Dolby Laboratories, Inc. — Director's Dealing 2018

Dec 20, 2018

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Dolby Laboratories, Inc. (DLB)
CIK: 0001308547
Period of Report: 2018-12-17

Reporting Person: Pendleton Todd (SVP, Chief Marketing Officer)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2018-12-17	Class A Common Stock	A	9000	$0.00	Acquired	26500	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2018-12-17	Performance-Based Stock Option (Right to Buy)	$64.60	A	18000	Acquired	2025-12-17	Class A Common Stock (18000)	Direct
2018-12-17	Employee Stock Option (Right to Buy)	$64.60	A	36000	Acquired	2028-12-17	Class A Common Stock (36000)	Direct

Footnotes

F1: Award represents a total of 9,000 restricted stock units granted under the terms of the Issuer's 2005 Stock Plan. Under the terms of the restricted stock unit grant agreement, 1/4 of the total number of units shall vest on each anniversary of December 17, 2018. Each unit represents a contingent right to receive one share of the Issuer's Class A Common Stock upon vesting.

F2: Shares held following the reported transactions include 26,500 shares of Class A common stock underlying restricted stock units, which are subject to forfeiture until they vest.

F3: The vesting of this performance-based stock option ("PSO") award is dependent upon achievement of performance criteria measured during a three-year performance period beginning on December 17, 2018 and ending December 17, 2021. The number of shares reported is at the target award amount. The reporting person may potentially earn from 0% to 125% of the target award amount based on total shareholder return at the end of the three-year performance period. The actual PSO award earned shall vest immediately upon certification by the Company's Compensation Committee of the achievement of the performance criteria, following the end of the three-year performance period.

F4: This option was granted for a total of 36,000 shares of Class A Common Stock. 1/4 of the total number of shares issuable under the option vests on the first anniversary of December 17, 2018, the vesting commencement date, and the balance of the shares in equal monthly installments over the next 36 months thereafter.