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                                                                   Exhibit 10.29

        NUANCE COMMUNICATIONS, INC.     ONE WAYSIDE ROAD            781 565 5000
                                        BURLINGTON, MA 01803        NUANCE.COM

(NUANCE LOGO)

September 25, 2006

Don Hunt
105 Reservation Road
Andover, MA  01810

Dear Don:

Congratulations! It is with great pleasure that I confirm our employment offer,
in the position of Sr. Vice President, Global Sales, reporting to Paul Ricci,
Chief Executive Officer of Nuance Communications, Inc. The anticipated start
date for your new position is October 10, 2006. At the next Nuance
Communications Board of Directors meeting following your start date, I will
recommend to the Board that you be appointed an Executive Officer.

Your starting annual base salary will be $350,000.00 paid on a semi-monthly
basis. In addition to your base salary, you will be eligible for a variable
incentive opportunity with an annual target of $300,000.00, pro-rated in the
first year based on your date of hire. For Q107 your variable opportunity will
be guaranteed at 100% of target. Your incentive plan will be tied to revenue
achievement and associated expense budget targets.

Once you have accepted our offer, I will recommend that the Nuance
Communications Compensation Committee grant you a new hire stock option for
400,000 shares, with a four year vesting schedule (25% cliff after one year and
monthly thereafter) so long as you remain a Nuance employee. I will also
recommend that the Nuance Communications Compensation Committee grant you three
(3) time-based vesting restricted stock awards and one (1) performance based
vesting restricted stock award. Assuming approval, the time-based awards will be
as follows: 1) 150,000 shares with a three year vesting schedule (1/3 each year)
so long as you remain a Nuance employee; 2) an award for a number of shares
equal to $600,000 divided by the closing price on the date of grant which will
vest 100% on December 2, 2006 so long as you remain a Nuance employee; and 3)
225,000 shares with three year cliff vesting (assuming continued employment with
Nuance), with opportunities for acceleration of 50% in fiscal year 2007 and 50%
in fiscal year 2008, should you achieve certain Board approved financial targets
(measured on September 30, 2007 and 2008, respectively). The performance-based
award will consist of 225,000 shares, which will vest in 1/3 increments, if
ever, upon the achievement of certain Board approved financial targets at the
end of fiscal years 2007, 2008 and 2009. If achievement is not met or you
terminate employment before vesting, you will not vest in the installment for
the applicable measurement period and that portion of the award will lapse.

You will be eligible for a sign-on bonus totaling $100,000 that will be paid to
you at the first payroll cycle following the first date of your employment. The
bonus payment will

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be subject to the usual required withholding. Should you voluntarily terminate
employment or are terminated for cause within one year from your date of hire,
the bonus will be refunded to the Company.

Should your employment with the company be terminated involuntarily by the
Company for any reason other than cause, death or disability, you will be
eligible to receive twelve months base salary & COBRA coverage if you execute
the Company's specified severance agreement (including, among other things, a
full release of claims and non-competition agreement). If there is a change of
control transaction and your employment is terminated within twelve months
following the change of control transaction by the Company for a reason other
than cause, death or disability, and you execute a severance agreement specified
by the Company (including, among other things, a full release of claims and
non-competition agreement), you will receive the above stated severance plus
immediate acceleration of any unvested stock options or restricted stock grants,
excluding restricted stock grants issued as performance-based grants. In
addition, if there is a change of control transaction and there is a significant
reduction in your duties, position, reporting status or responsibilities during
the twelve month period following the change of control transaction, you will
have the right to the same level of change of control benefits, as outlined
above, provided you remain with the company for the full one-year period
following the change of control, you execute a severance agreement specified by
the Company (including among other things, a full release of claims and
non-competition agreement) and you give notice of your intent to terminate
employment within 30 days of the end of the 12 month period following the change
of control transaction.

For purposes of this Agreement, "Cause" means Executive's employment with the
Company is terminated after a majority of the Board has found any of the
following to exist: (i) his obligations to the Company or which adversely
affects the Executive's ability to perform such obligations; (ii) gross
negligence, dishonesty or breach of fiduciary duty; or (iii) the commission by
the Executive of an act of fraud or embezzlement which results in loss, damage
or injury to the Company, whether directly or indirectly; (iv) disclosure of the
Company's confidential or proprietary information which violates the terms of
the Confidential Information Agreement; (v) Executive's continued substantial
willful nonperformance (except by reason of Disability) of his employment duties
after Executive has received a written demand for performance by the Board and
has failed to cure such nonperformance within 15 business days of receiving such
notice.

As a full-time employee, you will be eligible for our comprehensive benefits
package which goes into effect as of your date of hire. The enclosed material
outlines all of our benefits to which you are entitled as a Nuance
Communications employee. In addition to the standard employee benefits once you
are named an executive officer you will be entitled to a $13,500 gross annual
car allowance, paid on a semi-monthly basis and $5,000 net tax & financial
planning reimbursement allowance.

Your employment with Nuance Communications will be "at will", meaning that
either you or Nuance Communications will be entitled to terminate your
employment at any time and for any reason, with or without cause.

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Any representations which may have been made to you are superseded by this
offer. This is the full and complete agreement between you and Nuance
Communications. Although your job duties, title, compensation and benefits, as
well as Nuance Communications' personnel policies and procedures, may change
from time to time, the "at will" nature of your employment may only be changed
in an express written agreement signed by you and a duly authorized officer of
Nuance Communications.

This offer is contingent upon your satisfying the conditions of hire, including
providing proof of your eligibility to work in the United States and successful
completion of a background check. An Employment Eligibility Verification form is
attached to this letter. Please read it carefully and call me if you have any
questions. Also, like all Nuance Communications employees, you will be required,
as a condition to your employment, to sign Nuance Communications' standard
Non-Compete, Proprietary Information, & Conflict of Interest Agreement, a copy
of which is attached hereto.

We, at Nuance Communications, are proud of our reputation and we feel confident
that you will be a positive addition to the Sr. Management Team, while the
position will afford you the opportunity to grow your professional skill set.

Don, we would appreciate it if you would confirm your acceptance of our
employment offer, by signing this offer confirmation letter and returning it to
my attention as soon as possible.

If you have further questions regarding our offer, feel free to contact me at
(781) 565-5310. I look forward to our working together and your joining the
Nuance Communications organization.

Sincerely,

/s/ Dawn Fournier
Dawn Fournier
VP Human Resources

cc:    P. Ricci
       Employee File

Enclosures/Forms:    Employment Eligibility Verification form, Benefits Summary,
                     Non-Compete, Proprietary Information, & Conflict of
                     Interest Agreement.

I ACCEPT THE OFFER OF EMPLOYMENT AS STATED ABOVE:

    /S/ DON HUNT                                        SEPTEMBER 26, 2006
------------------------                                ------------------------
  NEW HIRE SIGNATURE                                    DATE OF ACCEPTANCE

                                  Page 3 of 3exv10w58

 

EXHIBIT 10.58

Fiscal Year 2007 Cash-Based Long-Term Incentive Award Criteria

The Fiscal Year 2007 Cash-Based Long-Term Incentive Award is not an award for past performance but
is intended to provide a mechanism for aligning management with shareholder interests. Since
fiscal year 2004, the company used fixed share guidelines per organization level to award its
annual stock option grants. The fiscal year 2007 cash-based long-term incentive award continues
this philosophy in that the named executive officers are eligible for total target award amounts
intended to provide a similar value in lieu of the stock option grants. The annual target award
opportunity is one third (1/3) of the total target award percentage.

	 	 	 	 	 
	Level	 	Total Target Award Percentage *
	CEO
	 	 	100	%
	13
	 	 	83	%
	12
	 	 	73	%
	11
	 	 	64	%

 

			
	*	 	The Total Target Award Percentage is as a percent of the average base salary per
organization level of the named executive officer as of November 1, 2006. These amounts will not
be adjusted during the three-year performance period.

Awards are based upon the earnings per share and free cash flow consolidated results of the
company for each of fiscal year 2007, 2008 and 2009. The payout multiple of a participant’s Total
Target Award Percentage, depending upon whether threshold, target or distinguished performance is
achieved using a two step process is as follows:

Payout Multiple of Target Award Percentage

	 	 	 	 	 	 	 	 	 
	 	 	EPS Performance	 	Free Cash Flow Modifier
	Below Threshold
	 	 	0	%	 	 	50	%
	Threshold
	 	 	50	%	 	 	75	%
	Target
	 	 	100	%	 	 	100	%
	Distinguished
	 	 	150	%	 	 	125	%

 

			
	*	 	Example: Threshold EPS performance (50%) multiplied by Distinguished Free Cash Flow
performance (125%) results in an award of 62.5% of target.

The effective date of the awards is November 1, 2006. Awards will not vest until the end of a
3-year performance period beginning on November 1, 2006 and ending October 31, 2009. Awards will
be based upon earnings per share and free cash flow consolidated results of the company for each of
fiscal year 2007, 2008 and 2009. Awards earned for fiscal year 2007 and 2008 cannot be “unearned”
but can be forfeited if the named executive’s employment relationship with the company is
terminated. No interest is earned on unpaid amounts. In the event of a participant’s

E-2

 

 

death, disability or retirement, all earned but yet unpaid amounts will become due and payable.
Any open measurement periods will be paid as if the participant was active but prorated based on
months of service. Amounts for measurement periods that have not begun will be forfeited.
Termination of employment not on account of death, disability or retirement results in a forfeiture
of unpaid awards. In the event of a change of control of the company, awards for earned periods
will be paid based upon actual performance and awards for incomplete periods will be paid at
target.

E-3

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