EX-10.3






October 1, 2008



John S. Hendricks


8484 Georgia Avenue, Suite 700


Silver Spring, MD 20910



CONFIRMATION OF STOCK OPTION GRANT



Congratulations, you have been given a stock option grant in recognition of your contributions to
the success of Discovery Communications, Inc. (the “Company”). A stock option grant gives you the
right to purchase a specific number of shares of the Company’s Series A common stock at a fixed
price, assuming that you satisfy conditions of the Plan and the implementing agreement. We would
like you to have an opportunity to share in the continued success of the Company through this stock
option grant under the Discovery Communications, Inc. 2005 Incentive Plan (As Amended and Restated)
(the “Plan”), the Plan under which the Company makes equity grants after the transactions that
closed on September 17, 2008. The Company’s general program to offer equity and equity-type awards
to eligible employees is referred to as the Performance Equity Program (“PEP”). The following
represents a brief description of your grant. Additional details regarding your stock option grant
are set forth in the Nonqualified Stock Option Grant Agreement (the “Grant Agreement”) and the
Plan. In addition, responses to frequently asked questions are attached. These materials will
provide important information regarding the mechanics of the stock option grant and instructions
for accepting the grant and for designating beneficiaries.



Stock Option Grant Summary:



	 	 	 	 	 
	Date of Grant
	 	October 1, 2008
	 
	 	 	 	 
	Option Shares
	 	 	5,708,289	 
	 
	 	 	 	 
	Exercise Price per Share
	 	$	14.53	 
	 
	 	 	 	 
	 
	 	25% of the Option Shares beginning on the first
	 
	 	anniversary of the Date of Grant and an additional
	 
	 	25% of the Option Shares beginning on each
	Exercisability
	 	subsequent anniversary
	 
	 	 	 	 
	Term Expiration Date
	 	October 1, 2018
	 
	 	 	 	 







	•	 	You have been granted a nonqualified stock option to purchase shares of Discovery
Communications, Inc. Series A Common Stock. The total number of shares under your grant is in
the chart above under “Option Shares” and the price per share is under “Exercise Price per
Share.”






	•	 	The potential value of your stock option grant increases if the price of the Company’s
stock increases, but you also have to continue to work for the Company (except as the Grant
Agreement provides) to actually receive such value. Of course, the value of the stock may go
up and down over time.






	•	 	You can’t exercise the stock option (actually purchase the shares) until it becomes
exercisable. Your stock option becomes exercisable in four annual 25% increments beginning on
the first anniversary of the Date of Grant, assuming you remain an employee of the Company and
subject to the terms in the Grant Agreement.






	•	 	Whether or not you decide to exercise your stock option and purchase the stock is your
decision, and you have until the stock option expires (which will be no later than the tenth
anniversary of the Date of Grant, October 1, 2018, but can end earlier in various situations)
to make that decision.






	•	 	Once you have purchased the stock, you will own the stock and may decide whether to hold
the stock, sell the stock or give the stock to someone as a gift.






	•	 	You will be taxed on your stock option as soon as you exercise the stock option to purchase
or sell the stock, but please check with your tax advisor.






	•	 	Your ability to purchase shares through the exercise of a stock option is conditioned upon
compliance with any local laws that apply to you.





You can access the DAP portal for updates and information, email
pepquestions@discovery.com, or call the Compensation Hotline at 240-662-3493 with any
questions.



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Discovery Performance Equity Program

Nonqualified Stock Option Grant Agreement for John Hendricks




Discovery Communications, Inc. (the “Company”) has granted you an option (the “Option”)
under the Discovery Communications, Inc. 2005 Incentive Plan (As Amended and Restated) (the
“Plan”), under which the Company now makes equity grants after the transactions that closed on
September 17, 2008. The Company’s general program to offer equity and equity-type awards to
eligible employees is referred to as the “Performance Equity Program” (or “PEP”). The Option lets
you purchase a specified number (the “Option Shares”) of shares of the Company’s Series A common
stock, at a specified price per share (the “Exercise Price”).



The individualized communication you received (the “Cover Letter”) provides the details for
your Option. It specifies the number of Option Shares, the Exercise Price, the Date of Grant, the
schedule for exercisability, and the latest date the Option will expire (the “Term Expiration
Date”).



The Option is subject in all respects to the applicable provisions of the Plan. This Grant
Agreement does not cover all of the rules that apply to the Option under the Plan; please refer to
the Plan document. Capitalized terms are defined either further below in this grant agreement (the
“Grant Agreement”) or in the Plan.



The Plan document is available on Fidelity’s web site. The Prospectus for the Plan, the Company’s
S-4 and Annual Report on Form 10-K, and other filings the Company makes with the Securities and
Exchange Commission are available for your review on the Company’s web site. You may also obtain
paper copies of these documents upon request to the Company’s HR department.



Neither the Company nor anyone else is making any representations or promises regarding the
duration of your service, exercisability of the Option, the value of the Company’s stock or of this
Option, or the Company’s prospects. The Company is not providing any advice regarding tax
consequences to you or regarding your decisions regarding the Option; you agree to rely only upon
your own personal advisors.



No one may sell, transfer, or distribute the Option or the securities that may be purchased
upon exercising the Option without an effective registration statement relating thereto or an
opinion of counsel satisfactory to Discovery Communications, Inc. or other information and
representations satisfactory to it that such registration is not required.



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In addition to the Plan’s terms and restrictions, the following terms and restrictions apply:



	 	 	 
	Option

Exercisability

	 	While your Option remains in effect under the Option Expiration section, you

may exercise any exercisable portions of the Option (and buy the Option Shares) under the timing rules of this

section.







The Option will become exercisable on the schedule provided in the Cover
Letter to this Grant Agreement, assuming you remain employed through each
Exercisability Date. Any fractional shares will be carried forward to the
following Exercisability Date, unless the Committee selects a different
treatment.




Exercisability will accelerate fully on your Retirement or termination by
the Company without Cause, or, while employed, your Disability or death.
“Cause” and “Disability” have the meanings provided in the Equity Stake
Transition Agreement entered into between the Company and you, dated as of
September      , 2008 (as it may be amended from time to time) (the “Equity
Stake Transition Agreement”). “Retirement” means your voluntary termination
of employment after you reach age 65.



Change in Control




Notwithstanding the Plan’s provisions, if an Approved Transaction,
Control Purchase, or Board Change (each a “ Change in Control”)
occurs while you remain employed by the Company, the Option will only
have accelerated exercisability to the extent provided above as a
result of a termination without Cause, Retirement, death, or
Disability.




The Committee reserves its ability under Section 11.1(b) of the Plan
to vary this treatment if the Committee determines there is an
equitable substitution or replacement award in connection with a
Change in Control.




	 	 	Option Expiration You cannot exercise the Option after it has expired. The Option will expire no
later than the close of business on the Term Expiration Date. If any portion of the Option is
not exercisable as of the date your employment with the Company terminates (and the
termination of employment has not accelerated the exercisability of the Option, as described
in the Option Exercisability Section, above), then the unexercisable portion of the Option
will expire immediately. The portion of the Option that is permitted to be
exercised following termination of your employment, will remain exercisable until the first to
occur of the following (each as defined further in the Plan or the Grant Agreement):






	 	•	 	If your employment terminates for Cause, then the Option
will expire immediately;






	 	•	 	If your employment terminates because you resign, other
than for Retirement, the Option will expire on the close of
business on the first anniversary of the date your employment
terminated (but not later than the Term Expiration Date); and






	 	•	 	If your employment terminates because of your death,
Disability, Retirement, or termination without Cause, then the
Option will expire on the close of business on the Term
Expiration Date.






	 	 	 	Post-Employment You may not exercise the then exercisable portions of the Option after






	 	 	 	Restrictions your employment ends unless you sign a general liability release (the
“Release”) and abide by the non-competition agreement (the “Noncompetition Agreement”),
each as provided in the Equity Stake Transition Agreement. If you do not timely sign
(or you do revoke) the Release or if you breach the Non-Competition Agreement, then you
cannot exercise the Option after the date of employment termination (the “Exercise
Prohibition”). If you have exercised the Option before the Company notifies you that
it is invoking the Exercise Prohibition, the Company may in its discretion
require you to immediately pay any gains you recognized from the
post-termination exercise of the Option to the Company, as provided below.






You agree that, within 10 days after receiving from the Company
written notification that the Compensation Committee has determined
in good faith that the Exercise Prohibition applies, you will pay to
the Company for each Option Share obtained after employment ends, an
amount (the “Option Gain”) equal to the excess, if any, of (i) the
Fair Market Value of the Option Share on the exercise date upon which
it was acquired, over (ii) the Exercise Price you paid. The Option
Gain will be determined without regard to any market price increase
or decrease after the respective exercise date.




You acknowledge that your engaging in behavior that triggers an
Exercise Prohibition will result in a loss to the Company that cannot
reasonably or adequately be compensated in damages in an action at
law, that a failure to sign the Release (or a revocation of it) or a
breach of the Non-Competition Agreement will result in irreparable
and continuing harm to the Company and that therefore, in addition to
and cumulative with any other remedy that the Company may have at law
or in equity, the Company will be entitled to injunctive relief in
connection with such actions. You acknowledge and agree that the
recoupment provisions in this section are not a provision for
liquidated damages.



	 	 	 
	Method of

Exercise and

Payment for

Shares

	 	Subject to this Grant Agreement and the Plan, you may exercise the Option only

by providing a written notice (or notice through another previously approved

method, which could include a web-based or voice- or e-mail system) to the

Secretary of the Company or to whomever the Committee designates, received on or before the date the Option expires.

Each such notice must satisfy whatever then current procedures apply to that Option and must contain such

representations (statements from you about your situation) as the Company requires. You must, at the same time, pay

the Exercise Price using one or more of the following methods:







	 	 	 	Cash/Check cash or check in the amount of the Exercise Price payable to the order of the
Company; or






	 	 	 	Cashless an approved cashless exercise method, including directing the Company






	 	 	 	Exercise to send the stock certificates (or other acceptable evidence of ownership) to be
issued under the Option to a licensed broker acceptable to the Company as your agent in
exchange for the broker’s tendering to the Company cash (or acceptable cash
equivalents) equal to the Exercise Price and, if you so elect, any required tax
withholdings.






The Committee can approve additional payment methods, including use
of a fully or partially recourse promissory note, subject to any
prohibitions of applicable law.



	 	 	 
	Withholding

	 	Issuing the Option Shares is contingent on satisfaction of all obligations with respect to Federal, state, and local

taxes and any other required withholdings.  The Company may take any action permitted under Section 11.9 of the Plan

to satisfy such obligation, including, if the Committee so determines, satisfying the tax obligations by (i) reducing

the number of Option Shares to be issued to you in connection with any exercise of the Option by that number of Option

Shares (valued at their Fair Market Value on the date of exercise) that would equal all Federal, state, and local

taxes required to be withheld (at their minimum withholding levels), (ii) accepting payment of the withholdings from a

broker in connection with a Cashless Exercise of the Option or directly from you, or (iii) taking any other action

under Section 11.9.
	Compliance

with Law

	 	You may not exercise the Option if the Company’s issuing stock upon such

exercise would violate any applicable Federal or state securities laws or other laws or regulations. You may not sell

or otherwise dispose of the Option Shares in violation of applicable law. As part of this prohibition, you may not

use the Cashless Exercise methods if the Company’s insider trading policy then prohibits you from selling to the

market.
	Additional

Conditions

	 	The Company may postpone issuing and delivering any Option Shares for so

long as the Company determines to be advisable to satisfy the following:
	to Exercise

	 	








its completing or amending any securities registration or
qualification of the Option Shares or its or your satisfying any
exemption from registration under any Federal or state law, rule, or
regulation;




its receiving proof it considers satisfactory that a person seeking
to exercise the Option after your death is entitled to do so;




your complying with any requests for representations under the Plan;
and




your complying with any Federal, state, or local tax withholding
obligations.



	 	 	 
	Additional

Representations

from You

	 	If you exercise the Option at a time when the Company does not have a current

registration statement (generally on Form S-8) under the Securities Act of 1933

(the “Act”) that covers issuances of shares to you, you must comply with the following before the Company

will issue the Option Shares to you. You must —







represent to the Company, in a manner satisfactory to the Company’s
counsel, that you are acquiring the Option Shares for your own
account and not with a view to reselling or distributing the Option
Shares; and




agree that you will not sell, transfer, or otherwise dispose of the
Option Shares unless:




a registration statement under the Act is effective at the
time of disposition with respect to the Option Shares you
propose to sell, transfer, or otherwise dispose of; or




the Company has received an opinion of counsel or other
information and representations it considers satisfactory to
the effect that, because of Rule 144 under the Act or
otherwise, no registration under the Act is required.



	 	 	 
	No Effect on

Employment

or Other

Relationship

	 	Nothing in this Grant Agreement restricts the Company’s rights or those of any of

its affiliates to terminate your employment or other relationship at any time and

for any or no reason. The termination of employment or other relationship,

whether by the Company or any of its affiliates or otherwise, and regardless of the reason for such

termination, has the consequences provided for under the Plan and any applicable employment or severance

agreement or plan.
	Not a StockholderYou understand and agree that the Company will not consider you a stockholder for any purpose with respect to any

	of the Option Shares until you have exercised the Option, paid for the shares, and received evidence of ownership.

	No Effect on

	 	You understand and agree that the existence of the Option will not affect in any
	Running Businessway the right or power of the Company or its stockholders to make or authorize any adjustments, recapitalizations,

	reorganizations, or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company,

	or any issuance of bonds, debentures, preferred or other stock, with preference ahead of or convertible into, or otherwise affecting

	the Company’s common stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all

	or any part of its assets or business, or any other corporate act or proceeding, whether or not of a similar character to those

	described above.

	 	

	Governing Law

	 	The laws of the State of Delaware will govern all matters relating to the Option, without regard to the

principles of conflict of laws.
	Notices

	 	Any notice you give to the Company must follow the procedures then in effect. If no other procedures apply,

you must send your notice in writing by hand or by mail to the office of the Company’s Secretary (or to the

Chair of the Committee if you are then serving as the sole Secretary). If mailed, you should address it to

the Company’s Secretary (or the Chair of the Committee) at the Company’s then corporate headquarters, unless

the Company directs optionees to send notices to another corporate department or to a third party

administrator or specifies another method of transmitting notice. The Company and the Committee will address

any notices to you using its standard electronic communications methods or at your office or home address as

reflected on the Company’s personnel or other business records. You and the Company may change the address

for notice by like notice to the other, and the Company can also change the address for notice by general

announcements to optionees.
	Amendment

	 	Subject to any required action by the Board or the stockholders of the Company, the Company may

cancel the Option and provide a new Award in its place, provided that the Award so replaced will satisfy all

of the requirements of the Plan as of the date such new Award is made and no such action will adversely

affect the Option.
	Plan Governs

	 	Wherever a conflict may arise between the terms of this Grant Agreement and the terms of the Plan,

the terms of the Plan will control. The Committee may adjust the number of Option Shares and the Exercise

Price and other terms of the Option from time to time as the Plan provides.







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