Document:

exv10w11

Exhibit 10.11

Execution Copy

EQUITY STAKE TRANSITION AGREEMENT

This Equity Stake Transition Agreement (the “Agreement”) is entered into by and between Discovery
Communications, Inc., a Delaware corporation (the “Company”), and John S. Hendricks (“the
Executive”) as of the 5th day of November, 2008.

WHEREAS, the Executive is the founder of Discovery Communications (in 1982 the Executive
incorporated Cable Educational Network, Inc., which launched The Discovery Channel in 1985, and
later changed the company’s name to Discovery Communications to reflect its flagship network
brand);

WHEREAS, in 1986, the predecessor entities of the Company’s shareholders, Discovery Holding Company
and Advance Newhouse Communications, made investments in Discovery Communications and, over time,
entered into a number of agreements with the Executive, whereby the Executive’s original equity
holdings were transitioned into phantom equity and appreciation units—forms of long-term incentive
compensation appropriate for a private company with no public market value; and

WHEREAS, the Company is now a public company, and it is appropriate and in the best interests of
the Company that the Executive’s long-term incentive compensation be transitioned to stock options,
a form of incentive more suitable for a public company, as stock options more directly align the
Executive’s incentive compensation with the interests of the Company’s shareholders.

NOW, THEREFORE, the parties hereto agree as follows:

	1.	 	Discovery Appreciation Plan.

	 	a.	 	All “Appreciation Units” previously awarded to the Executive under the terms of
the Company’s Discovery Appreciation Plan (“DAP”) shall be paid to the Executive,
following his earning a vested right to the Appreciation Units, in accordance with the
terms of DAP, provided that, regardless of how the Company determines “Ending Unit
Value” (as defined in the DAP) for other DAP participants, the “Ending Unit Value” of
such Appreciation Units shall be determined without application of the 110% multiplier
referred to in the DAP’s definition of “Ending Unit Value.”
	 
	 	b.	 	As of the date hereof, the Executive holds (or recently had settled) the
following Appreciation Unit awards under DAP:

	 	i.	 	4,779,467 Appreciation Units which vested on
October 1, 2008 (“2008 DAP Units”) and have been settled;
	 
	 	ii.	 	1,042,171 Appreciation Units which are scheduled to
vest on October 1, 2009 (“2009 DAP Units”);

 

 

Execution Copy

	 	iii.	 	415,831 Appreciation Units which are scheduled to
vest on October 1, 2010 (“2010 DAP Units”); and
	 
	 	iv.	 	415,831 Appreciation Units which are scheduled to
vest on October 1, 2011 (“2011 DAP Units”).

	 	 	     The number of Appreciation Units associated with the 2008 DAP Units, the 2009 DAP
Units, the 2010 DAP Units and the 2011 DAP Units, as well as the “Beginning Unit Value” and
“Ending Unit Value” of such awards, shall remain subject to adjustment (for example, for
changes in capitalization related to the Company becoming publicly traded) in accordance
with DAP and, except as described above, will be governed by the terms of DAP.
	 
	2.	 	Stock Option Grants.

	 	a.	 	Option Grant. If the Executive remains an employee of the Company in
good standing as of the date his Appreciation Units under DAP vest and become payable,
then the Company shall issue to the Executive, as of the date such Appreciation Units
mature (or if such day is not a business day, then as of the next following business
day) an equivalent number of nonqualified stock options to purchase Series A common
stock of the Company with the terms specified below (the “Options”).
	 
	 	b.	 	Option Term. With respect to Options granted upon maturation of the
Executive’s Appreciation Units, the Options will expire no later than the number of
years following the date of grant, as follows:

	 	 	 	 	 
	Appreciation Units	 	Expiration Date	 
	2008 DAP Units
	 	10 years
	2009 DAP Units
	 	9 years
	2010 DAP Units
	 	8 years
	2011 DAP Units
	 	7 years

	 	 	All Options will expire no later than October 1, 2018.

	 	c.	 	Exercise Price. The exercise price of each Option granted upon
maturation of a DAP Appreciation Unit shall be equal to the fair market value of the
Company’s Series A Common Stock on the date the Option is granted.
	 
	 	d.	 	Vesting and Exercise. The Executive’s right to exercise each Option
granted upon maturation of a DAP Appreciation Unit shall vest in four equal
installments of twenty-five percent (25%) on each of the four anniversaries immediately
following the date the Option is granted, provided that in the event the

- 2 -

 

Execution Copy

	 	 	 	Executive’s
employment with the Company is terminated, the Executive’s right to exercise the
Options will be governed by the following provisions:

	 	i.	 	If the Executive’s employment with the Company is
terminated for Cause, then all of the Options (whether or not previously
vested and exercisable) immediately shall cease to be exercisable and
shall be forfeited.
	 
	 	ii.	 	If the Executive’s employment with the Company is
terminated (A) as a result of death, Disability, or Retirement, or (B) by
the Company other than for Cause, then all of the Options shall be
immediately vested, and the Options will remain exercisable during their
original term;
	 
	 	iii.	 	If the Executive’s employment with the Company
terminates for any other reason (not described in (i) or (ii)), then any
Options not vested and exercisable on the date of termination immediately
shall be forfeited, and any Options vested as of such date shall remain
exercisable for one year following the termination (but not beyond their
original term); and
	 
	 	iv.	 	The Executive’s right to exercise any Options
during any period of time following termination of employment, pursuant
to (ii) or (iii), above, shall be conditioned upon the Executive signing
a General Liability Release and abiding by a Non-Competition Agreement,
and if such release is not timely signed (and not revoked) or if the
Company determines that the Non-Competition Agreement is breached, then
no Options may be exercised after the date of termination and any gains
the Executive recognized from the post-termination exercise of the
Options may be clawed back by the Company in its discretion (by requiring
an immediate cash payment to the Company).

	 	e.	 	Incorporation of Plan. Except as specified above, the terms of the
Options shall be consistent with the Company’s 2005 Incentive Plan, as amended from
time to time, or any successor plan under which the Options are granted, including the
adjustment of the Options (in terms of number of shares, exercise price or class of
shares) in the event of a recapitalization of the Company.

	3.	 	Definitions for Options. The following definitions will apply to this Agreement and
to the Options granted upon maturation of a DAP Appreciation Unit:

	 	a.	 	Board. “Board” means the Company’s Board of Directors, as it may be
constituted from time to time.
	 
	 	b.	 	Cause. The Company shall have “Cause” to terminate the Executive’s
employment as a result of the Executive’s:

- 3 -

 

Execution Copy

	 	i.	 	Willful malfeasance in connection with his services
to the Company (and its successors), including embezzlement, or
misappropriation of funds, property or corporate opportunity;
	 
	 	ii.	 	Committing any act or becoming involved in any
situation or occurrence involving moral turpitude, which is materially
damaging to the business or reputation of the Company (or its
successors); or
	 
	 	iii.	 	Conviction of, or plea of guilty or nolo contendere
to, or failure to defend against the prosecution for, a felony or a crime
involving moral turpitude.
	 
	 	iv.	 	The Executive’s employment shall not be terminated
for Cause under clauses (i) or (ii) unless the Company notifies the
Executive in writing of its intention to terminate his employment for
Cause, describes with reasonably specificity the circumstances giving
rise thereto, and (provided the Board believes such circumstances are
susceptible of being cured by the Executive) provides the Executive a
period of at least ten (10) business days to cure, and the Executive has
failed to effect such a cure within such period. The Board, in its
reasonable discretion, exercised in good faith, shall determine whether
the Executive has cured the circumstances giving rise to Cause. In
addition, the Executive’s removal as Chairman of the Company is subject
to the special class voting rights of the Company’s Series A convertible
preferred stockholders (requiring a supermajority vote).

	 	c.	 	Disability. The Executive shall be deemed to have a “Disability” if
the Executive is unable to perform substantially all of his duties to the Company in
the normal and regular manner due to mental or physical illness or injury, and has been
unable so to perform for one hundred fifty (150) days or more during the twelve (12)
consecutive months then ending. The determination of the Executive’s Disability shall
be made by the Board. The Executive shall cooperate fully with any physician or health
care professional (the “Doctor”) chosen by the Board, in its sole discretion, to review
the Executive’s medical condition. The Executive shall cooperate with the Doctor by,
among other things, executing any necessary releases to grant the Doctor full access to
any and all of the Executive’s medical records, authorizing or requiring physicians and
other healthcare professionals who have treated or dealt with the Executive to consult
with the Doctor and submitting to such physical examinations or testing as may be
requested by the Doctor. The Executive shall be deemed to have a Disability if he is
receiving disability benefits under the long term disability plan sponsored by the
Company.
	 
	 	d.	 	General Liability Release. The General Liability Release shall have
terms substantively identical to the form annexed hereto as Attachment A.
	 
	 	e.	 	Non-Competition Agreement. The Non-Competition Agreement shall have
terms which are substantively identical to the form annexed hereto as Attachment B.

- 4 -

 

Execution Copy

	 	f.	 	Retirement. Retirement shall mean the Executive’s voluntary
termination of employment after attainment of age 65.

	4.	 	Mutual Intent. The parties mutually agree that the Executive will not be eligible to
participate in any ongoing periodic equity awards which the Company may grant to other
executives and that the Option awards described herein constitute all of the equity awards
which will be made to the Executive through 2018 (although the Company may grant additional
equity at its sole discretion). Furthermore, the parties mutually agree that to the extent
the Executive exercises an Option, the Executive will not be entitled to be “reloaded” with an
additional Option grant.
	 
	5.	 	Miscellaneous.

	 	a.	 	Waiver or Modification. Any waiver by either party of a breach of any
provision of this Agreement shall not operate as, or be construed to be, a waiver of
any other breach of such provision of this Agreement. The failure of a party to insist
upon strict adherence to any term of this Agreement on one or more occasions shall not
be considered a waiver or deprive that party of the right thereafter to insist upon
strict adherence to that term or any other term of this Agreement. Neither this
Agreement nor any part of it may be waived, changed or terminated orally, and any
waiver, amendment or modification must be in writing and signed by each of the parties.
Any waiver of any right of the Company hereunder or any amendment hereof shall require
the approval of the Chairman of the Compensation Committee. Until such approval or
waiver has been obtained, no such waiver or amendment shall be effective.
	 
	 	b.	 	Successors and Assigns. The rights and obligations of the Company
under this Agreement shall be binding on and inure to the benefit of the Company, its
successors and permitted assigns. The rights and obligations of the Executive under
this Agreement shall be binding on and inure to the benefit of the heirs and legal
representatives of the Executive. The Company may assign this Agreement to a successor
in interest, including the purchaser of all or substantially all of the assets of the
Company, provided that the Company shall remain liable hereunder unless the assignee
purchased all or substantially all of the assets of the Company. The Executive may not
assign any of his duties or rights under this Agreement.
	 
	 	c.	 	Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall, when executed, be deemed to be an original and all
of which shall be deemed to be one and the same instrument.
	 
	 	d.	 	Governing Law. This Agreement will be governed by, and construed and
enforced in accordance with, the laws of the State of Maryland, without regard to its
conflicts of law rules.
	 
	 	e.	 	Entire Agreement. This Agreement contains the entire understanding of
the parties relating to the subject matter of this Agreement and supersedes all other
prior written or oral agreements, understandings or arrangements regarding the

- 5 -

 

Execution Copy

	 	 	 	subject
matter, including that certain Hendricks Equity Stake Transition Term Sheet dated July
29, 2008. The Executive and the Company each acknowledges that, in entering into this
Agreement, he/it does not rely on any statements or
representations not contained in this Agreement.
	 
	 	f.	 	Severability. Any term or provision of this Agreement which is
determined to be invalid or unenforceable by any court of competent jurisdiction in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
invalidity or unenforceability without rendering invalid or unenforceable the remaining
terms and provisions of this Agreement or affecting the validity or enforceability of
any of the terms or provisions of this Agreement in any other jurisdiction and such
invalid or unenforceable provision shall be modified by such court so that it is
enforceable to the extent permitted by applicable law.
	 
	 	g.	 	Notices. All notices, demands and requests required or permitted to be
given under the provisions of this Agreement shall be (a) in writing, (b) sent by
telecopy or email (with receipt personally confirmed by telephone), delivered by
personal delivery, sent by nationally reputable commercial overnight delivery service
or sent by registered or certified U.S. mail, with return receipt requested, (c) deemed
to have been given on the date telecopied or emailed with receipt confirmed, the date
of personal delivery or the date set forth in the records of the delivery service or on
the return receipt, and (d) addressed as follows:

	 	(i)	 	if to the Company, to:
	 
	 	 	 	Discovery Communications, Inc.

One Discovery Place

Silver Spring, MD 20910

Attention: General Counsel
	 
	 	(ii)	 	if to Executive, to:
	 
	 	 	 	John S. Hendricks

8484 Georgia Avenue, Suite 700

Silver Spring, MD 20910

	 	 	 	or to any other or additional persons and addresses as the parties may from time to
time designate in a writing delivered in accordance with this Paragraph 5(g).
	 
	 	h.	 	Titles. The titles and headings of any paragraphs in this Agreement
are for reference only and shall not be used in construing the terms of this Agreement.
	 
	 	i.	 	No Third Party Beneficiaries. This Agreement does not create, and
shall not be construed as creating, any rights enforceable by any person not a party to
this Agreement.

- 6 -

 

Execution Copy

	 	j.	 	Survival. The covenants, agreements, representations and warranties
contained in this Agreement shall survive the termination of the Term of Employment and
the Executive’s termination of employment with the Company for any reason.

     IN WITNESS WHEREOF, this Agreement has been executed and delivered by the
Parties as of the first date written above.

The Compensation Committee of

Discovery Communications, Inc.

	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Robert J. Miron	 	 	 	/s/ John S. Hendricks	 	 
	 

	 	 

     Robert J. Miron
	 	 	 	 

John S. Hendricks
	 	 
	 

	 	     Chairman	 	 	 	 	 	 

- 7 -

 

Execution Copy

ATTACHMENT A

GENERAL LIABILITY RELEASE

     FOR VALUABLE CONSIDERATION PAID, the receipt and sufficiency of which are hereby acknowledged,
I, John S. Hendricks, for myself, my heirs, executors, administrators and assigns, do hereby
release, acquit and forever discharge Discovery Communications, Inc. (“DCI”), its parents,
subsidiaries, affiliates and related entities, as well as all of their respective officers,
directors, stockholders, members, partners, agents, employees and representatives (hereafter
collectively, the “DCI Parties”), from all obligations, claims, demands, covenants, contracts,
promises, agreements, liabilities, controversies, costs, expenses, attorneys’ fees, actions or
causes of action whatsoever, whether known or unknown, I ever had or now have or claim to have
against the DCI Parties from the beginning of the world to the day and date hereof, including any
claim relating to the termination of my employment with DCI, and further including specifically but
not exclusively, and without limiting the generality of the foregoing, any and all claims, demands
and causes of action, known or unknown, arising out of any transaction, act or omission concerning
my former employment by DCI and/or any of its subsidiaries or affiliates, and all claims of every
kind that may arise under any federal, state or local statutory or common law, including the
federal Age Discrimination In Employment Act of 1967, Title VII of the Civil Rights Act of 1964, as
amended, the Americans with Disabilities Act, the Family and Medical Leave Act, the Equal Pay Act,
the Worker Adjustment and Retraining Notification Act, the Fair Labor Standards Act, the Maryland
Human Rights Act, as well as any similar state or local statute(s), in each case as any such law
may be amended from time to time; or any action arising in tort or contract.

     I hereby acknowledge that my attorney has advised me regarding, and that I am familiar with,
the fact that certain state statutes provide that general releases do not extend to claims that I
do not know or suspect to exist in my favor at the time I execute such a release, which if known by
me may have materially affected my execution of the release. Being aware of such statutes, I
hereby expressly waive and relinquish any rights or benefits I may have under such statutes, as
well as any other state or federal statutes or common law principles of similar effect. I also
hereby specifically and knowingly waive the provisions of Section 1542 of the Civil Code of the
State of California, which reads: A general release does not extend to claims which the creditor
does not know or suspect to exist in his favor at the time of executing the release, which if known
by him must have materially affected his settlement with the debtor. Notwithstanding the
provisions of Civil Code Section 1542 stated above and for the purpose of implementing a full and
complete release and discharge of the DCI Parties, I expressly acknowledge that this General
Liability Release is intended to include in its effect all claims that I do not know or suspect to
exist in my favor at the time I sign this General Liability Release.

     I hereby acknowledge that I am executing this General Liability Release pursuant to Section 2
of that certain Equity Stake Transition Agreement, dated November 5, 2008 (the “Agreement”), and
that certain consideration to be provided to me pursuant to Section 2 of the Agreement is in
addition to what I would have been entitled to receive in the absence of this General Liability
Release. I hereby acknowledge that I am executing this General Liability Release voluntarily and
with full knowledge of all relevant information and any and all rights I may have. I hereby
acknowledge that I have been advised to consult with

- 1 -

 

Execution Copy

an independent attorney of my own choosing in connection with this General Liability Release
to explain to me the legal effect of the terms and conditions of this General Liability Release. I
hereby acknowledge that I am voluntarily and knowingly agreeing to the terms and conditions of this
General Liability Release without any threats, coercion or duress, whether economic or otherwise,
and that I agree to be bound by the terms of this General Liability Release. I acknowledge that I
have been given twenty-one (21) days to consider this General Liability Release, and I understand
that I have seven (7) days following my execution of this General Liability Release in which to
revoke my agreement to comply with this General Liability Release by providing written notice of
revocation to the General Counsel of DCI no later than three business days following such period.

     I further hereby covenant and agree that this General Liability Release shall be binding in
all respects upon myself, my heirs, executors, administrators, assigns and transferees and all
persons claiming under them, and shall inure to the benefit of all of the DCI Parties.

     IN WITNESS WHEREOF, I have signed this General Liability Release this ___ day of
                    , 20___.

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

     John S. Hendricks
	 	 

     Subscribed and sworn to before me this ___ day of                     , 20___.

	 	 	 	 	 	 	 
	 

	 	 	 	 

Notary Public
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	My Commission Expires                     	 	 

- 2 -

 

Execution Copy

ATTACHMENT B

NON-COMPETITION AGREEMENT

     This NON-COMPETITION AGREEMENT (this “Non-Competition Agreement”) is dated as of the ___ day
of                     , 20___(the “Effective Date”), by and among Discovery Communications, Inc., a Delaware
corporation (the “Company”), and John S. Hendricks (the “Executive”).

     WHEREAS, the parties entered into that certain Equity Stake Transition Agreement, dated
November 5, 2008 (the “Transition Agreement”), pursuant to which the Company has issued to the
Executive certain options to buy common stock of the Company (the “Options”); and

     WHEREAS, the Executive’s right to exercise the Options during the period following the
termination of his employment with the Company is conditioned, in part, on Executive signing and
abiding by the terms of this Non-Competition Agreement.

     NOW, THEREFORE, the parties hereto agree as follows:

     1. Covenants. As a means to protect the Company’s legitimate business interests,
including protection of the “Confidential Information” of the Company (Executive hereby agreeing
and acknowledging that the activities prohibited by this Paragraph 1 would necessarily involve the
use of Confidential Information), during the “Restricted Period”, the Executive shall not,
directly, indirectly or as an agent on behalf of any person, firm, partnership, corporation or
other entity (other than the Company or any Company Entity):

          (a) solicit for employment, consulting or any other provision of personal services, or hire,
any person who is (i) a full-time or part-time employee of (or in the preceding six (6) months was
employed by) the Company (or a Company Entity); or (ii) an individual performing, on average,
twenty or more hours per week of personal services as an independent contractor to the Company (or
a Company Entity); provided the prohibition in this clause (a) shall not apply to the Executive’s
Executive Assistant and such other former employees of the Company who are currently employed by
Hendricks Investment Holdings LLC (“HIH”) (including, for example, Barbara Bennett, a former Chief
Financial Officer of the Company, who as of the effective date of the Transition Agreement was
serving as a financial advisor to HIH), as are approved in writing by the Company’s Chief Executive
Officer and by the Nominating and Corporate Governance Committee of the Company’s Board of
Directors. This covenant includes, but is not limited to, inducing or attempting to induce, or
influencing or attempting to influence, any such person to terminate his or her employment or
performance of services with or for the Company (or a Company Entity); or

          (b) (i) solicit or encourage any person or entity who is, or within the prior six (6) months
was, a customer, producer, advertiser, distributor or supplier of the Company (or a Company Entity)
to discontinue such person’s or entity’s business relationship with the Company (or a Company
Entity); or (ii) discourage any prospective customer, producer, advertiser, distributor or supplier
of the Company (or a Company Entity) from becoming a customer, producer, advertiser, distributor or
supplier of the Company (or a Company Entity),

- 1 -

 

Execution Copy

including, without limitation, making any negative
statements or communications about the
Company (or a Company Entity) or their respective shareholders, directors, officers, employees
or agents; provided that the restrictions of this Paragraph 1(b) shall apply only to customers,
producers, advertisers, distributors or suppliers of the Company with which Executive had personal
contact, or for whom Executive had some responsibility in the performance of Executive’s duties for
the Company; or

          (c) hold any interest in (whether as owner, investor, shareholder, lender or otherwise) or
perform any services for (whether as employee, consultant, advisor, director or otherwise),
including the service of providing advice for, a “Competitive Business” regardless of whether such
business is located in the United States or anywhere else in the world. Notwithstanding the
foregoing, the Executive may own, directly or indirectly, (i) an aggregate of not more than 2% of
the outstanding publicly traded stock or other publicly traded equity interest in any entity that
engages in a Competitive Business, so long as such ownership therein is solely as a passive
investor and does not include the performance of any services (as director, employee, consultant,
advisor or otherwise) to such entity; and (ii) any interests in HIH and the associated businesses
used to carry out the business activities and interests of HIH, as described by Discovery Holding
Company (on behalf of the Company as registrant) in the Form S-4/A (p. 27) filed with the
Securities and Exchange Commission (“SEC”) on August 6, 2008 (the “SEC Form S-4”); or

          (d) (i) use for the benefit, purposes or account of himself or any other person or entity
(other than the Company and Company Entities), or (ii) disclose, divulge, reveal, communicate,
share, transfer or provide access to any person or entity outside the Company and Company Entities
(other than their shareholders, directors, officers, managers, employees, agents, counsel,
investment advisers or representatives in the normal course of the performance of their duties),
any Confidential Information without the prior authorization of the Company’s Board of Directors.
Notwithstanding the foregoing provisions of this Paragraph 1(d), this Non-Competition Agreement
shall not preclude the Executive from disclosing the Confidential Information to the extent
required by applicable law, rule or regulation (including complying with any oral or written
questions, interrogatories, requests for information or documents, subpoena, civil investigative
demand or similar legal process to which Executive is subject), provided that the Executive gives
the Company prompt notice of such request(s), to the extent practicable, so that the Company may
seek an appropriate protective order or similar relief (and the Executive shall cooperate with such
efforts by the Company, and shall in any event make only the minimum disclosure required by such
law, rule or regulation). Nothing contained herein shall prevent the use in any formal dispute
resolution proceeding (subject, to the extent possible, to a protective order) of Confidential
Information in connection with the assertion or defense of any claim, charge or other dispute by or
against the Company (or a Company Entity) or the Executive; or

          (e) continue to use, or commence using, any Confidential Information or intellectual property
(including any patent, invention, copyright, trade secret, trademark, trade name, logo, domain name
or other source indicator) owned or used by the Company (or a Company Entity); and the Executive
shall immediately destroy, delete, or return to the Company (at the Company’s option) all originals
and copies in any form or medium (including memoranda, books, papers, plans, computer files,
letters and other data) in the Executive’s

- 2 -

 

Execution Copy

possession or control (including any of the foregoing
stored or located in the Executive’s office, home, laptop or other computer, whether or not such
computer is Company property) that
contain Confidential Information or otherwise relate to the business of the Company, except
that Executive may retain only those portions of any personal notes, notebooks and diaries that do
not contain any Confidential Information. The Executive will notify and fully cooperate with the
Company regarding the delivery or destruction of any other Confidential Information of which
Executive is or becomes aware.

     2. Definitions.

          (a) A “Competitive Business” shall be any business that directly competes with the Company for
viewers, advertisers, distributors, producers, actors or the like in (i) the production,
post-production assembly, or distribution/delivery by electronic means (including, but not limited
to, broadcast, cable, satellite, or the internet) of video entertainment, or (ii) the exploitation
of video entertainment through retail sales establishments, theatres or the internet. For the
avoidance of doubt, the foregoing is not intended to prohibit the Executive from working for or
engaging in activities on behalf of a business primarily engaged in the production, distribution
and exploitation of video entertainment in the form of motion pictures intended primarily for
theatrical release or computer-based gaming, such as Lions Gate Entertainment, Paramount Pictures
and Electronic Arts (as those businesses are constituted and operated in 2008), or the production
of life-long learning multimedia, on-line and lecture materials for distribution by HIH’s “learning
academy” as described in the SEC Form S-4.

          (b) Notwithstanding Paragraph 2(a), above, if the Executive’s employment with the Company has
been terminated by the Company for reasons of Disability or without Cause, then the definition of
“Competitive Business” shall be as follows: any business that directly competes with the Company
for viewers, advertisers, distributors, producers, actors or the like in the post-production
assembly and/or distribution/delivery by electronic means (including, but not limited to,
broadcast, cable, satellite and internet) of branded, non-fiction video entertainment. For the
purpose of clarification, such a Competitive Business would (i) include, but would not be limited
to, National Geographic Channel International, Arts & Entertainment Television Networks, BBC and
the Scripps Networks (as those businesses are constituted and operated in 2008), and (ii) exclude,
but would not be limited to, Sci-Fi, the USA Network and Lifetime Entertainment Services (as those
businesses are constituted and operated in 2008) and the production of life-long learning
multimedia, on-line and lecture materials for distribution by HIH’s “learning academy” as described
in the SEC Form S-4. For the avoidance of doubt, the Executive shall not be prohibited from
working for or engaging in activities on behalf of a business entity that does not constitute a
Competitive Business under this Paragraph 2(b) merely by virtue of the fact that such business
entity is affiliated with a business entity that does constitute a Competitive Business, provided
that the Executive is not working for or engaging in any activity on behalf of such Competitive
Business and, unless the Competitive Business is less than five percent (5%) of the business
entity’s overall business (measured in terms of gross revenue, operating income and cash flow), the
Executive does not have responsibility for such Competitive Business. Furthermore, this Paragraph
2(b) shall not restrict the Executive from providing services to any television broadcast service,
the video and audio portions of which are intelligibly receivable without charge by means of
standard roof-top or television set built-in antennae, even if such service is also carried via
cable, satellite or internet,

- 3 -

 

Execution Copy

provided that less than fifty percent (50%) of the broadcaster’s
programming for such service is non-fiction content similar to that distributed by the Company.

          (c) “Company Entity” shall mean the Company, any subsidiary of the Company and any other
entity of which the Company, directly or indirectly, owns fifty percent (50%) or more of the
profits or voting interests.

          (d) “Confidential Information” shall mean any non-public, proprietary or confidential
information (including trade secrets, know-how, research and development, software, databases,
inventions, processes, formulae, technology, designs and other intellectual property, information
concerning finances, investments, profits, pricing, costs, products, services, vendors, customers,
clients, partners, investors, personnel, compensation, recruiting, training, advertising, sales,
marketing, promotions, government and regulatory activities and approval) concerning the past,
current or future business, activities and operations of the Company, any Company Entities and/or
any third party that has disclosed or provided any of same to the Company on a confidential basis.
Confidential Information shall not include any information that is (A) generally known to the
industry or the public other than as a result of the Executive’s breach of his duties to the
Company; (B) is or was available to the Executive on a non-confidential basis prior to its
disclosure to such Executive by the Company (or a Company Entity), or (C) made available to
Executive by a third party who, to the best of such Executive’s knowledge, is or was not bound by a
confidentiality agreement with (or other confidentiality obligation to) the Company (or a Company
Entity) or another person or entity.

          (e) The “Restricted Period” shall begin on the Effective Date and shall expire on the later
of: (i) three (3) years after the Executive’s termination of employment with the Company; or (ii)
the expiration of all outstanding Options.

          (f) Other capitalized terms herein shall have the meanings set forth in the Transition
Agreement.

     3. Reasonableness and Enforcement of Covenants. The Executive acknowledges and agrees
that: (i) the services he has provided to the Company have been of a special, unique and
extraordinary nature; (ii) the restrictions contained in this Non-Competition Agreement are
necessary to prevent the use and disclosure of Confidential Information and to protect other
legitimate business interests of the Company; (iii) all of the restrictions in this Non-Competition
Agreement are reasonable in all respects, including duration, territory and scope of activity; (iv)
the restrictions contained in this Non-Competition Agreement shall be construed as separate
agreements independent of each other and any other agreement between the Executive and the Company;
(v) the existence of any claim or cause of action by the Executive against the Company, whether
predicated on this Non-Competition Agreement or otherwise, shall not constitute a defense to the
enforcement by the Company of the covenants and restrictions in this Non-Competition Agreement; and
(vi) the restrictive covenants contained in this Non-Competition Agreement are a material part of
the Executive’s obligations for which the Company has compensated Executive and will further
compensate him through the extension of the exercise period for the Options.

- 4 -

 

Execution Copy

     4. Remedies.

     (a) Remedies. Executive agrees that if he, or any affiliate of his, engages or
threatens to engage in any activity that constitutes a violation of any of the provisions of this
Non-Competition Agreement, the Company shall have the right and remedy to have the provisions of
this Non-Competition Agreement specifically enforced to the extent permitted by law by any
court having jurisdiction, it being acknowledged and agreed that any breach of this Non-Competition
Agreement would cause immediate irreparable injury to the Company and that money damages would not
provide an adequate remedy at law for any breach. Therefore, Executive agrees that the Company,
without limiting any other legal or equitable remedies available to it, shall be entitled to obtain
equitable relief by temporary restraining order, preliminary and permanent injunction or otherwise
from any court of competent jurisdiction (without the requirement of posting a bond or other
security), including, without limitation, injunctive relief to prevent Executive’s failure to
comply with the terms and conditions of Paragraph 1 of this Agreement. Such right and remedy shall
be in addition to, and not in lieu of, any other rights and remedies available to the Company at
law or in equity, including the right to seek monetary damages. In addition, the Restricted Period
shall be tolled on a day-for-day basis for each day during which the Executive violates the
provisions of Paragraph 1 above in any respect, so that the Executive is restricted from engaging
in the activities prohibited by Paragraph 1 for the full period.

     (b) Reformation. It is the intent of the parties that the provisions of the
Non-Competition Agreement be enforced to the fullest extent permissible under applicable law. If
any term or provision of this Non-Competition Agreement is determined to be void, illegal, invalid
or unenforceable by any court of competent jurisdiction in any jurisdiction, then such term or
provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining terms and provisions of
this Non-Competition Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Non-Competition Agreement in any other jurisdiction and such invalid or
unenforceable provision shall be modified by such court so that it is enforceable to the maximum
extent permitted by applicable law. The language used in this Non-Competition Agreement shall be
deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule
of strict construction shall be applied against any party. If, in any judicial proceeding, a court
shall refuse to enforce one or more of the covenants set forth in Paragraph 1 of this
Non-Competition Agreement because the duration is too long or the scope is too broad, it is
expressly agreed between the Company and the Executive that the court making such determination
shall be empowered to reduce the duration and scope of the covenants set forth herein to the extent
necessary to permit enforcement of such covenants.

     5. Miscellaneous.

     (a) Notices. All notices, demands and requests required or permitted to be given
under the provisions of this Agreement shall be (a) in writing, (b) sent by telecopy or email (with
receipt personally confirmed by telephone), delivered by personal delivery, sent by nationally
reputable commercial overnight delivery service or sent by registered or certified U.S. mail, with
return receipt requested, (c) deemed to have been given on the date telecopied or emailed with

- 5 -

 

Execution Copy

receipt confirmed, the date of personal delivery or the date set forth in the records of the
delivery service or on the return receipt, and (d) addressed as follows:

	 	(iii)	 	if to the Company, to:
	 
	 	 	 	Discovery Communications, Inc.

One Discovery Place

Silver Spring, MD 20910

Attention:     General Counsel
	 
	 	(iv)	 	if to Executive, to:
	 
	 	 	 	John S. Hendricks

8484 Georgia Avenue, Suite 700

Silver Spring, MD 20910

or to any other or additional persons and addresses as the parties may from time to time designate
in a writing delivered in accordance with this Paragraph 5(a).

     (b) Benefit and Binding Effect. The Executive may not assign this Agreement without
the prior written consent of the Company. The Company may assign its rights under this
Non-Competition Agreement to any other person or entity that (i) acquires ownership or control of
the Company, (ii) acquires substantially all of the assets of the Company, or (iii) is a successor
entity through merger, conversion or other transaction or series of transactions. This
Non-Competition Agreement shall be binding upon and inure to the benefit of the parties and their
respective successors and permitted assigns, so that the Executive and any of his affiliates will
be precluded from competing against the Company, and interfering with the business of the Company,
pursuant to Paragraph 1 for the full Restricted Period.

     (c) Governing Law. This Non-Competition Agreement shall be governed, construed and
enforced in accordance with the laws of the State of Maryland (without regard to the choice of law
provisions thereof). Any action or proceeding seeking to enforce any provision of, or based on any
right arising out of, this Non-Competition Agreement shall be brought against any of the parties in
the courts of the State of Maryland or in the United States District Court for Maryland in
Greenbelt, Maryland, and each of the parties consents to the exclusive jurisdiction of such courts
(and of the appropriate appellate courts) in any such action or proceeding and waives any objection
to venue laid therein.

     (d) Entire Agreement. This Non-Competition Agreement constitutes the entire agreement
and understanding between the parties hereto concerning the subject matter hereof. In entering
into this Non-Competition Agreement, the Executive is not relying on any statements or
representations not contained in this Non-Competition Agreement. This Non-Competition Agreement
supersedes any and all prior agreements, arrangements and understandings, oral or written, with
respect to the subject matter hereof, between the parties hereto.

- 6 -

 

Execution Copy

     (e) Headings. The headings herein are included for ease of reference only and shall
not control or affect the meaning or construction of the provisions of this Non-Competition
Agreement.

     (f) Amendments/Waivers. This Non-Competition Agreement cannot be amended,
supplemented or changed except by an agreement in writing that makes specific reference to this
Non-Competition Agreement and which is signed by the party against which enforcement of any such
amendment, supplement, or modification is sought. Any waiver of any provision of this
Non-Competition Agreement must be in writing and signed by the party granting the waiver.

     (g) Counterparts. This Non-Competition Agreement may be signed in counterparts with
the same effect as if the signature on each counterpart were upon the same instrument.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Non-Competition Agreement as of
the day and year first above written.

	 	 	 	 	 	 	 
	 	 	DISCOVERY COMMUNICATIONS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	John S. Hendricks	 	 

- 7 -exv10w11

Exhibit 10.11

FIRST AMENDMENT TO OFFICE LEASE AGREEMENT

     THIS FIRST AMENDMENT TO OFFICE LEASE AGREEMENT (this “Amendment”) is made as of June 5, 2007,
by and between WASHINGTON TELEVISION CENTER LLC, a District of Columbia limited liability company
(“Landlord”), and BLACKBOARD INC., a Delaware corporation (“Tenant”).

RECITALS

     A. Pursuant to that certain Office Lease Agreement dated as of December 15, 2006 (the
“Lease”), Landlord has leased to Tenant certain space consisting of approximately One Hundred
Eleven Thousand Eight Hundred Ninety-Five (111,895) square feet of rentable area on the first
(1st), sixth (6th), seventh (7th) and eighth (8th)
floors in the office building located at 650 Massachusetts Avenue, NW, Washington, D.C. 20001, as
more particularly described in the Lease.

     B. Due to a holdover by the current tenant, such tenant being an agency of the federal
government (“GSA”), the Anticipated Delivery Date must be modified.

     C. Pursuant to one or more separate agreements, GSA has agreed with Landlord to make certain
payments to Landlord in addition to GSA’s monthly rent in connection with its holdover.

     D. In consideration for Tenant agreeing that Landlord may delay the Anticipated Delivery Date,
Landlord has agreed to pass through certain payments Landlord receives from GSA to Tenant, all as
further set forth in this Amendment.

     E. All capitalized terms used in this Amendment that are not defined herein shall have the
meanings provided for in the Lease.

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

     1. Recitals. The foregoing recitals are intended to be a material part of this
Amendment and are incorporated herein by reference.

     2. Anticipated Delivery Date. In Section 1.4 of the Lease, the date of “March
8, 2007,” is deleted and replaced with the date of “August 15, 2007.”

     3. Lease Commencement Date. In Section 3.2(a), the two appearances of the
date “November 8, 2007,” are both replaced with “April 15, 2008.”

 

 

     4. Additional Payments. Landlord, pursuant to that certain (i) amendment to GSA’s
lease dated April 13, 2007 (“SLA 12”) (a copy of which is attached hereto as Exhibit A-1),
(ii) amendment to GSA’s lease dated May 7, 2007 (“SLA 13”) (a copy of which is attached hereto as
Exhibit A-2) and (iii) amendment to GSA’s lease being executed contemporaneously herewith
(the “New SLA” (a copy of which is attached hereto as Exhibit A-3), together with SLA 12
and SLA 13, the “SLAs”), is entitled to receive the additional payments listed below in excess of
GSA’s current base rent and additional rent obligations (the “Additional Payments”). If and only
if Landlord actually receives any such payment, Landlord will deliver such payments to Tenant
within five (5) business days of Landlord’s actual receipt of such payment or, in the case of the
May 1 and June 1 payments, within five (5) business days of the date hereof. If Landlord actually
incurs any out-of-pocket costs attributable to its efforts to collect the Additional Payments below
(including without limitation reasonable attorneys’ fees), Landlord may withhold and deduct such
collection costs from the Additional Payments before delivering the Additional Payments to Tenant,
provided, however, that in the event such collection efforts seek to recover payment of base rent,
additional rent or other payment obligations of GSA in addition to the Additional Payments, the
out-of-pocket collection costs deducted by Landlord will be pro-rated based upon the ratio of the
Additional Payments to the total amount sought by Landlord. Landlord shall have no liability for
GSA’s failure to timely make any of the Additional Payments set forth herein, Tenant hereby waiving
any right it may have against Landlord for such failure by GSA, provided that nothing in this
sentence shall be construed to release Landlord from Landlord’s obligations to Tenant under the
terms of this Amendment. Landlord and Tenant acknowledge that the payments contemplated on
November 1, 2007, and December 1, 2007, are contingent on GSA remaining in the Premises beyond the
dates specified in Section 5 of the New SLA, as further set forth in the New SLA.

	 	 	 
	May 1, 2007
	 	$100,000
	June 1, 2007
	 	$150,000
	August 1, 2007
	 	$200,000
	September 1, 2007
	 	$200,000
	October 2, 2007
	 	$750,000
	November 1, 2007
	 	$400,000 (only made if GSA has not vacated the Premises by October 2, 2007)
	December 1, 2007
	 	$500,000 (only made if GSA has not vacated the Premises by November 1, 2007)

     (a) Landlord shall use all commercially reasonable efforts to collect Additional Payments from
GSA and such obligation to collect Additional Payments shall survive termination of the Lease with
respect to those Additional Payments which accrue prior to the effective date of termination of the
Lease. In the event that any Additional Payment from GSA is late, Landlord shall use reasonable
efforts to notify Tenant of the circumstances surrounding such non-payment within two (2) business
days after the Additional Payment due date. Provided Tenant is not in default under the Lease
beyond the expiration of any applicable notice and/or cure period, Landlord shall not enter into
any amendment to the GSA lease or other agreement which reduces, delays or forgives any of the
Additional Payments without Tenant’s prior written consent, which may be granted or withheld in
Tenant’s sole discretion. Landlord represents that

2

 

as of the date hereof it has not entered into any agreement which would reduce, delay or
forgive any of the Additional Payments.

     5. Termination Period; Cure Period. The end of the period for Tenant’s one-time
termination option set forth in Section 3.2(i) of the Lease is extended from September 30,
2007 to 5:00 p.m. (eastern time) on November 30, 2007. Accordingly, (a) the date “September 30,
2007” in the first sentence of Section 3.2(i) of the Lease is deleted and replaced with
“November 30, 2007,” and (b) the phrase “before 5:00 (eastern time) on September 30, 2007” in the
fourth sentence of Section 3.2(i) is deleted and replaced with the phrase “before 5:00 p.m.
(eastern time) on November 30, 2007.” In addition, the Cure Period as set forth in Section
3.2(i) of the Lease is extended until the later of (i) ten (10) business days after Landlord’s
receipt of Tenant’s timely notice of termination in accordance with the terms of Section
3.2(i) (if any) and (ii)11:59 p.m. (eastern time) on November 30, 2007. Accordingly, the
second sentence of Section 3.2(i) of the Lease is deleted and replaced with the following
sentence, “Notwithstanding the foregoing termination right set forth in this Subsection (i), if
Landlord on or before the later of (i) ten (10) business days after Landlord’s receipt of Tenant’s
timely notice of termination in accordance with the terms of Section 3.2(i) (if any) and
(ii) 11:59 p.m. (eastern time) on November 30, 2007 (the “Cure Period”) delivers the Floors in
Ready Condition, Tenant shall accept the Floors and its termination will not be effective, provided
that if at any time during the Cure Period Landlord delivers notice to Tenant that it is unable to
deliver the Floors, Tenant’s termination will be effective as of the date of receipt of such notice
from Landlord.” By way of example only of the foregoing terms of this Section 5, if Tenant
timely and properly delivers a termination notice to Landlord on September 15, 2007, and Landlord
subsequently delivers the Floors in the Ready Condition on November 30, 2007, Tenant’s termination
will not be effective and the Lease will remain in full force and effect.

     6. Other Payments. If Landlord receives amounts or sums in excess of or in addition
to the Additional Payments set forth in Section 4 above, Landlord shall not be required to deliver
to Tenant such excess amounts, payments or sums from GSA to Landlord, notwithstanding the fact that
other Additional Payments may subsequently become due. By way of example only, if on August 1,
2007, GSA pays to Landlord $240,000, then Landlord shall as set forth in Section 4 above, deliver
$200,000 to Tenant as part of the Additional Payments, and $40,000 will remain with the Landlord.
Landlord and Tenant acknowledge that the Additional Payments are in excess of GSA’s current rental
obligations under their lease (i.e., those obligations prior to the execution of the SLAs)
(the “Current GSA Rent”). Accordingly, Landlord and Tenant agree that if for any reason Landlord
does not receive, or GSA does not otherwise pay all or any portion of the Additional Payments,
Landlord will not be required to pay any such Additional Payments to Tenant from GSA’s rental
obligations under the lease between Landlord and GSA, provided, however, that if any Additional
Payments are late, any payments by GSA to Landlord in excess of the Current GSA Rent shall be first
paid to Tenant until the late Additional Payments have been paid.

     7. Tenant’s Rent Abatement. Because Tenant may need to extend the lease for all or a
portion of the space it currently occupies pursuant to Tenant’s Existing Lease (“Tenant’s
Extension”) due to extension of the Anticipated Delivery Date, Landlord has agreed to provide

3

 

certain abatements in connection with Tenant’s Extension as well as its extension of the term
thereof prior to the date of this Amendment (“Tenant’s Rent Abatement”), as further set forth and
in accordance with the terms of Section 3.2(d) of the Lease (as such Section 3.2(d) of the
Lease is modified by the terms of this Amendment). In consideration of such abatement and the
amounts Landlord agrees to pass through to Tenant hereunder, Tenant agrees to use the “extension
cost reduction efforts” (as defined below) to mitigate and reduce its obligations (including
without limitation rent and additional rent) to its current landlord arising from Tenant’s
Extension, including without limitation, attempting to (i) sublease, license and/or assign its
obligations under Tenant’s Existing Lease after Tenant vacates its existing premises (the “1899 L
Space”), (ii) obtain an early termination of Tenant’s Existing Lease or to cause its landlord to
release Tenant prior to the end of Tenant’s Extension, and/or (iii) otherwise reduce its financial
obligations under Tenant’s Existing Lease during Tenant’s Extension. As used herein, the phrase
“extension cost reduction efforts” shall mean Tenant’s obligation to make good faith efforts to
negotiate a financial settlement with its current landlord and/or to retain and engage a leasing
broker to attempt to find a short-term sublease, subject to the terms of its lease with its current
landlord. Nothing in this Amendment shall (i) restrict Tenant from entering into a Tenant’s
Extension or (ii) require Tenant to enter into a sublease, license or assignment agreement upon
terms which are not acceptable to Tenant in its reasonable discretion.

          (a) If during any period that Tenant’s Rent Abatement occurs, Tenant assigns, licenses or
subleases all or any portion of the 1899 L Space leased by Tenant pursuant to Tenant’s Extension,
then no later than the earliest to occur of (i) thirty (30) days after the expiration of such
assignment or sublease and (ii) five (5) business days after the day Tenant determines the final
income from such assignment, license or sublease net only of its actual out-of-pocket brokerage
costs, reasonable attorney fees and other third-party out-of-pocket costs incurred directly with
such assignment, sublease or license (the “Assignment/Sublease Value”), Tenant shall notify
Landlord of the Assignment/Sublease Value and Tenant’s Rent Abatement during the first Lease Year
shall be reduced by an amount equal to one-half (1/2) of the Assignment/Sublease Value (the
“Abatement Reduction”), applied first to the last amounts of rent abatement due Tenant during the
first Lease Year. In the event that all of Tenant’s Rent Abatement during the first Lease Year has
already been utilized at the time of such determination, the Abatement Reduction shall be applied
to the last amounts of rent abatement due Tenant during the second Lease Year.

          (b) If at any time Tenant terminates all or any portion of its obligations under Tenant’s
Existing Lease (as extended by Tenant’s Extension) prior to the scheduled expiration of Tenant’s
Existing Lease (as extended by Tenant’s Extension) by paying an early termination or equivalent
fee, Tenant’s Rent Abatement shall continue to accrue to Tenant’s benefit pursuant to the terms of
the Lease, but shall cease to accrue to Tenant’s benefit at such time as the total amount of
Tenant’s Rent Abatement accruing under the Lease from and after the effective date of such
termination is equal to one-half (1/2) of such early termination or equivalent fee. If at any time
Tenant’s obligations under Tenant’s Extension are terminated for any reason prior to the scheduled
expiration thereof, including without limitation for condemnation or casualty, and there is no
early termination or equivalent fee, Tenant’s Rent Abatement shall cease to accrue to Tenant’s
benefit simultaneously with such termination of Tenant’s obligations under Tenant’s Extension. By
way of example only, if at the end of month five (5) of Tenant’s Extension,

4

 

Tenant pays its landlord an early termination fee of $100,000, the Tenant’s Rent Abatement
would continue to accrue until the total amount of Tenant’s Rent Abatement accruing from and after
the end of month five (5) equals $50,000. However, if, by way of further example only, Tenant
agrees with its landlord to terminate Tenant’s Extension at the end of month five (5) at no cost to
Tenant, then Tenant’s Rent Abatement would immediately and automatically cease to accrue at the end
of month five (5). If a portion but less than all of Tenant’s obligations under Tenant’s Existing
Lease (as extended by Tenant’s Extension) are terminated prior to the scheduled expiration, a
proportionate share of Tenant’s Rent Abatement shall cease to accrue from and after the date of
termination. By way of example only, if one-half of Tenant’s obligations shall be terminated,
one-half of Tenant’s Rent Abatement shall cease to accrue and one-half shall continue to accrue
from and after the date of such termination.

          (c) Any reduction in Tenant’s Rent Abatement pursuant to Subsection (b) above is in addition
to any amounts credited to Landlord under Subsection (a) above. Tenant agrees to promptly provide
written notice to Landlord of any sublease/assignment and/or early termination related to Tenant’s
Extension. Simultaneously with such notice, Tenant shall also provide Landlord with the estimated
dollar amount of any sublease/assignment and/or early termination fee, copies of the sublease or
assignment agreement, and such other documentation related to the costs and expenses of obtaining
such sublease/assignment and/or early termination fee. In addition, upon final determination of
the amount of the Assignment/Sublease Value, Tenant shall include a reasonably detailed statement
of all income and expenses (along with copies of reasonable back-up materials) associated with the
Assignment/Sublease Value and Tenant calculation thereof, along with a certification from Tenant
that all amounts and calculations set forth therein are true and correct in all material respects.

          (d) Pursuant to Section 3.2(h) of the Lease, the term of the Lease shall be extended by an
Abatement Extension Period if Tenant receives any Delay Abatement Credit. The portion of any
Tenant’s Rent Abatement which is reduced or paid back to Landlord pursuant to this Section 7 shall
not be included in calculating the Abatement Extension Period.

     8. Data Center Space. Landlord and Tenant agree that notwithstanding anything to the
contrary in the Lease or this Amendment, Landlord does not have to deliver the approximately 1,800
square foot space on the 6th floor used by GSA as a data center, nor the uninterrupted
power supply station adjacent to such data center space (collectively, the “Data Center Space”)
simultaneously with the delivery of the rest of the 6th floor, but Landlord will use all
commercially reasonable efforts to deliver the Data Center Space as soon as GSA vacates the Data
Center Space. Accordingly, the second sentence of Section 3.2(a) of the Lease is deleted
and replaced with the following sentence, “As used herein, Landlord’s delivery of “substantially
all of the Premises” shall mean that Landlord has delivered substantially all of the square footage
of the Premises (other than (i) the Data Center Space and (ii) de minimus portions of the Premises,
the failure to deliver which does not interfere with Tenant’s access to or beneficial occupancy of
the Premises, Tenant’s construction schedule, Tenant’s cost to initially fit-out the Premises or
commencement of Tenant’s Work).” Notwithstanding anything to the contrary in the Lease or this
Amendment, if Landlord has delivered substantially all of the Premises other than the Data Center
Space (the date of such delivery hereinafter being defined as the “Initial Delivery Date”), then,
if Landlord does not deliver the Data Center Space on or before the date that is three (3) weeks
after the Initial Delivery Date, then for each day after the

5

 

expiration of such three (3) week period until the date Landlord delivers the Data Center
Space, the date of April 15, 2008 (or if extended by the prior sentence in this Section
3.2(a) of the Lease, such later date) will be extended by an equivalent number of days.

     9. Upper Floors Rent Abatement. Prior to execution of this Amendment, Landlord and
Tenant, along with the escrow agent, entered into an escrow agreement related to the Upper Floors
Abatement Credit (the “Escrow Agreement”). Landlord and Tenant agree that because Landlord has
agreed to pass certain amounts through to Tenant in accordance with Section 4 of this
Amendment, (i) Landlord shall only be required to deposit additional amounts into escrow in the
event of and in the amount of any late Additional Payments, and (ii) in the event of a termination
of the Lease in accordance with the terms thereof, Tenant shall receive only the aggregate amount
of the late Additional Payments in the form of a cash payment; however, Tenant shall receive the
benefit of the Upper Floors Abatement Credit in the form of a rent abatement if the Lease is not
terminated. Accordingly, concurrently with the execution and delivery of this Agreement, (i) all
amounts currently held in escrow will be released and delivered to Landlord, and (ii) the Escrow
Agreement is hereby amended to reflect the terms of this Section 9. In the event that Landlord has
deposited any amounts into escrow due to late Additional Payments and Landlord later pays the
corresponding amount to Tenant, Landlord may thereafter reduce the amount deposited in escrow by
the amounts so paid to Tenant, and such reduction shall occur by the release from escrow and
delivery to Landlord of the applicable amount. In addition, all of Section 3.2(b)(4) of
the Lease (other than the last two sentences thereof, which last two sentences remain in full force
and effect) is deleted and replaced with the following:

(4) If any Additional Payment from GSA or portion thereof is late, within five (5)
business days after the due date of such Additional Payment, Landlord shall pay the
unpaid Additional Payment into escrow in accordance with the terms hereof, provided
that if Landlord subsequently pays Tenant the payment corresponding to any
Additional Payment, the escrow shall be reduced by the amount of such payment to
Tenant, and such reduction shall occur by the release from escrow and delivery to
Landlord of the applicable amount. If Tenant properly and timely terminates this
Lease in accordance with the terms of Subsection 3.2(i) below, then upon the
effectiveness of Tenant’s termination, the balance of the escrowed amounts through
the date of termination will be released from escrow and delivered to Tenant, and
additionally Landlord shall pay Tenant the portion of any Additional Payments
accrued prior to the effective termination date of the Lease which have not been
paid to Tenant or placed in escrow, provided, however, that the Additional Payments
due on November 1, 2007 and December 1, 2007 shall be payable to Tenant only upon
receipt by Landlord from GSA. Landlord’s obligation to make such payments to Tenant
shall survive termination of the Lease. Notwithstanding the foregoing, if at any
time prior to termination of the Lease Landlord delivers all Floors to Tenant, the
escrowed amounts will be released from escrow and delivered to Landlord (such escrow
release not to reduce Landlord’s obligations to use all commercially reasonable
efforts to collect the Additional Payments from GSA). All interest earned on the
escrowed amounts will follow such amounts and be delivered to the applicable party.
The escrowed amounts will be held by an escrow agent designated by

6

 

Tenant and reasonably acceptable to Landlord; Landlord hereby approving Commonwealth
Land Title Insurance Company (c/o LandAmerica Commercial Services) as the escrow
agent. Any fees charged by the escrow agent will be paid by Landlord. All sums
held in escrow pursuant to the terms hereof will be governed by the terms of the
escrow agreement attached hereto as Exhibit M, which escrow agreement will be
executed and delivered by Landlord, Tenant and the escrow agent concurrently with
the execution and delivery of this Lease.

          Section 3.2(b)(6) of the Lease is deleted and replaced with the following:

(6) If, because of Landlord’s failure to timely deliver the Premises, Tenant
properly and timely terminates this Lease in accordance with the terms of the Lease,
then other than (i) Landlord’s payment to Tenant of the Additional Payments as set
forth in Section 4 of that certain First Amendment to Office Lease Agreement dated
June 5, 2007 (Landlord and Tenant acknowledging the contingent nature of the
payments scheduled for October 1, 2007 and November 1, 2007), (ii) Landlord’s
payment (or reimbursement, as applicable) of the amounts expressly set forth in
Subsection (5) and required to be paid or reimbursed in accordance with Subsection
(5) immediately above, and (iii) Landlord’s return of the Security Deposit to
Tenant, Landlord shall not pay or be obligated to pay any additional amounts to
Tenant.

     10. Alternative Space/Tenants. Tenant agrees that, upon full execution of this
Amendment, Tenant will immediately and until August 15, 2007 cease all efforts to lease or
otherwise seek to lease or occupy other sites and spaces as an alternative to leasing the Premises.
Landlord also agrees that, upon full execution of this Amendment, Landlord will immediately and
until August 15, 2007 cease marketing the Premises as potentially available, and immediately cease
seeking to lease the Premises to potential tenants as replacements for Tenant. Notwithstanding
anything to the contrary, in addition to any other rights and remedies under the Lease, Landlord
and Tenant are entitled to injunctive relief or similar remedies for a breach of the terms of this
Section 10.

     11. Additional Modifications.

          (a) Section 3.2(b). Add the phrase “expressly excluding the Data Center Space” in the
first sentence after the phrase “floors 6, 7 & 8.”

          (b) Section 3.2(b)(2). This section is deleted and replaced with the following:

Notwithstanding the foregoing terms of this Section 3.2, (i) if Landlord
delivers any Floor to Tenant (but less than all of the Floors) and if, and only if,
(a) all of the Floors (except for the Data Center Space) are delivered within three
(3) weeks of the first delivery of a Floor to Tenant and (b) the Data Center Space
is delivered within three (3) weeks of the delivery of the balance of the Floors
(except for the Data Center Space), the Upper Floors Abatement Credit will be
reduced on a pro rata basis (based on the rentable square footage of the Floors) for
the applicable Floor(s) delivered from the date of delivery, and (ii) upon delivery

7

 

of the Floors (or the last Floor, in the event delivery of the Floors is staggered
on a floor by floor basis), the Upper Floors Abatement Credit will be prorated based
on the number of days in the applicable calendar month of delivery. By way of
example only of the foregoing terms of Subsection (b), if Landlord delivers the
Floors to Tenant in the Ready Condition on June 10, 2007, the Upper Floors Abatement
Credit will equal the sum of One Hundred Fifty Thousand Dollars ($150,000) (which
sum is made up of $100,000 for the calendar month of May and $5,000 per day for the
ten (10) days in the calendar month of June; i.e., for the calendar month of June
the total scheduled abatement of $150,000 divided by 30 days is $5,000 per day).

          (c) Section 3.2(b)(3). This section is deleted and replaced with the following:

Any such phased delivery of a Floor and resultant pro rata abatement reduction shall
not modify the Lease Commencement Date. Landlord shall not deliver, and Tenant
shall not be obligated to accept, any partial floors that comprise the Floors,
except for the sixth (6th) floor, which Landlord may deliver and Tenant
shall accept without the Data Center Space. Tenant shall, however, accept an entire
floor so long as such floor is delivered in Ready Condition (except for the sixth
(6th) floor, which may be delivered without the Data Center Space as
provided above).

          (d) Section 3.2(d). Romanette (i) of the first sentence of this section is deleted
and replaced with the following:

(i) the term of its lease for the 1899 L Space (“Tenant’s Existing Lease”) has been
extended to April 30, 2008 (subject to a one-time right to extend the term thereof
up to and until December 31, 2008, which as of June 1, 2007, must be exercised (if
at all) on or before June 15, 2007), and that Tenant leases approximately 72,727
rentable square feet under Tenant’s Existing Lease and

Also, Landlord and Tenant agree that the Swing/Extension Abatement will not be applicable to more
than six (6) months of extended term or swing space (i.e., three (3) months of abatement by virtue
of the one-for-two applicability of such abatement). Accordingly, the phrase “more than eight (8)
months of extended term or swing space (i.e., four (4) months of abatement” in the fourth
(4th) sentence of Section 3.2(d) is deleted and replaced with the phrase “more
than six (6) months of extended term or swing space (i.e., three (3) months of abatement”.

          (e) Section 3.2(i). The last sentence of this section is deleted and replaced with
the following:

Notwithstanding the provisions of Article XXX of this Lease to the contrary, no termination fee
shall be payable by Tenant in the event Tenant terminates the Lease pursuant to the provisions of
this Section 3.2.

8

 

     12. Ratification. Except as expressly modified by the terms of this Amendment, the
Lease shall remain unchanged and continue in full force and effect. All terms, covenants and
conditions of the Lease applicable to the Premises, as amended hereby, are confirmed and ratified,
remain in full force and effect, and constitute valid and binding obligations of Landlord and
Tenant, enforceable according to the terms thereof.

     13. Authority. Landlord, Tenant and the persons executing and delivering this
Amendment on their respective behalves each represents and warrants that such person is duly
authorized to so act, and has the power and authority to enter into this Amendment, and that all
action required to authorize Landlord, Tenant and such person to enter into this Amendment has been
duly taken.

     14. Binding Effect. This Amendment shall not be effective and binding unless and
until fully executed and delivered by each of the parties hereto. All of the covenants contained
in this Amendment, including, but not limited to, all covenants of the Lease as modified hereby,
shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, legal
representatives, and permitted successors and assigns. In the event of a conflict between the
terms of the Lease and the terms of this Amendment, the terms of this Amendment will control. This
Amendment will be effective between Landlord and Tenant when executed and delivered by such parties
regardless of whether escrow agent executes and delivers this Amendment.

     15. Condition. Notwithstanding anything to the contrary, the effectiveness of this
Amendment is expressly conditioned upon simultaneous execution and delivery of the New SLA by
Landlord and GSA.

     16. Counterparts. This Amendment may be executed in multiple counterparts, each of
which shall constitute an original, and all of which, together, shall constitute one and the same
document.

     17. Letter of Accounting. Within thirty (30) days following the delivery date of the
Premises, the parties shall use their good faith efforts to execute a letter of accounting which
sets forth a calculation of the abatement credits due to Tenant in respect of the Lease. Within
thirty (30) days following the Lease Commencement Date, the parties shall use their good faith
efforts to amend the letter of accounting to reflect any further adjustments or specifications to
information contained therein. The failure to execute such letter of accounting or any amendment
thereto shall not affect the parties’ rights or obligations under the Lease. Each party shall pay
its own expenses in reviewing and executing such letter.

[signatures on next page]

9

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the
date first above written.

	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	LANDLORD:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WASHINGTON TELEVISION CENTER LLC, a District of	 	 
	 	 	Columbia limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	WTC Realty, Inc., a Delaware corporation, 

its Managing Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Richard R. Wojcik      [SEAL]	 	 
	 

	 	 	 	Name:
	 	Richard R. Wojcik
	 	 
	 

	 	 	 	Title:
	 	President	 	 

	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	TENANT:	 	 
	 
	 	 	 	 	 	 
	 	 	BLACKBOARD INC.,
	 

	 	a Delaware corporation

	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Justin Tan      [SEAL]	 	 
	 

	 	Name:
	 	Justin Tan
	 	 
	 

	 	Title:
	 	Deputy General Counsel	 	 

	 	 	 	 	 	 	 
	 	 	Escrow Agent joins in this Amendment on the date set
forth above to acknowledge the modifications set
forth herein and to consent to the terms set forth in
Section 9 of this Amendment.	 	 
	 
	 	 	 	 	 	 
	 	 	ESCROW AGENT:	 	 
	 
	 	 	 	 	 	 
	 	 	Commonwealth Land Title Insurance Company, a

LandAmerica company	 	 
	 
	 	 	 	 	 	 
	 

	 	          By:

          Name:
	 	/s/ David P. Nelson
 

David P. Nelson
	 	 
	 

	 	          Title:
	 	Vice President	 	 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}]]