Company: WBD
Filing Date: 2025-12-05
Form Type: 425
Source: 0001193125-25-309939
Chunk: 289

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-12-05
Form: 425
Chunk 289
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 otherwise) or () any employee of the Group primarily dedicated to
the SpinCo Business is borne by a Company Group Member (as a result of such employee’s employment not having been transferred to the Company Group or otherwise), the Parties agree that they shall cooperate to ensure that such costs, net of a
reasonable estimate of the cash Tax savings associated with any Tax deduction for the applicable Group Member who paid such severance or separation payments or benefits (as agreed between the Parties in good faith), shall be borne by the Party to
which such employee primarily dedicated their services.

Section 10.2 . Effective as of the Distribution Date,
except as provided in , () the Company Group shall assume or retain, as applicable, and be solely responsible for, all Liabilities for vacation, sick time and other
time-off benefits with respect to each Company Group Employee and () the SpinCo Group shall assume or retain, as applicable, and be solely responsible for, all Liabilities for vacation, sick time
and other time-off benefits with respect to each SpinCo Group Employee.

Section 10.3 .

(a) Annual Bonus Plan. No later than the Distribution Effective Time, SpinCo shall establish an annual cash
bonus 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