Company: WBD
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0001437107-25-000084
Chunk: 109

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 109
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 terminate, amend or suspend the ESPP. However, (i) no amendment may be made to the ESPP without approval of our stockholders if approval of such amendment is required by Section 423 of the Code and (ii) no amendment may be made that would cause the ESPP to fail to comply with Section 423 of the Code. Upon termination of the ESPP, all amounts in the accounts of participating employees will be promptly refunded.

#### Grants to Employees in Foreign Jurisdictions
We may grant options to our employees or those of a designated subsidiary who are citizens or residents of non-U.S. jurisdictions with terms that are different from the terms of the options granted under the ESPP to our eligible employees who are resident in the United States, for purposes of compliance with the laws of foreign jurisdictions.

In addition, our employees or those of a designated subsidiary who are citizens or residents of a foreign jurisdiction may not be eligible under the ESPP if granting an option to a citizen or resident of the foreign jurisdiction is prohibited under the laws of that foreign jurisdiction or complying with the laws of the foreign jurisdiction would cause the ESPP to violate Section 423 of the Code.

#### Authorization of Sub-plans
Our Board may establish one or more sub-plans under the ESPP with respect to one or more of its designated subsidiaries. Any such sub-plan must comply with Section 423 of the Code.

#### Federal Income Tax Consequences
The following generally summarizes the United States federal income tax consequences that will arise with respect to participation in the ESPP and with respect to the sale of common stock acquired under the ESPP. This summary is based on the tax laws in effect as of the date of this proxy statement. Changes to these laws could alter the tax consequences described below. WBD does not provide individual income tax advice to its employees.

#### Tax Consequences to Employees
An employee will not have income upon enrolling in the ESPP or upon purchasing shares at the end of an offering.

An employee may have some combination of compensation income, capital gain income and/or capital loss upon the sale of shares that were acquired under the ESPP. The amount of compensation income, capital gain and/or capital loss will depend on when the employee sells the shares, determined by reference to prescribed statutory holding periods.

If the employee sells the shares more than two years after the commencement of the offering during which the shares were purchased and more than one year after the date that the employee purchased the shares, then the employee will have compensation income equal to the lesser of: