
compensation payable to a Participant as determined in Section 5 of this Plan. Any “Rabbi” Trust assets are subject to the claims of the Company’s creditors in the event of the Company’s Insolvency, until paid to Participants and
their Beneficiaries. The “Rabbi” Trust shall constitute an unfunded arrangement providing deferred compensation for a select group of senior management executives for purposes of Title I of the Employee Retirement Income Security Act of
1974. 
  
 Section 10. Time of Allocation. 
  
 This Plan shall be administered and individual Participant Accounts shall be
updated at least annually. All allocations under this Plan shall be allocated as of each Valuation Date. 
  
 Section 11. Vesting of Plan Benefits. 
  
 The Account balance of a Participant or Beneficiary under the Plan shall be 100% vested. 
  
 Section 12. Miscellaneous Provisions. 
  
 12.1 Nonassignability. An Employee’s rights and interests under this Plan may not be assigned or transferred. In the event of a
Participant’s death, payment of his Account balance shall be made to the Beneficiaries which he has designated under this Plan pursuant to the written designation filed with the Plan Committee in accordance with Section 8, or in the absence of
such designation, to his estate. 
  

 Page 8 

 12.2 No Enlargement of Employment Rights. Nothing contained in the Plan shall be construed as a
contract of employment between the Company and any person, nor shall the Plan be deemed to give any person the right to be retained in the employ of the Company or to limit the right of the Company to employ or discharge any person with or without
cause, or to discipline any Employee. 
  
 12.3 Applicable
Law. Except as provided by federal law, all questions pertaining to the validity, construction and administration of the Plan shall be determined under the laws of California. 
  
 12.4 Gender and Number. Except as otherwise required by the context, any masculine terminology in this document shall
include the feminine, and any singular terminology shall include the plural. 
  
 Section 13. Amendments and Termination. 
  
 13.1 Generally. The Board of Directors may at any time amend or terminate this Plan in whole or in part without the consent of the Participant or his Beneficiary. No amendment however, shall divest any Participant or Beneficiary of
the credits to his Account, or of any rights to which he would have been entitled if the Plan had been terminated immediately prior to the effective date of the amendment. 
  
 13.2 Distribution Upon Termination. Upon termination of the Plan, distributions of the credits to a
Participant’s Account shall be made in the manner and at the time heretofore prescribed; provided that no additional credits shall be made to the Account of a Participant following termination of the Plan other than investment income credited
pursuant to Section 6. 
  

 Page 9 

 Section 14. Expenses. 
  
 Costs of administration of the Plan will be paid by the Company as may be determined by the Board, with the exception of
investment direction expenses charged to Participants in accordance with Section 6.1(a). 
  
 Section 15. Execution. 
  
 To record the adoption of this Plan, the Company has caused its appropriate officers to affix its corporate name and seal hereto this 28th day of August, 1996. 
  

			
	Dolby Laboratories, Inc.
		
	By	 	/s/    N. W. JASPER, JR.        
	 	 	President
		
	By	 	/s/    JANET L. DALY        
	 	 	Secretary

  

 Page 10 

 FIRST AMENDMENT TO THE DOLBY LABORATORIES, INC. 
 SENIOR EXECUTIVE SUPPLEMENTAL RETIREMENT PLAN 
  
 Effective September 30, 1998, pursuant to Section 13 of the Dolby Laboratories, Inc. Senior Executive Supplemental Retirement Plan (the “Plan”), the Plan is
amended as set forth below. 
  
 1. Section 2.15 is amended to read as follows:

  
 “2.15 ‘Projected Average Monthly
Compensation’ means a Participant’s monthly Compensation averaged over the thirty-six (36) consecutive months of service in the final three Plan Years preceding his attainment of age 65. For purposes of this Plan, Projected Average
Monthly Compensation shall be based on the Participant’s annualized rate of Compensation as of 
  

	 	(a)	June 1, 1995, increased by 5% per annum for each future Plan Year after September 30, 1995, for individuals who became Participants on the Plan’s Effective Date; or

  

	 	(b)	September 30 of the Plan Year in which the individual becomes a Participant, increased by 5% per annum for each future Plan Year after such September 30, for individuals who become
Participants after the Plan’s Effective Date.” 

  
 2.
Section 5.1 is amended to read as follows: 
  
 “5.1 Target
Benefit. The Company will contribute amounts on behalf of each Participant which are projected to fund an assumed monthly target benefit payable to each Participant beginning at age 65, payable in the form of a joint and 50% survivor annuity,
equal to the product of (i) and (ii): 
  

	 	(i)	2.00% of the Participant’s Projected Average Monthly Compensation, multiplied by 

  

	 	(ii)	a Participant’s total expected Years of Benefit Service up to 30 years, computed to the nearest full calendar month of completed service. 

  

 For this purpose, expected Years of Benefit Service includes all Years of Benefit Service rendered prior to October 1,
1994, and all Years of Benefit Service expected to be rendered after September 30, 1994 on the assumption the Participant renders at least 1,000 hours of service as a Participant in each year. 
  
 The contributions will be determined by using a 8% per annum interest rate, post-retirement
mortality, based on the 1983 Group Annuity Mortality Table, and an assumption that each Participant is male with a spouse three years younger. Notwithstanding anything to the contrary, a Participant’s target benefit is not guaranteed, and the
Participant’s Account balance will vary according to the investment performance of the Trust. A Participant’s Account will be comprised of two components: 
  

	 	(1)	Past Service Component: 

  

	 	(a)	With respect to individuals who became Plan Participants on the Effective Date, the actuarial present value of the target benefit based on Years of Benefit Service and monthly rate
of Compensation as of June 1, 1995. This past service component shall be contributed to the Trust by the Company on or after October 1, 1994. To the extent contributions are made after October 1, 1994, they shall be adjusted (increased) with
interest at 8% per annum. 

  

	 	(b)	With respect to individuals who become Plan Participants after the Effective Date, the actuarial present value of the target benefit based on Years of Benefit Service and monthly
rate of Compensation as of September 30 of the Plan Year in which the individual becomes a Participant. This past service component shall be contributed to the Trust by the Company on or after such September 30. To the extent contributions are made
after such September 30, they shall be adjusted (increased) with interest at 8% per annum. 

  

	 	(2)	Future Service Component: 

  

	 	(a)	With respect to individuals who became Plan Participants on the Effective Date, a level annual Company contribution amount to be contributed to the Trust at the end of each Plan
Year ending prior to the Participant’s attainment of age 65. The present value of the annual future service contributions for each Participant shall be equal to the difference between the present value of the Participant’s projected target
benefit at age 65, and the past service component, both determined as of October 1, 1994. 

  

	 	(b)	With respect to individuals who become Plan Participants after the Effective Date, a level annual Company contribution amount to be contributed to the Trust at the end of each Plan
Year (commencing with the first Plan Year after the initial year of Plan participation) and ending with the Plan Year prior to the Participant’s attainment of age 65. The present value of the annual future service contributions for each
Participant shall be equal to the difference between the present value of the Participant’s projected target benefit at age 65, and the past service component, both determined as of September 30 of the Plan Year in which the individual becomes
a Participant.” 

  
 IN WITNESS WHEREOF, Dolby Laboratories,
Inc. has caused this First Amendment to the Dolby Laboratories, Inc. Senior Executive Supplemental Retirement Plan to be executed by its duly authorized representatives this 5th day of October , 1999. 
  

			
		
	By:	 	/s/    JANET L. DALY        
		
	 Date:
	 	 10-5-99

  

 TRUST UNDER 
 THE DOLBY LABORATORIES, INC. 
 SENIOR EXECUTIVE SUPPLEMENTAL RETIREMENT PLAN 
  
 This Agreement is made by and between Dolby Laboratories, Inc. (Company) and
The Charles Schwab Trust Company (Trustee). 
  
 WHEREAS, Dolby
Laboratories, Inc. has adopted the nonqualified deferred compensation Plan known as The Dolby Laboratories, Inc. Senior Executive Supplemental Retirement Plan. 
  

WHEREAS, Dolby Laboratories, Inc. has incurred or expects to incur liability under the terms of such Plan with respect to the individuals participating
in such Plan. 
  
 WHEREAS, Dolby Laboratories, Inc. wishes to
establish a trust (hereinafter called “Trust”) and to contribute to the Trust assets that shall be held therein, subject to the claims of Company’s Insolvency, as herein defined, until paid to Plan participants and their beneficiaries
in such manner and at such times as specified in the Plan; 
  
 WHEREAS, it is the intention of the parties that this Trust shall constitute an unfunded arrangement and shall not affect the status of the Plan as an unfunded plan maintained for the purpose of providing deferred compensation for a select
group of management or highly compensated employees for purposes of Title I of the Employee Retirement Income Security Act of 1974; 
  
 WHEREAS, it is the intention of Dolby Laboratories, Inc. to make contributions to the Trust to provide itself with a source of funds to assist it in the
meeting of its liabilities under the Plan; 
  
 NOW, THEREFORE, the
parties do hereby establish the Trust and agree that the Trust shall be comprised, held and disposed of as follows: 
  
 SECTION 1. ESTABLISHMENT OF TRUST 
  
 (a) Company hereby deposits with Trustee in trust $100 (one hundred dollars), which shall become the principal of the Trust to be held,
administered and disposed of by Trustee as provided in this Trust Agreement. 
  
 (b) The Trust hereby established shall be irrevocable. 
  

 Trust Page 1 

 (c) The Trust is intended to be a grantor trust, of which Company is the grantor, within the meaning of
subpart E, part I, subchapter J, chapter 1, subtitle A of the Internal Revenue Code of 1986, as amended, and shall be construed accordingly. 
  
 (d) The principal of the Trust, and any earnings thereon shall be held separate and apart from other funds of Company and shall be used exclusively for
the uses and purposes of Plan participants and general creditors as herein set forth. Plan participants and their beneficiaries shall have no preferred claim on, or any beneficial ownership interest in any assets of the Trust. Any rights created
under the Plan and this Trust Agreement shall be mere unsecured contractual rights of Plan participants and their beneficiaries against Company. Any assets held by the Trust will be subject to the claims of Company’s general creditors under
federal and state law in the event of Insolvency, as defined in Section 3(a) herein. 
  
 (e) Company, in its sole discretion, may at any time, or from time to time, make additional deposits of cash or other property in trust with Trustee to augment the principal to be held, administered and disposed of by
Trustee as provided in this Trust Agreement. Neither Trustee nor any Plan participant or beneficiary shall have any right to compel such additional deposits. 
  
 (f) Upon a Change of Control, Company shall, as soon as possible, but in no event longer than 30 days following the Change of Control, as defined herein,
make an irrevocable contribution to the Trust in an amount that is sufficient to pay each Plan participant or beneficiary the benefits to which Plan participants or their beneficiaries would be entitled pursuant to the terms of the Plan(s) as of the
date on which the Change of Control occurred. 
  
 SECTION 2. PAYMENTS TO PLAN PARTICIPANTS AND THEIR BENEFICIARIES. 
  
 (a) Company shall deliver to Trustee a schedule (the “Payment Schedule”) that indicates the amounts payable in respect of each Plan participant (and his or her beneficiaries), that provides a formula or
other instructions acceptable to Trustee for determining the amounts so payable, the form in which such amount is to be paid (as provided for or available under the Plan), and the time of commencement for payment of such amounts. Except as otherwise
provided herein, Trustee shall make payments to the Plan participants and their beneficiaries in accordance with such Payment Schedule. The trustee shall make provision for the reporting and withholding of any federal, state or local taxes that may
be required to be withheld with respect to the payment of benefits pursuant to the terms of the Plan and shall pay amounts withheld to the appropriate taxing authorities or determine that such amounts have been reported, withheld and paid by
Company. 
  
 (b) The entitlement of a Plan participant or his or
her beneficiaries to benefits under the Plan shall be determined by Company or such party as it shall designate under the Plan, and any claim for such benefits shall be considered and reviewed under the procedures set out in the Plan. 
  

 Trust Page 2 

 (c) Company may make payment of benefits directly to Plan participants or their beneficiaries as they
become due under the terms of the Plan. Company shall notify Trustee of its decision to make payment of benefits directly prior to the time amounts are payable to participants or their beneficiaries. In addition, if the principal of the Trust, and
any earnings thereon, are not sufficient to make payments of benefits in accordance with the terms of the Plan, Company shall make the balance of each such payment as it falls due. Trustee shall notify Company where principal and earnings are not
sufficient. 
  
 SECTION 3. TRUSTEE RESPONSIBILITY REGARDING PAYMENTS TO TRUST
BENEFICIARY WHEN COMPANY IS INSOLVENT. 
  
 (a) Trustee shall
cease payment of benefits to Plan participants and their beneficiaries if the Company is Insolvent. Company shall be considered “Insolvent” for purposes of this Trust Agreement if (i) Company is unable to pay its debts as they become due,
or (ii) Company is subject to a pending proceeding as a debtor under the United States Bankruptcy Code. 
  
 (b) At all times during the continuance of this Trust, as provided in Section 1(d) hereof, the principal and income of the Trust shall be subject to
claims of general creditors of Company under federal and state law as set forth below. 
  
 (1) The Board of Directors and the President of the Company shall have the duty to inform Trustee in writing of Company’s Insolvency.
If a person claiming to be a creditor of Company alleges in writing to Trustee that Company has become Insolvent, Trustee shall determine whether Company is Insolvent and, pending such determination, Trustee shall discontinue payment of benefits to
Plan participants or their beneficiaries. 
  
 (2)
Unless Trustee has actual knowledge of Company’s Insolvency, or has received notice from Company or a person claiming to be a creditor alleging that Company is Insolvent, Trustee shall have no duty to inquire whether Company is Insolvent.
Trustee may in all events rely on such evidence concerning Company’s solvency as may be furnished to Trustee and that provides Trustee with a reasonable basis for making a determination concerning Company’s solvency. 
  
 (3) If at any time Trustee has determined that Company is
Insolvent, Trustee shall discontinue payments to Plan participants or their beneficiaries and shall hold the assets of the Trust for the benefit of Company’s general creditors. Nothing in this Trust Agreement shall in any way diminish any
rights as general creditors of Company with respect to benefits due under the Plan or otherwise. 
  
 (4) Trustee shall resume the payment of benefits to Plan participants or their beneficiaries in accordance with Section 2 of this Trust
Agreement only after Trustee has determined that Company is not Insolvent (or is no longer Insolvent). 
  

 Trust Page 3 

 (c) Provided that there are sufficient assets, if Trustee discontinues the payment of benefits from the
Trust pursuant to Section 3(b) hereof and subsequently resumes such payments, the first payment following such discontinuance shall include the aggregate amount of all payments due to Plan participants or their beneficiaries under the terms of the
Plan for the period of such discontinuance, less the aggregate amount of any payments made to Plan participants or their beneficiaries by Company in lieu of the payments provided for hereunder during any such period of discontinuance. 
  
 SECTION 4. PAYMENTS TO COMPANY. 
  
 Except as provided in Section 3 hereof, after Trust has become irrevocable,
Company shall have no right or power to direct Trustee to return to Company or to divert to others any of the Trust assets before all payment of benefits have been made to Plan participants and their beneficiaries pursuant to the terms of the Plan.

  
 SECTION 5. INVESTMENT AUTHORITY.

  
 (a) As soon as practicable after receipt of Plan
contributions from the Company, or within a reasonable time after receipt of appropriate investment instructions from the Company or an investment manager chosen by the Company, the Trustees shall invest such Trust Fund monies in accordance, where
applicable, with such instructions. In no event may Trustee invest in securities (including stock or rights to acquire stock) or obligations issued by Company, other than a de minimis amount held in common investment vehicles in which Trustee
invests. All rights associated with assets of the Trust shall be exercised by Trustee or the person designated by Trustee, and shall in no event be exercisable and or rest with Plan participants. 
  
 (b) Company shall have the right, at anytime, and from time to time in its
sole discretion, to substitute assets of equal fair market value for any asset held by the Trust. Any substitute assets must be acceptable to the Trustee. 
  
 SECTION 6. DISPOSITION OF INCOME. 
  
 During the term of this Trust, all income received by the Trust, net of expenses and taxes, shall be accumulated and reinvested. 
  
 SECTION 7. ACCOUNTING BY TRUSTEE. 
  
 Trustee shall keep accurate and detailed records of all investments,
receipts, disbursements, and all other transactions required to be made, including such specific records as shall be agreed upon in writing between Company and Trustee. Within 90 days following the close of each calendar year and within 90 days
after the removal or resignation of Trustee, 

  

 Trust Page 4 

 
Trustee shall deliver to Company a written account of its administration of the Trust during such year or during the period from the close of the last
preceding year to the date of such removal or resignation, setting forth all investments, receipts, disbursements and other transactions effected by it, including a description of all securities and investments purchased and sold with the cost or
net proceeds of such purchases or sales (accrued interest paid or receivable being shown separately), and showing all cash, securities and other property held in the Trust at the end of such year or as of the date of such removal or resignation, as
the case may be. 
  
 SECTION 8. RESPONSIBILITY
OF TRUSTEE. 
  
 (a) Trustee shall act with the care, skill,
prudence and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims provided, however, that
Trustee shall incur no liability to any person for any action taken pursuant to a direction, request or approval given by Company which is contemplated by, and in conformity, the terms of the Plan or this Trust and is given in writing by Company. In
the event of a dispute between Company and a party, Trustee may apply to a court of competent jurisdiction to resolve the dispute. 
  
 (b) Trustee may consult with legal counsel (who may also be counsel for Company generally) with respect to any of its duties or obligations hereunder.

  
 (c) Trustee shall have, without exclusion, all powers
conferred on Trustees by applicable law, unless expressly provided otherwise herein, provided, however, that if an insurance policy is held as an asset of the Trust, Trustee shall have no power to name a beneficiary of the policy other than the
Trust, to assign the policy (as distinct from conversion of the policy to a different form) other than to a successor Trustee, or to loan to any person the proceeds of any borrowing against such policy. 
  
 (d) Notwithstanding any powers granted to Trustee pursuant to this Trust
Agreement or to applicable law, Trustee shall not have any power that could give this Trust the objective of carrying on a business and dividing the gains therefrom, within the meaning of section 301.7701-2 of the Procedure and Administrative
Regulations promulgated pursuant to the Internal Revenue Code. 
  
 SECTION 9. COMPENSATION AND EXPENSES OF TRUSTEE. 
  
 Company shall pay all administrative and Trustee’s fees and expenses. If not so paid, the fees and expenses shall be paid from the Trust. 
  

 Trust Page 5 

 SECTION 10. RESIGNATION AND REMOVAL OF TRUSTEE. 
  
 (a) Trustee may resign at any time by written notice to Company, which shall
be effective 30 days after receipt of such notice unless Company and Trustee agree otherwise. 
  
 (b) Trustee may be removed by Company on 30 days notice or upon shorter notice accepted by Trustee. 
  
 (c) Upon resignation or removal of Trustee and appointment of a successor Trustee, all assets shall subsequently be transferred to the successor Trustee.
The Transfer shall be completed within 90 days after receipt of notice of resignation, removal or transfer, unless Company extends the time limit. 
  
 (d) If Trustee resigns or is removed, a successor shall be appointed, in accordance with section 11 hereof, by the effective day or resignation or removal
under paragraph(s) (a) or (b) of this section. If no such appointment has been made, Trustee may apply to a court of competent jurisdiction for appointment of a successor or for instructions. All expenses of Trustee in connection with the proceeding
shall be allowed as administrative expenses of the Trust. 
  
 SECTION 11. APPOINTMENT OF SUCCESSOR. 
  
 (a) If Trustee resigns (or is removed) in accordance with Section 10(a) or (b) hereof, Company may appoint any third party, such as a bank trust department or other party that may be granted corporate trustee powers
under state law, as a successor to replace Trustee upon resignation or removal. The appointment shall be effective when accepted in writing by the new Trustee, who shall have all of the rights and powers of the former Trustee, including ownership
rights in the Trust assets. The former Trustee shall execute any instrument necessary or reasonably requested by Company or the successor Trustee to evidence the transfer. 
  
 (b) The successor Trustee need not examine the records and acts of any prior Trustee and may retain or dispose of existing
Trust assets, subject to Sections 7 and 8 hereof. The successor Trustee shall not be responsible for and Company shall indemnify and defend the successor Trustee from any claim or liability resulting from any action or inaction of any prior Trustee
or from any other past event, or any condition existing at the time it becomes successor Trustee. 
  

 Trust Page 6 

 SECTION 12. AMENDMENT OR TERMINATION. 
  
 (a) This Trust Agreement may be amended by a written instrument executed by
Trustee and Company. Notwithstanding the foregoing, no such amendment shall conflict with the terms of the Plan or shall make the Trust revocable after it has become irrevocable in accordance with Section 1(b) hereof. 
  
 (b) The Trust shall not terminate until the date on which Plan participants
and their beneficiaries are no longer entitled to benefits pursuant to the terms of the Plan. Upon termination of the Trust any assets remaining in the Trust shall be returned to Company. 
  
 (c) Upon written approval of participants or beneficiaries entitled to payment of benefits pursuant to the terms of the
Plan, Company may terminate the Trust prior to the time all benefit payments under the Plan have been made. All assets in the Trust at termination shall be returned to Company. 
  
 SECTION 13. MISCELLANEOUS. 
  
 (a) Any provision of this Trust Agreement prohibited by law shall be ineffective to the extent of any such prohibition,
without invalidating the remaining provisions hereof. 
  
 (b)
Benefits payable to Plan participants and their beneficiaries under this Trust Agreement may not be anticipated, assigned (either at law or in equity), alienated, pledged, encumbered or subjected to attachment, garnishment, levy, execution or other
legal or equitable process. 
  
 (c) This Trust Agreement shall be
governed by and construed in accordance with the laws of California. 
  
 (d) For purposes of this Trust Agreement, “Change of Control” shall mean the purchase or other acquisition by any person, entity or group of persons, within the meaning of section 13(d) or 14(d) of the Securities Exchange Act of
1934 (“Act”), or any comparable successor provisions, or beneficial ownership (within the meaning of Rule l3d-3 promulgated under the Act) of 30 percent or more of either the outstanding shares of common stock or the combined voting power
of Company’s then outstanding voting securities entitled to vote generally, or the approval by the stockholders of Company of a reorganization, merger, or consolidation, in each case, with respect to which persons who were stockholders of
Company immediately prior to such reorganization, merger or consolidation do not immediately thereafter, own more than 50 percent of the combined voting power entitled to vote generally in the election of directors of the reorganized, merged or
consolidated Company’s then outstanding securities, or a liquidation or dissolution of Company or of the sale of all or substantially all of Company’s assets. 
  

 Trust Page 7 

 SECTION 14. EFFECTIVE DATE. 
  
 The effective date of this Trust Agreement shall be August 30, 1996. 
  
 SECTION 15. EXECUTION. 
  
 To record the adoption of this Trust, the Company (through its appropriate officers) and the
Trustee have affixed their names hereto this 30th day of August, 1996. 
  

			
		
	 By
	 	/S/    JANET L.
DALY        
	 	 	Dolby Laboratories, Inc.
		
	By	 	/S/    DOROTHY
BUGGLE        
	 	 	The Charles Schwab Trust Company, Trustee

  

 Trust Page 8 

 ADDENDUM TO 
 The Trust Under The Dolby Laboratories, Inc. Senior Executive 
 Supplemental Retirement Plan

  
 This ADDENDUM is entered into this 30th day of
August, 1996, by and between Dolby Laboratories, Inc. (the “Employer”), and THE CHARLES SCHWAB TRUST COMPANY (the “Trustee”). 
  
 ARTICLE 1 
 INVESTMENTS 
  
 1.1 (a) Except as provided below, the Company shall have all power over and
responsibility for the management, disposition, and investment of the Trust assets, and the Trustee shall comply with proper written directions of the Company concerning those assets and shall retain assets until directed in writing by the Company
to dispose of them. 
  
 (b) As permitted under
the Plan, each participant and/or beneficiary may have investment power over the account maintained for him or her, and may direct the investment and reinvestment of assets of the account among the options authorized by the Company. To the extent
provided under ERISA section 404(c), the Trustee shall not be liable for any loss, or by reason of any breach, which results from such participant’s or beneficiary’s exercise of control. If a participant who has investment authority under
the terms of the plan fails to provide such directions, the Company shall direct the investment of the participant’s accounts. 
  
 (c) As permitted under the Plan, the Company may appoint an investment manager or managers within the meaning of section 3(38) of ERISA to
direct, control or manage the investment of all or a portion of the Trust assets. The Trustee shall act only upon receipt of proper written directions from a duly appointed investment manager, and shall have no liability to review or question any
such directions. 
  
 1.2 In its administration of the Trust Fund,
the Trustee shall have and exercise whatever powers are necessary to discharge its obligations and exercise its rights under the Trust Agreement. Subject to the direction of the Company, or the person authorized to make investment decisions, (the
“Authorized Person”), the Trustee shall have full power and authority with respect to property held in the Trust Fund to exercise all such rights and privileges, including, without limitation, the following: 
  
 (a) To hold all assets of the Trust Fund pending investment
or distribution, the Trustee may delegate the duty to hold such assets to Charles Schwab & Co., Inc. or another Broker designated by the authorized person. The Trustee is authorized to hold that portion of the Trust Fund as it may deem necessary
for ordinary administration and for the disbursement of funds in cash, without liability for interest, by depositing the same in any bank, including The Charles Schwab Trust Company, without regard to the amount of any such deposit. 
  

 (b) To deposit securities in a security depository and permit the securities so deposited
to be held in the name of the depository’s nominee, and to deposit securities issued or guaranteed by the U.S. government or any agency or instrumentality thereof, including securities evidenced by book entry rather than by certificate, with
the U.S. Department of the Treasury, a Federal Reserve Bank or other appropriate custodial entity, in the same account as the Trustee’s own property, provided the Trustee’s records and accounts show that such securities are assets of the
Trust Fund; 
  
 (c) To deliver to the Company, or
the person or persons identified by the Company, proxies and powers of attorney and related informational material, for any shares or other property held in the Trust. The Company shall have responsibility for voting such shares, by proxy or in
person, except to the extent such responsibility is delegated to another person, under the terms of the Plan or Trust Agreement, in which case such persons shall have such responsibility. The Trustee may use agents to effect such delivery to the
Company or the person or persons identified by the Company. In no event shall the Trustee be responsible for the voting of shares of securities held in the Trust or for ascertaining or monitoring whether, or how, proxies are voted or whether the
proper number of proxies is received. 
  
 ARTICLE 2 
 USE OF AFFILIATES 
  
 2.1 Trustee is authorized to contract or make other arrangements with The Charles Schwab Corporation, Charles Schwab & Co., Inc., their affiliates and
subsidiaries, successors and assigns, and any other organizations affiliated with or subsidiaries of Trustee or related entities, for the provision of services to the Trust Fund or Plan, except where such arrangements are prohibited by law or
regulation. 
  
 2.2 Trustee is authorized to place securities
orders, settle securities trades, hold securities in custody and other related activities on behalf of the Trust Fund through or by Charles Schwab & Co., Inc. whenever possible unless the Authorized Person specifically instructs the use of
another Broker. Trades and related activities conducted through the Broker shall be subject to fees and commissions established by the Broker, which may be paid from the Trust Fund or netted from the proceeds of trades. 
  
 Trades shall not be executed through Charles Schwab & Co., Inc. unless
the Company and the Authorized Person have received disclosure concerning the relationship of Charles Schwab & Co., Inc. to Trustee, and the fees and commissions which may be paid to The Charles Schwab Corporation, Charles Schwab & Co.,
Inc., Trustee and any affiliate or subsidiary of any of them as a result of using Charles Schwab & Co., Inc. to execute trades or for other services. 
  
 Trustee is authorized to disclose such information as is necessary to the operation and administration of the Trust Fund to The Charles Schwab Corporation
or any of its affiliates, and to such other persons or organizations that Trustee determines have a legitimate business purpose for obtaining such information. 
  

2.3 At the direction of the Employer, Trustee may purchase shares of regulated investment companies (or other investment vehicles) advised by The
Charles Schwab 

  

 2 

 
Corporation, Charles Schwab & Co., Inc. or Trustee, or any affiliate or subsidiary of any of them (“Schwab Funds”), except to the extent that
such investment is prohibited by law or regulation. Schwab Fund shares may not be purchased for or held by the Trust Fund unless the Company has received disclosure concerning the relationship of The Charles Schwab Corporation, Charles Schwab &
Co., Inc., Trustee, and any affiliate or subsidiary of any of them, to the Schwab Funds, and any fees which may be paid to such entities. 
  
 ARTICLE 3 
 INDEMNIFICATION 
  
 3.1 To the extent permitted under ERISA, the Employer shall indemnify and
hold harmless the Trustee, its officers, employees, and agents from and against all liabilities, losses, expenses, and claims (including reasonable attorney’s fees and costs of defense) arising out of (1) the acts or omissions to act with
respect to the Plan or Trust by persons unrelated to the Trustee (“unrelated persons”), (2) the Trustee’s action or inaction with respect to the Plan or Trust resulting from reliance on the action or inaction of unrelated persons,
including directions to invest or otherwise deal with Plan assets, or (3) any violation by any unrelated person of the provisions of ERISA or the regulations thereunder, unless the Trustee commits a breach of its duties by reason of its negligence
or willful misconduct. Expenses incurred by the Trustee which it believes to be subject to indemnification under this Agreement shall be paid by the Employer upon the Trustee’s request, provided that the Employer may delay payment of any amount
in dispute until such dispute is resolved according to the provisions of Section 5.3 of this Agreement. Such resolution may include the award of interest on unpaid amounts determined to be payable to the Trustee under this Section. 
  
 ARTICLE 4 
 RESIGNATION OR REMOVAL OF TRUSTEE 
  
 4.1 If either party has given notice of Trustee removal or resignation as provided under the Plan & Trust Agreement, and upon the expiration of the advance notice period no other successor Trustee has been
appointed and has accepted such appointment, this provision shall serve as (i) notice of appointment of the Chief Executive Officer of the Employer as Trustee and (ii) as acceptance by that person of that appointment. 
  
 ARTICLE 5 
 MISCELLANEOUS 
  
 5.1
Trustee and Charles Schwab & Co., Inc. are authorized to tape record conversations between Trustee or Charles Schwab & Co., Inc. and persons acting on behalf of the Plan or a Participant in order to verify data on transactions. 

 
 5.2 Any dispute under the Plan or Trust involving the Employer and Trustee
shall be resolved by submission of the issue to a member of the American Arbitration Association who is chosen by the Employer and the Trustee. If the Employer and the Trustee cannot agree on such a choice, each shall nominate a member of the
American Arbitration Association, and the two 

  

 3 

 
nominees will then select an arbitrator. Expenses of the arbitration shall be paid as decided upon by the arbitrator. 
  
 5.3 This Addendum is incorporated into and is a part of the Plan and Trust.
Anything in any other part of the Plan or Trust that is inconsistent with this Addendum is overridden, and in the case of such conflict, the terms of this Addendum shall govern. 
  
 IN WITNESS WHEREOF, DOLBY LABORATORIES, INC. and THE CHARLES SCHWAB TRUST COMPANY, have caused this Addendum to be executed
by their respective officers thereunto duly authorized as of the day and year first above written. 
  

			
	 DOLBY LABORATORIES, INC.
 Employer

		
	By:	 	/s/    JANET L. DALY        
	 Printed Name:
	 	Janet L. Daly
	 Title:
	 	Vice President, Finance & Administration
	
	 THE CHARLES SCHWAB TRUST COMPANY,
 Trustee

		
	By:	 	/s/    DOROTHY BUGGLE        
	 Printed Name:
	 	Dorothy Buggle
	 Title:
	 	PLAN CONVERSION ANALYST

  

 4

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