Document:

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                                                                   Exhibit 10.25

                          AGREEMENT AND PLAN OF MERGER

      This Agreement and Plan of Merger (the "Agreement") was made and entered
into as of October 7, 2004, and amended and restated as of October 22, 2004,
between Pacific Data Images, Inc., a California corporation ("Target" and after
the Effective Time of the Merger (as defined below) the "Surviving
Corporation"), DreamWorks Animation SKG, Inc., a Delaware corporation (the
"Acquiror"), and DWA Acquisition Corp., a Delaware corporation ("Sub"). Target
and Sub are hereinafter collectively referred to as the "Constituent
Corporations."

      The Constituent Corporations hereby agree as follows:

1.    THE MERGER.

      (a)   MERGER OF SUB WITH AND INTO TARGET.

            (i) AGREEMENT TO ACQUIRE TARGET. Subject to the terms of this
Agreement (the "Merger Agreement"), Target shall be acquired by Acquiror through
a merger (the "Merger") of Sub with and into Target. The closing of the Merger
(the "Closing") will take place at 10:00 a.m., New York time, on a date to be
specified by the parties (the "Closing Date") at the offices of Cravath, Swaine
& Moore LLP, 825 Eighth Avenue, New York, NY 10019.

            (ii) EFFECTIVE TIME OF THE MERGER. The Merger shall be effective
(the "Effective Time") as prescribed by law.

            (iii) SURVIVING CORPORATION. At the Effective Time of the Merger,
Sub shall be merged with and into Target and the separate corporate existence of
Sub shall thereupon cease. Target shall be the surviving corporation in the
Merger and the separate corporate existence of Target, with all its purposes,
objects, rights, privileges, powers, immunities and franchises, shall continue
unaffected and unimpaired by the Merger.

      (b)   EFFECT OF THE MERGER; ADDITIONAL ACTIONS.

            (i) EFFECTS. The Merger shall have the effects set forth in Section
1107 of the California General Corporation Law (the "CGCL") and Section 259 of
the Delaware General Corporation Law.

            (ii) ADDITIONAL ACTIONS. If, at any time after the Effective Time of
the Merger, Target shall consider or be advised that any deeds, bills of sale,
assignments, assurances or any other actions or things are necessary or
desirable (i) to vest, perfect or confirm of record or otherwise in Target its
right, title or interest in, to or under any of the rights, properties or assets
of either Constituent Corporation acquired or to be acquired by Target as a
result of, or in connection with, the Merger or (ii) to otherwise carry out the
purposes of this Agreement, each Constituent Corporation and its officers and
directors shall be deemed to have granted to Target an irrevocable power of
attorney to execute and deliver all such deeds, bills of sale, assignments and
assurances and to take and do all such other actions and things as may be
necessary or desirable to vest, perfect or confirm any and all right, title and
interest in, to and under such

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rights, properties or assets in Target and otherwise to carry out the purposes
of this Agreement; and the officers and directors of Target are fully authorized
in the name of each Constituent Corporation or otherwise to take any and all
such actions.

2.    THE CONSTITUENT CORPORATIONS.

      (a) ORGANIZATION OF TARGET.

            (i) INCORPORATION. Target was incorporated under the laws of the
State of California on August 13, 1980.

            (ii) AUTHORIZED STOCK. Target is authorized to issue one class of
shares designated Common Stock in the aggregate amount of 30,000,000 shares
("Target Common Stock") .

            (iii) OUTSTANDING STOCK. As of the date of this Agreement,
11,356,610 shares of Target Common Stock were outstanding.

      (b) ORGANIZATION OF SUB.

            (i) INCORPORATION. Sub was incorporated under the laws of the State
of Delaware on September 14, 2004.

            (ii) AUTHORIZED STOCK. Sub is authorized to issue an aggregate of
1,000 shares of Common Stock ("Sub Stock").

            (iii) OUTSTANDING STOCK. On the date hereof, an aggregate of 1,000
shares of Sub Stock are outstanding.

      (c) TARGET SHAREHOLDER APPROVAL. The holders of a majority of the
outstanding shares of Target's Common Stock are expected to approve and adopt
this Agreement without a meeting by written consent in accordance with the
provisions of Section 603 of the CGCL.

                                      -2-
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3.    AMENDED ARTICLES OF INCORPORATION; BY-LAWS AND DIRECTORS AND OFFICERS OF
      TARGET.

      (a) AMENDMENT OF TARGET'S ARTICLES OF INCORPORATION.

            (i) AUTHORIZED STOCK AT MERGER. At the Effective Time of the Merger,
Article V of the Articles of Incorporation of Target shall be amended in its
entirety to read as set forth on Exhibit A attached hereto.

            (ii) ARTICLES OF INCORPORATION OF SURVIVING CORPORATION. The
Articles of Incorporation of Target in effect at the Effective Time of the
Merger, as amended as provided in clause (a)(i) above, shall be the Articles of
Incorporation of the Surviving Corporation unless and until amended as provided
by applicable law.

      (b) BYLAWS. The Bylaws of Target, as in effect immediately prior to the
Effective Time, shall be the Bylaws of the Surviving Corporation until
thereafter amended as provided by California law and such Bylaws.

      (c) OFFICERS AND DIRECTORS OF SURVIVING CORPORATION. The directors of Sub
in effect immediately prior to the Effective Time of the Merger shall be the
directors of the Surviving Corporation, and the officers of Target immediately
prior to the Effective Time of the Merger shall be the officers of the Surviving
Corporation, in each case until the earlier of their resignation or removal or
until their respective successors shall have been duly elected and qualified.

4.    EFFECT OF THE MERGER ON THE CAPITAL STOCK OF THE CONSTITUENT CORPORATIONS;
      EXCHANGE OF CERTIFICATES.

      (a) EFFECT ON CAPITAL STOCK. As of the Effective Time of the Merger, by
virtue of the Merger and without any action on the part of the holder of any
shares of Target Common Stock:

            (i) CAPITAL STOCK OF SUB. Each issued and outstanding share of
capital stock of Sub shall be converted into and become one fully paid and
non-assessable share of Target Common Stock. Each stock certificate of Sub
evidencing ownership of any such shares shall continue to evidence ownership of
such shares of capital stock of the Surviving Corporation.

            (ii) CANCELLATION OF TREASURY STOCK. All shares of Target Common
Stock that are owned by Target (as treasury stock), Acquiror or Sub shall be
canceled and retired and shall cease to exist and no consideration shall be
delivered in exchange therefor.

            (iii) CONVERSION OF TARGET COMMON STOCK. The issued and outstanding
shares of Target capital stock (other than shares to be canceled pursuant to
Section 4(a)(ii) hereof and shares, if any, held by persons exercising
dissenters' rights in accordance with Section 1300 of the CGCL) held by a holder
of record of Target capital stock immediately prior to the Effective Time shall
be converted, without any action on the part of such holder, into the right to
receive a number of whole shares of Class A common stock of Acquiror, $.01 par
value

                                      -3-
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("Acquiror Common Stock"), determined by multiplying the number of shares of
Target capital stock held by such holder of Target capital stock by a fraction
(the "Exchange Ratio"), the numerator of which is $6.50, and the denominator of
which is the initial public offering price per share of Class A common stock of
the Acquiror in connection with its initial public offering (the "Merger
Consideration") and rounding the product up for any fraction equal to or greater
than one half, and rounding the product down for any fraction that is less than
one half. The initial public offering price per share of Class A common stock of
the Acquiror shall be determined by reference to the per share amount appearing
under the column "Price to Public" on the cover page of the Acquiror's
prospectus, dated October 28, 2004, regarding the offering of 29,000,000 shares
of Class A common stock of the Acquiror, without any deduction for underwriting
discounts and commissions.

            (iv) CONVERSION OF TARGET OPTIONS. As of the Effective Time, each
outstanding option to purchase shares of Target Common Stock granted pursuant to
the PDI Inc. 1996 Equity Incentive Plan and the PDI Inc. 1998 Stock Plan (the
"Target Stock Option Plans"), whether vested or unvested (a "Target Option"),
will be converted into an option to purchase shares of Acquiror Common Stock
(each, an "Acquiror Option"). In addition, the Target Stock Option Plans shall
be terminated by resolution of the Target's board of directors. Except as
provided below, each such Target Option converted by Acquiror under this
Agreement shall retain its respective vesting schedule as set forth under the
applicable Target Stock Option Plan; however, the converted Target Options will
be governed by the 2004 Omnibus Incentive Compensation Plan as of the Effective
Time. The 2004 Omnibus Incentive Compensation Plan shall provide for terms and
conditions such that the converted Target Options shall continue to be subject
to the same terms and conditions that are comparable to those set forth in the
applicable Target Stock Option Plan, except that (i) each such option will be
exercisable for that number of whole shares of Acquiror Common Stock obtained by
multiplying the number of shares of Target Common Stock that would be issuable
upon exercise of such option immediately prior to the Effective Time, assuming
that all vesting conditions applicable to such option were then satisfied, by
the Exchange Ratio and rounded down to the nearest whole number of shares of
Acquiror Common Stock, and (ii) the per share exercise price for the shares of
Acquiror Common Stock issuable upon exercise of such converted Target Option
will be equal to the quotient determined by dividing the exercise price per
share of Target Common Stock at which such option was exercisable immediately
prior to the Effective Time by the Exchange Ratio, rounded up to the nearest
cent. Consistent with the terms of the Target Stock Option Plans and the
documents governing the outstanding Target Options under such plans, the Merger
will not terminate any of the outstanding Target Options under the Target Stock
Option Plans or accelerate the exercisability or vesting of such options or the
shares of Target Common Stock which will be subject to those options upon the
conversion of the Target Options in connection with the Merger. It is the
intention of the parties that the Target Options converted to Acquiror Options
qualify, to the maximum extent permissible, following the Effective Time, as
incentive stock options, as defined in Section 422 of the Code, to the extent,
and only to the extent, the Target Options so converted qualified as incentive
stock options prior to the Effective Time.

            (iv) DISSENTERS' RIGHTS. If any holder of Target Common Stock (a
"Dissenting Holder") duly demands purchase of his, her or its shares of Target
Common Stock in

                                      -4-
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connection with the Merger under Chapter 13 of the CGCL (such shares being
"Dissenting Shares"), the Dissenting Shares shall not be converted into Merger
Consideration but shall be converted into the right to receive an amount in cash
equal to the fair market value of such shares as may be determined to be due
with respect to such Dissenting Shares pursuant to the law of the State of
California. After the Effective Time of the Merger, Acquiror shall issue and
deliver to any holder of shares of Target Common Stock who shall have withdrawn
his, her or its demand for purchase or have failed to perfect or shall have
otherwise lost his, her or its right of purchase, in any case pursuant to the
CGCL, upon surrender by such Dissenting Shareholder of his, her or its,
certificate or certificates representing shares of Target Common Stock, the
Merger Consideration to which such Dissenting Shareholder is then entitled under
Section 4(a)(iii) of this Agreement.

      (b) EXCHANGE OF CERTIFICATES.

            (i) EXCHANGE AGENT. Prior to the Closing Date, Acquiror shall
appoint The Bank of New York to act as Exchange Agent (the "Exchange Agent") in
the Merger.

            (ii) EXCHANGE PROCEDURES. At the Effective Time, the Exchange Agent
shall mail to each holder of record of a certificate (i) a form of letter of
transmittal (which shall specify that delivery shall be effected, and risk of
loss and title to the certificates held by such person shall pass, only upon
proper delivery of the certificates to the Exchange Agent and shall be in a form
and have such other provisions as Acquiror may reasonably specify) and (ii)
instructions for use in effecting the surrender of the Certificates in exchange
for the applicable Merger Consideration. Upon surrender of a certificate for
cancellation to the Exchange Agent, together with such letter of transmittal,
duly completed and validly executed, and such other documents as may reasonably
be required by the Exchange Agent, the holder of such certificate shall be
entitled to receive in exchange therefor the Merger Consideration with respect
to such shares, without interest and the certificate so surrendered shall
forthwith be canceled.

            (iii) NO FURTHER OWNERSHIP RIGHTS IN TARGET COMMON STOCK. All Merger
Consideration delivered upon the surrender of certificates that represented
shares of Target Common Stock in accordance with the terms hereof shall be
deemed to have been paid in full satisfaction of all rights pertaining to such
shares of Target Common Stock theretofore represented by such certificates. At
the close of business on the day on which the Effective Time occurs the stock
transfer books of Target shall be closed, and there shall be no further
registration of transfers on the stock transfer books of the Surviving
Corporation of the shares of Target capital stock that were outstanding
immediately prior to the Effective Time. If, after the Effective Time,
certificates are presented to the Surviving Corporation or the Exchange Agent
for transfer or any other reason, they shall be canceled and exchanged as
provided in this Section 4.

5.    TERMINATION

      (a) TERMINATION BY MUTUAL AGREEMENT. Notwithstanding the approval of this
Agreement by the shareholders of Target, this Agreement may be terminated at any
time prior to the Effective Time of the Merger by mutual written consent of the
Constituent Corporations.

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      (b) EFFECTS OF TERMINATION. In the event of the termination of this
Agreement, this Agreement shall become void and there shall be no liability on
the part of either Target or Sub or their respective officers or directors.

6.    GENERAL PROVISIONS.

      (a) AMENDMENT. This Agreement may be amended by the boards of directors of
the Constituent Corporations and the Acquiror hereto any time prior to the
effective time of the Merger; however, after approval hereof by the shareholders
of the Constituent Corporations, no amendment shall be made which by law
requires the further approval of such shareholders without obtaining such
further approval. This Agreement may not be amended except by an instrument in
writing signed on behalf of each of the parties hereto.

      (b) COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

      (c) GOVERNING LAW. This Agreement and all acts and transactions pursuant
hereto and the rights and obligations of the parties hereto shall be governed,
construed and interpreted in accordance with the laws of the State of New York,
without giving effect to its principles governing conflicts of laws, except to
the extent the laws of California or Delaware are mandatorily applicable to the
Merger.

      (d) ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
among such parties pertaining to the subject matter hereof and thereof, and the
agreements contemplated hereby and all negotiations and drafts of the parties
with regard to the transactions contemplated herein, and any and all written or
oral agreements existing between the parties hereto regarding such transactions
are expressly canceled.

                                      -6-
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      The parties have duly executed this Agreement as of the date first written
above.

                                      TARGET:

                                      PACIFIC DATA IMAGES, INC.,

                                          by     /s/ Jeffrey Katzenberg
                                              ----------------------------------
                                      Name:           Jeffrey Katzenberg
                                      Title:             President

                                          by     /s/ Ann Daly
                                              ----------------------------------
                                      Name:               Ann Daly
                                      Title:         Vice President and
                                                    Assistant Secretary

                                      SUB:

                                      DWA ACQUISITION CORP.,

                                          by     /s/ Ann Daly
                                              ----------------------------------
                                      Name:              Ann Daly
                                      Title:            President

                                          by     /s/ Katherine Kendrick
                                              ----------------------------------
                                      Name:          Katherine Kendrick
                                      Title:            Secretary

                                      ACQUIROR:

                                      DREAMWORKS ANIMATION SKG, INC.,

                                          by     /s/ Katherine Kendrick
                                              ----------------------------------
                                      Name:            Katherine Kendrick
                                      Title:     General Counsel and Secretary

                                          by     /s/ Kristina Leslie
                                              ----------------------------------
                                      Name:            Kristina Leslie
                                      Title:     Chief Financial Officer and
                                                        Vice President

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                                                                       EXHIBIT A

AMENDMENT TO PACIFIC DATA IMAGES, INC.'S ARTICLES OF INCORPORATION:

                                    ARTICLE V

      The Corporation is authorized to issue one class of shares designated
"Common Stock." The total number of shares of Common Stock that the Corporation
is authorized to issue is one thousand, par value $0.01 per share.

                                      -8-<PAGE>

                                                                   Exhibit 10(a)

                        CONDITIONAL SHARE GRANT AGREEMENT

      AGREEMENT made as of this _____ day of _______________, by UNIVERSAL
FOREST PRODUCTS, INC., a Michigan corporation (the "Company"), and (the
"Employee").

                                    RECITALS

      The Universal Forest Products, Inc. Long-Term Incentive Plan authorizes
the award of shares of stock to key employees of the Company upon such terms and
conditions as may be determined by the Committee or the Board of Directors.

      The Committee has approved the conditional grant of shares to the Employee
upon the terms and conditions set forth in this Agreement. The Company and
Employee desire to confirm in this Agreement the terms, conditions and
restrictions applicable to the grant of restricted stock.

      NOW, THEREFORE, intending to be bound, the parties agree as follows:

1.    DEFINITIONS

      1.1   "Board" means the Board of Directors of the Company.

      1.2   "Change in Control" means an occurrence of a nature with respect to
            the Company that would be required to be reported in response to
            Item 6(e) of Schedule 14A of Regulation 14A promulgated under the
            Exchange Act. Without limiting the inclusiveness of the definition
            in the preceding sentence, a Change in Control shall be deemed to
            have occurred as of the first day that any one or more of the
            following conditions is satisfied:

            (a)   Any Person is or becomes the Beneficial Owner, directly or
                  indirectly, of securities of the Company representing twenty
                  percent (20%) or more of the combined voting power of the
                  Company's then outstanding securities; or

            (b)   At any time a majority of the Board of Directors of the
                  Company is comprised of other than Continuing Directors (for
                  purposes of this section, the term Continuing Director means a
                  director who was either (i) first elected or appointed as a
                  director prior to the Effective Date of this Agreement; or
                  (ii) subsequently elected or appointed as a director if such
                  director was nominated or appointed by at least a majority of
                  the then Continuing Directors); or

            (c)   Any of the following occur:

<PAGE>

                  (i)   Any merger or consolidation of the Company, other than a
                        merger or consolidation in which the voting securities
                        of the Company immediately prior to the merger or
                        consolidation continue to represent (either by remaining
                        outstanding or being converted into securities of the
                        surviving entity) fifty percent (50%) or more of the
                        combined voting power of the Company or surviving entity
                        immediately after the merger of consolidation with
                        another entity;

                  (ii)  Any sale, exchange, lease, mortgage, pledge, transfer,
                        or other disposition (in a single transaction or a
                        series of related transactions) of assets or earning
                        power aggregating more than fifty percent (50%) of the
                        assets or earning power of the Company on a consolidated
                        basis;

                  (iii) Any liquidation or dissolution of the Company;

                  (iv)  Any reorganization, reverse stock split, or
                        recapitalization of the Company which would result in a
                        Change in Control; or

                  (v)   Any transaction or series of related transactions
                        having, directly or indirectly, the same effect as any
                        of the foregoing; or any agreement, contract, or other
                        arrangement providing for any of the foregoing.

            1.3 "Committee" means the Committee appointed by the Board to
      administer the Plan.

            1.4 "Common Stock" means the common stock of the Company.

            1.5 "Company" means Universal Forest Products, Inc., a Michigan
      corporation, its successors and assigns.

            1.6 "Effective Date of this Agreement" means _________________.

            1.7 "Plan" means the Universal Forest Products, Inc. Long-Term
      Incentive Plan.

            1.8 "Shares" means the shares of Common Stock awarded, issued and
      delivered to Employee under this Agreement. If, as a result of a stock
      split, stock dividend, combination of stock, or any other change or
      exchange of securities, by reclassification, reorganization,
      recapitalization or otherwise, the Shares shall be increased or decreased,
      or changed into or exchanged for a different number or kind of shares of
      stock or other securities of the Company or another corporation, the term
      "Shares" shall mean and include the shares of stock or other securities
      issued with respect to the Shares.

<PAGE>

2.    CONDITIONAL GRANT AWARD

      2.1 Conditional Grant. The Company hereby agrees to grant _______ shares
of Common Stock (the "Shares") to Employee immediately upon the satisfaction of
the terms and conditions set forth in Section 3 of this Agreement. The award of
Shares shall be effective as of the Grant Date, as defined in Section 3 below.
The Company agrees to issue and deliver to Employee a certificate representing
the Shares promptly upon the Grant Date.

      2.2 Acceptance. Employee accepts this conditional award of Shares.

3.    CONDITIONS TO GRANT

      The Company shall grant the Shares to Employee upon the first to occur of
the following conditions (the effective date of which shall be referred to in
this Agreement as the Grant Date), provided that Employee has been in the
continuous employment of the Company from the date of this Agreement until the
Grant Date:

      [SUBJECT TO COMPLETION]

4.    ACQUISITION WARRANTIES

      In order to induce the Company to issue and deliver the Shares on the
terms of this Agreement, Employee warrants to and agrees with the Company as
follows:

      4.1 No Participating Interest. The Employee is acquiring the Shares for
Employee's own account, and has not made any arrangement to convey any interest
in the Shares to any person.

      4.2 Ability to Evaluate. Because of Employee's knowledge and experience in
financial and business matters, Employee is capable of evaluating the merits and
risks of acquiring the Shares under the arrangements prescribed by this
Agreement.

      4.3 Familiarity with Company. Employee is familiar with the business,
financial condition, earnings and prospects of the Company, and confirms that
the Company has not made any representation regarding the foregoing matters or
the merits of this Agreement.

      4.4 All Questions Answered. Employee understands all of the terms of this
Agreement and the consequences to Employee of any actions which may be taken
under this Agreement. Employee confirms there are no questions relating to any
such matters which have not been answered to Employee's complete satisfaction.

      4.5 Rights as Shareholder. Employee shall have no rights as a shareholder
with respect to the Shares unless and until the Grant Date.

<PAGE>

5.    GENERAL PROVISIONS

      5.1 No Right to Employment. This Agreement is not an employment contract.
Neither the Plan nor this Agreement or anything else changes the at will
employment status of Employee.

      5.2 Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be valid and enforceable, but if any
provision of this Agreement shall be held to be prohibited or unenforceable
under applicable law (a) such provision shall be deemed amended to accomplish
the objectives of the provision as originally written to the fullest extent
permitted by law, and (b) all other provisions of this Agreement shall remain in
full force and effect.

      5.3 Captions. The captions used in this Agreement are for convenience
only, do not constitute a part of this Agreement and all of the provisions of
this Agreement shall be enforced and construed as if no captions had been used.

      5.4 Complete Agreement. This Agreement contains the complete agreement
between the parties relating in any way to the subject matter of this Agreement
and supersedes any prior understandings, agreements or representations, written
or oral, which may have related to such subject matter in any way.

      5.5 Notices.

            (a) Procedures Required. Each communication given or delivered under
      this Agreement must be in writing and may be given by personal delivery or
      by certified mail. A written communication shall be deemed to have been
      given on the date it shall be delivered to the address required by this
      Agreement.

            (b) Communications to the Company. Communications to the Company
      shall be addressed to it at the principal corporate headquarters and
      marked to the attention of the Company's president.

            (c) Communications to Employee. Every communication to Employee
      shall be addressed to Employee at the address given immediately below the
      Employee's signature to this Agreement, or to such other address as
      Employee shall specify to the Company.

      5.6 Assignment. This Agreement is not assignable by Employee during
Employee's lifetime. This Agreement shall be binding upon and inure to the
benefit of (a) the successors and assigns of the Company, and (b) any person to
whom Employee's rights under this Agreement may pass by reason of Employee's
death.

      5.7 Amendment. This Agreement may be amended, modified or terminated only
by written agreement between the Company and Employee.

<PAGE>

      5.8 Waiver. No delay or omission in exercising any right hereunder shall
operate as a waiver of such right or of any other right hereunder. A waiver upon
any one occasion shall not be construed as a bar or waiver of any right or
remedy on any other occasion. All of the rights and remedies of the parties
hereto, whether evidenced hereby or granted by law, shall be cumulative.

      5.9 Choice of Law. This Agreement shall be deemed to be a contract made
under the laws of the State of Michigan and for all purposes shall be construed
in accordance with and governed by the laws of the State of Michigan.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

EMPLOYEE                                        UNIVERSAL FOREST PRODUCTS, INC.

_______________________________                 BY _____________________________

                                                ITS ____________________________

ADDRESS:

_______________________________

_______________________________

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