Company: WBD
Filing Date: 2025-12-05
Form Type: 425
Source: 0001193125-25-309879
Chunk: 302

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-12-05
Form: 425
Chunk 302
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 plan (the “”), which, through December 31, 2026, shall have substantially comparable terms as the corresponding Company annual cash bonus plan (the “”)
in which SpinCo Group Employees participated as of immediately prior to the Distribution Effective Time, with such changes to the applicable performance goals as may be necessary in order to reflect the SpinCo Business following the Distribution
Effective Time. SpinCo Group Employees shall be eligible to participate in the SpinCo Annual Bonus Plan as of the Distribution Effective Time to the extent that they were eligible to participate in the Company Annual Bonus Plan as of immediately
prior to the Distribution Effective Time. The SpinCo Group shall assume all Liabilities with respect to the payment of annual bonuses to SpinCo Participants for the 2026 calendar year and thereafter, and except as provided in
, no Company Group Members shall have any obligations with respect thereto.

(i) Corporate Employee Pre-SpinBonus Costs. Notwithstanding the obligation of each Party’s Group members to pay bonuses to their respective employees pursuant to the last sentence of
, the Company hereby agrees that the Company Group shall be responsible for the cost of the portion of any bonus attributable to the period from January 1, 2026, through the Distribution Date (the
“”) payable to any Group employee who prior to the Distribution Effective Time provided Corporate Services to the Group (the “”), net of a reasonable estimate of the cash Tax savings associated with any Tax deduction in respect of such Pre-Spin Corporate Bonus
Amount (the “”). Following the Distribution Effective Time, SpinCo shall calculate the aggregate Net Pre-Spin
Corporate Bonus Amount accrued as of the Distribution Effective Time with respect to any SpinCo Group Employee who provided Corporate Services prior to the Distribution Effective Time, and the Company shall pay such amount to SpinCo, no later than
thirty (30) days following the final calculation of such amount.

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(ii) Post-Spin True-Up/True-Down. The
Parties agree to conduct a “true up/true-down” of the 2026 annual bonus accrual as of the Distribution Date after taking into account the allocation of the aggregate Net Pre-Spin Corporate Bonus
Amount pursuant to (“”), consistent with the Company’s past practice for
year-end bonus true-ups/true-downs and based upon actual Group performance for the Pre-Spin Performance Period. As soon as
reasonably practicable following the Distribution Date, SpinCo’s Chief Financial Officer and the Company’s Chief Financial Officer shall calculate and agree to the Pre-S