EXHIBIT 10.1

“*************” DENOTE MATERIAL THAT HAS BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

DHJV COMPANY LLC

LIMITED LIABILITY COMPANY AGREEMENT

Dated as of May 22, 2009

TABLE OF CONTENTS

ARTICLE 1 Definitions

1.01.

Definitions

1.02.

Construction

ARTICLE 2 Organization

2.01.

Formation

2.02.

Name

2.03.

Principal Office

2.04.

Registered Agent for Service of Process

2.05.

Mission

2.06.

Purposes

2.07.

Term

2.08.

Limited Liability Company Agreement

ARTICLE 3 Initial Business Plan; Annual Budget; Common Units; Capital
Contributions

3.01.

Initial Business Plan

3.02.

Annual Budget.

3.03.

Common Units

3.04.

Deemed Initial Capital Contributions; Tax Treatment

3.05.

Additional Capital Contributions; Funding Commitment

3.06.

No Third Party Beneficiaries

3.07.

Return of Contributions

ARTICLE 4 Members; Membership Interests

4.01.

Voting Rights of Members

4.02.

Meetings of Members

4.03.

Proxies

4.04.

Action of Members by Written Consent

4.05.

Liability to Third Parties

4.06.

Lack of Authority

ARTICLE 5 Distributions

5.01.

Distributions

5.02.

Tax Withholding

ARTICLE 6 Capital Accounts; Allocations of Profit and Loss

6.01.

Capital Account

6.02.

In General

6.03.

Special Allocations

6.04.

Curative Allocations

6.05.

Other Allocation Rules

6.06.

Tax Allocations:  Code Section 704(c)

6.07.

Interim Allocations Due to Percentage Interest Adjustment

TABLE OF CONTENTS
(Continued)

6.08.

Section 754 Election

6.09.

Deficit Capital Accounts

ARTICLE 7 Management and Operations

7.01.

Management by the Board

7.02.

Board

7.03.

Board Vote.

7.04.

Actions by the Board; Committees; Delegation and Duties

7.05.

Meetings; Alternates; Observers

7.06.

Removal; Vacancies; Resignation.

7.07.

Action by Written Consent or Telephone Conference

7.08.

Compensation of Directors

7.09.

Officers

7.10.

Actions of Subsidiaries

7.11.

Affiliation Agreements

7.12.

Programming Guidelines

7.13.

Related-Party Transactions

7.14.

Operation of the Network After the Formation Date

7.15.

Network Programming.

7.16.

************** Commitments

7.17.

Network Content

7.18.

Transmission of the Network

7.19.

Cross Promotion

7.20.

Other Discovery-Hasbro Relationships

7.21.

Future Merchandising Rights

ARTICLE 8 Transfers; Restrictions on Transfer

8.01.

Limitation on Transfers

8.02.

Assignee’s Rights

8.03.

Transferor’s Rights and Obligations

8.04.

Compliance with Law

8.05.

Prohibited Transfer; Invalid Transfer

8.06.

Admission Procedure

8.07.

Certain Rights and Obligations not Transferable

ARTICLE 9 Withdrawal and Resignation of Members

ARTICLE 10 Limitation on Liability and Indemnification

10.01.

Limitation on Liability

10.02.

Duty of Directors

10.03.

Indemnification by the Company; Non-Exclusivity of Rights

10.04.

Insurance

10.05.

Savings Clause

TABLE OF CONTENTS
(Continued)

ARTICLE 11 Taxes

11.01.

Tax Returns

11.02.

Tax Elections

11.03.

Tax Matters Partner

ARTICLE 12 Books, Records, Reports, Accounts

12.01.

Records and Accounting

12.02.

Member Reports

12.03.

Accounts

12.04.

Other Information

ARTICLE 13 Exclusivity Covenants

13.01.

Exclusivity Covenants of Discovery.

13.02.

Exclusivity Covenants of Hasbro

13.03.

Other Opportunities

ARTICLE 14 Confidentiality

14.01.

Confidentiality

ARTICLE 15 Termination, Dissolution and Liquidation

15.01.

Termination

15.02.

Effect of Termination

15.03.

Buy-Sell (“Jump Ball”)

15.04.

Auction

15.05.

Effect of Sale

15.06.

Winding Up

15.07.

Deferment

15.08.

Certificate of Cancellation

15.09.

Reasonable Time for Winding Up

15.10.

Remedies for Breach

ARTICLE 16 General Provisions

16.01.

Amendment or Modification

16.02.

Notices

16.03.

Public Announcements

16.04.

Enforcement of Company’s Rights

16.05.

Entire Agreement

16.06.

Waiver

16.07.

Injunctive and Other Relief

16.08.

Alternative Dispute Resolution

16.09.

Limitation of Liability

16.10.

Binding Effect

16.11.

Governing Law; Waiver of Jury

TABLE OF CONTENTS
(Continued)

16.12.

Consent to Jurisdiction and Service of Process

16.13.

Severability

16.14.

Further Assurances

16.15.

No Third-Party Beneficiaries

16.16.

Waiver of Certain Rights

16.17.

Opt-out of Article 8 of the Uniform Commercial Code

16.18.

Delivery by Facsimile

16.19.

Counterparts

16.20.

No Presumption

16.21.

Expenses

16.22.

DCI Guarantee

Schedule A

Members’ Schedule

Schedule B

RESERVED

Schedule C

Benchmarks

Schedule D

Revenue Share Payments

Schedule E

Programming Guidelines

Schedule 1.01

Permitted Holders

Schedule 7.3(b)(10)

Affiliation Agreements

Schedule 7.15(e)

Hasbro Core Brands

Schedule 7.17

Network Content

Schedule 7.21

Future Merchandising Rights

LIMITED LIABILITY COMPANY AGREEMENT
OF
DHJV Company LLC

This LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”) of DHJV Company LLC
(the “Company”), is made and entered into as of May 22, 2009, by and among
Discovery Communications, LLC, a Delaware limited liability company
(“Discovery”), and Hasbro, Inc., a Rhode Island corporation (“Hasbro,” and
together with Discovery, each a “Member”), the Company, and, for the purposes
set forth herein, Discovery Communications, Inc., a Delaware corporation
(“DCI”).

WHEREAS, the Company was formed by Discovery as a limited liability company
pursuant to and in accordance with the Delaware Limited Liability Company Act,
as it may be succeeded or amended from time to time (the “Act”), by the filing
of a certificate of formation (the “Certificate”) in the office of the Secretary
of State of the State of Delaware on April 24, 2009;

WHEREAS, as contemplated by the Purchase Agreement (as defined below), Discovery
has assigned to the Company all of its right, title and interest in and to
certain assets relating to the Discovery Kids Network (as defined below)
(including the Affiliation Agreements (as defined below)), and the Company has
assumed certain related liabilities, pursuant to the Assignment and Assumption
Agreement (as defined below), and Hasbro has purchased a fifty percent (50%)
Membership Interest (as defined below) in the Company from Discovery; and

WHEREAS, the parties hereto intend that this Agreement shall set forth the
understandings among the Members with respect to the terms and conditions of
each Member’s interest, rights and obligations with respect to the Company, the
management and operation of the Company and the economic arrangement among the
parties hereto with respect to the Company.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, hereby
agree as follows:

ARTICLE 1
Definitions

1.01.     Definitions.  As used in this Agreement, the following terms have the
meanings set forth below (and other terms defined herein have the meanings so
given them):

“AAA” has the meaning set forth in Section 16.08.

“Adjusted Capital Account” means, with respect to any Member, the balance in
such Member’s Capital Account as of the end of the relevant Fiscal Year or other
period, after giving effect to the following adjustments:

(a)

Crediting to such Capital Account any amounts which such Member is obligated to
restore to the Company pursuant to any provision of this Agreement or is deemed
to be obligated to restore pursuant to the penultimate sentences of Treasury
Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); and

(b)

Debiting to such Capital Account the items described in Treasury Regulations
Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) and
1.704-1(b)(2)(ii)(d)(6).

This definition of Adjusted Capital Account is intended to comply with the
provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be
interpreted consistently therewith.

“Admission Date” has the meaning set forth in Section 8.03.

“Affiliate” of a Person means any Person that directly or indirectly controls,
is controlled by, or is under common control with the Person in question, except
that no Member nor any Affiliate of any Member shall be deemed to be an
Affiliate of any other Member solely by virtue of the Member’s Membership
Interest.  The term “Affiliated” and similar variations shall have correlative
meanings.  For purposes of this Agreement, “control” (including with correlative
meanings, the terms “controlling,” “controlled by” or “under common control
with”) as used with respect to any Person, shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting securities
or by contract or otherwise.

“Affiliation Agreements” means all carriage, affiliation, distribution and
similar agreements with Channel Affiliates for the retransmission of the Network
in the United States on a linear or, to the extent specifically for the
provision of programming by the Network, non-linear (e.g., video-on-demand)
basis, to which any Discovery Controlled Affiliate or the Company is a party as
of such time, in each case, solely to the extent relating to the Network; it
being understood that (a) certain Affiliation Agreements may provide for the
retransmission of the Network and other networks of Discovery Controlled
Affiliates and (b) certain Affiliation Agreements may provide for the
retransmission solely of the Network.

“Agreed Name” means the re-branded name of the Company or Network, or any
derivation of such name that is used as the name of the Network, in each case,
which has been mutually agreed to by Discovery and Hasbro in accordance with the
Agreed Name Letter Agreement or such other name as may be mutually agreed to by
Discovery and Hasbro.

“Agreed Name Letter Agreement” means the Agreed Name Letter Agreement between
Discovery and Hasbro dated as of even date herewith.

“Ancillary Agreements” means each of the Purchase Agreement, the Assignment
Agreement, the Hasbro Studios Programming Agreement, the Trademark License
Agreement, the Hasbro Programming License Agreement, Discovery Programming
Letter Agreements, the Discovery Programming License Agreement, the Discovery
Services Agreement, the Agreed Name Letter Agreement, the Letter Agreement, the
Digital Agreement, the Hasbro-Discovery Agreement and each other agreement to be
entered into among or between the Members and the Company and their Affiliates
in connection with the Purchase Agreement or this Agreement.

“Animal and Science Programming” means
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“Annual Budget” means the annual operating and capital budget of the Company for
each Fiscal Year or portion thereof, which budget shall be prepared and adopted
in accordance with Section 3.02, setting forth, among other things, the
estimated receipts and expenditures of the Company for such Fiscal Year,
including all programming and marketing expenditures, and any anticipated
funding requirements and sources thereof, in each case, on a quarterly basis.

“Acquired Network” has the meaning set forth in Section 13.01(b).

“Assignee” means a Person to whom Membership Interests have been Transferred in
accordance with Article 8 but who has not become a Substituted Member pursuant
to Section 8.06.

“Assignment Agreement” means the Assignment and Assumption Agreement, dated as
of the Formation Date, by and between Discovery and the Company.

“Auction Interests” has the meaning set forth in Section 15.04(a).

“Board” has the meaning set forth in Section 7.01.

“Broadcast Television” means free, over-the-air broadcast television networks
and local television stations (whether digital or otherwise) in the United
States that are licensed by the FCC, regardless of whether a viewer accesses the
signal of such networks or stations over-the-air or through other means.

“Business” means the business of programming and distributing the Network in the
United States, conducting the Company activities contemplated by this Agreement
and the Ancillary Agreements and conducting any other ancillary activities that
are approved by the Board, all for the purpose of undertaking and furthering the
Mission.

“Business Day” means any day other than a Saturday, a Sunday or a holiday on
which commercial banks in New York City are authorized or required by law to
close.

“Cable Television Network” means a branded television service for the delivery
of audio-visual television programming (including linear television services and
television video-on-demand services) that is distributed in the United States by
any Multichannel Video Programming Distributor (as defined by the FCC, including
any successor terminology) and/or by any distributor using MVPD Technology
(collectively, an “MVPD”) to authorized

subscribers of such MVPD, excluding Broadcast Television.  Notwithstanding
anything to the contrary, the parties acknowledge and agree that the
distribution (including streaming and/or downloading) of video, audio-visual and
other programming via the public Internet (but not via an IPTV System), mobile
wireless platforms, or any successor technology (e.g., YouTube, Google Video,
AOL Video, video webinars), including via any website or online service
accessible over the public Internet, regardless of whether that site or service
requires user registration or payment for access to such programming, shall not
be considered distribution via a Cable Television Network.

“Capital Account” has the meaning set forth in Section 6.01(a).

“Capital Contribution” means the contribution or deemed contribution in cash or
property to the capital of the Company made by or on behalf of a Member.

“Changed Elements” has the meaning set forth in the Hasbro Studios Programming
Agreement.

“Change of Control Transaction” means:

(a)

with respect to Discovery Ultimate Parent, Hasbro Ultimate Parent or any of
their respective Affiliates that hold a Membership Interest, any transaction or
a series of related transactions (including a merger or consolidation) or other
event that results in any single Person or “group” (as such term is used for
purposes of Rule 13d-5 under the Exchange Act) consisting of any Person, other
than one or more Permitted Holders, becoming the “beneficial owner” (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person shall be
deemed to have “beneficial ownership” of all securities that such Person has the
right to acquire, whether such right is exercisable immediately or only after
the passage of time), directly or indirectly, of thirty percent (30%) or more of
the total voting power of the outstanding equity securities of Discovery
Ultimate Parent, Hasbro Ultimate Parent or any of their respective Affiliates
that hold a Membership Interest, as applicable (exclusive of any voting power
retained exclusively by any Permitted Holders, directly or indirectly), and such
voting power is greater than the aggregate total voting power of the outstanding
equity securities of Discovery Ultimate Parent, Hasbro Ultimate Parent or any of
their respective Affiliates that hold a Membership Interest, as applicable,
owned or controlled, directly or indirectly, by the Permitted Holders (exclusive
of any voting power retained, directly or indirectly, by other members of such
“group” other than the Permitted Holders); provided that for purposes of this
clause (a), with respect to preferred stock or other securities convertible into
common stock of Discovery Ultimate Parent or Hasbro Ultimate Parent, the
percentage of total voting power of any common stock, preferred stock or other
securities convertible into common stock of the Discovery Ultimate Parent or
Hasbro Ultimate Parent, as applicable, shall be equal to the total voting power
that such stock would represent after giving effect to the conversion of all
such preferred stock or other securities convertible into common stock in
accordance with its terms.

(b)

with respect to Discovery Ultimate Parent, Hasbro Ultimate Parent or any of
their respective Affiliates that hold a Membership Interest, any transaction or
a series of related transactions (including a merger or consolidation) or other
event the result of

which is that any single Person or “group” (as such term is used for purposes of
Rule 13d-5 under the Exchange Act) consisting of any Person, other than one or
more Permitted Holders has the right, directly or indirectly, to elect a number
of individuals to the board of directors (or similar governing body) of
Discovery Ultimate Parent, Hasbro Ultimate Parent or any of their respective
Affiliates that hold a Membership Interest, as applicable, such that such
individuals (whether new or continuing as directors) would, if elected,
constitute a majority of the board of directors (or similar governing body) of
such subject Person;

(c)

with respect to Discovery Ultimate Parent, Hasbro Ultimate Parent or any of
their respective Affiliates that hold a Membership Interest, the direct or
indirect sale, transfer, conveyance or other disposition (other than by way of
merger or consolidation) of all or substantially all of the assets of Discovery
Ultimate Parent, Hasbro Ultimate Parent or any of their respective Affiliates
that hold a Membership Interest, as applicable, to any other Person, other than
to one or more Permitted Holders, in one transaction or a series of related
transactions;

(d)

with respect to Discovery Ultimate Parent, any act or failure to act that
constitutes a violation of Section 13.01(b) by any Discovery Controlled
Affiliate; or

(e)

with respect to Hasbro Ultimate Parent, any act or failure to act that
constitutes a violation of Section 13.02(b) by any Hasbro Controlled Affiliate.

In the event of the occurrence of a Change of Control Transaction, if the
Member(s) entitled to make a termination election pursuant to Section 15.01(i)
or 15.01(j), as the case may be, decline(s) to do so within the applicable
specified election period, then the definitions of “Change of Control
Transaction” and, if applicable, “Permitted Holders” and “Permitted Transferees”
and, if applicable, Section 1.02(b) shall be modified appropriately by good
faith agreement of the Members to reflect the new holders, direct and indirect,
of the affected Membership Interests.

“Channel Affiliate” has the meaning set forth in Schedule 1 to the Discovery
Services Agreement.

“Chief Executive Officer” has the meaning set forth in Section 3.01.

“Code” means the Internal Revenue Code of 1986, as amended from time to time (or
any corresponding provision of succeeding law).

“Common Unit” has the meaning set forth in Section 3.03.

“Company Intellectual Property” has the meaning set forth in Section 7.21.

“Company Minimum Gain” has the meaning of “partnership minimum gain” that is set
forth in Treasury Regulations Section 1.704-2(b)(2).  The amount of Company
Minimum Gain shall be determined in accordance with Treasury Regulations
Section 1.704-2(d).

“Comparable Frequency” means, with respect to the airing of any HS Licensed
Program licensed pursuant to the Hasbro Studios Programming Agreement or any
Program

licensed pursuant to the Hasbro Programming License Agreement, that the buyer in
a Sale has aired such HS Licensed Program or Program during the one-year period
following the consummation of such Sale in question with comparable or greater
frequency to or than the average frequency that such HS Licensed Program or
Program was aired by the Company during the two-year period ending on the date
of the consummation of such Sale; provided that if such HS Licensed Program or
Program was aired by the Company for less than two years prior to the date of
consummation of such Sale, such two-year period shall be deemed reduced for
purposes of this definition to the actual period that the Company aired such HS
Licensed Program or Program.

“Competitive Cable Television Network” means
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“Competitive Person” means (a) with respect to Discovery, any Person that
directly or indirectly owns, operates, controls, manages or programs a Cable
Television Network and (b) with respect to Hasbro, any Person that directly or
indirectly owns, operates, controls or manages a toy or game manufacturer or
distributor.

“Confidential Information” has the meaning set forth in Section 14.01(a).

“Consolidating Member” has the meaning set forth in Section 12.02(b).

“Contributed Assets” has the meaning set forth in the Assignment Agreement.

“Controlled Affiliate” of a Person means any Affiliate of the Person in question
that is directly or indirectly, through one or more intermediaries, controlled
by the Person in question.

“Covered Person” means a Member, Director, Officer or Affiliate of any Member
and any officers, directors, stockholders, partners, members, employees,
representatives or agents of a Member or its Affiliates, or any Person who was,
at the time of the act or omission in question, such a Person.

“DCI” has the meaning set forth in the preamble hereof.  

“Delaware GCL” means the Delaware General Corporation Law, as it may be
succeeded or amended from time to time.

“Depreciation” means, for each Fiscal Year, an amount equal to the depreciation,
amortization, or other cost recovery deduction allowable with respect to an
asset for such Fiscal

Year, except that if the Gross Asset Value of an asset differs from its adjusted
basis for federal income tax purposes at the beginning of such Fiscal Year,
Depreciation shall be determined in the manner described in Treasury Regulations
Section 1.704-1(b)(2)(iv)(g)(3) or Treasury Regulations Section 1.704-3(d)(2),
as applicable.

“Digital Agreement” has the meaning set forth in the Purchase Agreement (if the
Digital Agreement has been executed or, to the extent the Digital Agreement has
not been executed, shall mean the Digital Term Sheet).

“Digital Term Sheet” has the meaning set forth in the Purchase Agreement.

“Director” means an individual appointed by a Member to manage the activities
and affairs of the Company as a member of the Board pursuant to Article 7.

 “Discovery Controlled Affiliate” means Discovery Ultimate Parent and any of its
Controlled Affiliates.

“Discovery Disclosure Letter” has the meaning set forth in the Purchase
Agreement.

“Discovery Estimated Tax Amount” has the meaning set forth in
Section 5.01(a)(1).

“Discovery Final Tax Amount” has the meaning set forth in Section 5.01(b)(1).

“Discovery Kids Network” means the English-language Cable Television Network
currently distributed by Discovery in the United States known as “Discovery Kids
Channel.”

“Discovery Kids Programming Library” has the meaning set forth in the Assignment
Agreement.

“Discovery License” has the meaning set forth in Section 15.05(a)(4).

“Discovery Licensed Programming” means (a) the Underlying Works (as such term is
defined in the Discovery Programming License Agreement) and (b) the programming
licensed by Discovery to the Company pursuant to the Discovery Programming
Letter Agreements.

“Discovery Material Breach” means:

(i)

in the case of a termination election by Hasbro pursuant to Section 15.01(g)
prior to the Launch Date, a material breach by Discovery or its Controlled
Affiliates of this Agreement or the Discovery Services Agreement that,
individually or in the aggregate, has a material adverse effect on the Company,
taken as a whole, or on Hasbro, taken as a whole; or

(ii)

in the case of a termination election by Hasbro pursuant to Section 15.01(g)
after the Launch Date, (x) material and repeated breaches by Discovery or its
Controlled Affiliates of material covenants or obligations of Discovery or its
Controlled Affiliates in this Agreement that cause material harm to the Company
or Hasbro or (y) the

termination of the Discovery Services Agreement by the Company (in accordance
with the terms thereof) resulting from Discovery’s or its Controlled Affiliates
material breach thereof.

 “Discovery Network” means any English-language Cable Television Network owned,
operated or programmed by any Discovery Controlled Affiliate and distributed in
the United States.

“Discovery Payment” means each of the payments to be made to Discovery or its
Affiliates by the Company under the Ancillary Agreements.

“Discovery Programming Letter Agreements” means, together, the two (2) Discovery
Programming Letter Agreements between Discovery and the Company dated as of even
date herewith.

“Discovery Programming License Agreement” means the Discovery Programming
License Agreement entered into by and among Discovery and the Company as of the
Formation Date.

“Discovery Services Agreement” means the Discovery Services Agreement entered
into between Discovery and the Company as of the Formation Date.

“Discovery Ultimate Parent” means DCI and any successor or assigns thereof
(whether by merger, sale of equity, operation of law or otherwise).

“Discovery Vote” has the meaning set forth in Section 7.03(a).

“Distributable Cash” means, as of any date, the excess of the cash and cash
equivalents held by the Company over the sum of the amount determined by the
Board to be reasonably necessary for the payment of the Company’s expenses,
current liabilities and other current obligations (whether fixed or contingent),
including the Company’s obligations with respect to the Discovery Payments and
the Hasbro Payments, and for the establishment of appropriate reserves for other
expenses, liabilities and obligations of the Company (including long-term items)
as may arise, including the maintenance of adequate working capital for the
continued conduct of the Business.

“Effective Tax Rate” means, at any time and from time to time, the percentage
determined by the Board to be a reasonable estimate of the highest marginal
combined federal, state, and local income tax rate (without giving effect to the
deduction of state and local income taxes) as applicable to income earned by a
corporation doing business in New York, New York with respect to taxable income
allocated to the Members by the Company for federal income tax purposes.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

“Estimated Tax Date” has the meaning set forth in Section 5.01(a)(3).

“Estimated Tax Distribution Amount” has the meaning set forth in
Section 5.01(a).

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Existing Merchandising Agreements” means
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“Fair Market Value” means:

(a)

for purposes of clauses (b), (c) and (d) of the definition of Gross Asset Value
and for purposes of Sections 6.01(a)(1)(ii), 6.01(a)(2)(iii) and 15.06(b), “Fair
Market Value” of property means the price at which a willing seller would sell
and a willing buyer would buy the subject property having full knowledge of the
facts, in an arms’ length transaction without time constraints and without any
compulsion to sell.  Such determinations of Fair Market Value shall be made by
the Board in the exercise of its judgment in good faith; provided, however, that
if a determination of Fair Market Value results in a deadlock pursuant to the
procedures set forth in Section 7.03(c), then the Board shall engage a
Third-Party Appraiser and such appraiser’s determination of the Fair Market
Value shall be final and binding on the parties; and

(b)

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“Family Group” means:

(a)

with respect to any individual (other than *************):  (i) such person’s
spouse, (ii) any lineal ancestor or descendant (natural or adopted) of such
person and (iii) any trust or trusts in which any of the foregoing, individually
or collectively, retains control over such trust or trusts in the capacity as
trustee(s) and has, directly or indirectly, at least a majority of the
beneficial interests; and

(b)

with respect to *************:  (i) ************* spouse, children (natural and
adopted), grandchildren (natural and adopted) and other family members, (ii) any
trust, corporation, foundation, limited or general partnership, limited
liability company, limited liability limited partnership or any other entity (a
“Subject Entity”) established by *************, any person listed in clause
(b)(i) or any combination thereof in connection with his, her or their good
faith estate planning and similar wealth management programs and arrangements,
provided that *************, any person listed in clause (b)(i) or any
combination thereof retains control, directly or indirectly, of, or a
substantial beneficial interest in, the corpus of such Subject Entity, (iii) any
foundation, corporation, charitable organization or similar entity established
by *************, any person listed in clause (b)(i) or any combination thereof
in connection with his, her or their charitable giving, provided that
*************, any person listed in clause (b)(i) or any combination thereof
retains control, directly or indirectly, of, or a substantial beneficial
interest in,  the corpus of such foundation, corporation, charitable
organization or similar entity, (iv) any donee or other recipient of equity
securities or interests in Discovery Ultimate Parent from *************, any
person listed in clause (b)(i), (ii) or (iii) or any combination thereof,
provided that *************, any person listed in clause (b)(i) or any
combination thereof retains the right to direct the voting power represented by
such equity securities or interests, and (v) upon the death of *************or
any of the persons listed in clause (b)(i), such person’s estate and the
executor or personal representative thereof.

“FCC” means the U.S. Federal Communications Commission or any successor agency
thereto.

 “Final Tax Distribution Amount” has the meaning set forth in Section 5.01(b).

“First Negotiation Notice” has the meaning set forth in Section 8.01(b).

“Fiscal Year” means the calendar year or, in the case of the first and the last
fiscal years of the Company, the fraction thereof commencing on the date on
which the Company is formed under the Act or ending on the date on which the
winding up of the Company is completed, as the case may be.

“Formation Date” means the date hereof.

“14-and-Under Programming” means programming that is targeted to the
14-and-under demographic or any subsidiary demographic (e.g., the 12-and-under
demographic).
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“Funding Cap” has the meaning set forth in Section 3.05.

“GAAP” means generally accepted accounting principles in the United States, as
in effect from time to time.

“Gross Asset Value” means with respect to any asset, the asset’s adjusted basis
for federal income tax purposes, except as follows:

(a)

The initial Gross Asset Value of the assets deemed contributed to the Company
pursuant to Section 3.04 shall be the gross fair market value of such assets as
set forth in the Members’ Schedule;

(b)

The Gross Asset Values of all Company assets shall be adjusted to equal their
respective Fair Market Values, as of the following times:  (1) the acquisition
of an additional Membership Interest in the Company by any new or existing
Member in exchange for more than a de minimis Capital Contribution or for
services to be rendered to or on behalf of the Company; (2) the distribution by
the Company to a Member of more than a de minimis amount of Company property as
consideration for a Membership Interest in the Company; and (3) the liquidation
of the Company within the meaning of Treasury Regulations
Section 1.704-1(b)(2)(ii)(g); provided, however, that the adjustments pursuant
to clauses (1) and (2) shall be made only if the Board reasonably determines in
accordance with Article 7 that such adjustments are necessary or appropriate to
reflect the relative economic interests of the Members in the Company;

(c)

The Gross Asset Value of any Company asset distributed to any Member shall be
adjusted to equal the Fair Market Value of such asset on the date of
distribution; and

(d)

The Gross Asset Value of Company assets shall be increased (or decreased) to
reflect any adjustments to the adjusted basis of such assets pursuant to Code
Section 734(b) or Code Section 743(b), but only to the extent that such
adjustments are taken

into account in determining Capital Accounts pursuant to Treasury Regulations
Section 1.704-1(b)(2)(iv)(m) and Section 6.03(a); provided, however, that Gross
Asset Value shall not be adjusted pursuant to this clause (d) to the extent the
Board determines in accordance with Article 7 that an adjustment pursuant to
clause (b) is necessary or appropriate in connection with a transaction that
would otherwise result in an adjustment pursuant to this clause (d).

If the Gross Asset Value of an asset has been determined or adjusted pursuant to
clauses (a), (b), or (d) of this definition, such Gross Asset Value shall
thereafter be adjusted by the Depreciation taken into account with respect to
such asset for purposes of computing Net Profit and Net Loss.

“Hasbro Brand” means the specific trademark (or derivatives of the trademark)
that is part of the Hasbro Intellectual Property and that is used as the title
of a game (e.g., BATTLESHIP) or the title of a toy or non-game product line
(e.g., TRANSFORMERS), including umbrella trademarks (or derivatives of the
trademarks) that apply to multiple product lines (e.g., PLAYSKOOL) (but only the
specific umbrella trademark (or derivatives of the trademark) and not any
trademarks that apply to games, toys or product lines within such umbrella
brand).  For the avoidance of doubt, the mark CRANIUM as it appears on
Schedule 7.15(e) is in reference to the CRANIUM game and not to the CRANIUM
umbrella mark.   

“Hasbro Controlled Affiliate” means Hasbro Ultimate Parent and any of its
Controlled Affiliates.

“Hasbro Core Brand Material Element” means (x) with regard to games, any
trademark (or derivatives of the trademark) that is part of the Hasbro
Intellectual Property and that is used as the title of a game (e.g.,
BATTLESHIP), (y) with regard to toy or non-game product lines, any trademark (or
derivatives of the trademark) that is used as the title for such toy or product
line (e.g., TRANSFORMERS) and any principal character or principal feature
associated with such toy or product line (e.g., “Optimus Prime,” “Decepticons”),
and (z) with regard to umbrella trademarks (or derivatives of the trademarks)
that apply to multiple product lines, only the umbrella trademark (e.g.,
PLAYSKOOL) (or derivatives of the trademark) and not any trademarks that apply
to games, toys or product lines within such umbrella brand.

“Hasbro Core Brands” has the meaning set forth in Section 7.15(e).

“Hasbro - Discovery Agreement” means the Hasbro-Discovery Agreement entered into
by and between Hasbro and Discovery as of the Formation Date.

“Hasbro Estimated Tax Amount” has the meaning set forth in Section 5.01(a)(2).

“Hasbro Intellectual Property” has the meaning set forth in Schedule D hereto.

“Hasbro Material Breach” means

(i)

in the case of a termination election by Discovery pursuant to Section 15.01(h)
prior to the Launch Date, a material breach by Hasbro or its Controlled

Affiliates of this Agreement, the Hasbro Studios Programming Agreement, the
Trademark License Agreement or the Digital Agreement that, individually or in
the aggregate, has a material adverse effect on the Company, taken as a whole,
or on Discovery, taken as a whole; or

(ii)

in the case of a termination election by Discovery pursuant to Section 15.01(h)
after the Launch Date, (x) material and repeated breaches by Hasbro or its
Controlled Affiliates of material covenants or obligations of Hasbro or its
Controlled Affiliates in this Agreement that cause material harm to the Company
or Discovery or (y) the termination of the Hasbro Studios Programming Agreement
or the Trademark License Agreement by the Company or the Company’s election to
terminate the Digital Agreement (each in accordance with the terms thereof)
resulting from Hasbro’s or its Controlled Affiliate’s material breach thereof.

“Hasbro Payments” means each of the payments to be made to Hasbro or its
Affiliates by the Company under the Ancillary Agreements.

“Hasbro Programming License Agreement” means the Hasbro Programming Library
License Agreement entered into by and among Hasbro and the Company as of the
Formation Date.

“Hasbro Studios” means Hasbro, Inc. or any subsidiary or division thereof
designated by Hasbro, Inc. to produce, license or distribute television
programming in the United States under the Hasbro Studios Programming Agreement.

“Hasbro Studios Programming Agreement” means the Hasbro Studios Programming
Development and License Agreement entered into among Discovery, Hasbro, Hasbro
Studios and the Company as of the Formation Date.

“Hasbro Ultimate Parent” means Hasbro, Inc. and any successor or assigns thereof
(whether by merger, sale of equity, operation of law or otherwise).

“Hasbro Vote” has the meaning set forth in Section 7.03(a).

“Hassenfeld Family” means Alan or Sylvia Hassenfeld and each of their Family
Groups.

“Initial Annual Budgets” has the meaning set forth in the Purchase Agreement.

“Initial Business Plan” has the meaning set forth in the Purchase Agreement.

“Initial Period” means
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“Insufficient Bid” has the meaning set forth in Section 15.04(b)(5).

“Intellectual Property” means any (a) patents, patent applications, invention
disclosures, inventions conceived whether or not reduced to practice and whether
patentable or unpatentable,

and related improvements, (b) trademarks, service marks, trade dress, logos,
trade names, d/b/a’s, jingles, slogans, and corporate names, and any telephone
numbers containing or reflecting any of the other items identified in this
definition, along with any associated goodwill, (c) copyrights, copyrightable
works and works of authorship (including advertisements, commercials and
promotional materials), (d) rights of publicity, (e) trade secrets and
confidential business information (including ideas, formulas, compositions,
know-how, research and development information, software, drawings,
specifications, designs, plans, proposals, technical data, processes,
techniques, databases, financial, marketing and business data, pricing and cost
information, business, marketing and programming plans, and past and present
customer, advertiser, website visitor, and supplier lists and information),
(f) URLs, domain names and websites, including all content and materials
displayed on and/or accessible through such sites, (g) copies and tangible
embodiments of any of the foregoing (in whatever form or medium), and
(h) licenses granting any rights with respect to any of the foregoing (including
public performance licenses), (i) registrations and applications to register any
of the foregoing, if applicable, and (j) rights to sue with respect to past,
current and future infringements of any of the foregoing.

“Intentions Notices” has the meaning set forth in Section 15.03.

“International Website” has the meaning set forth in Section 13.01(d).

“IPTV System” means a system that digitally encodes audio-visual television
programming services and uses internet protocol for the transmission and routing
of such television programming services between or within the authorized point
of reception and device(s) that enable the display of such services by
subscribers (e.g., cable card, digital television set-top box, cable-ready
television); provided that the signal related to such IPTV System is delivered
to subscribers via a secure and closed transmission path and is not distributed
via the public Internet and, if required by applicable law, is delivered only in
specific local communities where the distributor is expressly authorized by a
governmental authority to serve those communities.

“Latin America” has the meaning set forth in Section 7.15(b)(2).

“Launch Date” means
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“Letter Agreement” means the Supplemental Letter Agreement between Discovery and
Hasbro dated as of even date herewith.

 “Losses” means any and all losses, liabilities, damages, assessments, fines,
judgments, costs and expenses, including reasonable attorney’s fees.

“Material Breach” means a Discovery Material Breach or Hasbro Material Breach,
as applicable.

“Member Nonrecourse Debt” has the meaning of “partner nonrecourse debt” set
forth in Treasury Regulations Section 1.704-2(b)(4).

“Member Nonrecourse Debt Minimum Gain” has the meaning of “partner nonrecourse
debt minimum gain” that is set forth in Treasury Regulations
Section 1.704-2(i)(2).  The amount of Member Nonrecourse Debt Minimum Gain shall
be determined in accordance with Treasury Regulations Section 1.704-2(i)(3).

“Member Nonrecourse Deductions” has the meaning of “partner nonrecourse
deductions” set forth in Treasury Regulations Section 1.704-2(i)(1) and (2).
 The amount of Member Nonrecourse Deductions shall be determined in accordance
with Treasury Regulations Section 1.702-2(i)(2).

“Members’ Schedule” means Schedule A attached hereto, as set forth in
Section 3.03.

“Membership Interest” means an ownership interest in the Company and includes
any and all benefits to which the holder of such Membership Interest may be
entitled as provided in this Agreement, together with all obligations of such
Person to comply with the terms and provisions of this Agreement, and which may
be expressed as a number of Common Units or as a Percentage Interest.

“Merchandise License Agreement” means any agreement entered into between Hasbro
and the Company after the Formation Date pursuant to which the Company grants
merchandising rights to Hasbro based on Intellectual Property owned or
controlled by the Company.

“Mission” has the meaning set forth in Section 2.05.

“MVPD” has the meaning set forth in the definition of “Cable Television
Network.”

“MVPD Technology” means cable, wire or fiber of any material, satellite,
satellite master antenna, single- and multi-channel multi-point microwave
distribution (so-called BRS and EBS licensed by the FCC), an IPTV System, or any
successor technology adopted by any Channel Affiliates from time to time as the
principal method of video programming distribution for in-home viewing; provided
that the signal relating to any such television service is not intended to be
intelligibly received unless authorized by the video program distributor of such
service and is distributed to subscribers via a secure and closed transmission
path (regardless of the technology used for such distribution).

 “Net Profit” or “Net Loss” means, for each Fiscal Year, an amount equal to the
Company taxable income or loss for such Fiscal Year, determined in accordance
with Code Section 703(a) (for this purpose, all items of income, gain, loss, or
deduction required to be stated separately pursuant to Code Section 703(a)(1)
shall be included in taxable income or loss), with the following adjustments:

(a)

Any income of the Company that is exempt from federal income tax and not
otherwise taken into account in computing such Net Profit or Net Loss shall be
added to such taxable income or loss;

(b)

Any expenditures of the Company described in Code Section 705(a)(2)(B), or
treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury
Regulations Section 1.704-1(b)(2)(iv)(i), and which are not otherwise taken into
account in computing such Net Profit or Net Loss, shall be subtracted from such
taxable income or loss;

(c)

In the event the Gross Asset Value of any Company asset is adjusted pursuant to
clause (b) or (c) of the definition of Gross Asset Value, the amount of such
adjustment shall be taken into account as gain or loss from the disposition of
such asset for purposes of computing Net Profit or Net Loss and in the event of
an adjustment pursuant to clause (b) of such definition, any such gain or loss
shall be added to Net Profit or Net Loss, as the case may be, as if the Company
had sold all of its assets at fair market value in liquidation in accordance
with Section 15.06;

(d)

Gain or loss resulting from any disposition of Company property with respect to
which gain or loss is recognized for federal income tax purposes shall be
computed by reference to the Gross Asset Value of the property disposed of,
notwithstanding that the adjusted tax basis of such property differs from its
Gross Asset Value;

(e)

In lieu of the depreciation, amortization, and other cost recovery deductions
taken into account in computing such taxable income or loss, there shall be
taken into account Depreciation for such Fiscal Year;

(f)

Notwithstanding anything to the contrary in the definition of the terms “Net
Profit” and “Net Loss,” any items which are specially allocated pursuant to
Section 6.03 (other than as provided in Section 6.03(a)) or Section 6.04 hereof
shall not be taken into account in computing such Net Profit or Net Loss; and

(g)

For purposes of this Agreement, any deduction for a loss on a sale or exchange
of Company property which is disallowed to the Company under Code
Section 267(a)(1) or 707(b) shall be treated as a Code Section 705(a)(2)(B)
expenditure.

The amounts of the items of Company income, gain, loss, or deduction available
to be specially allocated pursuant to Section 6.03 or 6.04 shall be determined
by applying rules analogous to those set forth in this definition of Net Profit
and Net Loss.

“Network” means the English-language Cable Television Network to be distributed
by the Company in the United States airing for 24 hours a day, seven days a
week, which will initially be the Discovery Kids Network and which will, after
the rebranding of the Discovery Kids Network, be distributed under the Agreed
Name, together with any so-called “multiplexed” Cable Television Networks that
are approved by the Board pursuant to Section 7.03; it being understood that the
term “Network” shall be deemed to include any such “multiplexed” Cable
Television Networks for all purposes under the Ancillary Agreements.

“************************” means *********************** and their Family Group.

“Nonrecourse Deductions” has the meaning set forth in Treasury Regulations
Section 1.704-2(b)(1).

“Nonrecourse Liability” has the meaning set forth in Treasury Regulations
Sections 1.704-2(b)(3) and 1.752-1(a)(2).

“Offeree” has the meaning set forth in Section 8.01(b).

“Offeror” has the meaning set forth in Section 8.01(b).

“Officers” has the meaning set forth in Section 7.09(a).

“Operating Cash Flow Deficit” has the meaning set forth in Section 3.05.

“Percentage Interest” means, with respect to a Member, such Member’s percentage
interest in the Company as determined by dividing the number of Common Units
owned by such Member by the total number of Common Units then outstanding, as
specified in Schedule A attached hereto as amended from time to time.

“Permitted Holder” means, subject to the last sentence in the definition of
“Change of Control Transaction,”

(a)

with respect to Discovery Ultimate Parent, each of the following Persons:
 (1) ******************; (2) any publicly-traded corporation listed on
Schedule 1.01 attached hereto of which ****************** and his Family Group
are the “beneficial owners” (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act, except that ****************** and his Family Group shall be
deemed to have “beneficial ownership” of all securities that ******************
and his Family Group have the right to acquire, whether such right is
exercisable immediately or only after the passage of time), directly or
indirectly, of greater than 20 percent (20%) of the total voting power of the
outstanding equity securities or interests of such publicly-traded corporation
(exclusive of any voting power retained, directly or indirectly, by other
members of any “group” (as such term is used for purposes of Rule 13d-5 under
the Exchange Act) other than ****************** and his Family Group) and such
voting power is greater than the total voting power of the outstanding equity
securities or interests of such publicly-traded corporation “beneficially owned”
by any other Person (exclusive of any voting power retained exclusively by
****************** and his Family Group, directly or indirectly, as a member of
any “group”)); (3) Controlled Affiliates of ****************** ; (4) members of
the Family Group of ****************** or their Controlled Affiliates; (5) the
******************; (6) ******************  (so long as it is a Controlled
Affiliate of the ******************); and (7) Controlled Affiliates of the
******************;

(b)

with respect to any Affiliate of Discovery Ultimate Parent which owns Membership
Interests, (1) any Permitted Holder of Discovery Ultimate Parent or (2) any
Wholly-Owned Affiliate of Discovery Ultimate Parent;

(c)

with respect to Hasbro Ultimate Parent, each of the following Persons: (1) the
Hassenfeld Family; and (2) Controlled Affiliates of the Hassenfeld Family; and

(d)

 with respect to any Affiliate of Hasbro Ultimate Parent which owns Membership
Interests, (1) any Permitted Holder of Hasbro Ultimate Parent or (2) any
Wholly-Owned Affiliate of Hasbro Ultimate Parent.

“Permitted Transferee” has the meaning set forth in Section 8.01(a), subject to
the last sentence in the definition of “Change of Control Transaction.”

“Person” means an individual or a corporation, partnership, limited liability
company, trust, unincorporated organization, association or any other entity.

“Pre-Launch Programming Fees” means an amount equal to (a) any amounts paid by
the Company to Hasbro Studios pursuant to the Hasbro Studios Programming
Agreement and (b) any amounts paid by the Company to Hasbro pursuant to the
Hasbro Programming License Agreement, in each case, during the period commencing
on the Formation Date and ending on the date of a Sale pursuant to
Section 15.02(a).

“Programming Guidelines” has the meaning set forth in Section 7.12.

“Purchase Agreement” means the Purchase Agreement entered into by and among the
Hasbro, Discovery and DCI on April 29, 2009.

“Receiving Party” has the meaning set forth in Section 14.01(b).

“Regulatory Allocations” has the meaning set forth in Section 6.04.

“Related-Party Transaction” has the meaning set forth in Section 7.13.

“Sale” means an auction and/or sale of the Company or the portion thereof as
provided in Sections 15.02, 15.03 and/or 15.04 (whether by way of merger,
consolidation, sale of equity, sale of assets or otherwise).

 “Securities Act” means the Securities Act of 1933, as amended.

“Signing Date” means the date of execution of the Purchase Agreement.

“Subject Entity” has the meaning set forth in the definition of “Family Group.”

“Subject Interests” has the meaning set forth in Section 8.01(b).

“Substituted Member” has the meaning set forth in Section 8.06(a).

“Superior Offer” means any bid, offer or proposal made in writing on terms which
are, taking into account all financial, regulatory, legal and other aspects of
such bid, offer or proposal, including the financing terms thereof, (a) more
favorable from a financial point of view to the Member or Members, as
applicable, than any other competing bid, offer or proposal and (b) reasonably
capable of being completed.

“Tax Matters Partner” has the meaning given to such term in Section 6231 of the
Code.

“Telecast Rights” means the rights to create and/or authorize the creation of, a
television program and to distribute and/or authorize the distribution of, such
program on a Cable Television Network or via Broadcast Television in the United
States.

“Term” means the period commencing on the Formation Date and ending on the date
a Sale is consummated or the Company is earlier dissolved and terminated in
accordance with the provisions of Article 15.

 “Termination Costs” means any costs and expenses incurred or reasonably
expected to be incurred by the Company that arise out of the termination of any
contracts, agreements, or other arrangements or relationships with third parties
(including employees of the Company) following a termination pursuant to the
first and second sentences of Section 15.02(a) (e.g., severance payable to
employees, termination payments to extinguish contractual obligations, etc.).

“Third-Party Appraiser” means an independent third-party appraiser from a
nationally recognized investment bank, independent accounting firm or appraisal
firm familiar with the media and entertainment industries.  Where the context
contemplates that Discovery and Hasbro will mutually agree on a third-party
appraiser, “Third-Party Appraiser” means such an appraiser mutually agreed upon
by Discovery and Hasbro, and if Discovery and Hasbro are unable to agree upon
such appraiser, each shall designate a third-party appraiser from a nationally
recognized investment bank, independent accounting firm or appraisal firm
familiar with the media and entertainment industries, which two appraisers shall
designate a third appraiser to be the independent third-party appraiser.

“Trademark License Agreement” means the Trademark License Agreement entered into
by and among the Company, Hasbro and Discovery as of the Formation Date.

“Transfer” means to transfer, sell, assign, convey, pledge, mortgage, encumber,
hypothecate or otherwise dispose of all or any portion of the ownership interest
or other rights in question, irrespective of whether any of the foregoing are
effected voluntarily or involuntarily, directly or indirectly, by merger, sale
of equity, operation of law or otherwise.  The terms “Transferred,”
“Transferor,” “Transferee” and similar variations shall have correlative
meanings.

“Treasury Regulations” includes proposed, temporary and final regulations
promulgated under the Code in effect as of the date of filing the Certificate of
Formation and the corresponding sections of any regulations subsequently issued
that amend or supersede those regulations.

“Treasury Secretary” has the meaning set forth in Section 11.03(b).

“United States” or “U.S.” means the United States and its territories,
possessions and commonwealths (including Puerto Rico, the United States Virgin
Islands and Guam).

“Unrecouped Guarantees” means an amount equal to (a) the sum of all Guarantee
Payments paid to the Company pursuant to Section 1.03 of Schedule D minus
(b) the sum of all Hasbro Revenue Share Payments payable by Hasbro pursuant to
Section 1.04(a) of Schedule D that were recouped rather than paid in accordance
with Section 1.03(b) of Schedule D, in each case, during the period commencing
on the Formation Date and ending on the date of consummation of a Sale.

“Unwind Price” means:  

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“Withholding Advance” has the meaning set forth in Section 5.02(b).

“Wholly-Owned Affiliate” of a Person means (i) any Wholly-Owned Subsidiary (as
defined below) of such Person, (ii) any Affiliate of such Person that owns,
directly or indirectly, all of the equity interests of such Person, and
(iii) any direct or indirect Wholly-Owned Subsidiary of any such Affiliate
described in clause (ii), where “Wholly-Owned Subsidiary” of a Person means any
Affiliate of such Person all of the equity interests of which are owned,
directly or indirectly, by such Person.

1.02.

Construction.  

(a)

Whenever the context requires, the gender of all words used in this Agreement
includes the masculine, feminine and neuter, and words (including defined terms)
in the singular include the plural and vice versa.  All references to Articles
and Sections refer to articles and sections of this Agreement (unless the
context otherwise requires), and all

references to Schedules and Exhibits are to schedules and exhibits attached
hereto (unless the context otherwise requires), each of which is made a part
hereof for all purposes.  The words “include,” “includes” and “including” shall
be deemed to be followed by the phrase “without limitation.”  The word “for
example,” the abbreviation “e.g.” and similar variations shall be deemed to be
followed by the phrase “by way of illustration and not limitation.”  The terms
“hereof,” “herein,” “herewith,” and “hereunder” and words of similar import
shall be construed to refer to this Agreement as a whole (including all of the
Schedules and Exhibits hereto) and not to any particular provision of this
Agreement unless otherwise specified.

(b)

Unless the context otherwise requires, in the event a Member directly Transfers
a portion (but not all) of its Membership Interest to a Permitted Transferee and
the Permitted Transferee is admitted as a Member:  (1) such initial Member and
Permitted Transferee shall (A) be grouped together and considered a single
Member, (B) act collectively and (C) be represented by such initial Member, who
shall have the authority to represent and bind such Permitted Transferee and to
receive and provide all notices on its behalf; (2) with respect to Discovery,
any references to Member or Discovery shall collectively refer to Discovery and
such Permitted Transferee; and (3) with respect to Hasbro, any references to a
Member or Hasbro shall collectively refer to Hasbro and such Permitted
Transferee.  

(c)

Unless the context otherwise requires, in the event a Member Transfers its
entire Membership Interest in accordance with Article 8, subject to
Section 8.07, and the Transferee is admitted to the Company as a Substituted
Member pursuant to Section 8.06, references to Member, Hasbro or Discovery, as
applicable, in this Agreement shall mean such Substituted Member, and such
Substituted Member shall be considered the initial Member for purposes of
Section 1.02(b).

(d)

For the avoidance of doubt, the terms of construction set forth in
Sections 1.02(b) and (c) shall be fully applicable (except where they are not
applicable by their terms above) whether or not a particular provision of this
Agreement includes or does not include a specific reference to “Permitted
Transferee.”

(e)

For purposes of this Agreement, any reference to a defined term in or provision
of any Ancillary Agreement that shall have been terminated as of any date of
determination shall, to the extent consistent with the substantive effect of
such termination, be deemed to be a reference to such defined term or provision
as in effect immediately prior to the termination of such Ancillary Agreement.

(f)

For the purposes of this Agreement, although the Company would be an Affiliate
and Controlled Affiliate of each of Discovery, DCI and Hasbro, the Parties have
agreed that the Company shall not be treated as such for the purposes of this
Agreement.  Accordingly, without limiting the foregoing, any provision hereof
purporting to be binding upon, or to obligate, a Member and its “Affiliates” or
“Controlled Affiliates,” or which requires a Member to cause its “Affiliates” or
“Controlled Affiliates” to take, or refrain from taking, any action, shall be
deemed to exclude the Company and its Controlled Affiliates unless expressly
provided otherwise.

ARTICLE 2
Organization

2.01.

Formation.  Discovery has caused the Certificate to be filed with the Secretary
of State of the State of Delaware.  The Company shall cause the Certificate to
be filed or recorded in any other public office where filing or recording is
required or advisable.  The Members and the Company shall do, and continue to
do, all things that are required or advisable to maintain the Company as a
limited liability company existing pursuant to the laws of the State of
Delaware.

2.02.

Name.  The name of the Company is “DHJV Company LLC.”  The Board may change the
name of the Company at any time and from time to time, subject to the
affirmative written approval of each Member.  The Business may be conducted in
the name of the Company or such other names that comply with applicable law as
the Board may select from time to time, subject to the affirmative written
approval of each Member and compliance with the Ancillary Agreements.

2.03.

Principal Office.  The principal office of the Company shall be at such place as
the Board may designate from time to time, which office need not be in the State
of Delaware.  The Company may also have such other offices as the Board may
designate from time to time.

2.04.

Registered Agent for Service of Process.  The Company shall continuously
maintain with the State of Delaware an agent for service of process, which agent
shall be named in the Certificate, as it may be amended from time to time.  The
Board may change the agent for service of process as it from time to time may
determine.

2.05.

Mission.  The “Mission” of the Company shall be to operate an English-language
Network primarily programmed with 14-and-Under Programming.

2.06.

Purposes.  The purpose of the Company shall be solely to engage in the Business.

2.07.

Term.  The Company commenced on the date the Certificate was filed pursuant to
the Act and shall exist perpetually unless earlier dissolved and terminated in
accordance with the provisions of Article 15.

2.08.

Limited Liability Company Agreement.  Each Member hereby executes this Agreement
for the purpose of establishing the affairs of the Company and the conduct of
its business in accordance with the provisions of the Act.  Each Member
acknowledges that, during the Term, the rights and obligations of the Members
with respect to the Company shall be determined in accordance with the Act and
the terms and conditions of this Agreement; provided that to the extent that the
rights and obligations of either Member are different by reason of any provision
of this Agreement than they would be in the absence of such provision, this
Agreement shall, to the extent permitted by the Act, control.  

ARTICLE 3
Initial Business Plan; Annual Budget; Common Units; Capital Contributions

3.01.

Initial Business Plan.  The Initial Business Plan shall be the business plan of
the Company for the period from the Formation Date through December 31, 2015 and
sets forth the Initial Annual Budgets for each Fiscal Year during the Initial
Period.  Following the appointment of the chief executive officer of the Company
(the “Chief Executive Officer”), the Members shall consult with the Chief
Executive Officer regarding the Initial Business Plan and the Initial Annual
Budgets, and after such consultations, Discovery and Hasbro may make any
adjustments and modifications to the Initial Business Plan and the Initial
Annual Budgets as they may mutually agree upon, which as so agreed shall
constitute the applicable Initial Business Plan and the Initial Annual Budgets
for purposes of this Agreement from and after the time so agreed.   

3.02.

Annual Budget.

(a)

By October 15 of each calendar year beginning in 2009, the Chief Executive
Officer shall cause to be prepared and presented to the Board the proposed
Annual Budget for the next succeeding Fiscal Year (or, in the case of any Annual
Budget for a Fiscal Year during the Initial Period, the Chief Executive
Officer’s proposed modifications, if any, to the applicable Initial Annual
Budget for the next succeeding Fiscal Year).  The proposed Annual Budget for all
Fiscal Years shall set forth the annual operating and capital budget of the
Company on a quarterly basis.

(b)

For a period of 30 days following the date on which the proposed Annual Budget
is presented to the Board, the Board shall review such Annual Budget and shall
make such modifications to such proposed Annual Budget as are mutually desirable
and agreeable.  If the Board does not approve any proposed modifications to an
Initial Annual Budget (including after applying the deadlock procedures set
forth in Section 7.03(c)), then the Initial Annual Budget shall continue in
effect with respect to any such Fiscal Year until the earlier of such time as
such an Initial Annual Budget modification is approved or the end of the
applicable Fiscal Year.  If the Board does not approve an Annual Budget for any
Fiscal Year after the Initial Period (including after the deadlock procedures
set forth in Section 7.03(c)), then, subject to the Members’ termination rights
under Article 15, the Annual Budget for the immediately preceding Fiscal Year
shall be the Annual Budget for the Fiscal Year in question.  Notwithstanding the
foregoing, to the extent that, after giving effect to Section 3.05, the Company
would still reasonably be expected to have an Operating Cash Flow Deficit, then,
unless the Board may otherwise determine, the Chief Executive Officer shall
modify variable expense line items contained in any such Annual Budget in order
to eliminate such Operating Cash Flow Deficit; provided, however, that any such
modification shall be designed to minimize any reduction in the Company’s
programming expenditures to the maximum extent reasonably practicable and shall
not reduce the budget for programming to be licensed by the Company from Hasbro
Studios; provided further that if, after giving effect to Section 3.05 and after
such modifications to variable expense line items are made, the Company would
still reasonably be expected to have an Operating Cash Flow deficit, then,
unless the Board may otherwise determine, the Chief Executive Officer may reduce
the budget for programming to be licensed by the Company from Hasbro Studios but
on no more

than a pro rata basis as compared to the aggregate reduction of all variable
expense line items.

3.03.

Common Units.  The Membership Interests of the Members shall be represented by
issued and outstanding “Common Units.”  The Secretary, or other Officer, of the
Company shall maintain a schedule of all Members, with their respective
addresses and facsimile numbers and the Common Units held by them indicated
therein, which shall be amended, modified or supplemented from time to time to
reflect accurately any Transfer in accordance with Article 8 or any other future
changes with respect to the Members and the Common Units, a copy of which as of
the execution of this Agreement is attached hereto as Schedule A (the “Members’
Schedule”). The number of Common Units issued to each Member as of the Formation
Date is set forth opposite such Member’s name on the Members’ Schedule attached
hereto as Schedule A.

3.04.

Deemed Initial Capital Contributions; Tax Treatment.  The parties agree that for
federal income tax purposes, (i) the purchase of the fifty percent (50%)
Membership Interest by Hasbro from Discovery pursuant to the Purchase Agreement
shall be treated consistently and in accordance with Revenue Ruling 99-5, 1999-1
C.B. 434 and (ii) immediately after such purchase, the Company shall be
classified as a partnership for federal income tax purposes.

3.05.

Additional Capital Contributions; Funding Commitment.  To the extent the
revenues of the Company are insufficient to fund the Company’s operating costs
and expenses (an “Operating Cash Flow Deficit”) as budgeted in the Initial
Business Plan or any Annual Budget, each Member shall be obligated to make
Capital Contributions to the Company in accordance with this Section 3.05, up to
the aggregate amount of $15 million for each Member (the “Funding Cap”).  Each
month, not less than five Business Days prior to the last Business Day of such
month, the Board, in consultation with the Company’s Chief Executive Officer,
shall determine the total amount of the Operating Cash Flow Deficit, if any,
reasonably anticipated for the succeeding month.  On or before the last Business
Day of such month, each Member shall make a cash Capital Contribution in the
amount of its proportionate share (based on its Percentage Interest) of the
applicable Operating Cash Flow Deficit, provided that no Member shall be
obligated to make an aggregate amount of Capital Contributions during the Term
in excess of its Funding Cap.  After a Member has made Capital Contributions
pursuant to this Section 3.05 in an aggregate amount equal to its Funding Cap,
no Member shall have any further obligations under this Section 3.05.  Except as
provided under this Section 3.05, neither Discovery nor Hasbro shall have any
obligation or commitment to make any additional Capital Contributions or
otherwise provide funds to the Company.

3.06.

No Third Party Beneficiaries.  The right of the Company to call for
contributions of additional capital or arrange for loans to the Company under
the terms of this Agreement does not confer any rights or benefits to or upon
any Person who is not a party to this Agreement.

3.07.

Return of Contributions.  A Member shall not be entitled to the return of any
part of its Capital Contributions or to be paid interest in respect of either
its Capital Account or its Capital Contributions.  An unrepaid Capital
Contribution is not a liability of the Company or of any Member.  A Member shall
not be required to contribute or to lend any cash or property to the Company to
enable the Company to return any Member’s Capital Contributions.  Subject to

Article 15, under any circumstances requiring a return of all or any portion of
a Capital Contribution, no Member shall have the right to receive property other
than cash; provided that in the event any property is distributed to the
Members, except as otherwise provided in Article 15, each Member shall have the
right to receive its pro rata portion of such property based on such Member’s
Percentage Interest.

ARTICLE 4
Members; Membership Interests

4.01.

Voting Rights of Members.  Members shall not be entitled to vote with respect to
any matters except as required by nonwaivable provisions of applicable law or
this Agreement.  On all matters submitted to a vote of the Members, each of
Discovery and Hasbro shall have one vote.  This provision is in addition to, and
does not affect, any provision of this Agreement or any Ancillary Agreement that
requires the consent or approval of a Member with respect to a particular
matter.

4.02.

Meetings of Members.

(a)

A quorum shall be present at a meeting of Members only if each of Discovery and
Hasbro is represented at the meeting in person, via conference telephone or
similar communications equipment or by proxy.  With respect to any matter, any
resolution adopted, decision made or action undertaken by the Members shall
require the affirmative vote of each of Discovery and Hasbro.  This provision is
in addition to, and does not affect, any provision of this Agreement or any
Ancillary Agreement that requires the consent or approval of a Member with
respect to a particular matter.

(b)

All meetings of the Members shall be held at such time and place as the Board
may from time to time determine, provided that Members may participate in or
hold any such meeting by means of conference telephone or similar communications
equipment by means of which all Persons participating in the meeting can hear
each other.  The Board shall provide each Member with at least 48 hours notice
of any such meeting.  Such notice need not state the purpose or purposes of, nor
the business to be transacted at, such meeting, except as may otherwise be
required by nonwaivable provisions of applicable law or this Agreement.
 Representation of a Member at a meeting shall constitute a waiver of notice of
such meeting, except where a representative of a Member attends a meeting for
the express purpose of objecting to the transaction of any business on the
ground that the meeting is not called or convened lawfully or in accordance with
this Agreement.

4.03.

Proxies.  A Member may vote either in person, via conference telephone or
similar communications equipment, or by proxy executed in writing by such
Member.  A facsimile or similar transmission by any Member (including a
facsimile delivered by electronic mail), or a photographic, photostatic or
similar reproduction of a writing executed by such Member shall be treated as an
execution in writing for purposes of this Section 4.03.  A proxy shall be
revocable unless the proxy form conspicuously states that the proxy is
irrevocable.

4.04.

Action of Members by Written Consent.  Any action required or permitted to be
taken at any meeting of the Members may be taken without a meeting, without
prior notice, and

without a vote, if a consent in writing, setting forth the action so taken,
shall be signed by all of the Members and the consent is filed with the minutes
of the proceedings of the Members.

4.05.

Liability to Third Parties.  No Member, Director or Officer shall be liable for
the debts, obligations or liabilities of the Company in their capacity as such.
 

4.06.

Lack of Authority.  Except as specifically provided herein, none of the Members,
in such capacity, shall have the authority or power to act for or on behalf of
the Company, to do any act that would be binding on the Company, or to incur any
obligations or liabilities on behalf of the Company.

ARTICLE 5
Distributions

5.01.

Distributions.

(a)

As soon as practicable after the delivery of the reports described in
Section 12.02(a)(2) for a calendar quarter, the Tax Matters Partner shall
estimate in good faith the taxable income to be allocated to each of Discovery
and Hasbro for such calendar quarter.  Thereafter, subject to any contractual
restrictions to which the Company is subject, within five (5) days after such
estimate is so determined, the Company shall distribute to the Members
Distributable Cash, in accordance with their Percentage Interests, in an amount
equal to the Estimated Tax Distribution Amount.  For purposes of this
Section 5.01(a), the “Estimated Tax Distribution Amount” shall equal the greater
of the Discovery Estimated Tax Amount or the Hasbro Estimated Tax Amount.

(1)

The “Discovery Estimated Tax Amount” means (i) the taxable income to be
allocated to Discovery for the calendar quarter ended on the Estimated Tax Date
(as estimated in good faith by the Tax Matters Partner), multiplied by (ii) the
Effective Tax Rate for such calendar quarter, and divided by (iii) Discovery’s
Percentage Interest.

(2)

The “Hasbro Estimated Tax Amount” means (i) the taxable income to be allocated
to Hasbro for the calendar quarter ended on the Estimated Tax Date (as estimated
in good faith by the Tax Matters Partner), multiplied by (ii) the Effective Tax
Rate for such calendar quarter, and divided by (iii) Hasbro’s Percentage
Interest.

(3)

An “Estimated Tax Date” means the last day of a calendar quarter.

(b)

Within five (5) days after the filing of the Company’s federal income tax return
for a taxable year, the Company shall distribute to the Members Distributable
Cash, in accordance with their Percentage Interests, in an amount equal to the
Final Tax Distribution Amount.  For purposes of this Section 5.01(b), the “Final
Tax Distribution Amount” shall equal the greater of the Discovery Final Tax
Amount or the Hasbro Final Tax Amount.

(1)

The “Discovery Final Tax Amount” means (i) the excess, if any, of (1) the
taxable income allocated to Discovery for such taxable year as shown on such
federal income tax return, multiplied by the Effective Tax Rate for such taxable
year, over (2) the sum of the distributions to Discovery for each of the
calendar quarters in such taxable year pursuant to Section 5.01(a), divided by
(ii) Discovery’s Percentage Interest.

(2)

The “Hasbro Final Tax Amount” means (i) the excess, if any, of (1) the taxable
income allocated to Hasbro for such taxable year as shown on such federal income
tax return, multiplied by the Effective Tax Rate for such taxable year, over (2)
the sum of the distributions to Hasbro for each of the calendar quarters in such
taxable year pursuant to Section 5.01(a), divided by (ii) Hasbro’s Percentage
Interest.

(c)

To the extent there is insufficient Distributable Cash to make the distributions
required by Sections 5.01(a) or 5.01(b) at the time required, the Company shall
distribute the available Distributable Cash to the Members in accordance with
their Percentage Interests, and thereafter as Distributable Cash becomes
available the Company shall distribute the excess of the amounts required to be
distributed pursuant to Sections 5.01(a) and 5.01(b) over the amounts actually
distributed.

(d)

After the Company has made distributions required by Sections 5.01(a), 5.01(b),
and 5.01(c), the Company shall, subject to any contractual restrictions to which
the Company is subject, distribute, at least annually, all remaining
Distributable Cash to the Members in accordance with their Percentage Interests.
 

(e)

Distributions to each Member pursuant to this Agreement shall be made pursuant
to payment instructions specified by each such Member by notice given to the
Company pursuant to Section 16.02.

(f)

No distribution shall be made by the Company except in accordance with this
Article 5 and Article 15, except as otherwise agreed by the Board or the
Members.

5.02.

Tax Withholding.

(a)

The Company shall seek to qualify for and obtain exemptions from any provision
of the Code or any provision of state, local, or foreign tax law that would
otherwise require the Company to withhold amounts from payments or distributions
to the Members.  If the Company does not obtain any such exemption, the Company
is authorized, after notice to the Members, to withhold from any payment or
distribution to either Member any amounts that are required to be withheld
pursuant to the Code or any provision of any state, local, or foreign tax law
that is binding on the Company.

(b)

Any amount withheld with respect to any payment or distribution to any Member
shall be credited against the amount of the payment or distribution to which the
Member would otherwise be entitled.  If the Code or any provision of any state,
local, or foreign tax law that is binding on the Company requires that the
Company remit to any taxing authority any withholding tax with respect to, or
for the account of, any Member in its

capacity as a Member, the Company shall, to the extent that Company funds are
available therefor, remit the full required amount of such withholding tax to
the taxing authority and shall notify such Member in writing of its obligation
to pay to the Company such withholding tax to the extent it exceeds the amount
of any payment or distribution to which such Member would otherwise then be
entitled.  Each Member shall pay to the Company, within five Business Days after
its receipt of written notice from the Company that withholding is required with
respect to such Member, any amounts required to be remitted by the Company to
any taxing authority with respect to such Member that are in excess of the
amount of any payment or distribution to which such Member would otherwise be
entitled.  If the Company is required to remit any withholding tax with respect
to, or for the account of, any Member prior to the Company’s receipt of any
payment required to be made by such Member pursuant to the preceding sentence,
the amount of the payment required to be made by such Member shall be treated as
a loan (the “Withholding Advance”) from the Company to the Member, which shall
accrue interest from the date the Company is required to remit such withholding
tax until paid by such Member or credited against payments or distributions to
which such Member would otherwise be entitled as provided in Section 5.02(c), at
a rate of 15.0 percent (15.0%) per year, compounded semi-annually.

(c)

Any Withholding Advance made to a Member and any interest accrued thereon shall
be credited against, and shall be offset by, the amount of any later payment or
distribution to which the Member would otherwise be entitled (without
duplication of the credit provided in the first sentence of Section 5.02(b)),
with any credit for accrued and unpaid interest as of the date such payment or
distribution would otherwise have been made being applied before any credit for
the amount of the Withholding Advance.  Any Withholding Advance made to a Member
and any interest accrued thereon, to the extent it has not previously been paid
by the Member in cash or fully credited against payments or distributions to
which the Member would otherwise be entitled, shall be paid by the Member to the
Company upon the earliest of (1) the dissolution of the Company or (2) the date
on which the Member ceases to be a Member of the Company.

(d)

All amounts that are credited against distributions to which a Member would
otherwise be entitled pursuant to this Article 5 shall be treated as amounts
distributed to such Member for all purposes of this Agreement, and, if credited
against payments to which a Member would otherwise be entitled under this
Agreement or any other amount due to such Member from the Company, such amounts
shall be treated as amounts paid to such Member for all purposes of this
Agreement.

ARTICLE 6
Capital Accounts; Allocations of Profit and Loss

6.01.

Capital Account.

(a)

A separate Capital Account shall be maintained for each Member.  With respect to
each Member, “Capital Account” shall mean the fair market value of the property
deemed to have been contributed by such Member to the Company pursuant to
Section 3.04 (net of liabilities that are secured by such contributed property
or that the Company or any other Member is considered to assume or take subject
to under Code

Section 752) as set forth on the Members’ Schedule, (1) increased by (i) any
cash contributed or deemed contributed to the Company by such Member on or after
the Formation Date, (ii) the Fair Market Value of any other property contributed
or deemed contributed by such Member to the Company (net of liabilities that are
secured by such contributed property or that the Company or any other Member is
considered to assume or take subject to under Code Section 752), (iii)
allocations to such Member of Net Profit and any items of income and gain that
are specially allocated pursuant to Section 6.03, 6.04 or 6.05, (iv) any Company
liabilities assumed by the Member or secured, in whole or in part, by any
Company assets that are distributed to the Member, and (v) other additions
allocated to such Member in accordance with the Code; and (2) decreased by (i)
the amount of cash distributed to such Member by the Company, (ii) allocations
to such Member of Net Loss and any items of loss and deduction that are
specially allocated pursuant to Section 6.03, 6.04 or 6.05, (iii) the Fair
Market Value of property distributed to such Member by the Company (net of
liabilities that are secured by such distributed property or that such Member is
considered to assume or take subject to under Code Section 752), and (iv) other
deductions allocated to such Member in accordance with the Code.

(b)

The foregoing provisions and the other provisions of this Agreement relating to
the maintenance of Capital Accounts are intended to comply with Treasury
Regulations Section 1.704-1(b)(2)(iv), and shall be interpreted and applied in a
manner consistent with such regulations.

(c)

In the event of a permitted Transfer of Common Units pursuant to Article 8, the
Capital Account (or applicable portion thereof) of the Transferor shall become
the Capital Account of the Transferee to the extent it relates to the
Transferred Common Units.

6.02.

In General.

(a)

Net Profit or Net Loss for each Fiscal Year (or portion thereof) shall be
allocated to the Members in accordance with their Percentage Interests:

(b)

To the extent an allocation of Net Loss pursuant to Section 6.02(a) would cause
a Member to have a deficit balance in its Adjusted Capital Account as of the end
of the Fiscal Year to which the allocation relates (or would increase any such
deficit), such Net Loss shall be reallocated to the other Members having
positive Capital Account balances pro rata in accordance with the positive
balance of such Members’ Capital Accounts.

6.03.

Special Allocations.

(a)

Except as otherwise provided in Treasury Regulations Section 1.704-2(f),
notwithstanding any other provision of this Article 6 , if there is a net
decrease in Company Minimum Gain during any Company Fiscal Year, each Member
shall be specially allocated items of Company income and gain for such Fiscal
Year (and, if necessary, for subsequent Fiscal Years) in an amount equal to such
Member’s share of the net decrease in Company Minimum Gain, determined in
accordance with Treasury Regulations Section 1.704-2(g).  Allocations pursuant
to the previous sentence shall be made in

proportion to the respective amounts required to be allocated to each Member
pursuant thereto.  The items of Company income and gain to be allocated pursuant
to this Section 6.03(a) shall be determined in accordance with Treasury
Regulations Sections 1.704-2(f)(6) and 1.704-2(j)(2).  This Section 6.03(a) is
intended to comply with the minimum gain chargeback requirement in Treasury
Regulations Section 1.704-2(f) and shall be interpreted consistently therewith.

(b)

Except as otherwise provided in Treasury Regulations Section 1.704-2(i)(4),
notwithstanding any other provision of this Article 6 other than
Section 6.03(a), if there is a net decrease in Member Nonrecourse Debt Minimum
Gain attributable to a Member Nonrecourse Debt during any Fiscal Year, each
Member with a share of the Member Nonrecourse Debt Minimum Gain attributable to
such Member Nonrecourse Debt, determined in accordance with Treasury Regulations
Section 1.704-2(i)(5), shall be specially allocated items of Company income and
gain for the year (and, if necessary, for subsequent Fiscal Years) in an amount
equal to such Member’s share of the net decrease in Member Nonrecourse Debt
Minimum Gain attributable to such Member Nonrecourse Debt (determined in
accordance with Treasury Regulations Section 1.704-2(i)(4)).  Allocations
pursuant to the previous sentence shall be made in proportion to the respective
amounts required to be allocated to each Member pursuant thereto.  The items of
Company income and gain to be allocated pursuant to this Section 6.03(b) shall
be determined in accordance with Treasury Regulations Sections 1.704-2(i)(4) and
1.704-2(j)(2).  This Section 6.03(b) is intended to comply with the minimum gain
chargeback requirement in Treasury Regulations Section 1.704-2(i)(4) and shall
be interpreted consistently therewith.

(c)

In the event any Member unexpectedly receives any adjustments, allocations or
distributions described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4),
1.704-1(b)(2)(ii)(d)(5), or 1.704-1(b)(2)(ii)(d)(6), items of Company income and
gain shall be specially allocated to each such Member in an amount and manner
sufficient to eliminate, to the extent required by the Treasury Regulations, any
deficit balance of such Member’s Adjusted Capital Account as quickly as
possible; provided, however, that an allocation pursuant to this Section 6.03(c)
shall be made only if and to the extent that such Member would have a deficit
balance in its Adjusted Capital Account after all other allocations provided for
in this Article 6 have been tentatively made as if this Section 6.03(c) were not
in this Agreement.

(d)

In the event any Member has a deficit Capital Account at the end of any Fiscal
Year that is in excess of the sum of (i) the amount such Member is obligated to
restore to the Company pursuant to any provision of this Agreement, (ii) the
amount such Member is deemed to be obligated to restore pursuant to the
penultimate sentence of Treasury Regulations Section 1.704-2(g)(1) and (iii) the
amount such Member is deemed to be obligated to restore pursuant to the
penultimate sentence of Treasury Regulations Section 1.704-2(i)(5), each such
Member shall be specially allocated items of Company income and gain in the
amount of such excess as quickly as possible; provided, however, that an
allocation pursuant to this Section 6.03(d) shall be made only if and to the
extent that such Member would have a deficit Capital Account in excess of such
sum after all other allocations provided for in this Article 6 have been
tentatively made as if Section 6.03(c) and this Section 6.03(d) were not in this
Agreement.

(e)

Nonrecourse Deductions for any Fiscal Year or other period shall be specially
allocated to the Members in accordance with their Percentage Interests.

(f)

Any Member Nonrecourse Deductions for any Fiscal Year or other period shall be
specially allocated to the Member who bears the economic risk of loss with
respect to the Member Nonrecourse Debt to which such Member Nonrecourse
Deductions are attributable in accordance with Treasury Regulations
Section 1.704-2(i).

(g)

To the extent an adjustment to the adjusted tax basis of any Company asset
pursuant to Code Section 734(b) or 743(b) is required pursuant to Treasury
Regulations Section 1.704-1(b)(2)(iv)(m)(4) to be taken into account in
determining Capital Accounts as a result of a distribution other than in
liquidation of a Member’s Membership Interest, the amount of such adjustment
shall be treated as an item of gain (if the adjustment increases the basis of
such asset) or loss (if the adjustment decreases the basis of the asset) from
the disposition of the asset and shall be taken into account for purposes of
computing Net Profit and Net Loss.  To the extent an adjustment to the adjusted
tax basis of any Company asset pursuant to Code Section 734(b) or Code
Section 743(b) is required, pursuant to Treasury Regulations
Section 1.704-1(b)(2)(iv)(m)(2) or 1.704-1(b)(2)(iv)(m)(4), to be taken into
account in determining Capital Accounts as the result of a distribution to a
Member in complete liquidation of its interest, the amount of such adjustment to
Capital Accounts shall be treated as an item of gain (if the adjustment
increases the basis of the asset) or loss (if the adjustment decreases such
basis), and such gain or loss shall be specially allocated to the Members in
accordance with their Percentage Interests in the Company in the event Treasury
Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Member to whom
such distribution is made in the event Treasury Regulations
Section 1.704-1(b)(2)(iv)(m)(4) applies.

6.04.

Curative Allocations.  The allocations set forth in Section 6.02(b) and
Section 6.03 hereof (the “Regulatory Allocations”) are intended to comply with
certain requirements of the Treasury Regulations.  It is the intent of the
Members that, to the extent possible, all Regulatory Allocations shall be offset
either with other Regulatory Allocations or with special allocations of other
items of Company income, gain, loss or deduction pursuant to this Section 6.04.
 Therefore, notwithstanding any other provision of this Article 6 (other than
the Regulatory Allocations), the Board shall cause the Company to make such
offsetting special allocations of Company income, gain, loss or deduction in
whatever manner it determines to be appropriate in accordance with Article 6 so
that, after such offsetting allocations are made, each Member’s Capital Account
balance is, to the extent possible, equal to the Capital Account balance such
Member would have had if the Regulatory Allocations were not in this Agreement.
 In exercising its discretion under this Section 6.04, the Board shall take into
account future Regulatory Allocations under Sections 6.03(a) and 6.03(b) that,
although not yet made, are likely to offset other Regulatory Allocations
previously made under Sections 6.03(e) and 6.03(f).

6.05.

Other Allocation Rules.

(a)

If any fees or other payments deducted for federal income tax purposes by the
Company are recharacterized by a final determination of the Internal Revenue
Service as nondeductible distributions to any Member, then, notwithstanding all
other allocation

provisions, items of income and gain shall be allocated to such Member (for each
Fiscal Year in which such recharacterization occurs) in an amount equal to the
fees or payments recharacterized.

(b)

The Board is hereby authorized in its discretion to amend this Agreement without
the consent of the Members in any manner necessary or desirable to (1) provide
for “forfeiture allocations” under any final Treasury Regulations concerning the
transfers of partnership interests in connection with the performance of
services and (2) to enable the Company and any Person issued a Membership
Interest for services to value for income tax purposes such compensatory
membership interest at its liquidation value.  Each Member hereby agrees, upon
the request of the Board, to consent to and to provide any required information
in connection with any such forfeiture allocations, related tax elections or
other related actions of the Company.

(c)

In the event that any item or items of income, gain, loss or deduction of the
Company or any Member is reallocated between the Company and any Member pursuant
to Section 482 of the Code, then the allocation of the income, gain, loss or
deduction of the Company for the year in which such reallocation occurs shall be
made in such a fashion that the Capital Accounts of all Members, after taking
into account any deemed contributions or distributions arising in connection
with such reallocation, shall be, to the fullest extent possible, in proportion
to each Member’s Percentage Interest.

(d)

Solely for purposes of determining a Member’s proportionate share of the “excess
nonrecourse liabilities” of the Company within the meaning of Treasury
Regulations Section 1.752-3(a), the Members’ interests in the Company’s profits
are in proportion to their Percentage Interests.

(e)

To the extent permitted by Treasury Regulations Section 1.704-2(h)(3), the Board
shall endeavor to treat distributions of cash as having been made from the
proceeds of a Nonrecourse Liability or a Member Nonrecourse Debt only to the
extent that such distributions would cause or increase a deficit balance in any
Member’s Adjusted Capital Account.

6.06.

Tax Allocations:  Code Section 704(c).

(a)

Except as otherwise provided in this Section 6.06, all items of income, gain,
loss and deduction recognized for income tax purposes shall be allocated to the
Members in accordance with the allocation of the corresponding “book” items
pursuant to Sections 6.02, 6.03, 6.04 and 6.05.

(b)

In accordance with Code Section 704(c) and the Treasury Regulations thereunder,
income, gain, loss and deduction with respect to any property contributed or
deemed contributed to the capital of the Company shall, solely for tax purposes,
be allocated among the Members so as to take account of any variation between
the adjusted basis of such property to the Company for federal income tax
purposes and its initial Gross Asset Value using the remedial allocation method
described in Treasury Regulations Section 1.704-3(d).

(c)

In the event the Gross Asset Value of any Company asset is adjusted pursuant to
clause (b) of the definition of Gross Asset Value, subsequent allocations of
income, gain, loss, and deduction with respect to such asset shall take account
of any variation between the adjusted basis of such asset for federal income tax
purposes and its Gross Asset Value in the same manner as under Code
Section 704(c) and the Treasury Regulations thereunder.

(d)

Any elections or other decisions relating to such allocations shall be made by
the Board in any manner that reasonably reflects the purpose and intention of
this Agreement.

6.07.

Interim Allocations Due to Percentage Interest Adjustment.  If a Percentage
Interest is the subject of a Transfer or is changed pursuant to the terms of
this Agreement during any Fiscal Year, the amount of Net Income and Net Loss to
be allocated to the Members for such entire Fiscal Year in accordance with their
respective Percentage Interests shall be allocated to the portion of such Fiscal
Year which precedes the date of such Transfer or change (and if there shall have
been a prior Transfer or change in such Fiscal Year, which commences on the date
of such prior Transfer or change) and to the portion of such Fiscal Year which
occurs on and after the date of such Transfer or change (and if there shall be a
subsequent Transfer or change in such Fiscal Year, which precedes the date of
such subsequent Transfer or change), in proportion to the number of days in each
such portion (or, in the case of a Transfer, in accordance with an interim
closing of the books at the election and the expense of the parties to the
Transfer), and the amounts of the items so allocated to each such portion shall
be credited or charged to the Members in proportion to their respective
Percentage Interest during each such portion of the Fiscal Year in question.
 Such allocation shall be made without regard to the date, amount or receipt of
any distributions that may have been made with respect to the transferred
Percentage Interest.

6.08.

Section 754 Election.  If requested to do so by any Transferor Member or any
Transferee Member (or such Member’s Assignee or Substituted Member), the Company
shall make an election under Section 754 of the Code (and a corresponding
election under applicable state and local law).  Upon request of either Member,
the Company shall also make an election under Section 754 of the Code upon a
distribution of property or money to a Member

6.09.

Deficit Capital Accounts.  Notwithstanding anything to the contrary contained in
this Agreement, the Members shall not be obligated at any time to repay or
restore to the Company all or any part of any distributions made to the Members
by the Company, nor shall any Member be required to restore a deficit Capital
Account balance to the Company.

ARTICLE 7
Management and Operations

7.01.

Management by the Board.  Except for those matters for which the approval or
consent of any Member is required by this Agreement, any Ancillary Agreement or
by nonwaivable provisions of applicable law, the business and affairs of the
Company and any subsidiary of the Company shall be managed by the Members acting
through a Board of Directors (the “Board”), and the Board shall have, subject to
the terms of this Agreement and the

Ancillary Agreements, full, exclusive and complete discretion, power and
authority to manage, control, administer and operate the business and affairs of
the Company and its subsidiaries.  Decisions of the Board within its scope of
authority shall be binding upon the Company and its Members (in their capacity
as Members).  Actions of the Board shall require the affirmative vote or consent
of the Directors on the Board as provided in Sections 7.03 and 7.07.

7.02.

Board.  The number of Directors constituting the entire Board shall be six.
 Each of Discovery and Hasbro shall have the right to appoint three Directors,
each of whom shall be an employee of such Member (unless otherwise approved by
the non-appointing Member) and one of whom shall be the chief executive officer
of such Member (or of DCI, in the case of Discovery).  Each Member shall notify
the Company and the other Member of the identity of each of its appointed
Directors.  Each Director shall hold office until the earliest of his or her
death, resignation or removal as provided in Section 7.06.  

7.03.

Board Vote.

(a)

The Directors appointed to the Board by Discovery shall collectively have one
vote (the “Discovery Vote”), and the Directors appointed to the Board by Hasbro
shall collectively have one vote (the “Hasbro Vote”).  Any resolution adopted,
decision made or action undertaken by the Board shall require two affirmative
votes (i.e., an affirmative Discovery Vote and an affirmative Hasbro Vote).

(b)

Notwithstanding anything to the contrary as a result of a delegation of
authority pursuant to this Article 7, in addition to any other matters the
approval of which is reserved to the Board in accordance with the terms of this
Agreement or the approval of which the Board may reserve to itself pursuant to
its authority described in Section 7.01, the following actions shall require the
express approval of the Board:

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(c)

If the Board becomes deadlocked with respect to the approval of any proposed
matter within the authority of the Board (i.e., excluding matters reserved for
Discovery or Hasbro) and the subsequent good faith efforts of the Directors do
not resolve the deadlock, either Discovery or Hasbro may request that one
designated representative from each party, who initially shall be David Zaslav
and Brian Goldner, meet, confer and discuss in person or by telephone conference
the deadlocked matter in an attempt to resolve the deadlock.  Upon such request
by either Discovery or Hasbro, such designated representatives are conferred
with authority to cast the Discovery Vote and the Hasbro Vote, respectively,
with respect to the deadlocked matter.  In the event such representatives do not
resolve the deadlock within 30 days after the initial vote of the Board on the
matter, the matter shall be deemed not to have been approved by the Board.
 Discovery shall designate a successor representative (who shall be a senior
member of management of Discovery) for purposes of this Section 7.03(c) if David
Zaslav ceases to act as such representative, and Hasbro shall designate a
successor representative (who shall be a senior member of management of Hasbro)
for purposes of this Section 7.03(c) if Brian Goldner ceases to act as such
representative.

7.04.

Actions by the Board; Committees; Delegation and Duties.

(a)

In managing the business and affairs of the Company and exercising its powers,
the Board may act:  (i) collectively through meetings and written consents
pursuant to Sections 7.05 and 7.07, (ii) through committees pursuant to
Section 7.04(b), or (iii) through Officers and other agents to whom authority
and duties have been delegated pursuant to Section 7.09(a).  No individual
Director or Officer in his or her capacity as such or other Person shall have
the authority to act for or on behalf of the Company, to do any act that would
be legally binding on the Company or to incur any obligations or liabilities for
or on behalf of the Company unless expressly authorized to do so by the Board or
by this Agreement, including authorization under Section 7.09.

(b)

The Board may, from time to time, designate one or more committees, each of
which shall be composed of an equal number of Directors appointed by each of
Discovery and Hasbro.   Any such committee, to the extent provided in the
authorizing resolutions of the Board, shall have and may exercise all of the
authority of the Board, subject to the other provisions of this Agreement.  The
Directors appointed to a committee by Discovery shall collectively have one
vote, and the Directors appointed to a committee by Hasbro shall collectively
have one vote, with respect to all matters and actions considered or undertaken
by such committee.  At every meeting of any such committee, an affirmative vote
of the Discovery Directors and an affirmative vote of the Hasbro Directors shall
be necessary for the approval of any action and adoption of any resolution, and
the presence of at least that number of Directors entitled to cast such
affirmative votes shall constitute a quorum.  The Board may dissolve any
committee at any time.

7.05.

Meetings; Alternates; Observers.

(a)

Unless otherwise required by nonwaivable provisions of applicable law or this
Agreement, the presence of at least one Director appointed by each of Discovery
and Hasbro shall constitute a quorum for the transaction of business of the
Board.

(b)

Regular meetings of the Board or any committee designated by the Board may be
held at such place or places as shall be determined from time to time by
resolution of the Board or such committee, respectively; provided that any
Director (in the case of the Board) or any Director who is a member of such
committee (in the case of a committee) who was not present when such resolution
was approved shall receive notice of any such meeting at least 72 hours in
advance.  Special meetings of the Board or any committee designated by the Board
may be called by any Director (in the case of the Board) or any Director who is
a member of such committee (in the case of a committee) on at least 72 hours
notice to each other Director (in the case of the Board) or other Director who
is a member of such committee (in the case of a committee).  Such notice need
not state the purpose or purposes of, nor the business to be transacted at, such
meeting, except as may otherwise be required by law or this Agreement.
 Attendance of a Director at a meeting shall constitute a waiver of notice of
such meeting, except where a Director attends a meeting for the express purpose
of objecting to the transaction of any business on the ground that the meeting
is not called or convened lawfully or in accordance with this Agreement.

(c)

Pursuant to a written notice to the Company, any Director may appoint an
alternate (an “Alternate”) who may attend, participate and serve as a proxy for
the absent Director that appointed such Alternate at any Board or committee
meeting or for a stated period of time (provided that any Alternate shall be an
employee of the Member (or its Wholly-Owned Affiliate) that designated the
appointing Director who is familiar with the Business of the Company as a result
of such employment).  Alternates shall exercise the same rights as the absent
Director could have exercised.

(d)

Each Member may designate observers to attend any meeting of the Board or any
committee (provided that any such observer shall be an employee of such Member
(or its Wholly-Owned Affiliate) who is familiar with the Business of the Company
as a result of such employment), and the Company shall provide each such
observer with the

same financial and other information that is provided to Directors in connection
with such meeting; provided that no such observer shall be counted for the
purpose of determining a quorum for the transaction of business by the Board or
committee, nor shall any such observer be permitted to vote on any matter
considered by the Board or committee at such meeting; and provided further that
the Company reserves the right to withhold any information and to exclude any
such observer from any meeting if access to such information or attendance at
such meeting could adversely affect the attorney-client privilege between the
Company and its legal counsel.

7.06.

Removal; Vacancies; Resignation.

(a)

A Director may be removed only by the Member that appointed such Director, with
or without cause, at any time in the sole discretion of such Member.  Upon such
removal or the earlier death or the resignation of any Director, the Member that
appointed such Director shall appoint a successor, which successor shall be an
employee of such Member (unless otherwise approved by the non-appointing
Member).  Each Member shall notify the Company and the other Member of any
change in the identity of any of its appointed Directors.  

(b)

Any Director may resign at any time.  Such resignation shall be made in writing
to the Board and shall take effect at the time specified therein, or if no time
be specified, at the time of its receipt by the Board.  The acceptance of a
resignation shall not be necessary to make it effective, unless expressly so
provided in the resignation.

7.07.

Action by Written Consent or Telephone Conference.  Any action permitted or
required by the Act or this Agreement to be taken at a meeting of the Board or
of any committee designated by the Board may be taken without a meeting if a
consent in writing, setting forth the action to be taken, is signed by at least
one Director or member of such committee, as the case may be, representing
Discovery and one Director or member of such committee, as the case may be,
representing Hasbro.  The Directors or members of any committee designated by
the Board may participate in or hold a meeting of the Board or any committee, as
the case may be, by means of a conference telephone or similar communications
equipment by means of which all Persons participating in the meeting can hear
each other, and participation in such meeting by such means shall constitute
attendance and presence in person at such meeting, except where a Person
participates in the meeting for the express purpose of objecting to the
transaction of any business on the ground that the meeting is not called or
convened lawfully or in accordance with this Agreement.

7.08.

Compensation of Directors.  None of the Directors shall receive any compensation
for their services but shall be reimbursed by the Company for their reasonable
out-of-pocket costs and expenses incurred in the course of their service
hereunder in accordance with policies determined from time to time by the Board.
 

7.09.

Officers.

(a)

Subject to Section 7.09(b), the Board may, from time to time, designate one or
more Persons to be officers of the Company (the “Officers”).  Any Officer

so designated shall have such authority and perform such duties as the Board
may, from time to time, delegate to them.  The Board may assign titles to
particular Officers (including Chief Executive Officer, President, Chief
Operating Officer, Chief Financial Officer, Executive or other Vice President,
Secretary or Treasurer).  Unless the Board decides otherwise, if the title is
one commonly used for officers of a business corporation formed under the
Delaware GCL, the assignment of such title shall constitute the delegation to
such Officer of the authority and duties that are normally associated with that
office, subject to any specific delegation of authority and duties made to such
Officer by the Board and any authority or duty expressly reserved by the Board
and subject to the terms of this Agreement and the Ancillary Agreements.  The
Board may delegate such authority and responsibility otherwise attributable to
an Officer to an agent that is not an Officer.

(b)

Notwithstanding any provision of this Agreement to the contrary, each of
Discovery and Hasbro, acting individually, shall have the authority to discharge
and remove the Chief Executive Officer at any time following 180 days after the
appointment of such Chief Executive Officer; provided that in the event a Member
discharges and removes the Chief Executive Officer pursuant to this
Section 7.09(b), such Member may not discharge and remove any subsequent Chief
Executive Officer until the second anniversary of such prior discharge and
removal.  The foregoing limitations in this Section 7.09(b) on the discharge and
removal of the Chief Executive Officer shall not apply in the event of a
termination for cause (which includes any material breach by the Company of any
material provision of the Ancillary Agreements or Affiliation Agreements where
the breach arose from the action or inaction of the management of the Company or
as to which the management of the Company failed to take reasonable steps
requested by such Member to cure such material breach).  In the event of the
death, resignation or removal the Chief Executive Officer, the appointment of
any successor Chief Executive Officer shall be determined by the Board.  

(c)

Each Officer shall hold office until his or her successor shall be duly
designated and qualified or until his or her death, resignation or removal in
the manner hereinafter provided.  Any number of offices may be held by the same
Officer.  The salaries or other compensation, if any, of the Officers and agents
of the Company shall be fixed from time to time by the Board, subject to the
terms of any applicable employment agreements.  Subject to any applicable
employment agreement, any Officer may resign as such at any time.  Such
resignation shall be made in writing and shall take effect at the time specified
therein, or if no time be specified, at the time of its receipt by the Board.
 The acceptance of a resignation shall not be necessary to make it effective,
unless expressly so provided in the resignation.  Any Officer may be removed as
such, either with or without cause, by the Board, subject to Section 7.09(b).
 Designation of an Officer shall not of itself create a contract of employment
between such Officer and the Company.  Any vacancy occurring in any office of
the Company shall be filled in accordance with this Section 7.09.

7.10.

Actions of Subsidiaries.  The Company shall not permit any subsidiary of the
Company to take any action that (i) if taken by the Company, would require the
approval of the Board or a Member, or (ii) would require the approval of the
board of directors or other governing body or person of such subsidiary, unless
such action by such subsidiary has been approved by the Board or such Member in
accordance with the terms of this Agreement.

7.11.

Affiliation Agreements.  The Company shall, and shall cause its Controlled
Affiliates to (and to the extent that Discovery or Hasbro has the authority and
right (in its capacity as an individual party) to unilaterally cause the Company
to not comply with any Affiliation Agreement, each of Discovery and Hasbro shall
not take any action that would cause the Company not to), comply with and
perform, in all material respects, all of their respective obligations under
each Affiliation Agreement (including all obligations under any (a) Affiliation
Agreement assumed by the Company pursuant to the Assignment Agreement (in the
case of the Company and Hasbro, to the extent such obligations have not been
redacted from the Affiliation Agreements delivered to the Company and Hasbro) or
(b) any amendments or modifications of the Affiliation Agreements or any new,
replacement or extension Affiliation Agreements entered into after the date
hereof in accordance with Section 7.03(b)(10) to the extent such obligations are
not redacted from the Affiliation Agreements delivered to the Company and
Hasbro); provided that each of Discovery’s and Hasbro’s respective liability
under this Section 7.11 resulting from breaches of any Affiliation Agreement
shall be only to the extent such action by such Member gives rise to such
breach.  For the avoidance of doubt, the parties acknowledge and agree that to
the extent any programming aired by the Company (including programming provided
to the Company by Hasbro in accordance with the Hasbro Studios Programming
Agreement) is determined to breach any Affiliation Agreement, such breach shall
be deemed a breach solely by the Company, and neither Discovery nor Hasbro shall
be deemed to have in any way caused such breach.  Discovery shall, and shall
cause its Controlled Affiliates to, comply with and perform, in all material
respects, all of their respective obligations under each Affiliation Agreement
to the extent that the failure to so comply therewith or perform thereunder
would have a material and adverse effect on the Company’s rights and obligations
thereunder with respect to the Network.

7.12.

Programming Guidelines.  The Company shall conduct the businesses and operations
of the Network, including programming the Network, in accordance with the
Programming Guidelines set forth on Schedule E.  Hasbro shall cause Hasbro
Studios to develop the programming to be made available to the Company under the
Hasbro Studios Programming Agreement in accordance with the Programming
Guidelines set forth on Schedule E (the “Programming Guidelines”).  To the
extent that Discovery or any of the Discovery Controlled Affiliates develops
programming to be made available to the Company, Discovery shall (or shall cause
any such Discovery Controlled Affiliates to) develop such programming in
accordance with the Programming Guidelines set forth on Schedule E.  

7.13.

Related-Party Transactions.  Any agreement, contract or arrangement between the
Company (or any subsidiary thereof) and any Member or their respective
Affiliates (or any director or officer of such Member or any of its Affiliates)
(a “Related-Party Transaction”);  shall be on commercially reasonable, arms’
length terms approved by the Board; provided that no such approval of the Board
shall be required for any Related-Party Transaction that may be contained in
this Agreement or the Ancillary Agreements, which have all been mutually agreed
to by the parties.   For the avoidance of doubt, no Affiliation Agreement in
effect as of the Formation Date or approved by the Board shall be deemed a
“Related Party Transaction.”

7.14.

Operation of the Network After the Formation Date.  For the avoidance of doubt,
from and after the Formation Date and during the Term, the Company (as opposed
to Discovery)

shall conduct the businesses and operations relating to the Network, including
programming the Network, subject to the terms of this Agreement and the
Ancillary Agreements.

7.15.

Network Programming.

(a)

Discovery Programming Opportunities.     

(1)

Licenses: New Programming Opportunities.  During the term of the Hasbro Studios
Programming Agreement (as the same may be amended or extended),  if any
Discovery Controlled Affiliate intends to acquire or license English-language
14-and-Under Programming (other than Animal and Science Programming) from a
third party (whether initiated by any Discovery Controlled Affiliate or a third
party) for distribution on a Discovery Network in the United States, then,
subject to any contractual limitations applicable to such programming, Discovery
shall, at its option, either (A) prior to acquiring or licensing such
programming, provide written notice to the Company of its intent with respect to
such programming or (B) acquire or license such programming, in each case in
accordance with this Section 7.15(a)(1).

(i)

If Discovery provides written notice to the Company of its intent with respect
to such programming pursuant to clause (A) of Section 7.15(a)(1): (x) if the
Company is interested in securing rights with respect to such programming,
Discovery shall allow the Company to negotiate (as compared to other Discovery
Controlled Affiliates) for ten (10) Business Days after receipt of such notice
with representatives of the relevant programmer to reach agreement with respect
thereto prior to any Discovery Controlled Affiliate engaging in substantive
negotiations during such ten (10) Business Day period with respect thereto; and
(y) if the Company is not interested (in which case the Company shall promptly
advise Discovery in writing) or an agreement between the Company and such
programmer is not entered into within ten (10) Business Days following receipt
of the notice described above in this subsection (i), then the Discovery
Controlled Affiliate may negotiate and enter into an agreement with such
programmer with respect to such programming, shall be free to exploit such
programming and shall not be obligated to facilitate the Company’s license or
sublicense of such programming pursuant to 7.15(a)(1)(ii).  

(ii)

If Discovery acquires or licenses such programming pursuant to clause (B) of
Section 7.15(a)(1) without having provided the notice under
Section 7.15(a)(1)(i), Discovery shall use commercially reasonable efforts to
secure for the Company (as compared to other Discovery Controlled Affiliates) a
license or sublicense of such programming from Discovery or such third party on
the same terms as such programming was made available to the relevant Discovery
Controlled Affiliate; provided that Discovery shall be deemed to have used such
commercially reasonable efforts if (x) Discovery’s acquisition or license
agreement with respect to such programming is assignable or such programming may
otherwise be licensed or sublicensed to the Company or (y) Discovery negotiated
for such right in its negotiation of such acquisition or license.  If Discovery
is able to assign, license or sublicense such programming to the Company, it
shall promptly notify the Company thereof in writing.  If the Company informs
Discovery in writing within five (5) days after such notice that it

is interested in securing rights with respect to such programming, Discovery
shall assign, license or sublicense the rights to such programming to the
Company on a pass through basis, and the Company shall assume Discovery’s
obligations with respect thereto.  If the Company has not informed Discovery in
writing within five (5) days after such notice that it is interested in securing
rights with respect to such programming, then Discovery shall be free to exploit
such programming and shall not be obligated to license, sublicense of assign
such programming to the Company on a pass through basis.  If, despite its
commercially reasonable efforts, Discovery is unable to assign, license or
sublicense such programming to the Company, it shall promptly notify the Company
thereof in writing.  If the Company informs Discovery in writing within five (5)
days after such notice that it is interested in securing rights with respect to
such programming, then for a period not to exceed ten (10) Business Days after
the Company delivers such notice, Discovery shall use commercially reasonable
efforts to facilitate negotiations between the Company (as compared to other
Discovery Controlled Affiliates) and representatives of the relevant programmer
to reach agreement with respect to a license or sublicense thereto.  If, after
such ten (10) Business Day period, despite its commercially reasonable efforts,
Discovery has been unable to facilitate such negotiations or an agreement is not
entered into between the Company and such programmer, then Discovery shall be
free to exploit such programming.

(iii)

Notwithstanding anything to contrary in this Section 7.15(a)(1), in the event
Discovery fails to comply with any of the foregoing procedures, Discovery shall
nevertheless be deemed to be in compliance with its obligations under this
Section 7.15(a)(1) with respect to any programming that the Company would be
interested in securing rights in so long as the Company is assigned, licensed or
sublicensed such programming within a reasonable period of time after the
Company has requested such programming on terms that are no less favorable to
the Company than the terms made available to the relevant Discovery Controlled
Affiliate for such programming.  

(2)

Option: Discovery Produced-Programming.  During the term of the Hasbro Studios
Programming Agreement (as the same may be amended or extended),  if any
Discovery Controlled Affiliate produces English-language 14-and-Under
Programming (other than Animal and Science Programming) based on Intellectual
Property of Discovery for distribution on a Cable Television Network or
Broadcast Television in the United States, then, subject to any contractual
limitations applicable to such programming, Discovery shall provide, or cause to
be provided, to the extent it is contractually permitted to, an exclusive option
to the Company in accordance with the following terms:

(i)

Discovery shall first provide written notice to the Company of its intent with
respect to such programming;

(ii)

if the Company is interested in securing rights with respect to such
programming, the Company may elect to license such programming by providing
written notice to Discovery within ten (10) Business Days following the notice
described in subsection (i), and upon such election, the Company and the
applicable Discovery

Controlled Affiliate shall enter into a license for such programming on terms
corresponding to the license terms, mutatis mutandis, set forth in
Section 1.01(c) (with regard to renewals for additional seasons) and Articles
2-15 of the Hasbro Studios Programming Agreement and, in addition, the
applicable Discovery Controlled Affiliate shall make certain revenue share
payments to the Company on the terms set forth in Section 1.05 of Schedule D;
provided that with respect to digital rights to such programming, (x)
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(z) such programming would be deemed “Company Programming” under the Digital
Agreement only to extent explicitly set forth therein; and

(iii)

if the Company is not interested (in which case the Company shall promptly
notify Discovery) or has not made such election described in subsection
(ii) within ten (10) Business Days, then the applicable Discovery Controlled
Affiliate shall be free to exploit such programming and shall not be obligated
to license, sublicense or assign such programming to the Company.

(3)

Waived Programming.  Subject to 7.15(c), after the Company has informed
Discovery that it is not interested in, the applicable time period with respect
to Discovery’s obligations hereunder has expired, or Discovery is otherwise
permitted to exploit, any programming, in each case, in accordance with this
Section 7.15(a), then the Company shall have no further rights to such
programming or any renewals or future episodes or seasons of such program.

(b)

Hasbro Programming Opportunities.

(1)

Third-Party Discussions: Programming Opportunities.  In addition to the
obligations of Hasbro and Hasbro Studios to present programming opportunities
based upon Hasbro’s Intellectual Property to the Company pursuant to the Hasbro
Studios Programming Agreement, during the term of the Hasbro Studios Programming
Agreement (as the same may be amended or extended), Hasbro shall in good faith
make the Company aware of future English-language opportunities from third
parties with whom Hasbro has a contractual relationship with respect to
merchandising rights or Telecast Rights for 14-and-Under Programming (excluding
Animal and Science Programming) of which any Hasbro Controlled Affiliate becomes
aware from time to time, provided that such proposed programming contains
(x) Hasbro Intellectual Property but for which Hasbro is contractually
restricted from producing or licensing such programming for distribution on a
Cable Television Network in the United States and/or (y) Intellectual Property
that is owned by, or with respect to which the right to produce or license
related programming on a Cable Television Network is controlled by, third
parties

that license merchandising rights to Hasbro with respect to such Intellectual
Property.  To the extent the Company is interested in securing rights with
respect to such programming, Hasbro shall in good faith facilitate discussions
between the Company and such third parties for the purpose of the Company’s
acquisition or license of such programming.  Notwithstanding anything to
contrary in this Section 7.15(b)(1), in the event Hasbro fails to comply with
any of the foregoing procedures, Hasbro shall nevertheless be deemed to be in
compliance with its obligations under this Section 7.15(b)(1) with respect to
any programming that the Company would be interested in securing rights in so
long as the Company is assigned, licensed or sublicensed such programming within
a reasonable period of time after the Company has requested such programming.

(2)

First Look: Hasbro Studios Programming (Latin America).  During the term of the
Hasbro Studios Programming Agreement (as the same may be amended or extended),
if any Hasbro Controlled Affiliate determines to seek distribution of
Spanish-language 14-and-Under Programming (excluding Animal and Science
Programming) on a Cable Television Network in Latin America or determines to
license any third party to do so, then, subject to any contractual limitations
applicable to such programming, Hasbro shall, to the extent it is contractually
permitted to, provide a right of first look to Discovery (on behalf of Discovery
Networks Latin America/U.S. Hispanic, so long as it is owned, operated or
programmed by a Discovery Controlled Affiliate) in accordance with the following
terms:

(i)

Hasbro shall first provide written notice to Discovery of its intent with
respect to such programming;

(ii)

if Discovery is interested in securing rights to distribute such programming in
Latin America, Hasbro shall provide Discovery with the first opportunity to
negotiate (as compared to any opportunity that Hasbro Controlled Affiliates may
afford to any other Cable Television Network in Latin America) for ten (10)
Business Days with representatives of Hasbro Studios; and   

(iii)

if Discovery is not interested (in which case Discovery shall promptly notify
Hasbro), the terms are not acceptable or an agreement is not entered into within
ten (10) Business Days following the notice described in subsection (i) above,
then Hasbro Studios shall be free to exploit such programming and negotiate and
enter into an agreement with or with respect to another Cable Television
Network, including for distribution of the programming on another Cable
Television Network in Latin America, and shall not be obligated to license,
sublicense or assign such programming to the Company.

(iv)

Subject to 7.15(c), after Discovery has informed Hasbro that it is not
interested in, the applicable time period with respect to Hasbro’s obligations
hereunder have expired, or Hasbro is otherwise permitted to exploit, any
programming, in each case, in accordance with this Section 7.15(b), then
Discovery shall have no further rights to such programming or any renewals or
future episodes or seasons of such program.

For purposes of this Section 7.15(b)(2), “Latin America” means the Latin
American countries and territories (including Puerto Rico but excluding the rest
of the United States) where Discovery operates Discovery’s Networks Latin
America /U.S. Hispanic (so long as it is owned, operated or programmed by a
Discovery Controlled Affiliate).  

(c)

 Changed Elements.  In the event that (x) any programming is offered to a party
by a Discovery Controlled Affiliate or a Hasbro Controlled Affiliate, as the
case may be, pursuant to Section 7.15(a)(2) or (b)(2) and (y) such party does
not elect to acquire or license such programming for any reason, if a Discovery
Controlled Affiliate or a Hasbro Controlled Affiliate seeks to develop such
programming with a Changed Element (as that term is defined in the Hasbro
Studios Programming Agreement), then such programming shall again be subject to
the provisions of this Section 7.15 if the procedures applicable with respect to
Changed Elements pursuant to Section 1.03 of the Hasbro Studios Programming
Agreement, applied mutatis mutandis, would require such programming to be
resubmitted thereunder.  

(d)

Implementation.  Discovery agrees that the Discovery Controlled Affiliates, and
Hasbro agrees that the Hasbro Controlled Affiliates, respectively, will act in
good faith to give effect to the intent and purposes of the their commitments
under Section 7.15(a), 7.15(b) and 7.15(e), respectively, and will not conduct
their businesses with the intent of circumventing the intent and purposes of
their commitments under Section 7.15(a), 7.15(b) and 7.15(e), respectively.

(e)

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7.16.

******************** Commitments.

(a)

Hasbro shall make (or cause to be made) certain advances and revenue share
payments to the Company in accordance with the terms and provisions set forth on
Schedule D.

(b)

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(c)

Discovery shall make (or cause to be made) certain revenue share payments to the
Company in accordance with the terms and provisions set forth on Schedule D.

7.17.

Network Content.  The Members and the Company agree to the undertakings set
forth on Schedule 7.17.

7.18.

Transmission of the Network.  The Members and the Company agree to the
undertakings set forth on Schedule 7.18.

7.19.

Cross Promotion.  Subject to further exploration by the parties, Hasbro may
provide promotional placement for the Network and its programming on domestic
merchandise, on Hasbro.com and on brand-specific sites, and Discovery may
leverage its marketing and distribution platforms, including television and
digital, to promote the Network and its programming.  Notwithstanding the
foregoing, Discovery and Hasbro acknowledge and agree that the foregoing is a
non-binding statement of intention only, and any cross-promotion obligations
will ultimately be determined by mutual agreement of Discovery and Hasbro.  

7.20.

Other Discovery-Hasbro Relationships.  Subject to further exploration, Discovery
may provide international syndication for the Hasbro Studios programming outside
of the United States.  The parties will also explore ways for Hasbro Studios to
work with Discovery Studios, including possible use of Discovery Studios’
available production space in Los Angeles.  Notwithstanding the foregoing,
Discovery and Hasbro acknowledge and agree that the foregoing is a non-binding
statement of intention only, and any agreements with respect to the matters
described above in this Section 7.20 will ultimately be determined by mutual
agreement of Discovery and Hasbro.

7.21.

Future Merchandising Rights.  Except for the rights granted under the Existing
Merchandising Agreements as of the Signing Date, the Company shall not grant any
merchandising rights for toys and games based on Intellectual Property owned or
controlled by the Company (“Company Intellectual Property”) to any third party
unless it first provides written notice to Hasbro of its intent to grant such
merchandising rights.  If Hasbro is interested in securing toy and game
merchandising rights with respect to such Company Intellectual Property, Hasbro
may elect within thirty (30) days after receiving such notice from the Company
to make an offer to the Company for such merchandising rights, the terms of
which offer shall not be less favorable than the terms set forth on
Schedule 7.21 attached hereto.  If Hasbro makes an offer, the Company and Hasbro
shall use their respective commercially reasonable efforts to negotiate in good
faith and enter into a definitive merchandise licensing agreement within thirty
(30) days after Hasbro makes an offer.  If Hasbro notifies the Company in
writing that it is not interested in securing such merchandising rights (which
it shall do promptly) or has not made an offer within the thirty (30) day period
specified above, or if Hasbro makes an offer but the Company and Hasbro have not
entered into a binding agreement within the applicable thirty (30) day period
specified above, then the Company may enter into negotiations with unrelated
third parties with respect to such toy and game merchandising rights, provided
that, if Hasbro has previously made an offer as provided above, before entering
into any binding agreement with a third party, the Company shall first provide
written notice to Hasbro of the proposed material terms, in reasonable detail,
with the third party.  Hasbro may elect within fifteen (15) days after receiving
such notice to match the material third party terms or, to the extent such terms
are not reasonably capable of being matched, provide the economic equivalent
thereof.  If Hasbro elects to so match, the Company and Hasbro shall use their
respective commercially reasonable efforts

to negotiate in good faith and enter into a definitive merchandise licensing
agreement on the applicable terms.  If Hasbro notifies the Company in writing
that it is not interested in matching or has not made an election to match
within the fifteen (15) day period specified above, then the Company may
negotiate and enter into a binding agreement with such unrelated third party for
such merchandising rights within three (3) months following Hasbro’s notice or
the expiration of such fifteen (15) day period, provided that the material terms
agreed to with such third party shall be no more favorable to such third party
than the material terms included in such notice to Hasbro.

ARTICLE 8
Transfers; Restrictions on Transfer

8.01.

Limitation on Transfers.  Except as provided in this Section 8.01, neither
Member may Transfer, directly or indirectly, all or any part of its Membership
Interest, including a Transfer of any economic or non-economic right to which
such Membership Interest is entitled under this Agreement (whether voluntarily,
involuntarily or by operation of law), unless approved by the Board.  The
Transferee of a Transfer of all or any part of a Membership Interest approved by
the Board shall furnish to the Board such documentation as may be required
pursuant to Section 8.06 and shall be admitted to the Company as a Member
subject to Sections 8.03 and 8.06.  For the avoidance of doubt, the restrictions
of this Article 8 shall not apply and no consent of the Board shall ever be
required for Transfers, at any time, of ownership interests in Discovery
Ultimate Parent or Hasbro Ultimate Parent, it being understood that any such
Transfer is subject to termination rights pursuant to Section 15.01(i) or (j),
as the case may be, if the Transfer results in the occurrence of a Change of
Control Transaction.

(a)

Notwithstanding the foregoing restrictions of this Section 8.01, subject to
Sections 8.03 and 8.06, the following Transfers of all or a portion of a
Member’s Membership Interest to the following Transferees (each, a “Permitted
Transferee”) shall be permitted and shall not require the consent of the Board:

(1)

A Transfer of all or any portion of a Member’s Membership Interest to any
Wholly-Owned Affiliate of such Member, upon written notice to the other Member
and the Company, which notice shall state the name and address of the
Wholly-Owned Affiliate to whom such Transfer is made and the name(s) of the
Persons owning interests in such Wholly-Owned Affiliate (it being understood
that any subsequent Transfer of ownership interests in such Wholly-Owned
Affiliate shall be subject to this Section 8.01); or

(2)

Subject to Section 8.01(a)(3), Transfers by Discovery or Hasbro in one or more
transactions of no more than an aggregate of twenty percent (20%) of the
Membership Interest held by Discovery or Hasbro, as the case may be, on the
Formation Date, or the equivalent thereof through the sale of equity in any
direct or indirect holding company, provided that (i) the Transferor Member
shall use commercially reasonable efforts to structure such Transfer as an
indirect Transfer through the use of a holding company or similar arrangement,
(ii) such Transferee shall in any event not be admitted as a Member hereunder
without the prior written consent of the non-Transferor Member and shall only be
entitled to the rights of an Assignee hereunder and (iii) such Transferee

shall not be a Competitive Person with respect to the non-Transferor Member
without the prior written consent of such non-Transferor Member.

(3)

Any direct or indirect Transfer of the ownership interest in a Membership
Interest as part of a larger bona fide transaction (including by way of a sale
of all or substantially all of the assets of such Members and its Controlled
Affiliates to a single purchaser, which may be structured as an asset
transaction including a direct Transfer of the Membership Interests) so long as
the Transferred Membership Interests represent no more than fifteen percent
(15%) of the value of the ownership interests or assets subject to a larger bona
fide transaction.  Notwithstanding the foregoing, the applicable Member shall
have the right to terminate this Agreement under Section 15.01(i) or 15.01(j),
as the case may be, if any Transfer of any direct or indirect ownership interest
in a Membership Interest results in a Change of Control Transaction.

(b)

If a Member (an “Offeror”) intends to Transfer any Membership Interests held by
such Member pursuant to Section 8.01(a)(2), then such Transferring Member shall
first provide a written notice (an “Offer Notice”) to the other Member (an
“Offeree”) of such intention, which written notice shall set forth the
Membership Interests (or interest therein) proposed to be transferred (the
“Subject Interests”).  The Offeree shall have the right, exercisable upon
written notice to the Offeror (a “First Negotiation Notice”) within 30 days
after the delivery of the Offer Notice, to enter into good faith negotiations
for the Offeree to acquire such Subject Interests on terms mutually agreeable to
both Members.  In the event (i) the Offeree does not deliver a First Negotiation
Notice to the Offeror within 30 days after its receipt of the Offer Notice or
(ii) within the 30 days (or other mutually agreed upon time period) following
the First Negotiation Notice, the Members do not mutually agree to the terms of
the purchase of the Subject Interests by the Offeree, the right of first
negotiation of the Offeree under this Section 8.01(b) shall expire with respect
to such offering of the Subject Interests, and the Offeror shall be free
thereafter to enter into a definitive agreement with a third party for the
Transfer of such Subject Interests in accordance with Section 8.01(a)(2);
provided that such definitive agreement (i) is entered into within 90 days
thereafter, (ii) shall not provide for a Transfer on terms more favorable to
such third party than the terms of the last offer made by the Offeree to the
Offeror and (iii) should provide for a purchase price payable in cash.  If the
Subject Interests are not transferred to a third party in accordance with the
foregoing sentence, then the Offeror shall again repeat the process set forth in
this 8.01(b) prior to offering such Subject Interests to any third party at any
time in the future.  In the event that an Offeree purchases any Subject
Interests from such Offeror pursuant to this 8.01(b), such transaction should be
structured as a direct purchase, notwithstanding the proviso to
Section 8.01(a)(2), and the Offeree shall only be entitled to the rights of
Assignee hereunder with respect to such Membership Interests.  

(c)

Notwithstanding anything in this Agreement to the contrary, without the consent
of the other Member, neither Member shall effect, or agree to effect, any
Transfer that will adversely affect or change, or is reasonably likely to
adversely affect or change, the partnership tax classification of the Company.

8.02.

Assignee’s Rights.  Unless and until an Assignee becomes a Substituted Member
pursuant to Section 8.06, the Assignee shall not be entitled to any of the
rights granted to a holder of a Membership Interest hereunder or under
applicable law, other than as contemplated by Section 8.06(b); provided that,
without relieving the Transferring Member from any such limitations or
obligations as more fully described in Section 8.03, such Assignee shall be
bound by any limitations and obligations of the Transferring Member contained
herein to which the Transferring Member would be bound under Section 8.03 on
account of the Assignee’s Membership Interest.

8.03.

Transferor’s Rights and Obligations.

(a)

Subject to Section 8.07, any Member who shall Transfer all of its Membership
Interest in the Company in accordance with the terms of this Agreement shall
cease to be a Member with respect to such Membership Interest and shall no
longer have any rights or privileges, or, except as set forth in this
Section 8.03, duties, liabilities or obligations, of a Member with respect to
such Transferred Membership Interest (it being understood, however, that the
applicable provisions of Article 10 shall continue to inure to such Person’s
benefit), except that unless and until the Assignee is admitted as a Substituted
Member in accordance with the provisions of Section 8.06 (such date of
admission, the “Admission Date”), such Transferring Member shall retain all of
the duties, liabilities and obligations of a Member with respect to such
Membership Interest pursuant to the terms of this Agreement.  Nothing contained
herein shall relieve any Member who Transfers its Membership Interest in the
Company from any duty, liability or obligation of such Member to the Company
with respect to such Membership Interest that may exist on or prior to the
Admission Date or that is otherwise specified in the Act or for any duty,
liability or obligation to the Company or any other Person for any present or
future breaches of any representations, warranties or covenants by such Member
(in its capacity as such) contained herein or in the other agreements with the
Company or for any duty, liability or obligation of such Member or its
Affiliates in any capacity to the Company or any other Person under this
Agreement or under any Ancillary Agreement.

(b)

Notwithstanding the admission of a Substituted Member for it, each Member shall
cause its Substituted Member to take all actions as are necessary for it to
perform its obligations under, and unconditionally guarantees the full and
prompt payment by any such Substituted Member of any and all payments required
to be made by the Transferor Member pursuant to this Agreement.  This guarantee
is an absolute and continuing guarantee.  Each such Transferor Member waives any
and all defenses and discharges it may have or otherwise be entitled to as a
guarantor or surety hereunder and further waives presentment for payment or
performance, notice of nonpayment or nonperformance, demand and protest.  Each
Member expressly agrees that, following written notice to such Substituted
Member and a reasonable opportunity to cure any breach, the Company and the
other Member may proceed directly against the Transferor Member and is not
required to exhaust remedies against any such Substituted Member before
proceeding against the Transferor Member.  Notwithstanding the foregoing, the
provisions of this Section 8.03(b) shall not apply with respect to any such
Transferor Member in the event of a Sale in accordance with Section 15.03, 15.04
or 15.05.

8.04.

Compliance with Law.  Prior to the exercise of the right of a Member to Transfer
any of its Membership Interests in accordance with Section 8.01, if the
Transferee is not another Member, or a Permitted Transferee of such Member, the
Company shall receive a favorable opinion of the Transferor’s legal counsel or
of other legal counsel acceptable to the Board to the effect that the Transfer
is exempt from registration under the Securities Act and any applicable state
securities laws.

8.05.

Prohibited Transfer; Invalid Transfer.  Any attempt to directly Transfer any
Membership Interest not in compliance with this Agreement shall be null and void
ab initio and neither the Company nor any transfer agent shall give any effect
in the Company’s records to such attempted Transfer.

8.06.

Admission Procedure.

(a)

An Assignee who is not a signatory to this Agreement may be admitted to the
Company as a substituted Member (a “Substituted Member”) only upon furnishing to
the Board:  (i) a counterpart signature page to this Agreement, and (ii) such
other documents or instruments as may be necessary or appropriate to effect such
Person’s admission as a Substituted Member and to confirm the agreement of the
Substituted Member to be bound by all the terms and provisions of this Agreement
with respect to the Membership Interest acquired.  Such admission shall become
effective on the date on which the Board determines that such conditions have
been satisfied.

(b)

A direct Transfer of a Membership Interest shall be effective as of the date of
assignment and compliance with the conditions to such Transfer hereunder and
otherwise and such Transfer thereafter shall be shown on the books and records
of the Company.  Profits, losses and other Company items shall be allocated
between the Transferor and the Transferee in accordance with Section 6.07.
 Distributions made before the effective date of such Transfer shall be paid to
the Transferor, and distributions made after such date shall be paid to the
Transferee.

(c)

The Transferor of a Membership Interest shall pay, or reimburse the Company for,
all costs reasonably incurred by the Company in connection with the Transfer
promptly after the receipt by such Transferor of the Company’s invoice for the
amount due.  

8.07.

Certain Rights and Obligations not Transferable.

(a)

The rights and obligations of Discovery set forth in Sections 3.05, 7.02, 7.03,
7.05, 7.11, 7.15, 13.01, 14.01 and Article 15 shall not be Transferable and
shall not Transfer in connection with any Transfer by Discovery of its
Membership Interests or the admission of a Substituted Member for Discovery;
provided, however, that Discovery shall be entitled to Transfer any such rights
and obligations to a Wholly-Owned Affiliate who is admitted as a Substituted
Member; provided, further, that no such Transfer shall relieve Discovery of any
such obligations.  This Section 8.07(a) shall not be interpreted to limit any
other restrictions on the Transfer of any rights or obligations of a Member in
any other provision of this Agreement.

(b)

The rights and obligations of Hasbro set forth in Sections 3.05, 7.02, 7.03,
7.05, 7.11, 7.15, 13.02, 14.01 and Article 15 shall not be Transferable and
shall not Transfer in connection with any Transfer by Hasbro of its Membership
Interests or the admission of a Substituted Member for Hasbro; provided,
however, that Hasbro shall be entitled to Transfer any such rights and
obligations to a Wholly-Owned Affiliate who is admitted as a Substituted Member;
provided, further, that no such Transfer shall relieve Hasbro of any such
obligations.  This Section 8.07(b) shall not be interpreted to limit any other
restrictions on the Transfer of any rights or obligations of a Member in any
other provision of this Agreement.

(c)

With respect to Sections 8.07(a) and (b), it is understood and agreed that a
sale of all or substantially all of the assets of the Hasbro Controlled
Affiliates, on one hand, or the Discovery Controlled Affiliates, on the other
hand, respectively (whether by way of merger, sale of stock or assets or
otherwise), including any Transfer made in accordance with Section 8.01(a)(3),
shall not, by itself, constitute a Transfer of rights and obligations that is
prohibited by this Section 8.07, subject to the other provisions of this
Agreement that may provide for the termination of the Company.  Accordingly, for
example, subject to such other provisions, the rights and obligations of Hasbro
would transfer to a third-party buyer of all or substantially all of the assets
of the Hasbro Controlled Affiliates.

ARTICLE 9
Withdrawal and Resignation of Members

No Member shall have the power or right to withdraw or otherwise resign from the
Company prior to the dissolution and winding up of the Company pursuant to
Article 15.  Upon a Transfer of all of a Member’s Membership Interest in a
Transfer permitted by this Agreement, subject to the provisions of Section 8.03,
such Member shall cease to be a Member.

ARTICLE 10
Limitation on Liability and Indemnification

10.01.

Limitation on Liability.

(a)

No Covered Person shall be liable to the Company or to any Member for any act or
omission performed or omitted by such Covered Person pursuant to authority
granted to such Covered Person by this Agreement and, with respect to Officers
only, performed or omitted by such Officer with a good faith belief that such
act or omission was in, or not opposed to, the best interests of the Company;
provided that, except as otherwise provided herein, such limitation of liability
shall not apply to the extent the act or omission was attributable to such
Covered Person’s gross negligence, willful misconduct, fraud or knowing
violation of law or this Agreement.  No Member shall be liable to the Company or
any other Member for any action taken by any other Member.  To the extent that,
at law or in equity, a Covered Person has duties (including fiduciary duties)
and liabilities relating thereto to the Company or to the Members, any Covered
Person acting under this Agreement or otherwise shall not be liable to the
Company or any Member for its good faith reliance on the provisions of this
Agreement.  The provisions of this Agreement, to the extent they expressly
restrict the duties and liabilities of a Covered Person otherwise existing at
law or in equity,

are agreed by the Members to modify such other duties and liabilities of such
Covered Person.  No Covered Person shall be personally liable to the Company or
any Member for any error of judgment made in good faith by a responsible officer
or officers of the Covered Person, except to the extent that such Covered
Person’s conduct constituted gross negligence, willful misconduct, fraud or
knowing violation of law or this Agreement.  Except as otherwise provided in
this Section 10.01(a), no Covered Person shall be liable to the Company or any
Member for any mistake of fact or judgment by the Covered Person in conducting
the affairs of the Company or otherwise acting in respect of and within the
scope of this Agreement, except to the extent that such Covered Person’s conduct
constituted gross negligence, willful misconduct, fraud or knowing violation of
law or this Agreement or any Ancillary Agreement.

(b)

Notwithstanding anything to the contrary in this Agreement, whenever in this
Agreement or any other agreement contemplated hereby a Person or Persons are
permitted or required to take any action or to make a decision in its or their
“sole discretion” or “discretion,” such Person or Persons shall be entitled to
consider such interests and factors as it or they desire.

10.02.

Duty of Directors.  The Directors’ duty of care in the discharge of their duties
to the Company and the Members shall be limited to discharging their duties
pursuant to this Agreement in good faith.  In discharging their duties, the
Directors shall not be liable to the Company or to any Member for any mistake or
error in judgment or for any act or omission believed in good faith to be within
the scope of authority conferred by law or by or pursuant to this Agreement.  To
the fullest extent permitted under the Act, it is expressly acknowledged and
agreed that a Director shall act in the interests of the Member by whom he or
she was appointed in considering matters that may come before the Board and that
a Director shall have no liability to the Company or the Members for breach of
the fiduciary duty of loyalty as a result of any action taken or approval given
by a Director that inures to the benefit of the Member by whom he or she was
appointed.

10.03.

Indemnification by the Company; Non-Exclusivity of Rights.

(a)

The Company shall indemnify and hold harmless a Covered Person to the fullest
extent permitted under the Act, as the same now exists or may hereafter be
amended, substituted or replaced (but, in the case of any such amendment,
substitution or replacement only to the extent that such amendment, substitution
or replacement permits the Company to provide broader indemnification rights
than the Company is providing immediately prior to such amendment), against all
Losses reasonably incurred or suffered by such Covered Person (or one or more of
such Covered Person’s Affiliates) in connection with, relating to, or arising
out of the business and operations of the Company; provided that no Covered
Person shall be indemnified for any Losses suffered or incurred by such Covered
Person that are attributable to such Person’s or its Affiliate’s (other than the
Company) or agent’s gross negligence, willful misconduct, fraud or knowing
violation of law or breach of this Agreement or any Ancillary Agreement;
provided, further, that no Covered Person shall be indemnified for any Losses
for which such Covered Person or its Affiliates is obligated to indemnify the
Company pursuant to this Agreement or any of the Ancillary Agreements.
 Expenses, including attorneys’ fees, reasonably incurred by any such
indemnified Covered

Person in defending a proceeding shall be paid by the Company in advance of the
final disposition of such proceeding, including any appeal therefrom, upon
receipt of an undertaking by or on behalf of such Covered Person to repay such
amount if it shall ultimately be determined that such Covered Person is not
entitled to be indemnified by the Company.  The Company shall have the right to
control any proceeding for which a claim for indemnification is sought by a
Covered Person if and to the extent that such claim relates to the business and
operations of the Company.  The indemnification obligations of the Company
contained in this Section 10.03(a) shall apply to a Covered Person solely in
such Covered Person’s capacity as such on behalf of the Company with such
duties, rights and obligations as are set forth in this Agreement.

(b)

Notwithstanding anything contained herein to the contrary (including in this
Section 10.03), any indemnity by the Company relating to the matters covered in
this Section 10.03 shall be provided out of and to the extent of Company assets
(including any applicable policies of insurance) only and no Member shall have
personal liability on account thereof or shall be required to make additional
Capital Contributions to help satisfy such indemnity of the Company.

(c)

The right to indemnification and the advancement and payment of expenses
conferred in this Section 10.03 shall not be exclusive of any other right which
a Covered Person indemnified pursuant to this Section 10.03 may have or
hereafter may acquire under any law (common or statutory), provision of the
Certificate or this Agreement or the Ancillary Agreements, vote of the Members
or disinterested Directors or otherwise.

10.04.

Insurance.  The Company may purchase and maintain insurance, at its expense, to
protect itself and any Person who is an indemnified Person under Section 10.03
against any Loss, whether or not the Company would have the power to indemnify
such Person against such Loss under Section 10.03.

10.05.

Savings Clause.  If this Article 10 or any portion hereof shall be invalidated
on any ground by any court of competent jurisdiction, then the indemnifying
Person shall nevertheless indemnify and hold harmless each Person entitled to be
indemnified pursuant to this Article 10 as to reasonable Losses paid in
settlement with respect to any action, suit or proceeding, whether civil,
criminal, administrative or investigative to the full extent permitted by any
applicable portion of this Article 10 that shall not have been invalidated and
to the fullest extent permitted by applicable law.

ARTICLE 11
Taxes

11.01.

Tax Returns.  The Tax Matters Partner (or any successor appointed by the Board)
shall prepare and timely file all necessary federal and state income tax returns
for the Company, including making the elections described in Section 11.02.
 Each Member shall furnish to the Tax Matters Partner all pertinent information
in such Member’s possession relating to the Company operations that is necessary
to enable the Company’s income tax returns to be timely prepared and filed.

11.02.

Tax Elections.

(a)

The Company’s taxable year shall be the Fiscal Year.  The Members shall
determine whether to make or revoke any available election pursuant to the Code.

(b)

Neither the Company nor any Director, Officer or Member may make an election for
the Company to be excluded from the application of the provisions of subchapter
K of chapter 1 of subtitle A of the Code or any similar provisions of applicable
state law, and no provision of this Agreement shall be construed to sanction or
approve such an election.  No Member shall take any action (including the filing
of an IRS Form 8832 Entity Classification Election) that would cause the Company
to be characterized as an entity other than a partnership for federal income tax
purposes except with the prior written consent of each Member.

11.03.

Tax Matters Partner.

(a)

Discovery is hereby designated as the Tax Matters Partner of the Company, as
provided in Treasury Regulations pursuant to Section 6231 of the Code and
analogous provisions of state law.  Each Member, by the execution of this
Agreement, consents to such designation of the Tax Matters Partner and agrees to
execute, certify, acknowledge, deliver, swear to, file and record at the
appropriate public offices such documents as may be necessary or appropriate to
evidence such consent.  

(b)

To the extent and in the manner provided by applicable law and Treasury
Regulations, the Tax Matters Partner shall furnish the name, address, profits
interest and taxpayer identification number of each Member and any Transferee to
the Secretary of the Treasury or his delegate (the “Treasury Secretary”).

(c)

The Tax Matters Partner shall notify each Member of any audit that is brought to
the attention of the Tax Matters Partner by notice from the Internal Revenue
Service, and shall forward to each Member copies of any written notices,
correspondence, reports or other documents received by the Tax Matters Partner
in connection with such audit within 10 Business Days following its notification
by the Internal Revenue Service or its receipt, as the case may be.  The Tax
Matters Partner shall provide the Members with reasonable advance notice of
administrative proceedings with the Internal Revenue Service, including any
closing conference with the examiner and any appeals conference.

(d)

The Tax Matters Partner shall give the Members written notice of its intent to
initiate judicial review, file a request for administrative adjustment on behalf
of the Company, extend the period of limitations for making assessments of any
tax against a Member with respect to any Company item, or enter into any
agreement with the Internal Revenue Service that would result in the settlement
of any alleged tax deficiency or other tax matter, or to any adjustment of
taxable income or loss or any item included therein, affecting the Company or
any Member.  The Tax Matters Partner shall not take any such action under this
Section 11.03(d) if the other Member elects within 30 Business Days after its
receipt of the Tax Matters Partner’s notice to require that the Tax Matters
Partner refrain from taking such action.

(e)

Subject to the foregoing provisions of this Section 11.03, the Tax Matters
Partner is hereby authorized, but not required:

(1)

to enter into any settlement with the Internal Revenue Service or the Treasury
Secretary with respect to any tax audit or judicial review, in which agreement
the Tax Matters Partner may expressly state that such agreement shall bind the
other Members, except that such settlement agreement shall not bind either
Member that (within the time prescribed pursuant to the Code and Treasury
Regulations thereunder) files a statement with the Treasury Secretary providing
that the Tax Matters Partner shall not have the authority to enter into a
settlement agreement on the behalf of such Member;

(2)

if a notice of a final administrative adjustment at the Company level of any
item required to be taken into account by a Member for tax purposes (a “Final
Adjustment”) is mailed to the Tax Matters Partner, to seek judicial review of
such Final Adjustment, including the filing of a petition for readjustment with
the U.S. Tax Court, the U.S. District Court for the district in which the
Company’s principal place of business is located, or elsewhere as allowed by
law, or the U.S. Claims Court;

(3)

to intervene in any action brought by any other Member for judicial review of a
Final Adjustment;

(4)

to file a request for an administrative adjustment with the Treasury Secretary
at any time and, if any part of such request is not allowed by the Treasury
Secretary, to file a petition for judicial review with respect to such request;

(5)

to enter into an agreement with the Internal Revenue Service to extend the
period for assessing any tax that is attributable to any item required to be
taken into account by a Member for tax purposes, or an item affected by such
item; and

(6)

to take any other action on behalf of the Members (with respect to the Company)
or the Company in connection with any administrative or judicial tax proceeding
to the extent permitted by applicable law or Treasury Regulations.

(f)

The Company shall indemnify and reimburse the Tax Matters Partner for all
reasonable expenses (including reasonable legal and accounting fees) incurred
pursuant to this Section 11.03 in connection with any administrative or judicial
proceeding with respect to the tax liability of the Members.  The payment of all
such reasonable expenses shall be made before any distributions are made to the
Members.  The taking of any action and the incurring of any expense by the Tax
Matters Partner in connection with any such proceeding, except to the extent
provided herein or required by law, is a matter in the sole discretion of the
Tax Matters Partner and the provisions on limitations of liability of Covered
Persons and indemnification set forth in Article 10 shall be fully applicable to
Discovery in its capacity as the Tax Matters Partner.

(g)

Any Member that receives a notice of an administrative proceeding under Code
Section 6233 relating to the Company shall promptly notify the Tax Matters
Partner of the treatment of any Company item on such Member’s federal income tax
return that is or may be inconsistent with the treatment of that item on the
Company’s return.

(h)

Any Member that enters into a settlement agreement with the Treasury Secretary
with respect to any Company item in accordance with this Agreement shall notify
the Tax Matters Partner of such agreement and its terms within 30 days after its
date, and the Tax Matters Partner shall notify the other Members of the
settlement agreement within 30 days of such notification.

ARTICLE 12
Books, Records, Reports, Accounts  

12.01.

Records and Accounting.  

(a)

The Company shall keep, or cause to be kept, appropriate books and records with
respect to the Company’s business, including all books and records necessary to
provide any information, lists and copies of documents required to be provided
pursuant to Section 12.04 or pursuant to applicable laws.  The Company shall
comply with Section 404 of the Sarbanes-Oxley Act of 2002, as in effect from
time to time.  All matters concerning (i) the determination of the relative
amount of allocations and distributions among the Members pursuant to this
Agreement, and (ii) accounting procedures and determinations, and other
determinations not specifically and expressly provided for by any applicable
terms of this Agreement, shall be determined by the Board, whose determination
shall be final and conclusive absent manifest clerical error and provided such
determinations are consistent with the terms of this Agreement; provided,
however, that the Company shall comply with any reasonable and customary
corporate governance policies requested by Discovery or Hasbro (including any
code of ethics) so long as such policies are applicable to such Member or any of
its Controlled Affiliates.  

(b)

The Board shall engage a nationally recognized firm of independent certified
public accountants to perform an audit of the Company’s financial statements for
each Fiscal Year; provided, however, that Discovery and Hasbro agree that the
initial auditor of the Company shall be PricewaterhouseCoopers, subject to
PricewaterhouseCoopers entering into a confidentiality agreement with the
Company protecting against the disclosure of the Company’s and the Members’
confidential information, the form of which shall be reasonably satisfactory to
Discovery and Hasbro.  Notwithstanding the immediately preceding sentence, to
the extent that one of the Members consolidates the financial position and
results of the operations of the Company in accordance with GAAP, then such
Member shall have the right to select the auditor of the Company, provided that:
(i) subject to the following clause (ii), unless such Member has a good faith
reason to use another auditor, it is expected that such auditor will be the same
nationally recognized firm of independent certified public accountants that
audits such Member’s financial statements; (ii) any change in the Company’s
auditor shall be subject to the prior approval of the other Member, which
approval shall not be unreasonably withheld, conditional or delayed; and
(iii) such auditor shall agree to enter into a confidentiality agreement with
the Company protecting against the disclosure of the Company’s and the Members’
confidential information, the form of which shall be reasonably satisfactory to
Discovery and Hasbro.

(c)

Each Member (or its authorized representatives) shall have the right, upon
reasonable advance notice and during normal business hours, to inspect and copy
any

of the books, records, documents and information of the Company, including
financial information, ratings, forecasts, management reports and documents and
other information relating to internal controls.  Each Member shall also have
the right to engage a firm of independent certified public accountants, at its
own expense, to audit the Company’s books, records and internal controls, and
the Company shall cooperate with such Member and firm in connection with such
audits, subject to such auditors entering into a confidentiality agreement with
the Company protecting against the disclosure of the Company’s and the Members’
confidential information, the form of which shall be reasonably satisfactory to
Discovery and Hasbro.

12.02.

Member Reports.

(a)

The Company shall deliver or cause to be delivered to each Member:  

(1)

within 21 days after the conclusion of each month, an unaudited standard
management report containing (i) an income statement of the Company and its
subsidiaries for such month, (ii) a consolidated balance sheet of the Company
and its subsidiaries as of the end of such month, and (iii) a consolidated
statement of cash flows for the Company and its subsidiaries as of the end of
such month;

(2)

within 28 days after the end of each fiscal quarter, an unaudited balance sheet
and an unaudited statement of income and cash flows of the Company and its
subsidiaries for and as at the end of such fiscal quarter, setting forth in
comparative form with respect to the corresponding fiscal quarter for the
previous Fiscal Year and with respect to the Annual Budget; provided, however,
that the Company’s failure to provide a statement of cash flows within 28 days
after the end of any such fiscal quarter shall not be deemed a breach of this
obligation so long as the Company provides such statement as promptly as
reasonably practicable thereafter;

(3)

upon the request of Discovery or Hasbro, within 90 days (or earlier as may be
required to comply with securities laws applicable to such Member or its
Affiliates) after the conclusion of any Fiscal Year, audited consolidated
statements of income and cash flows of the Company and its subsidiaries for such
Fiscal Year, changes in each Member’s equity and each Member’s Capital Account
balance and an audited consolidated balance sheet of the Company and its
subsidiaries as of the end of such Fiscal Year, all prepared in accordance with
GAAP, consistently applied; and  

(4)

within 60 days after the conclusion of any Fiscal Year, an unaudited statement
of changes in each Member’s equity and each Member’s Capital Account balance for
such Fiscal Year.

(b)

To the extent that a Member (the “Consolidating Member”) consolidates the
financial statements of the Company in accordance with GAAP, the Company shall
deliver to each Member:

(1)

within 6 Business Days after the conclusion of each month, an unaudited
reporting package which contains a preliminary balance sheet and statement of

operations of the Company, prepared in accordance with GAAP, the format of which
reporting packages shall be mutually determined by the Company and the
Consolidating Member in good faith;

(2)

within 11 Business Days after the conclusion of each month, an updated unaudited
reporting package which contains any required updates to the preliminary balance
sheet and statement of operations described in clause (1) of this subsection
(b);

(3)

on a timely basis in good faith, information with respect to Subsequent Events
(as defined in accordance with GAAP) that may affect either accounting or
disclosure matters on a periodic basis during a fiscal quarter and year–end
close up through the time that the Consolidating Member files its consolidating
financial statements with the U.S. Securities and Exchange Commission; and

(4)

a representation letter on a quarterly and annual basis which provides customary
representations of the Company with respect to the preparation of the financial
information in the reporting packages described in clauses (1) and (2) of this
subsection (b) and applicable internal controls over financial reporting.

(c)

The Company shall deliver or cause to be delivered, within 90 days after the end
of each Fiscal Year, to each Person who was a holder of a Membership Interest at
any time during such Fiscal Year, all information necessary for the preparation
of such Person’s federal and state income tax returns.

12.03.

Accounts.  The Board shall establish and maintain one or more separate bank and
investment accounts and arrangements for Company funds in the Company’s name
with financial institutions and firms that the Board determines.  The Board may
not commingle the Company’s funds with the funds of any Member.

12.04.

Other Information.  In addition to the other rights specifically set forth in
this Agreement, each Member shall be entitled to all information to which such
Member is entitled to have access pursuant to Section 18-305(a) of the Act under
the circumstances and subject to the conditions therein stated.

ARTICLE 13
Exclusivity Covenants

13.01.

Exclusivity Covenants of Discovery.

(a)

Commencing on the Formation Date, during the Term, subject to the other
provisions of this Section 13.01, none of the Discovery Controlled Affiliates
shall, directly or indirectly, (i) own an economic interest in, or operate,
control or participate in the management of any Competitive Cable Television
Network or (ii) re-brand any of Discovery Ultimate Parent’s or its Controlled
Affiliates’ Cable Television Networks as a Competitive Cable Television Network.
 

(b)

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(c)

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(d)

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13.02.

Exclusivity Covenants of Hasbro.

(a)

Commencing on the Formation Date, during the Term, subject to the other
provisions of this Section 13.02, none of the Hasbro Controlled Affiliates
shall, directly or indirectly, own an economic interest in, or operate, control
or participate in the management of any Competitive Cable Television Network.

(b)

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(c)

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13.03.

Other Opportunities.  Subject to compliance with the other provisions of this
Article 13 and their other commitments under this Agreement and the Ancillary
Agreements:

(a)

any Director or Member or its Affiliate (other than the Company) may conduct any
business or activity whatsoever outside of the Company without any
accountability to the Company or any other Member (and all revenue and expenses
attributable to any such business or activity shall be for the sole account of
the Director or Member or its Affiliate (other than the Company) performing such
business and activity) regardless of whether (i) such outside business or
activity of such Director or Member or such Affiliate competes with the business
of the Company, (ii) such outside business or

activity by such Director or Member or such Affiliate is or is not in the best
interests of the Company or the other Members (unless such business or activity
is performed on behalf of the Company), or (iii) such Director or Member or such
Affiliate became aware of such outside business or activity in her or his role
with the Company or as a Member (including through its appointed Directors), as
applicable, and this Agreement shall not give the Company, any Member or other
Person any interest in, or right to, any such outside business or activity or
any proceeds, income or profit thereof or therefrom.

(b)

the Company and the Members hereby acknowledge that the conduct (or the omission
of conduct) of any business or activity outside of the Company shall not
(i) constitute a breach of this Agreement; (ii) constitute a breach of any
fiduciary or other duty owed to the Company or any Member (and to the extent any
such duty exists at law or in equity it is hereby expressly waived in
perpetuity); or (iii) otherwise give rise to any liability to the Company or any
Member; and

(c)

no Director or Member shall be obligated hereunder to offer any business
opportunity to the Company or any other Member or be restricted from pursuing
any business opportunity offered to the Company.

ARTICLE 14
Confidentiality

14.01.

Confidentiality.

(a)

Each of the Members acknowledges that, from time to time, it and its Affiliates
may receive information from or regarding the other Member (or its Affiliates)
or the Company in the nature of trade secrets or that otherwise is confidential,
the release or disclosure of which could be damaging to the other Member (or its
Affiliates), the Company or Persons with which it does business.  Each of the
Members and the Company acknowledges that, from time to time, it may
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and information related to other programming services or networks described in
this Section 14.01(a) are collectively referred to as “Confidential
Information.”

(b)

Each of the Members and the Company receiving any Confidential Information
(each, a “Receiving Party”) shall hold in strict confidence any Confidential
Information it receives with the same degree of care as it uses to avoid
unauthorized use, disclosure, publication or dissemination of its own
confidential information of a similar nature, but in no event less than a
reasonable degree of care; provided that a Receiving Party may disclose such
Confidential Information to any Affiliate, Covered Person or professional
advisor of such Receiving Party that agrees to abide by the restrictions in this
Section 14.01; provided, further, that a Receiving Party may disclose such
Confidential Information to the extent required by any legal, accounting or
regulatory requirements (including the

requirements of any securities exchange) or in connection with enforcing its
rights under this Agreement or the Ancillary Agreements; and provided, further,
that the Receiving Party disclosing such Confidential Information shall be
responsible for any breaches of confidentiality by any such Affiliate, Covered
Person or professional advisor of such Receiving Party.  For the avoidance of
doubt, the restrictions in this Section 14.01(b) shall continue to apply to a
Member after it has ceased to be a Member.

(c)

The restrictions in this Section 14.01 shall not apply to any Confidential
Information as to which the Receiving Party can demonstrate that such
Confidential Information:  (1) is or became public knowledge through no action
of such Receiving Party or its Affiliates, officers, directors, representatives
or agents in violation of this Agreement; (2) has been provided to such
Receiving Party without restriction by an independent third party who has not,
directly or indirectly, received such Confidential Information from such
Receiving Party (or the Company); (3) was properly in the possession of such
Receiving Party prior to the time of receipt of such Confidential Information;
(4) is required to be disclosed by law, regulation or court order  (provided
that such Receiving Party shall notify the Board, or Discovery in the case of
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Information, before disclosing it if practicable); (5) was developed
independently by such Receiving Party in the course of work by employees or
other agents of such Receiving Party without use of such Confidential
Information; or (6) has been provided to such Receiving Party independently of
such Receiving Party’s activities with respect to the Company.

ARTICLE 15
Termination, Dissolution and Liquidation

15.01.

Termination.  Upon the first to occur of the following, the joint venture
created hereby shall be terminated in accordance with the procedures and
provisions of this Article 15, subject to the other provisions of this Article
15:

(a)

the unanimous approval thereof by the Members;

(b)

subject to Section 16.16, the entry of a decree of administrative or judicial
dissolution of the Company under the Act;

(c)

the sale of all or substantially all of the assets of the Company;

(d)

at either Member’s election by providing written notice thereof to the Company
and the other Member at any time within ninety (90) days following the
occurrence of the events specified in Schedule C attached hereto; provided that
a termination election may not be made by a Member pursuant to this
Section 15.01(d) if one of the foregoing occurred principally as a result of a
breach of this Agreement or any Ancillary Agreement by such Member or its
Affiliate;

(e)

at either Member’s election by providing thirty (30) days prior written notice
thereof to the Company and the other Member at any time within the one-year
period commencing on October 1, 2019;  

(f)

at either Member’s election at any time from and after January 1, 2014, by
providing written notice thereof to the Company and the other Member at any time
within ninety (90) days after the commencement of any full Fiscal Year if the
Board has not approved the Annual Budget for such full Fiscal Year and the two
immediately preceding full Fiscal Years;

(g)

at Hasbro’s election by providing written notice thereof to the Company and
Discovery following the occurrence of a Discovery Material Breach; provided
that, in the event of a Discovery Material Breach pursuant to clause (i) or
(ii)(x) of the definition of “Discovery Material Breach”, upon Hasbro’s written
notice to Discovery of its intention to terminate the joint venture as a result
of such a Discovery Material Breach (which notice shall provide in reasonable
detail the nature of such alleged Discovery Material Breach and its
qualification as a “Discovery Material Breach” in accordance with such
definition), (i) Discovery shall have forty-five (45) days (or thirty (30) days
to the extent such breach involves solely the payment of money) from the date of
such notice to cure (such that the underlying matter no longer constitutes a
Discovery Material Breach) any such Discovery Material Breach, (ii) such
forty-five (45) day period (but not such thirty (30) day period) shall be
extended for an additional forty-five (45) day period so long as Discovery is
diligently seeking to cure such Discovery Material Breach; and (iii) if such
Discovery Material Breach is of a type that cannot be cured and money damages
would provide a full remedy for the harm resulting from such Discovery Material
Breach, Discovery shall be deemed to have cured such Discovery Material Breach
with respect to such harm by making a payment to the Company or Hasbro, as
applicable, in an amount sufficient to compensate the Company or Hasbro, as
applicable, for such harm; provided, however, that a termination election may
not be made by Hasbro pursuant to this Section 15.01(g) if such Discovery
Material Breach occurred principally as a result of a breach of this Agreement
or any Ancillary Agreement by the Company, Hasbro or any of Hasbro’s Affiliates;
provided further, that, for the avoidance of doubt, Hasbro may deliver  written
notice of a termination election following the occurrence of a Discovery
Material Breach and prior to expiration of any applicable cure period;

(h)

 at Discovery’s election by providing written notice thereof to the Company and
Hasbro following the occurrence of a Hasbro Material Breach; provided that, in
the event of a Hasbro Material Breach pursuant to clause (i) or (ii)(x) of the
definition of “Hasbro Material Breach”,  upon Discovery’s written notice to
Hasbro of its intention to terminate the joint venture as a result of such a
Hasbro Material Breach (which notice shall provide in reasonable detail the
nature of such alleged Hasbro Material Breach and its qualification as a “Hasbro
Material Breach” in accordance with such definition), (i) Hasbro shall have
forty-five (45) days (or 30 days to the extent such breach involves solely the
payment of money) from the date of such notice to cure (such that the underlying
matter no longer constitutes a Hasbro Material Breach) any such Hasbro Material
Breach, (ii) such forty-five (45) day period (but not such thirty (30) day
period) shall be extended for an additional forty-five (45) day period so long
as Hasbro is diligently seeking to cure such Hasbro Material Breach; and
(iii) if such Hasbro Material Breach is of a type that cannot be cured and money
damages would provide a full remedy for the harm resulting from such Hasbro
Material Breach, Hasbro shall be deemed to have cured such Hasbro Material
Breach with respect to such harm by making a payment to the Company or
Discovery, as applicable,

in an amount sufficient to compensate the Company or Discovery, as applicable,
for such harm; provided, however, that a termination election may not be made by
Discovery pursuant to this Section 15.01(h) if such Hasbro Material Breach
occurred principally as a result of a breach of this Agreement or any Ancillary
Agreement by the Company, Discovery or any of Discovery’s Affiliates; provided
further, that, for the avoidance of doubt, Discovery may deliver written notice
of a termination election following the occurrence of a Hasbro Material Breach
and prior to expiration of any applicable cure period;

(i)

at Discovery’s election by providing written notice thereof to the Company and
Hasbro at any time (i) following thirty (30) days after, but prior to ninety
(90) days after, the occurrence of a Change of Control Transaction with respect
to Hasbro Ultimate Parent or any of its Affiliates that hold a Membership
Interest prior to the Launch Date or (ii) following 180 days after, but prior to
the first anniversary of, the occurrence of a Change of Control Transaction with
respect to Hasbro Ultimate Parent or any of its Affiliates that hold a
Membership Interest on or after the Launch Date, provided that, notwithstanding
clause (i) and (ii), Discovery may provide such notice at any time prior to
ninety (90) days after the occurrence of any Change of Control Transaction
described in Section 13.02(b); or

(j)

at Hasbro’s election by providing written notice thereof to the Company and
Discovery at any time (i) following 30 days after, but prior to ninety (90) days
after, the occurrence of a Change of Control Transaction with respect to
Discovery Ultimate Parent or any of its Affiliates that hold a Membership
Interest prior to the Launch Date or (ii) following 180 days after, but prior to
the first anniversary of, the occurrence of a Change of Control Transaction with
respect to Discovery Ultimate Parent or any of its Affiliates that hold a
Membership Interest on or after the Launch Date, provided that, notwithstanding
clause (i) and (ii), Hasbro may provide such notice at any time prior to ninety
(90) days after the occurrence of any Change of Control Transaction described in
Section 13.01(b).

Subject to the foregoing termination rights, the death, retirement, resignation,
expulsion, bankruptcy or dissolution of a Member, or the admission of additional
Members or Substituted Members shall not automatically cause a termination
hereunder, and the Company shall continue in existence notwithstanding such an
event, subject to the terms and conditions of this Agreement.  

15.02.

Effect of Termination.

(a)

Pre-Launch Termination for Material Breach or Change of Control.  Upon a
termination election to dissolve the joint venture prior to the Launch Date
pursuant to Section 15.01(g) or (h), with respect to a Material Breach, or upon
a termination election to dissolve the joint venture pursuant to
Section 15.01(i)(i) or (j)(i), with respect to a Change of Control Transaction
occurring prior to the Launch Date, Discovery or its designated Affiliate shall
purchase all Membership Interests owned by Hasbro and its Affiliates
(representing one-half of all Membership Interests outstanding), and Hasbro
shall be obligated to sell such Membership Interests to Discovery or its
designated Affiliate, in exchange for the Unwind Price in accordance with
Section 15.04(e).  Upon such a Sale, any agreements with and commitments to the
Company of Hasbro under this Agreement and the Ancillary Agreements shall
automatically be deemed terminated in accordance with the terms thereof upon

consummation of the Sale; provided that such termination shall not relieve any
party from any liabilities that accrued prior to such termination and that
provisions under Ancillary Agreements that expressly survive a termination of
such Ancillary Agreement shall survive in accordance with the applicable terms
thereof.  In the event of such termination election pursuant to Section 15.01(g)
or (h), the terminating Member shall also have the right, in lieu of the remedy
set forth in the first sentence of this Section 15.02(a), to either (1) purchase
all Membership Interests owned by the non-terminating Member at a price equal to
the pro rata share (based on Percentage Interest) of Fair Market Value in
accordance with Section 15.04(e), or (2) cause the Board to initiate an auction
in accordance with the procedures set forth in Section 15.04.  The terminating
Member may exercise its rights under clause (1) or (2) by delivering written
notice thereof at any time within thirty (30) days after it has delivered its
termination notice under Section 15.01(g) or (h), as applicable, and, if the
terminating Member elects to exercise its rights under clause (1) or (2), the
Fair Market Value shall be determined in accordance with the procedures in
Section 15.02(b); provided that such terminating Member shall not obligated to
select as between (1) or (2) until thirty (30) days after the Fair Market Value
has been so determined.

(b)

Calculation of Fair Market Value.  Upon a termination election to dissolve the
joint venture pursuant to Section 15.01 (other than Sections 15.01(a), 15.01(b)
or 15.01(c)) on or after the Launch Date (or in the event of an election
pursuant to clause (1) or (2) of Section 15.02(a)), then Discovery and Hasbro
shall commence an appraisal process pursuant to this Section 15.02(b).
 Discovery and Hasbro shall use good faith efforts to mutually agree on the Fair
Market Value within 30 days following such termination election (and either
party may elect to retain a third-party appraiser at its own expense to assist
it in its valuation).
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(c)

Post-Launch Termination.  With respect to any termination election on or after
the Launch Date, within thirty (30) days after the final determination of the
Fair Market Value pursuant to Section 15.02(b):

(1)

“Jump Ball.”  In the case of a termination election pursuant to
Section 15.01(d), (e) or (f) on or after the Launch Date, unless the Members
mutually agree to withdraw the termination election within such thirty (30) days
after such determination of the Fair Market Value, the Members shall initiate
the procedures set forth in Section 15.03;

(2)

Hasbro Material Breach or Change of Control.  In the case of a termination
election pursuant Section 15.01(h) or (i)(ii) on or after the Launch Date,
Discovery shall deliver written notice to Hasbro and the Company of its election
to (x) withdraw the termination election, and Discovery shall (A) reimburse the
Company and Hasbro for all reasonable out-of-pocket costs incurred by the
Company or Hasbro, respectively, in connection with the performance of their
respective obligations under this Section 15.02 (including the costs and fees of
the Third-Party Appraiser but excluding the costs of any third-party appraiser
retained by Hasbro to assist Hasbro in its valuation) and (B) waive any future
right to elect a termination of the Company with respect to the Hasbro Material
Breach or Change of Control giving rise to such termination, except a one-time
right to commence a new termination process after a quiet period of at least six
(6) months but not more than one year after the withdrawal of its termination
election, which, unless the Members otherwise agree, shall be subject to all
applicable procedures of Sections 15.02, 15.03 and 15.04 as if such termination
election were being first elected as of such date, (y) purchase all Membership
Interests owned by Hasbro at a price equal to the pro rata share (based on
Percentage Interest) of Fair Market Value in accordance with Section 15.04(e) or
(z) cause the Board to initiate an auction in accordance with the procedures set
forth in Section 15.04; or

(3)

Discovery Material Breach or Change of Control.  In the case of a termination
election pursuant Section 15.01(g) or (j)(ii) on or after the Launch Date,
Hasbro shall deliver written notice to Discovery and the Company of its election
to (x) withdraw the termination election and Hasbro shall (A) reimburse the
Company and Discovery for all reasonable out-of-pocket costs incurred by the
Company or Discovery, respectively, in connection with the performance of their
respective obligations under this Section 15.02 (including the costs and fees of
the Third-Party Appraiser but excluding the costs of any third-party appraiser
retained by Discovery to assist Discovery in its valuation) and (B) waive any
future right to elect a termination of the Company with respect to the Discovery
Material Breach or Change of Control giving rise to such termination, except a
one-time right to commence a new termination process after a quiet period of at
least six (6) months but not more than one year after the withdrawal of its
termination election, which, unless the Members otherwise agree, shall be
subject to all applicable procedures of Sections 15.02, 15.03 and 15.04 as if
such termination election were being first elected as of such date, (y) purchase
all Membership Interests owned by Discovery at the pro rata share (based on
Percentage Interest) of Fair Market Value in accordance with Section 15.04(e) or
(z) cause the Board to initiate an auction in accordance with the procedures set
forth in Section 15.04.  

15.03.

Buy-Sell (“Jump Ball”).  In the case of a termination election pursuant to
Section 15.01(d), (e) or (f) on or after the Launch Date, unless the Members
mutually agree to withdraw the termination election within thirty (30) days
after such determination of the Fair Market Value, on the 30th day after the
determination of the Fair Market Value pursuant to Section 15.02(b), each Member
shall simultaneously notify the other in writing of its irrevocable election to
either (i) purchase all of the Membership Interests not held by it and its
Affiliates or (ii) sell all of the Membership Interests held by it and its
Affiliates (each notice delivered pursuant to clause (i) and (ii), an
“Intentions Notice”) in each case at the pro rata share (based on Percentage
Interest) of Fair Market Value.  Upon receipt of the Intentions Notices:

(a)

One Seller/One Buyer.  If one Member elects to purchase Membership Interests and
the other Member elects to sell Membership Interests, then the Members shall, in
accordance with Section 15.04(e), consummate the purchase and sale of all
Membership Interests not owned by the purchasing Member and its Affiliates, and
the other Member shall be obligated to sell its and its Affiliates Membership
Interests to the Member who has elected to purchase Membership Interests at a
price equal to the pro rata (based on Percentage Interest) share of the Fair
Market Value.

(b)

Two Sellers.  If each Member elects to sell Membership Interests, then the
Members shall promptly commence an auction pursuant to Section 15.04.

(c)

Two Buyers.  If each Member elects to purchase Membership Interests, the Member
that delivered the termination election shall, within ten (10) days after the
date of exchange of the Intentions Notices, submit to the other Member a binding
offer to purchase such Membership Interests in accordance with Section 15.04(e)
for a price, payable in cash, in excess of the purchase price that would have
been payable for such Membership Interests if such sale had been consummated
pursuant to Section 15.03(a).  The other Member shall have the corresponding
right to receive and review the terms of such bid in writing and shall have
three (3) Business Days after receipt of the terms of such bid to submit a
higher bid, and such process shall continue until a Member’s bid prevails with
respect to such Membership Interests; provided that for any bid to be deemed a
prevailing bid for the purposes of this Section 15.03(c), such bid shall be at a
price, payable in cash, no less than $1,000,000 more than the preceding
applicable bid.  Upon final determination of a prevailing bid, the Member making
the prevailing bid shall purchase all Membership Interests owned by the other
Member and its Affiliates at the prevailing bid price in cash in accordance with
Section 15.04(e).

15.04.

Auction.

(a)

Initiation of Auction.  Promptly, and in any event within thirty (30) days,
following the initiation of an auction of the Company pursuant to
Sections 15.02(a)(2), 15.02(c)(2), 15.02(c)(3) or 15.03(b), the Members (as
provided in Section 15.04(b)(6)) shall engage an investment bank of nationally
recognized standing for the purpose of advising the Members, the Company and the
Board on the Sale of the Company.  The auction shall be for all of the
then-outstanding Membership Interests of the Company (the “Auction Interests”).
 For the avoidance of doubt, the preceding sentence is not intended to limit how
the Sale of

the Auction Interests may be structured (i.e., whether by way of merger,
consolidation, sale of equity, sale of assets or otherwise).

(b)

Auction Procedures.  The auction contemplated hereunder shall be conducted in
accordance with the following procedures:

(1)

Member Bidding.  Neither Member may participate as a bidder in the auction
except as provided in Section 15.04(b)(5).

(2)

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(3)

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(4)

No Third Party Bids.  If the auction results in no bid for the Auction
Interests, then the Board shall continue to operate the Company pursuant to the
terms of this Agreement until such time as the terminating Member (or, in the
case of a termination election pursuant to Section 15.01(d), (e) or (f), either
Member) determines, after a quiet period of at least
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to commence a new termination process, which, unless the Members may otherwise
agree, shall be subject to all applicable procedures of Sections 15.02, 15.03
and 15.04, as applicable, as if such termination election were being first
elected as of such date.

(5)

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(i)

“Jump Ball” Termination.  In the case of a termination election pursuant to
Section 15.01(d), (e) or (f), each Member shall simultaneously provide the other
with its Intentions Notice, in each case at the pro rata share (based on
Percentage Interest) of such Insufficient Bid, payable in cash, and upon receipt
of the Intentions Notices, the procedures set forth in Section 15.03(a),
15.03(b) or 15.03(c), as applicable, shall again apply with respect to such
Sale, provided that (x) the purchase price payable pursuant to Section 15.03(a)
shall be the pro rata share (based on Percentage Interest) of such Insufficient
Bid, payable in cash, (y) if each Member elects to sell Membership Interests
pursuant to Section 15.03(b), the Insufficient Bid, if payable in cash, shall
prevail with respect to the Auction Interests, and (z) if each Member elects to
purchase Membership Interests pursuant to Section 15.03(c), the first binding
offer to purchase Membership Interests submitted by a Member shall be for a
purchase price, payable in cash, no less than the pro rata share (based on
Percentage Interest) of such Insufficient Bid; or

(ii)

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(iii)

Termination for Change of Control.  In the case of a termination election
pursuant to Section 15.01(i) or (j), each Member shall simultaneously provide
the other with its Intentions Notice, in each case at the pro rata share (based
on Percentage Interest) of such Insufficient Bid, payable in cash, and upon
receipt of the Intentions Notices, the procedures set forth in Section 15.03(a),
15.03(b) or 15.03(c), as applicable, shall apply with respect to such Sale,
provided that (w) the purchase price payable pursuant to Section 15.03(a) shall
be the pro rata share (based on Percentage Interest) of such Insufficient Bid,
payable in cash, (x) if each Member elects to sell Membership Interests, the
Insufficient Bid, if payable in cash, shall prevail with respect to the Auction
Interests, (y) if each Member elects to purchase Membership Interests pursuant
to Section 15.03(c), the first binding offer to purchase Membership Interests
submitted by the terminating Member shall be for a purchase price, payable in
cash, no less than the pro rata share (based on Percentage Interest) of such
Insufficient Bid, and (z) the terminating Member may elect to withdraw its
termination election at any time prior to the entering into of a definitive
agreement with the buyer (provided that such terminating Member shall
(A) reimburse the Company and the other Member for all reasonable out-of-pocket
costs incurred by them, respectively, in connection with the performance of
their respective obligations in connection with the auction process (excluding
the costs of any third-party appraiser retained by the other Member to assist
the other Member in its valuation) and (B) waive any future right to elect a
termination of the Company with respect to the Change of Control giving rise to
such termination, except a one-time right to commence a new termination process
after a quiet period of at

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which, unless the Members otherwise agree, shall be subject to all applicable
procedures of Sections 15.02, 15.03 and 15.04 as if such termination election
were being first elected as of such date.

(6)

Control of Process.  Each Member shall, and shall cause the Directors appointed
by such Member to, cooperate with the other Member and the Company in good faith
and take all necessary or desirable actions within its control in support of all
steps, actions and other matters necessary or desirable to effectuate any Sale
in accordance with this Article 15 for the highest price reasonably attainable
and shall not take any action to frustrate the timely effectuation of any such
Sale.  If the Members are not able to mutually agree on any Sale matter and the
subsequent good faith efforts of the Members do not resolve the deadlock (e.g.,
which bid constitutes a Superior Offer under Section 15.04(b)(2)), either
Discovery or Hasbro may trigger the deadlock procedures under Section 7.03(c);
provided that any time periods applicable to the procedures set forth in this
Article 15 shall toll until the resolution of any such deadlock.  In the event
the designated representatives do not resolve the deadlock within ten (10) days
after initially conferring, either Discovery or Hasbro may elect for the Members
to engage a Third Party Appraiser or another mutually agreed third party arbiter
to resolve such matter and, upon such engagement, the Members shall submit to
the Third-Party Appraiser or other arbiter their respective position in writing
together with reasonable supporting materials.  The Third-Party Appraiser’s or
other arbiter’s determination shall be final and binding on the parties for the
purposes herein and the costs and fees of the Third-Party Appraiser or other
arbiter shall be borne by the non-prevailing Member.  Notwithstanding the
foregoing, in the event of an auction and a proposed Sale to a third party
following a termination pursuant to Section 15.01(g) or (h), the terminating
Member shall have the authority and right to make final decisions on any Sale
matter as to which the Members are not able to agree, so long as such
terminating Member (w) makes decisions consistent with the other terms and
procedures set forth in this Article 15, (x) consults with the non-terminating
Member in good faith and keeps the non-terminating Member informed of its
decisions, and (y) acts in good faith for the purposes of maximizing the value
to the Members resulting from such Sale in a commercially reasonable and
non-discriminatory manner with respect to such non-terminating Member.  To the
extent the terminating Member agrees to provide representations and warranties
(including with respect to the Company and the Business) and/or agrees to accept
monetary indemnification obligations in connection with a Sale to a third party,
the non-terminating Member shall be obligated to provide and accept them also to
the extent they are customary, pro rata as between the Members (based on each
Member’s Percentage Interest) and, without limiting the foregoing, the maximum
liability in connection therewith is the non-terminating Member’s pro rata share
(based on Percentage Interest) of the proceeds of such Sale.  If there is a
dispute as to whether any such proposed provisions are customary, such dispute
shall be resolved in accordance with the procedures set forth in the second,
third and fourth sentences of this Section 15.04(b)(6).  The terms of a Sale to
a third party may not impose non-monetary liabilities or obligations on the
non-terminating Member without the consent of the non-terminating Member;
provided that such consent shall not be unreasonably withheld, conditioned or

delayed to the extent such non-monetary liabilities or obligations are
ministerial in nature or otherwise necessary to transfer and convey the
Membership Interests to the Transferee, free and clear of all Liens, other than
those created by or under this Agreement, under federal or state securities laws
or by the Company.  At the closing of such Sale, the Transferor Member(s) shall
deliver, against delivery of the purchase price in cash, all such customary
documents and instruments as are reasonably requested by the Transferee to
transfer and convey the Membership Interests to the Transferee, free and clear
of all Liens, other than those created by or under this Agreement, under federal
or state securities laws or by the Company.

(c)

Prevailing Third Party Buyer.  If the prevailing party of such auction is a
third party, such Sale shall be consummated in accordance with the definitive
sale agreement for such Sale, and the proceeds thereof shall be allocated
between the Members pro rata (based on Percentage Interest).  

(d)

Prevailing Member Buyer.  If the prevailing party of such auction is Discovery
or Hasbro, then the prevailing Member shall purchase all Membership Interests
owned by the other Member at the pro rata share (based on Percentage Interest)
of such prevailing bid, which Sale shall be consummated in accordance with
Section 15.04(e).

(e)

Closing of Sale Between Members.  The closing of any Sale between the Members
pursuant to Sections 15.02, 15.03 or 15.04 shall take place at the principal
office of the Company (or at such other place as mutually agreed) on a date
mutually agreed upon by the Transferee and Transferor Member(s) in such Sale,
but in any event, no more than thirty (30) days (subject to extension for any
applicable waiting period under the HSR Act, any applicable foreign antitrust
requirement and any required governmental consents) following the final
determination of the Transferee and Transferor Member(s) and the purchase price
with respect to such Sale in accordance with Section 15.02, 15.03 or 15.04, as
applicable.  The Member that is the buyer may designate one or more Affiliates
or any other Person as the Transferee to purchase all or part of the Membership
Interests transferred hereunder; provided that such Member shall remain
obligated to consummate the Sale if such designees fail to do so.  At the
closing of such Sale, the Transferor Member(s) shall deliver, against delivery
of the purchase price in cash, all such customary documents and instruments as
are reasonably requested by the Transferee to transfer and convey the Membership
Interests to the Transferee, free and clear of all Liens, other than those
created by or under this Agreement, under federal or state securities laws or by
the Company; provided that the Transferor shall not be obligated to make
representations and warranties with respect to the Company or the Business.  The
Transferee shall pay the purchase price at closing, by wire transfer in
immediately available funds to an account or accounts designated by the
Transferor Member(s) at least two Business Days prior to such closing.  The
parties to such Sale shall use commercially reasonable efforts to resolve any
objections raised by the applicable regulatory authorities to such Sale;
provided that no Transferor Member shall be required to take any action that
would reduce its net after-tax proceeds (determined without taking into account
any available tax attributes of such Transferor Member and its Controlled
Affiliates) from the Sale, and no Member shall be required to take any action
that is adverse to the interest of such Member or its Affiliates as determined
by such Member in the exercise of its reasonable business judgment.

15.05.

Effect of Sale.

(a)

Sale to Third Party.  If the procedures set forth in Sections 15.02, 15.03
and/or 15.04 result in a Sale to a third party, then:

(1)

Merchandise and Trademark License Agreements.  The terms of any Merchandise
License Agreement and the Trademark License Agreement shall automatically be
deemed amended such that the terms thereof shall terminate *****************
from the date of the consummation of such Sale;

(2)

Hasbro Studios Programming Agreement.  The Hasbro Studios Programming Agreement
shall terminate on the date of the consummation of such Sale, but the buyer
shall have the option, at no additional cost (other than the payment of unpaid
license fees when due and payable), to extend the term of the Company’s license
of any HS Licensed Program licensed thereunder prior to the date of consummation
of the Sale for:

(i)

in the event of a termination election pursuant to Section 15.01(d), (e) or (f)
(“Jump Ball”), all or any portion of the remaining term of the Company’s license
for such HS Licensed Program thereunder but in no event more than
*****************from the date of the consummation of such Sale, provided that
if any such HS Licensed Program is not aired by the buyer with Comparable
Frequency during any successive ***************** period following the date of
consummation of such Sale, then the license to the buyer for such HS Licensed
Program shall automatically become a non-exclusive license as of the last day of
such ***************** period, and Hasbro Studios shall also be free to exploit
such HS Licensed Program;

(ii)

in the event of a termination election pursuant to Section 15.01(g) (Discovery
Material Breach), all or any portion of the remaining term of the Company’s
license for such HS Licensed Program thereunder but in no event more than
***************** from the date of the consummation of such Sale;

(iii)

in the event of a termination election pursuant to Section 15.01(h) (Hasbro
Material Breach), all or any portion of the remaining term of the Company’s
license for such HS Licensed Program thereunder;

(iv)

in the event of a termination election pursuant to Section 15.01(i) (Hasbro
Change of Control), all or any portion of the remaining term of the Company’s
license for such HS Licensed Program thereunder; provided that if any such HS
Licensed Program is not aired by the buyer with Comparable Frequency during any
successive ***************** period following the date of consummation of such
Sale, then the license to the buyer for such HS Licensed Program shall
automatically become a non-exclusive license as of the last day of such
***************** period, and Hasbro Studios shall also be free to exploit such
HS Licensed Program; or

(v)

in the event of a termination election pursuant to Section 15.01(j) (Discovery
Change of Control), all or any portion of the remaining term of the Company’s
license for such HS Licensed Program thereunder but in no event more than
***************** from the date of the consummation of such Sale, provided that
the license to the buyer for each such HS Licensed Program shall automatically
become a non-exclusive license on the ***************** of the consummation of
such Sale, and Hasbro Studios shall also be free to exploit such HS Licensed
Program;

(3)

Hasbro Programming Library License Agreement.  The Hasbro Programming License
Agreement shall terminate on the date of the consummation of such Sale, but the
buyer shall have the option, at no additional cost (other than the payment of
unpaid license fees when due and payable), to extend the term of the Company’s
license of any Program licensed thereunder prior to the date of consummation of
the Sale for the same periods (subject to any applicable limitations thereon
regarding Comparable Frequency) set forth in Section 15.05(a)(2) with respect to
HS Licensed Programs;

(4)

Discovery Programming Library and License Agreement.  Discovery shall have the
option, exercisable by delivery of written notice to the buyer and the Company
at any time after the ***************** of the Sale, to (i) acquire the library
that it contributed to the Company by paying the Company the fair market value
of such library as of such time (which value shall be reduced by the fair market
value of Discovery’s license to certain rights of such library pursuant to the
Discovery Programming License Agreement (the “Discovery License”)) and/or
(ii) terminate the Company’s license to the Discovery Licensed Programming by
paying the Company the fair market value of such license as of such time, in
each case, as determined by an independent third-party appraiser mutually agreed
to by Discovery and the buyer; provided that, in the event that Discovery does
not elect to purchase such library pursuant to clause (i), the Discovery License
shall survive the consummation of such Sale indefinitely;  

(5)

Program-Based Revenue Share Payments.  The buyer shall have the option, at no
additional cost, to extend the commitments to the Company of: (A) Hasbro to make
Hasbro Revenue Share Payments pursuant to Section 1.04 of Schedule D with
respect to any Program-Based Merchandise for the remaining term (as determined
in accordance with Section 15.05(a)(2) and (3)) of the license to the underlying
Network Program, subject to the applicable terms of Schedule D; and
(B) Discovery to make Discovery Revenue Share Payments pursuant to Section 1.05
of Schedule D with respect to Discovery-produced programming licensed by
Discovery pursuant to Section 7.15(a)(2) for the remaining term of the Company’s
license to such Discovery-produced programming, subject to the applicable terms
of Schedule D;

(6)

Movie-Based Revenue Share Payments.  The buyer shall have the option, at no
additional cost, to extend the commitments to the Company of Hasbro to make
Hasbro Revenue Share Payments pursuant to Section 1.04 of Schedule D with
respect to any Picture-Based Merchandise for the remaining term (as determined
in

accordance with Section 15.05(a)(2) and (3)) of the license to the underlying
Network Program, subject to the applicable terms of Schedule D;

(7)

Unrecouped Guarantees.  Except in the case of a termination pursuant to
Section 15.01(h) (Hasbro Material Breach), the Company shall pay to Hasbro any
Unrecouped Guarantees at the consummation of the Sale; provided that, for the
avoidance of doubt, no such Unrecouped Guarantees shall be payable to Hasbro in
the case of a termination pursuant to Section 15.01(e) or at the consummation of
any other Sale after the Recoupment End Date (as such term is defined in
Schedule D) (except that this clause (7) shall not affect the Company’s
obligation to pay any amounts payable  pursuant to Section 1.03(d) of
Schedule D); and

(8)

Other Commitments.  Any remaining agreements with and commitments to the Company
of Hasbro or Discovery under this Agreement and the Ancillary Agreements,
including the Digital Agreement, other than as provided for in this
Section 15.05(a), shall automatically be deemed terminated in accordance with
the terms thereof upon consummation of the Sale and the consummation of the
transactions provided for in such Ancillary Agreements to be effected in
connection with a Sale or other termination of the Company; provided that
Article 16 (other than with respect to Section 16.22) shall survive
indefinitely; provided, further that such termination shall not relieve any
party from any liabilities that accrued prior to such termination and that
provisions under Ancillary Agreements that expressly survive a termination of
the agreement shall survive in accordance with the applicable terms thereof.  

(b)

Sale to Hasbro.  If the procedures set forth in Sections 15.02, 15.03 and/or
15.04 result in a Sale to Hasbro, then:

(1)

Trademark License Agreements.  The terms of the Trademark License Agreement
shall automatically be deemed amended such that the term of the licenses granted
by Discovery thereunder shall terminate ***************** from the date of such
consummation of such Sale;

(2)

Discovery Programming Library and License Agreement.  Discovery shall have the
option, exercisable by delivery of written notice to Hasbro and the Company at
any time after the ***************** of the Sale, to (i) acquire the library
that it contributed to the Company by paying the Company the fair market value
of such library as of such time (which value shall be reduced by the fair market
value of the Discovery License) and/or (ii) terminate the Company’s license to
the Discovery Licensed Programming by paying the Company the fair market value
of such license as of such time, in each case, as determined by an independent
third-party appraiser mutually agreed to by Discovery and Hasbro; provided that,
in the event that Discovery does not elect to purchase such library pursuant to
clause (i), the Discovery License shall survive the consummation of such Sale
indefinitely; and

(3)

Program-Based Revenue Share Payments.  Hasbro shall have the option, at no
additional cost, to extend the commitments to the Company of Discovery to make
Discovery Revenue Share Payments pursuant to Section 1.05 of Schedule D with

respect to Discovery-produced programming licensed by Discovery pursuant to
Section 7.15(a)(2) for the remaining term of the Company’s license to such
Discovery-produced programming, subject to the applicable terms of Schedule D;

(4)

Other Commitments.  Any remaining agreements with and commitments to the Company
of Discovery under this Agreement and the Ancillary Agreements, other than as
provided for in this Section 15.05(b), shall automatically be deemed terminated
in accordance with the terms thereof upon consummation of the Sale and the
consummation of the transactions provided for in such Ancillary Agreements to be
effected in connection with a Sale or other termination of the Company; provided
that Article 16 (other than with respect to Section 16.22) shall survive
indefinitely; provided, further that such termination shall not relieve any
party from any liabilities that accrued prior to such termination and that
provisions under Ancillary Agreements that expressly survive a termination of
the agreement shall survive in accordance with the applicable terms thereof.

(c)

Sale to Discovery.  If the procedures set forth in Sections 15.02, 15.03 and/or
15.04 result in a Sale to Discovery on or after the Launch Date, then:

(1)

Merchandise and Trademark License Agreements.  The terms of any Merchandise
License Agreement and the Trademark License Agreement shall automatically be
deemed amended such that the term of (a) the licenses granted by the Company
under the Merchandise License Agreement and (b) the licenses granted by Hasbro
under the Trademark License Agreement shall terminate ***************** from the
date of such consummation of such Sale;

(2)

Hasbro Studios Programming Agreement.  The Hasbro Studios Programming Agreement
shall terminate on the date of such consummation of such Sale, but Discovery
shall have the option, at no additional cost (other than the payment of unpaid
license fees when due and payable), to extend the term of the Company’s license
of any HS Licensed Program licensed thereunder prior to the date of consummation
of the Sale for the same periods (subject to any applicable limitations thereon
regarding Comparable Frequency) set forth in Section 15.05(a)(2) with respect to
HS Licensed Programs;

(3)

Hasbro Programming Library License Agreement.  The Hasbro Programming License
Agreement shall terminate on the date of the consummation of such Sale, but
Discovery shall have the option, at no additional cost (other than the payment
of unpaid license fees when due and payable), to extend the term of the
Company’s license of any Program licensed thereunder prior to the date of
consummation of the Sale for the same periods (subject to any applicable
limitations thereon regarding Comparable Frequency) set forth in
Section 15.05(a)(2) with respect to HS Licensed Programs;

(4)

Program-Based Revenue Share Payments.  Discovery shall have the option, at no
additional cost, to extend the commitments to the Company of Hasbro to make
Hasbro Revenue Share Payments pursuant to Section 1.04 of Schedule D with

respect to any Program-Based Merchandise for the remaining term (as determined
in accordance with Section 15.05(a)(2) and (3)) of the license to the underlying
Network Program, subject to the applicable terms of Schedule D;

(5)

Movie-Based Revenue Share Payments.  Discovery shall have the option, at no
additional cost, to extend the commitments to the Company of Hasbro to make
Hasbro Revenue Share Payments pursuant to Section 1.04 of Schedule D with
respect to any Picture-Based Merchandise for the remaining term (as determined
in accordance with Section 15.05(a)(2) and (3)) of the license to the underlying
Network Program, subject to the applicable terms of Schedule D;

(6)

Unrecouped Guarantees.  Except in the case of a termination pursuant to
Section 15.01(h) (Hasbro Material Breach), the Company shall pay to Hasbro any
Unrecouped Guarantees at the consummation of the Sale; provided that, for the
avoidance of doubt, no such Unrecouped Guarantees shall be payable to Hasbro in
the case of a termination pursuant to Section 15.01(e) or at the consummation of
any other Sale after the Recoupment End Date (except that this clause (6) shall
not affect the Company’s obligation to pay any amounts payable pursuant to
Section 1.03(d) of Schedule D); and

(7)

Other Commitments.  Any remaining agreements with and commitments to the Company
of Hasbro under this Agreement and the Ancillary Agreements, including the
Digital Agreement, other than as provided for in this Section 15.05(c), shall
automatically be deemed terminated in accordance with the terms thereof upon
consummation of the Sale and the consummation of the transactions provided for
in such Ancillary Agreements to be effected in connection with a Sale or other
termination of the Company; provided that Article 16 (other than with respect to
Section 16.22) shall survive indefinitely; provided, further that such
termination shall not relieve any party from any liabilities that accrued prior
to such termination and that provisions under Ancillary Agreements that
expressly survive a termination of the agreement shall survive in accordance
with the applicable terms thereof.

15.06.

Winding Up.  Upon a termination election to dissolve the Company pursuant to
Section 15.01(a), (b) or (c), or following a sale of assets pursuant to the
procedures set forth in Section 15.04, the Board shall cause the liquidation of
the Company pursuant to the following terms:

(a)

To the extent the Board determines that any of the assets of the Company shall
be sold, such assets shall be sold as promptly as possible, but in an orderly
and businesslike manner so as not to involve undue sacrifice.

(b)

The Board shall cause the Company to distribute cash and all remaining property
of the Company to the Members in accordance with the following order of
priority:

(1)

First, the Board shall pay, satisfy or discharge from Company funds any and all
of the debts, liabilities and obligations of the Company (including any

outstanding Discovery Payments or Hasbro Payments and, to the extent required to
be paid as of such time, if any, Unrecouped Guarantees) or otherwise make
adequate provision for payment and discharge thereof (including the
establishment of a cash escrow fund for contingent liabilities in such amount
and for such term as the Board may reasonably determine), all in accordance with
Section 18-803 of the Act and such other provisions of the Act as may be
applicable.

(2)

Lastly, the Board shall distribute any remaining cash and other property (valued
at its Fair Market Value) (1) to the Members in accordance with the positive
balances of their respective Capital Accounts and (2) thereafter to the Members
in accordance with their Percentage Interests.

(c)

The distribution of cash and property to a Member in accordance with the
provisions of Section 15.06(b) shall constitute a complete return to such Member
of its Capital Contributions and a complete distribution to such Member of its
Membership Interest and all of the Company’s property.  To the extent that a
Member returns funds to the Company, such Member shall have no claim against any
other Member for those funds.

(d)

In connection with a liquidation pursuant to this Section 15.06, the Members
shall cooperate with each other and the liquidator in good faith to minimize
adverse tax consequences to the Members.

15.07.

Deferment.  Notwithstanding anything to the contrary in this Article 15, but
subject to the order of priorities set forth therein, if upon dissolution of the
Company, the liquidator determines that an immediate sale of part or all of the
Company’s assets would be impractical or would cause undue loss (or would
otherwise not be beneficial) to the Members, the liquidator may, in its sole
discretion, defer for a reasonable amount of time the liquidation of any assets
except those necessary to satisfy Company liabilities and reserves.

15.08.

Certificate of Cancellation.  Upon completion of the liquidation and
distribution of the Company assets as provided herein, if applicable, the
Company shall be deemed terminated, and the Directors or Officers (or such other
authorized Person or Persons as the Act may require or permit) shall file a
Certificate of Cancellation with the Secretary of State of the State of
Delaware, cancel any other filings made pursuant to this Agreement, and take
such other actions as may be necessary to terminate the Company.

15.09.

Reasonable Time for Winding Up.  In connection with the dissolution of the
Company, a reasonable time shall be allowed for the orderly winding up of the
business and affairs of the Company and the liquidation of its assets pursuant
to this Article 15 in order to minimize any losses otherwise attendant upon such
winding up.

15.10.

Remedies for Breach.  In the event of a termination election by a Member
pursuant to Sections 15.01(g) or (h), each Member expressly agrees that any
remedy under this Article 15, as the case may be, is not the exclusive remedy
with respect to any breach by the breaching Member and that the non-breaching
Member shall maintain all rights, claims and remedies available to the
non-breaching Member with respect to any such breach.

ARTICLE 16
General Provisions

16.01.

Amendment or Modification.  This Agreement may be amended or modified only by
written agreement of all of the Members.

16.02.

Notices.  Except as may otherwise be expressly set forth in this Agreement, the
terms notice, notify and the like when used herein shall mean written notice
(including facsimile or similar writing) and shall be sufficiently given if
given to a party at such party’s address or facsimile number as set forth in
Schedule A attached hereto, or such other address or facsimile number as such
party may hereafter specify to the Company and the other Members or parties for
such purpose.  Each such notice or other communication shall be effective:
 (a) if given by facsimile, when such facsimile is transmitted to the facsimile
number specified above and the appropriate confirmation is received; (b) if
given by mail, three Business Days after such communication is mailed by
registered or certified mail postage prepaid, addressed as aforesaid; (c) if
given by reputable national overnight courier, on the date of delivery as
reflected in the records of such courier; or (d) if given by any other means,
when delivered personally to the party or when delivered at the address
specified above.  The parties may also mutually elect to give written notice by
electronic mail to individual addresses designated by the parties from time to
time, in which event such notices shall be effective when the recipient confirms
receipt by reply electronic mail.  Whenever any notice is required to be given
by law or this Agreement, a written waiver thereof, signed by the person
entitled to notice, whether before or after the time stated therein, shall be
deemed equivalent to the giving of such notice.

16.03.

Public Announcements.  All media releases, public announcements and public
disclosures by any party relating to this Agreement or the subject matter of
this Agreement (including promotional or marketing materials) shall be
coordinated with and subject to the approval of Discovery and Hasbro prior to
release, other than any announcement intended solely for internal distribution
within such party’s organization or any disclosure required by legal, accounting
or regulatory requirements (including the requirements of any securities
exchange).

16.04.

Enforcement of Company’s Rights.  Notwithstanding anything to the contrary
elsewhere in this Agreement or the Ancillary Agreements, without any consent or
approval of the Board, (i) Hasbro shall have the right to cause the Company to
exercise the Company’s rights (including all rights to access and information)
and enforce the Company’s remedies with respect to any and all Related-Party
Transactions between the Company, on the one hand, and Discovery or any of its
Affiliates, on the other hand, including pursuant to this Agreement and the
Ancillary Agreements, and (ii) Discovery shall have the right to cause the
Company to exercise the Company’s rights (including all rights to access and
information) and enforce the Company’s remedies with respect to any and all
Related-Party Transactions between the Company, on the one hand, and Hasbro or
any of its Affiliates, on the other hand, including pursuant to this Agreement
and the Ancillary Agreements; provided, however, that if a Member alleges that
any other Member or their respective Affiliates has breached the terms of any
such Related-Party Transactions, the alleging Member shall pay all legal fees
and expenses reasonably incurred in connection with the Company’s enforcement of
its rights and remedies with respect to such alleged breaches under the terms of
such Related-Party Transactions (except to the extent that the

payment of such fees and expenses are otherwise allocated pursuant to the
express terms of such agreement) in the event that the matter proceeds to a
final judgment not subject to appeal pursuant to which the Company does not
prevail in whole or in part in proving any such breach.  If either Member makes
a claim that the Company has breached any of its obligations in connection with
a Related-Party Transaction between the Company and such Member, the other
Member shall have the right to cause the Company to defend such claim.

16.05.

Entire Agreement.  This Agreement and the schedules and exhibits attached
hereto, together with the Ancillary Agreements, embody the entire understanding
and agreement among the parties and supersede any prior understanding and
agreement by or among the parties, written or oral, relating to the subject
matter hereof.

16.06.

Waiver.  No failure or delay on the part of any party hereto in exercising any
right, power or remedy hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right, power or remedy preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy.  The remedies provided for herein are cumulative and are not exclusive
of any remedy that may be available to the parties hereto at law, in equity or
otherwise.

16.07.

Injunctive and Other Relief.  Each party acknowledges and agrees on behalf of
itself and its Affiliates that the rights afforded herein are unique and that
any violation of this Agreement or any Ancillary Agreement may cause irreparable
injury to the Company or non-breaching party for which monetary damages are
inadequate, difficult to compute, or both.  Accordingly, each party expressly
agrees that, in addition to any other remedies which the Company or
non-breaching party may have, the Company and non-breaching party shall be
entitled to injunctive or other equitable relief for any breach or threatened
breach of any term, provision or covenant of this Agreement or any Ancillary
Agreement by the breaching party.  Nothing contained herein shall prevent or
delay the Company or non-breaching party from seeking specific performance or
other equitable remedies in the event of any breach or intended breach by any
party of such party’s obligations hereunder or any Ancillary Agreement.  In
addition, the non-breaching party may bring an action on their own or on behalf
of the Company against the breaching parties with respect to any breach or bring
any action as may be permitted to recover damages on behalf of the Company or
the non-breaching party.  In any such proceeding or action, the prevailing party
or parties shall be entitled to receive from the non-prevailing party or
parties, in addition to such other damages and relief as may be awarded, the
costs and expenses incurred by it or them in connection with such action,
including attorneys’ fees.  

16.08.

Alternative Dispute Resolution.  If any dispute, claim or controversy arising
out of or relating to this Agreement or any Ancillary Agreement, or the breach,
termination or validity thereof, cannot be settled through negotiation, the
parties agree first to try in good faith to settle the dispute by mediation
administered by the American Arbitration Association (“AAA”) under its
Commercial Mediation Rules before pursuing any other remedies that they may have
at law; provided that, for the avoidance of doubt, this Section 16.08 shall not
limit or restrict any party from seeking injunctive or other equitable relief at
any time, and no party seeking any such equitable relief shall be required to
first enter into any negotiations or

mediation pursuant to this Section 16.08 or otherwise; and provided further that
such mediation shall be non-binding, and no party shall have any obligation to
participate further in such mediation after the first mediation session or to
agree to any settlement proposed in mediation.  Subject to the provisos in this
Section 16.08, the initial mediation session under Rule M-8 of the Commercial
Arbitration Rules shall occur within thirty (30) days after the demand for
mediation is received by the AAA.

16.09.

Limitation of Liability.  Notwithstanding anything to the contrary herein,
(a) with respect to any claim that a Member or any of its Affiliates has
breached this Agreement or any Ancillary Agreement, such Member and its
Affiliates shall not be liable for any consequential, special, indirect,
incidental, punitive or exemplary Losses (other than any Losses for diminution
in actual value of the Membership Interests of the other Member), except to the
extent such Losses arise out of a claim payable to a third party in respect of a
third party claim and (b) if a Sale is consummated in accordance with the first
sentence of Section 15.02(a) of this Agreement and Hasbro receives the Unwind
Price, Discovery and its Affiliates shall thereafter not be obligated to
indemnify and hold harmless Hasbro or the Company under this Agreement or any
Ancillary Agreement for any indemnifiable Losses incurred or suffered by Hasbro,
the Company or any of their related Indemnified Persons (other than (i) any such
Losses arising out of a Third Party Claim or Excluded Liability or
(ii) reasonable out-of-pocket expenses incurred by Hasbro in connection with the
consummation of such Sale).

16.10.

Binding Effect.  Subject to the restrictions on Transfers set forth in Article
8, this Agreement shall be binding on and inure to the benefit of the Members
and their respective heirs, legal representatives, successors and assigns.

16.11.

Governing Law; Waiver of Jury.  THIS AGREEMENT SHALL BE GOVERNED BY AND SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, EXCLUDING ANY
CONFLICT-OF-LAWS RULE OR PRINCIPLE THAT MIGHT REFER THE GOVERNANCE OR THE
CONSTRUCTION OF THIS AGREEMENT TO THE LAW OF ANOTHER JURISDICTION.  EACH OF THE
PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT
RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.
 EACH PARTY HERETO FURTHER REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS
WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS
JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

16.12.

Consent to Jurisdiction and Service of Process.  Subject to Section 16.08, any
legal action, suit or proceeding arising out of or relating to this Agreement,
or the breach, termination or validity thereof, shall be instituted in any state
or federal court in the State of New York located in the County of New York or
any state or federal court in the State of

Delaware.  Each Party agrees not to assert, by way of motion, as a defense or
otherwise, in any such action, suit or proceeding, any claim that it is not
subject personally to the jurisdiction of such courts, that its property is
exempt or immune from attachment or execution, that the action, suit or
proceeding is brought in an inconvenient forum, that the venue of the action,
suit or proceeding is improper or that this Agreement, the agreements
contemplated hereby or the subject matter hereof or thereof may not be enforced
in or by such court.  Each Party further irrevocably submits to the exclusive
jurisdiction of any such court in any such action, suit or proceeding.   Any and
all service of process and any other notice in any such action, suit or
proceeding shall be effective against any Party if given by registered or
certified mail, return receipt requested, or by any other means of mail that
requires a signed receipt, postage prepaid, mailed to such Party as herein
provided.

16.13.

Severability.  If any provision of this Agreement or the application thereof to
any Person or circumstance is held invalid or unenforceable to any extent, the
remainder of this Agreement and the application of that provision to other
Persons or circumstances shall not be affected thereby and that provision shall
be enforced to the greatest extent permitted by law.

16.14.

Further Assurances.  In connection with this Agreement and the transactions
contemplated hereby, each Member and the Company shall execute and deliver any
additional documents and instruments and perform any additional acts that may be
necessary or appropriate to effectuate and perform the provisions of this
Agreement and those transactions.

16.15.

No Third-Party Beneficiaries.  The provisions hereof are solely for the benefit
of the Company, its Members and, to the extent specifically set forth herein,
the Directors, Officers and Covered Persons, and are not intended to, and shall
not be construed to, confer a right or benefit on any creditor (in its capacity
as such) of the Company or any other Person.

16.16.

Waiver of Certain Rights.  Each Member irrevocably waives any right it may have
to maintain any action for dissolution of the Company or for partition of the
property of the Company, other than pursuant to Article 15.

16.17.

Opt-out of Article 8 of the Uniform Commercial Code.  The Members hereby agree
that the Common Units shall not be securities governed by Article 8 of the
Uniform Commercial Code of the State of Delaware (and the Uniform Commercial
Code of any other applicable jurisdiction).

16.18.

Delivery by Facsimile.  This Agreement and any signed agreement or instrument
entered into in connection with this Agreement or contemplated hereby, and any
amendments hereto or thereto, to the extent signed and delivered by means of a
facsimile machine or facsimile delivered by electronic mail (a “pdf file”),
shall be treated in all manner and respects as an original agreement or
instrument and shall be considered to have the same binding legal effect as if
it were the original signed version thereof delivered in person.  At the request
of any party hereto or to any such agreement or instrument, and without
affecting the effectiveness of any previous execution thereof by facsimile or
pdf file, each other party hereto or thereto shall re-execute original forms
thereof and deliver them to all other parties.  No party hereto or to any such
agreement or instrument shall raise the use of a facsimile machine or pdf file
to deliver a signature or the fact that any signature or agreement or instrument
was transmitted or

communicated through the use of a facsimile machine or pdf file as a defense to
the formation of a contract and each such party forever waives any such defense.

16.19.

Counterparts.  This Agreement may be executed in any number of counterparts with
the same effect as if all signing parties had signed the same document.  All
counterparts shall be construed together and constitute the same instrument.

16.20.

No Presumption.  With regard to each and every term and condition of this
Agreement and any and all agreements and instruments subject to the terms hereof
(including the Ancillary Agreements), the parties hereto understand and agree
that the same have or has been mutually negotiated, prepared and drafted, and if
at any time the parties hereto desire or are required to interpret or construe
any such term or condition or any agreement or instrument subject hereto
(including the Ancillary Agreements), no consideration will be given to the
issue of which party hereto actually prepared, drafted or requested any term or
condition of this Agreement or any agreement or instrument subject hereto
(including the Ancillary Agreements).

16.21.

Expenses.  Discovery and Hasbro shall each bear and pay their own costs and
expenses incurred in connection with the preparation, execution, delivery and
performance of this Agreement, the Ancillary Agreements and the transactions
contemplated hereby and thereby.  For the avoidance of doubt, Hasbro shall bear
all costs, expenses, fees or commissions to which any Persons set forth in
Section 5.2 of the Hasbro Disclosure Letter (as defined in the Purchase
Agreement) or any of their respective Affiliates are entitled in connection with
this Agreement, the Ancillary Agreements and the consummation of the
transactions contemplated hereby or thereby.

16.22.

DCI Guarantee.

(a)

DCI, for the benefit of Hasbro and the Company, in consideration of the
covenants and agreements of Hasbro and the Company under this Agreement, hereby
(i) agrees to cause Discovery, for so long as Discovery remains a Controlled
Affiliate of DCI, and DCI’s other Controlled Affiliates to take all actions as
are necessary for Discovery and DCI’s other Controlled Affiliates to perform and
comply with their covenants and agreements hereunder and under the Ancillary
Agreements, and (ii) unconditionally guarantees the full and prompt payment by
Discovery, for so long as Discovery remains a Controlled Affiliate of DCI, and
DCI’s other Controlled Affiliates of any and all payments required to be made by
Discovery or any of DCI’s other Controlled Affiliates pursuant to this Agreement
or any of the Ancillary Agreements.  This guarantee is an absolute and
continuing guarantee.  DCI waives any and all defenses and discharges that it
may have or otherwise be entitled to as a guarantor or surety hereunder (except
payment or performance or other defense available to the underlying party) and
further waives presentment for payment or performance, notice of non-payment or
non-performance, demand and protest.  DCI expressly agrees that Hasbro may
proceed directly against DCI under this Section 16.22 concurrently with
proceeding against Discovery, for so long as Discovery remains a Controlled
Affiliate of DCI, or any of DCI’s other Controlled Affiliates and is not
required to exhaust remedies against Discovery, for so long as Discovery remains
a Controlled Affiliate of DCI, or any of DCI’s other Controlled Affiliates
before proceeding against DCI.  For the

avoidance of doubt, for the purposes of this Section 16.22, DCI’s Controlled
Affiliates shall not include, the Company and the Company’s Controlled
Affiliates.

(b)

Notwithstanding anything to the contrary contained herein, the other provisions
of Article 16 shall apply with respect to DCI and its obligations under this
Section 16.22.  All notices and other communications to be given to DCI
hereunder shall be delivered to the address and facsimile number of Discovery on
Schedule A hereto (as such address may be changed from time to time in
accordance with Section 16.02).

{signature page follows}

IN WITNESS WHEREOF, the Members, the Company and DCI have executed this
Agreement as of the date first above written.

DISCOVERY COMMUNICATIONS, LLC

By:

/s Bruce Campbell

Name:  Bruce Campbell
Title:    President, Digital Media and

            Corporate Development

HASBRO, INC.

By:

/s/ Brian Goldner

Name:  Brian Goldner
Title:  President and Chief Executive Officer  

DHJV COMPANY LLC

By its Members:

DISCOVERY COMMUNICATIONS, LLC

By:

/s Bruce Campbell

Name:  Bruce Campbell
Title:    President, Digital Media and

            Corporate Development

HASBRO, INC.

By:

/s/ Brian Goldner

Name:  Brian Goldner
Title:  President and Chief Executive Officer  

DISCOVERY COMMUNICATIONS, INC.

By:

/s Bruce Campbell

Name:  Bruce Campbell
Title:    President, Digital Media and

            Corporate Development

SCHEDULE A

DHJV COMPANY LLC
MEMBERS’ SCHEDULE
(May 22, 2009)

Member’s Name and Address

Common Units

Fair Market Value of Contributions for Common Units

Percentage Interest

    

Discovery Communications, LLC

  One Discovery Place

  Silver Spring, MD 20910

  Facsimile No.:  (240) 662-1500

  Attention:  Chief Executive Officer

with a copy to:

Discovery Communications, LLC

  (same address as above)

  Facsimile No.:  (240) 662-1485
 Attention:  General Counsel

and a copy to:

Paul, Weiss, Rifkind, Wharton & Garrison LLP

  1285 Avenue of the Americas

  New York, New York 10019-6064

  Facsimile No.:  (212) 757-3900

  Attention:  James Schwab

10,000,000

$300,000,000

50%

 

Hasbro, Inc.

  1011 Newport Avenue

  Pawtucket, Rhode Island

  Facsimile No.:  (401) 721-7244

  Attention:  Chief Executive Officer

with a copy to:

Hasbro, Inc.

  (same address as above)

  Facsimile No.:  (401) 709-6459

  Attention:  Chief Legal Officer

and a copy to:

Dow Lohnes PLLC

  1200 New Hampshire Avenue, NW

  Suite 800

  Washington, D.C. 20036

  Facsimile No.:  (202) 776-2222

  Attention:  John Byrnes

10,000,000

$300,000,000

50%

 

TOTAL

20,000,000

$600,000,000

100%

SCHEDULE B

[RESERVED]

SCHEDULE C

BENCHMARKS

The joint venture may be terminated in accordance with the procedures and
provisions of Article 15, subject to the other provisions of Article 15, at
either Member’s election by providing written notice thereof to the Company and
the other Member at any time within ninety (90) days following December 31,
2015:

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*********************************

SCHEDULE D

REVENUE SHARE PAYMENTS

Unless otherwise noted, all references to “Sections” in this Schedule D refer to
sections of this Schedule D.  The terms “hereof,” “herein,” “herewith,” and
“hereunder” and words of similar import shall be construed to refer to this
Schedule D as a whole (including all of the exhibits hereto) and not to any
particular provision of this Schedule D unless otherwise specified.

Section 1.01

Definitions.

(a)

“Ancillary Rights” means:  

(1)

other than with respect to ************************************************, the
right to create an adaptation or other derivative work that (i) (x) incorporates
the title of a Hasbro Library Program or (y) otherwise refers to a Hasbro
Library Program (excluding de minimis references), provided, that the title
(with respect to clause (x)) or the reference (with respect to clause (y))
includes a ********************* not included within the underlying Hasbro
Intellectual Property or (z) refers to an HS Licensed Program or Picture
(excluding de minimis references);
(ii) **************************************************************************************************************
************************and that were not contained in the underlying Hasbro
Intellectual Property prior to the acceptance of a Submission (as defined in the
Hasbro Studios Programming Agreement) for the relevant HS Licensed Program
(excluding de minimis uses of such elements); or (iii)
***********************************************************************************************************************
***********************************************************************************************************************
******************************************* and were not contained in the
underlying Hasbro Intellectual Property prior to the acceptance of a Submission
for the relevant HS Licensed Program (excluding de minimis uses of such
elements); and

(2)

with respect to ****************************************************, the right
to create an adaptation or other derivative work that (i) (x) incorporates the
title of a Hasbro Library Program or (y) otherwise refers, to a significant
extent, to a Hasbro Library Program, provided, that the title (with respect to
clause (x)) or the reference (with respect to clause (y)) includes a
********************** not included within the underlying Hasbro Intellectual
Property or (z) refers, to a significant extent, to an HS Licensed Program or
Picture;
(ii) ********************************************************************************************************************
******************************************* and that were not contained in the
underlying Hasbro Intellectual Property prior to the acceptance of a Submission
for the relevant HS Licensed Program; or (iii)
***********************************************************************************************************************
***********************************************************************************************************************
******************************** and were not contained in the underlying Hasbro
Intellectual Property prior to the acceptance of a Submission for the relevant
HS Licensed Program.

(b)

“Digital Rights” means
*********************************************************************************************************************
*********************************************************************************************************************
*******************************************************.

(c)

“Download-To-Own Rights” means the rights to design, develop, manufacture,
produce, promote, market, advertise, offer, sell, rent and distribute and/or
license third Persons to offer, manufacture and/or distribute Hasbro Programming
via download-to-own or download-to-rent technologies, whether through
third-party platforms (e.g., iTunes) or platforms controlled by Hasbro or its
Affiliates (e.g., the Hasbro.com website).

(d)

“Friends and Family” means entities that license programs to Company for
distribution on the Network and license to Hasbro the right to design, develop,
manufacture, produce, promote, market, advertise, offer, sell and distribute
toys or games referring to or containing or embodying scenes, storylines,
characters or other material elements from such programs.  The entities set
forth on Attachment 1.01(d) to this Schedule D are entities that, as of the date
hereof, would constitute Friends and Family entities if, as of the date hereof,
such entities licensed programs to Company for distribution on the Network,
which attachment Hasbro shall update upon written notice to Company in order to
add entities that meet, or delete entities that cease to meet, the foregoing
definition, as and when such license agreements with such entities come into
effect or cease being effective.

(e)

“Hasbro Intellectual Property” means any and all Intellectual Property rights
owned by or licensed to Hasbro and/or its Affiliates (including without
limitation any Intellectual Property for which Telecast Rights are licensed to
Hasbro for creation and distribution of programming by Hasbro Studios),
excluding rights in and to Intellectual Property owned by Friends and Family
that are not licensed to Hasbro or its Affiliates.  For the purposes of the
definitions of “Ancillary Rights,” “Picture-Based Merchandise,” “Principally
Derived” and “Program-Based Merchandise” set forth in this Schedule D only, the
term “Hasbro Intellectual Property” excludes Hasbro Programming.

(f)

“Hasbro Library Program” means a Program included in the Hasbro Programming
Library (as defined in the Programming Agreement).    

(g)

“Hasbro Programming” means HS Licensed Programs and Hasbro Library Programs.

(h)

“Home Entertainment Rights” means the rights to design, develop, manufacture,
produce, promote, market, advertise, offer, sell, rent and distribute and/or
license third Persons to offer, manufacture and/or distribute Hasbro Programming
in tangible home entertainment formats, including VHS, DVD, CD-ROM and any
successor technologies.  For the avoidance of doubt, “Home Entertainment Rights”
do not include “Download-to-Own Rights.”

(i)

“HS Licensed Program” has the meaning set forth in the Hasbro Studios
Programming Agreement.

(j)

 “Merchandise” means any and all products and services that Hasbro or its
Affiliates design, develop, manufacture, produce, promote, market, advertise,
offer, sell, rent and distribute at any time and/ or license third Persons to
offer, manufacture and/or distribute at any time.  “Merchandise” includes video
games, whether sold as a physical product or via download, but excludes the
exploitation of Ancillary Rights, Digital Rights, Home Entertainment Rights and
Download-To-Own Rights.

(k)

“Picture” means a motion picture, as well as a short film of any length, whether
animated or live action, that is initially theatrically released or that is a
film greater than
*******************************************************************************************************(each,
a “Feature”) that (i) is “Principally Derived” (as defined below) from Hasbro
Programming
**********************************************************************************************************************
**********************************************************************************************************************
***************************************************.

(l)

“Picture-Based Merchandise” means:  (i) Merchandise that refers to a Picture;
(ii) *******************************************************************************************************************
************************ and were not contained in the underlying Hasbro
Intellectual Property prior to the acceptance of a Submission for the relevant
HS Licensed Program; and/or
(iii) ******************************************************************************************************************
**********************************************************************************************************************
********** and were not contained in the underlying Hasbro Intellectual Property
prior to the acceptance of a Submission for the relevant HS Licensed Program,
but excluding de minimis references to a Picture and de minimis uses of the
elements described in the foregoing clauses (ii) and (iii).  

(m)

“Principally Derived” means:

(1)

with respect to Features that are theatrically released:  (A) that the Feature
refers to the Hasbro Programming (excluding de minimis references); (B) that the
***********************************************************************************************************************
********************* and that were not contained in the underlying Hasbro
Intellectual Property prior to the acceptance of a Submission for the relevant
HS Licensed Program (excluding de minimis uses of such elements); (C) that the
Feature
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******* and were not contained in the underlying Hasbro Intellectual Property
prior to the acceptance of a Submission for the relevant HS Licensed Program
(excluding de minimis uses of such elements); or (D)
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*******************.  For the purposes of the preceding clause (D), the
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******************** ********************; and

(2)

with respect to Features that are distributed “straight-to-video”:  (A) that the
Feature refers, to a significant extent, to the Hasbro Programming; (B)
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**********************and that were not contained in the underlying Hasbro
Intellectual Property prior to the acceptance of a Submission for the relevant
HS Licensed Program; (C)
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****************************** and were not contained in the underlying Hasbro
Intellectual Property prior to the acceptance of a Submission for the relevant
HS Licensed Program; or (D)
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******************.

(n)

“Program-Based Merchandise” means:  

(1)

For HS Licensed Programs (i) Merchandise that refers to an HS Licensed Program;
(ii) Merchandise
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********* and were not contained in the underlying Hasbro Intellectual Property
prior to the acceptance of a Submission for the relevant HS Licensed Program;
and/or (iii) Merchandise
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*************************** and were not contained in the underlying Hasbro
Intellectual Property prior to the acceptance of a Submission for the relevant
HS Licensed Program, but excluding de minimis references to HS Licensed Programs
and de minimis uses of the elements described in the foregoing clauses (ii) and
(iii); and

(2)

For Hasbro Library Programs (i) Merchandise that (x) incorporates the title of a
Hasbro Library Program or (y) otherwise refers to a Hasbro Library Program,
provided, that the title (with respect to clause (x)) or the reference (with
respect to clause (y)) includes a ********************* not included within the
underlying Hasbro Intellectual Property; (ii) Merchandise that (a) is offered
under the Agreed Name or another Network brand and (b)
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Section 1.02

Calculation of Revenue.

(a)

“Net Revenues” means the gross revenues and other compensation, regardless of
the form in which received (but excluding
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actually received by or on behalf of Hasbro or any of its Affiliates from any
third party in consideration of a license, sublicense, endorsement or
sponsorship agreement, or other agreement with respect to the exploitation, in
the United States, of any Ancillary Rights, Home Entertainment Rights,
Download-To-Own Rights or rights in or to Program-Based Merchandise or
Picture-Based Merchandise, as the case may be, less:
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**************************.

(b)

“Net Sales” means:

(1)

With respect to Program-Based Merchandise and Picture-Based Merchandise, as well
as any products or services that result from the exploitation of any Ancillary
Rights, Home Entertainment Rights or Download-To-Own Rights, as the case may be,
that are sold by or on behalf of Hasbro or any of its Affiliates in the United
States
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******************************; and

(2)

With respect to Program-Based Merchandise and Picture-Based Merchandise, as well
as any products or services that result from the exploitation of any Ancillary
Rights, Home Entertainment Rights or Download-To-Own Rights, as the case may be,
that are sold by or on behalf of Hasbro or any of its Affiliates
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******************.

(3)

The following are excluded from “Net Sales”:  (A) Program-Based Merchandise,
Picture-Based Merchandise, as well as any products or services that result from
the exploitation of any Ancillary Rights, Home Entertainment Rights or
Download-To-Own Rights, as the case may be, that are distributed for promotional
purposes by or on behalf of Hasbro or any Affiliate or Company (or, in the case
of Picture-Based Merchandise, the studio producing the Picture),
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(c)

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Section 1.03

Guarantee Payments.

(a)

Subject to Section 1.08 of the Hasbro Studios Programming Agreement, Hasbro
shall be obligated to pay to the Company as Hasbro Revenue Share Payments (as
defined in Section 1.04(a) below) or as guarantee payments (“Guarantee
Payments”) as provided in this Section 1.03 an amount (the “Total Guarantee
Amount”) equal to One Hundred Twenty-Five Million Dollars ($125,000,000).  On
the first day of the calendar quarter that begins after the mutually agreed date
of the public announcement of the re-branding of the Network or, if earlier,
July 1, 2009 (the “Initial Guarantee Payment Date”), Hasbro shall pay to the
Company an initial Guarantee Payment of Twenty-Five Million Dollars
($25,000,000).  Subject to Section 1.08 of the Hasbro Studios Programming
Agreement, on each subsequent date specified in the table below (each such date,
a “Guarantee Payment Date”), if, as of such Guarantee Payment Date, the total
amount of Hasbro Revenue Share Payments paid to the Company before such
Guarantee Payment Date plus any prior Guarantee Payments paid to the Company is
less than the total amount corresponding to such Guarantee Payment Date in the
below table (each a “Guarantee Scheduled Total”), then Hasbro shall pay to the
Company on such Guarantee Payment Date an amount equal to such Guarantee
Scheduled Total, less the sum of all Hasbro Revenue Share Payments and Guarantee
Payments paid to the Company prior to such Guarantee Payment Date.  

Guarantee Scheduled Total

Guarantee Payment Date

$25,000,000

Initial Guarantee Payment Date

$50,000,000

November 1, 2010

$75,000,000

November 1, 2011

$100,000,000

November 1, 2012

$125,000,000

November 1, 2013

(b)

Recoupable Advances.  During the period (the “Recoupment Period”) (i) commencing
on
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******************************* and (ii) ending ****************** (the
“Recoupment End Date”), Guarantee Payments will be considered recoupable
advances against Hasbro Revenue Share Payments otherwise payable under
Section 1.04, in accordance with the following:

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*************.

(c)

Examples.  Attachment 1.03(c) attached hereto sets forth, for illustrative
purposes only, hypothetical calculations of Guarantee Payments in accordance
with the terms of this Section 1.03.

(d)

Force Majeure.  Notwithstanding anything to the contrary in this Section 1.03,
in the event that, during the Recoupment Period, (i) a Merchandising Force
Majeure Event has occurred and (ii) the amount of Unrecouped Guarantees is a
positive amount, then, to the extent that the Merchandising Force Majeure Event
caused the failure of Hasbro to have recouped the Unrecouped Guarantees, the
Company shall pay Hasbro an amount equal to the difference between (x) the
amount of Unrecouped Guarantees as of the Recoupment End Date minus (y) the
amount of Unrecouped Guarantees that would have existed as of the Recoupment End
Date had such Merchandising Force Majeure Event not occurred.
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Section 1.04

Hasbro Revenue Share Payments.

(a)

Hasbro shall pay the following amounts to the Company (collectively, the “Hasbro
Revenue Share Payments”) in accordance with Section 1.06:

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(b)

Hasbro’s obligations to make Hasbro Revenue Share Payments hereunder with
respect to:

(1)

a particular Hasbro Library Program shall accrue beginning as of the date that
is ************* preceding the earliest date that both of the following criteria
have been met:  (i) Company has paid to Hasbro the License Fee (as defined in
the Programming Agreement) therefor; and (ii) such Hasbro Library Program is
scheduled to air initially on the Network; and

(2)

a particular HS Licensed Program shall accrue beginning as of the date that is
************** preceding the date that such HS Licensed Program is scheduled to
air initially on the Network; provided that if the Company is delinquent in
paying to Hasbro Studios the License Fee (as defined in the Hasbro Studios
Programming Agreement) therefor, Hasbro shall not be obligated to make Hasbro
Revenue Share Payments hereunder with respect to such HS Licensed Program during
any period of delinquency, provided, further, that Hasbro shall make any unpaid
accrued Hasbro Revenue Share Payments as and when such delinquency is cured.

(c)

Notwithstanding anything herein to the contrary, after there has been a period
of ************************** during which no Hasbro Programming based on the
same underlying Hasbro Intellectual Property as any Program-Based Merchandise
has been telecast on the Network, Hasbro shall no longer be obligated to make
any Hasbro Revenue Share Payments relating to Net Sales or Net Revenues in
respect of such Merchandise.  For the avoidance of doubt, the foregoing sentence
shall not apply to Net Sales or Net Revenues relating to
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**********************************************************************************.

(d)

For the avoidance of doubt:

(1)

all amounts payable hereunder that are based upon revenues received by or the
gross price invoiced by Hasbro or any of its Affiliates shall be based upon the
amount paid by or invoiced to a third party, disregarding any internal
accounting treatment of such amounts by Hasbro or its Affiliates; and

(2)

Hasbro Revenue Share Payments shall not include any Net Sales or Net Revenues
relating to:

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Section 1.05

Discovery Merchandising Revenue Payments.

Discovery shall make revenue share payments to the Company (the “Discovery
Revenue Share Payments,” and together with the Hasbro Revenue Share Payments,
the “Revenue Share Payments”) with respect to Discovery-produced Programming (as
defined in the Digital Term Sheet) licensed by Discovery pursuant to Section
7.15(a)(2) of the LLC Agreement, with respect to which Sections 1.01, 1.02 and
1.04 shall apply, mutatis mutandis, to determine the amounts payable by
Discovery to the Company with respect thereto.  For the avoidance of doubt,
Discovery shall not be required to pay the Company any percentage of Discovery’s
revenues in respect of merchandising rights in any Discovery Intellectual
Property (but not including, for the further avoidance of doubt, payments in
respect of Discovery-produced Programming as set forth in the immediately
preceding sentence), including:
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Section 1.06

Payments, Reporting and Audit Rights.

(a)

Each of Hasbro and Discovery shall make the Revenue Share Payments pursuant to
Section 1.04 or Section 1.05, respectively, to the Company on a quarterly basis
not later than sixty (60) days after each March 31, June 30, September 30, and
December 31.  Each Hasbro Revenue Share Payment shall be accompanied by a
written report substantially in the form attached hereto as Attachment
1.06(a)(i) (the “Hasbro Report”) that shows the calculation of the Hasbro
Revenue Share Payments due during the immediately preceding calendar quarter.
 Each Discovery Revenue Share Payment shall be accompanied by a written report
substantially in the form attached hereto as Attachment 1.06(a)(ii) that shows
the calculation of the Discovery Revenue Share Payments due during the
immediately preceding calendar quarter (the “Discovery Report” and, together
with the Hasbro Report, the “Reports”).

(b)

Hasbro shall maintain all material receipts, invoices and other documents
specifically relating to the calculation of the Hasbro Revenue Share payments,
and any other reasonably related materials (the “Hasbro Records”) for a period
of two (2) years following delivery of each Hasbro Report (the “Hasbro Retention
Period”); and (ii) Discovery shall maintain all material receipts, invoices and
other documents specifically relating to the calculation of the Discovery
Revenue Share payments, and any other reasonably related materials (the
“Discovery Records”) for a period of two (2) years following delivery of each
Discovery Report (the “Discovery Retention Period”); provided, however, that, in
each case, in the event that a dispute arises in connection with this Schedule D
prior to the expiration of the Hasbro Retention Period or the Discovery
Retention Period, as the case may be, the Hasbro Retention Period or the
Discovery Retention Period shall be extended automatically until the resolution
of such dispute becomes final and non-appealable and all obligations of the
Parties relating to one another related to such resolution have been satisfied
in full.

(c)

Hasbro and Discovery, as the case may be, shall, upon reasonable request by
Company, no more than once per year during the Hasbro Retention Period or the
Discovery Retention Period, as the case may be, and during reasonable office
hours, make the Hasbro Records or the Discovery Records, as the case may be,
available for inspection by Company and its authorized representatives, who
shall have the right to take and make (at Company’s expense) copies of or
extracts from any Hasbro Records or any Discovery Records, as the case may be;
provided that such inspections and any audit shall not unreasonably disrupt
Hasbro’s business or Discovery’s business, as the case may be, and the Parties
will endeavor in good faith so that any inspection and any audit under this
Schedule D or the other ancillary agreements are coordinated to the extent
reasonably practicable.

(d)

Any such examination pursuant to Section 1.06(c) above shall be at the Company’s
expense; provided, however, that if such examination reveals an underpayment of
Hasbro Revenue Share Payments or Discovery Revenue Share Payments, as the case
may be, in excess of ten percent (10%) in any quarter, then the underpaying
Party shall reimburse the Company for all actual and verifiable expenses
incurred in connection with such examination.  The Company and its
representatives shall not disclose to any other Person, firm, corporation, or
other entity any information acquired as a result of any such examination;
provided, however, that nothing herein contained will be construed (i) to
prevent the Company and/or its duly authorized representatives from testifying
in any arbitration or court proceeding with respect to the information obtained
as a result of such examination in any proceeding instituted to enforce the
rights of the Company under the terms of this Agreement; and/or (ii) to prevent
the Company from disclosing a Report if disclosure is required by court order or
subpoena, provided that the Company shall give Hasbro or Discovery, as the case
may be, sufficient advance written notice of each required disclosure to enable
Hasbro or Discovery, as the case may be,  to obtain, if possible, protective
orders or other confidentiality protections with respect to the required
disclosure.

ATTACHMENT 1.01(d)

FRIENDS AND FAMILY ENTITIES

ATTACHMENT 1.03(c)

ILLUSTRATIVE EXAMPLES OF GUARANTEE PAYMENT AND RECOUPABLE ADVANCE MECHANISM

ATTACHMENT 1.04(d)(2)(ii)

EXISTING THIRD-PARTY

HOME ENTERTAINMENT RIGHTS OR DOWNLOAD-TO-OWN RIGHTS

IN HASBRO LIBRARY PROGRAMS

ATTACHMENT 1.06(a)(i)

HASBRO REPORT FORM

SCHEDULE E

PROGRAMMING GUIDELINES

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