Document:

Exhibit

Exhibit 10.1 

U.S. Executive Relocation Policy
Tier C
(Bands 0-3)

Relocation Policy Tier C            Effective April 2017
Published April 2017

Table of Contents
	
			
	Introduction
	4
	

	Eligibility
	5
	

	Summary of Relocation Benefits
	6
	

	Expense Reimbursement
	8
	

	                Reimbursable Expenses
	8
	

	                Relocation Agreement
	8
	

	                Confidentiality
	9
	

	                Interpretation and Changes in Relocation Policy
	9
	

	                Exceptions
	9
	

	Tracking Your Move on Lexicon’s Transferee Web Portal
	10
	

	Relocation Benefits – Example
	11
	

	Miscellaneous Expense Allowance (MEA) = Core Benefit
	12
	

	Selling Your Current Home = Core Benefit
	13
	

	                Buyer Value Option Home Sale Program
	13
	

	                Properties Not Eligible for Home Sale Program
	13
	

	                Selection of an Agent
	14
	

	                Marketing Strategy
	15
	

	                Listing Your Home
	15
	

	                Home Marketing Assistance and Marketing Updates
	15
	

	                Property Condition Inspections
	15
	

	                Title Search
	15
	

	                Receiving an Offer from an Outside Buyer
	16
	

	                Closing the Sale with Lexicon
	16
	

	                Non-covered Closing Expenses
	16
	

	Home Owner Rental Option = Core Benefit
	17
	

	Destination Assistance = Core Benefit
	18
	

	                For the Renter
	18
	

	                For the Homeowner
	18
	

	House Hunting Trip = Flexible Benefit
	19
	

	                Eligibility
	19
	

	                Travel Arrangements
	19
	

	Homeowner Destination Inspection Program = Flexible Benefit
	20
	

	                Service Provides
	20
	

	New Home Mortgage = Core Benefit
	21
	

	                Preferred Lender
	21
	

	                Advantages
	21
	

	                Contact Information
	21
	

	                Closing Cost Reimbursement
	21
	

	New Home Purchase Costs = Core Benefit
	22
	

	                Eligibility
	22
	

	                Tax Assistance
	22
	

	Renter’s Assistance = Core Benefit
	24
	

	                 Lease Termination
	24
	

Relocation Policy Tier C                                                       2    Effective April 2017

	
			
	                 Finder's Fees
	24
	

	Moving Your Household Goods = Core Benefit
	26
	

	                 Shipment
	26
	

	                 Items Not Eligible to be Transported
	26
	

	                 Handling Oversized Items
	27
	

	                 Valuation Coverage
	27
	

	Other Household Moving Benefits = Flexible Benefit
	27
	

	                 Vehicles
	27
	

	                 Storage
	27
	

	                 Pets
	27
	

	Temporary Living = Flexible Benefit
	28
	

	                Covered Expenses
	28
	

	                Excluded Expenses
	28
	

	Duplicate Mortgage Interest = Flexible Benefit
	28
	

	                Reimbursed Expenses
	28
	

	                Tax Assistance
	28
	

	Spousal Career Assistance = Flexible Benefit
	29
	

	Final Move Trip = Flexible Benefit
	30
	

	                Final Move Defined
	30
	

	                Air Travel
	30
	

	                Personal Automobile Travel
	30
	

	Discretionary Benefit
	30
	

	Reduction in Force/Workforce Restructuring
	31
	

	Tax Considerations
	32
	

	                Tax Assistance
	32
	

	                Definitions
	32
	

	                Excludable Expenses
	32
	

	                Payments Not Eligible for Tax Assistance
	33
	

	                Record Keeping
	33
	

	Tax Summary
	34
	

	Addendum 1 - Relocation Agreement
	35
	

Relocation Policy Tier C                                                       3    Effective April 2017

Introduction

	
		
	Congratulations

	Congratulations on your upcoming relocation with Discovery.  This is an exciting and challenging time for you as you prepare for your move.  We are here to make this process as stress-free as possible!

	Relocation Policy
	Discovery wants your transition to be as smooth as possible.  Therefore, we have prepared this guide book to assist you with your move.  This policy describes your benefits under the Discovery Communications Relocation policy.

	Issues
	Throughout your relocation, there are numerous personal, legal and tax matters to be considered.  Making well-informed decisions requires a thorough understanding of Discovery’s relocation policy and your role in the process.  Please take the time to read this policy carefully as you are responsible for understanding and adhering to policy guidelines.

	Lexicon Relocation
	Discovery has partnered with Lexicon Relocation (Lexicon) to assist you in coordinating all aspects of your relocation.  Upon receiving your completed relocation authorization form by Discovery, Lexicon will assign a dedicated Relocation Counselor who will be your primary point of contact throughout your move.  Your Relocation Counselor will navigate you through the relocation process and answer any questions.  Your Relocation Counselor will also outline the information you need to provide Lexicon so that your needs can be responded to quickly and appropriately.
If you are a homeowner, do not contact a real estate firm to list your home or to purchase a new home prior to talking with your Lexicon Relocation Counselor.

	Planning

	We encourage you to become fully involved in your move and to work closely with the professionals who have been made available to you.  The more actively that you participate and provide information, the more effectively your Relocation Counselor and others can serve you.  Planning your move with a clear understanding of the policy will also help to avoid unpleasant surprises.  The most successful moves are those that are well planned.

Best wishes for a successful relocation!

Relocation Policy Tier C                                                       4    Effective April 2017

Eligibility

	
		
	Purpose

Eligibility
	This policy is designed to offset most of the major expenses associated with your relocation so you may devote your full energies to a smooth and productive transition to your new job.

You are eligible for assistance described in this policy, if:
a)    You are a current, full-time employee, or offered full-time employment by Discovery in Job Bands 0, 1, 2 and 3.
b)    You are requested to relocate by Discovery and approved by Discovery as eligible to receive these benefits.
c)    You must complete your relocation within two years from your hire date or transfer date.
d)    You must return a signed Relocation Agreement within 30 days of your date of hire or transfer date.
e)    You are a current, full-time employee, or a new hire, and
f)    You and your immediate family member(s) (e.g., spouse/partner and children or legal dependents residing with you) are requested to relocate by Discovery and are designated as eligible to receive these benefits
If you are receiving any relocation benefits through a third party such as your previous employer or via your spouse/partner, you are required to disclose this information to Discovery.  Discovery, at its sole discretion, may offset or withdraw any or all benefits for your relocation. 

	Eligible Family Members 

	For relocation you may be eligible to be reimbursed for qualifying expenses of any eligible family member who accompanies you.
Eligible Family Member – for purposes of accompanying you, eligible family includes your:
•    current spouse (including a common law spouse according to applicable law) or domestic partner; 
•    any child age eighteen or under who is in your legal custody or the custody of your accompanying spouse or domestic partner and who depends upon you for financial support; 
•    any unmarried son or daughter up to age twenty-five who is a registered full-time student working toward a degree.

	Distance
	Your relocation must result in a change of your primary residence within the United States and must meet the IRS 50-mile distance requirement.  Relocation benefits will be paid if the distance between your former residence and your new work site is at least 50 miles greater than the distance between your former residence and your former work site.

This policy is not an employment offer or employment contract or a guaranty of continued employment.  The company’s decisions regarding the application and interpretation of the relocation policy are final.  Discovery also reserves the right to change or cancel all or any part of these benefits at any time.  

Relocation Policy Tier C                                                       5    Effective April 2017

Summary of Relocation Benefits

	
		
	Core Benefits
	Maximum Allowable = 60% of annual salary not to exceed $150,000

	Miscellaneous Expense Allowance (MEA)
	Payment equal to one (1) month’s salary up to a maximum $15,000 less taxes.  Payment cannot be advanced greater than 30 days prior to your start date and will be made within 60 days from your date of arrival.

	Home Owner Sale Option
	You must contact Lexicon Relocation before listing your property with a real estate agent.  Home Sale Assistance includes Home Marketing Assistance and Buyer Value Option Home Sale Program.

	Home Owner Rental Option
	If you decide to rent your home instead of selling through the Home Sale option above, you will be eligible for reimbursement of reasonable and customary management fees associated with renting your home until your benefit expiration date.  You must elect this option within 6 months from your date of hire or transfer date and once elected you forfeit the home sale option.  This option only applies for homeowners.

	Destination Services
	Contact your Lexicon Relocation Counselor before contacting a real estate agent.

	Home Purchase Closing Costs
	Company reimburses reasonable and customary home purchase expenses.  
If you use one of the national preferred mortgage lenders, your qualified closing costs can be direct billed to Lexicon.  Your Lexicon consultant will place you in contact with the 3 preferred lenders so that you can obtain the most favorable rate.

	Renter’s Assistance
	Maximum of two (2) months’ rent for any combination of lease cancellation, penalty charge, or forfeiture of lease.  In addition, broker’s commission for finding a rental in NYC is reimbursed up to 15% of the annual rent (in the surrounding NYC metro area, broker’s commission is capped at 1 month rent).

	Household Goods
	Normal shipment of family household goods moved via van line arranged  by Lexicon

	Flexible Benefits
	Maximum Allowable = 20% of annual salary not to exceed $50,000

	Vehicle Shipment(s)
	Below 500 miles, see mileage reimbursement – no shipping.  Greater than 500 miles shipment by Lexicon approved car carrier, maximum of 2 vehicles.

	House Hunting Trip(s)
	Up to two (2) trips of 5 days each for Employee, Spouse/partner and Children to include: Economy class flight, or mileage if driving, meal per diem, lodging and childcare provisions, if necessary.  Air travel must follow business travel guidelines.

	Household Goods Storage
	Short term storage of household goods during company sponsored temporary living period.

	Temporary Living
	Temporary living expenses for fully furnished corporate apartment at origin and destination are limited to a total of 6 months combined. Your Lexicon consultant will arrange for an approved corporate vendor.   Discovery cannot reimburse for personal leases.

Pre-departure temporary accommodations are limited to a maximum of 30 days. 

	Duplicate Housing
	Duplicate mortgage interest expense for up to a maximum of six (6) months

	Final Move
	Reasonable and actual en route expenses reimbursed including transportation, mileage, lodging and meals, airfare if move distance greater than 300 miles.

	Spousal Career Assistance
	Up to $5,000 in spousal employment search assistance arranged by Lexicon through Discovery partner Lee Hecht Harrison.

Relocation Policy Tier C                                                       6    Effective April 2017

	
		
	Discretionary Benefit
	Maximum Allowable = 20% of annual salary not to exceed $50,000

	 
	Once you have exhausted your Core or Flex benefits you may be entitled to use your discretionary benefit to supplement Flex or Core benefits.  Eligibility for this benefit is in the sole discretion of the company and based on extenuating circumstances.  Your Lexicon consultant will assist with the approval process. You may not use the Discretionary Benefit to increase your Core MEA Payment.

	Maximum Reimbursements
	1x Annual Salary up to $250,000

	 
	Discovery’s relocation program is not designed to cover all of your relocation costs; you may have some out-of-pocket expenses.  Your reimbursement is limited to one times your annual salary, up to $250,000, excluding tax assistance.  All expenses reimbursed will be in accordance with the relocation policy.  Your relocation benefits end 24 months from your date of hire or transfer date.

Relocation Policy Tier C                                                       7    Effective April 2017

Expense Reimbursement

	
		
	Reimbursable Expenses
	You may be reimbursed for reasonable, necessary and properly authorized expenses covered by this program.  You are expected to manage expenses at a conservative level and to be familiar with which expenses are reimbursable and which are not.  The Company, at its discretion, may choose not to reimburse, in full or in part, an expense that is deemed unreasonable or excessive.  All expenses, unless otherwise specified, must be in accordance with Discovery’s Policies.  Receipts are required for all reimbursable expenses. Expenses must be submitted within 60 days from the date the expense was incurred.  
Credit card statements cannot be used in lieu of original receipts.

	Steps To Follow For Reimbursement
	After your Relocation Counselor contacts you to review your relocation benefits and your relocation requirements, you will receive two e-mails, one with your password and one with your username to access your individual site on Lexicon’s Web portal.  The site will provide information on your relocation details and a link to an on-line relocation expense report along with directions for completing each expense report. 
•    Scan your receipts, attach to the electronic expense report, and submit on line. You will be notified of receipt via e-mail
•    Make a copy of the report and receipts for your records
•    If you are not able to scan your receipts, you may fax or mail your receipts to the fax number or mail address provided on the expense report form.  You must attach a copy of your expense report to any receipts you fax or mail.
•    If you do not have access to a computer, you may ask your Relocation Counselor to send you the Relocation Expense report form and you may fax or mail the expense report along with required receipts to the fax number or address provided on the form
•    Expense Report forms that are mailed will take longer to process 

	 
	It is important to remember:
•    Relocation expenses must be separate and distinct from business expenses.
•    If you are traveling on business during this period, you must submit those expenses on a Discovery business expense report form.
•    You should keep records and original receipts of all your expenses, if scanning. This will assist in the completion of your federal and state tax returns at year-end.
•    YOU MUST NOT USE YOUR DISCOVERY CORPORATE CREDIT CARD FOR ANY RELOCATION EXPENSES.
•    Benefits have no cash value and cash payment may not be substituted for any specific benefit and cannot be exchanged for other benefits except for Discretionary benefit category.
•    No expenses will be reimbursed or paid after two (2) years from Start Date in the new location.

	Relocation Agreement
	You must sign and return the Relocation Agreement to Discovery before any relocation payments can be processed.  Please refer to Addendum 1 attached to this policy document.
Please sign and return this document to your Human Resources Representative (HRM).

Relocation Policy Tier C                                                       8    Effective April 2017

	
		
	Confidentiality

	In order for Lexicon to administer the provisions of the relocation policy, Discovery provides certain employee information (i.e. base salary, tax information, etc.).  Lexicon agrees that its employees will maintain the confidentiality of this personal information and use it strictly for the purposes set forth in the policy.

	Interpretation and Changes in Relocation Policy
	This document provides you with the information you need to know about the Discovery relocation policy.  However, Discovery reserves the right to end, suspend or amend the Relocation Policy at any time.  Further, Discovery retains the final discretionary authority to establish and interpret the provisions of this policy and determine eligibility for benefits.

	Effective Date
	This document describes the provisions of the Discovery Relocation Policy effective as of April 2014.

	Exceptions

	Any deviations from this policy must be requested, in writing, through your Lexicon Relocation Counselor. Discovery has the sole discretion to approve any exception requests prior to any reimbursement.  Requests for exceptions after you have incurred the expense may not be reimbursed. YOUR MANAGER DOES NOT HAVE THE AUTHORITY TO GRANT ANY EXCEPTIONS TO THIS POLICY.

Relocation Policy Tier C                                                       9    Effective April 2017

Tracking Your Move on Lexicon’s Transferee Web Portal

Lexicon’s Transferee will give you access to helpful relocation information and the details of your move.  In addition to working with your Relocation Counselor, this web site provides another source of information that will help ensure a smooth transition to your new location.

Features and benefits of the web site include:
		
	•
	Online access to all important information on your relocation, including all relocation support contact names, phone numbers and status updates

		
	•
	Access to your relocation policy summary

		
	•
	Housing information and maps

		
	•
	Tips, timelines and other useful links to help you make informed decisions and research tools for exploring your new destination city

		
	•
	Secured site to ensure that no one else can access your personal information

The link to Lexicon’s Web Portal will be sent to you with tour user ID and Password will provide access to your personal information.  

Relocation Policy Tier C                                                       10    Effective April 2017

Relocation Benefits – Example

This is an example to show you how the three distinct categories of benefits work together to create your total relocation benefit.  Your relocation benefit is calculated based on Annual Salary (rounded up to the next $1,000) up to a maximum of $250,000.

In this example, the employee has an annual salary of $183,450.  The employee’s total relocation expense cap is $184,000.

	
							
	CORE BENEFIT
	$110,400

	Maximum Allowable – 60% of Annual Salary

	Home Sale
	$65,000
	 

	Household Goods
	$11,000
	 

	MEA
	$15,000
	 

	New Home Closing Costs
	$14,000
	 

	 
	 
	 

	Total Submitted
	 
	

	$105,000
	

	Amount Remaining
	 
	

	$5,400
	

	 
	 
	 

	FLEXIBLE BENEFIT
	

	$36,800
	

	Maximum Allowable – 20% of Annual Salary

	House Hunting
	$
	4,000
	

	 

	Vehicle Transportation
	

	$1,500
	

	 

	Duplicate Mortgage
	

	$7,800
	

	 

	Final Move
	

	$1,500
	

	 

	Storage
	

	$4,000
	

	 

	Temporary Housing*
	

	$18,000
	

	 

	 
	 
	 

	Total Submitted
	 
	

	$36,800
	

	Amount Remaining
	 
	

	$0
	

	 
	 
	 

	DISCRETIONARY BENEFIT
	

	$36,800
	

	Maximum Allowable – 20% of Annual Salary

	Temporary Housing*
	

	$7,000
	

	 

	 
	 
	 

	Total Submitted
	 
	

	$7,000
	

	Amount Remaining
	 
	

	$35,200
	

*Full cost of temporary housing is $25,000.  Flexible Benefit covers $18,000, but then the maximum allowable amount is reached.  Discretionary Benefit can then be used to cover the additional $7,000.

Relocation Policy Tier C                                                       11    Effective April 2017

Miscellaneous Expense Allowance (MEA) = Core Benefit

	
		
	MEA

	To help defray expenses associated with your move that are not covered under the Discovery relocation policy, the Company will provide you with a MEA Payment. Payment cannot be advanced greater than 30 days prior to your start date and will be made within 60 days from your date of arrival.   
The MEA is equal to one month’s gross base salary not to exceed $15,000, less taxes. The payment is intended to reimburse you for many of the incidental expenses you incur as a direct result of your transfer.  The MEA is considered a CORE relocation benefit.  Examples of  expenses may include:

•    Tips or gratuities to movers
•    Driver’s licenses and automobile registrations in the new location
•    Utility hookups, phone, and/or deposits
•    Expenses related to moving pets including transportation (i.e., boarding, veterinarian care)
•    Cleaning or maid service (new or old location)
•    Non-refundable annual tuition, club dues, memberships and/or subscriptions
•    Tax consulting
•    Pick up from storage or another location other than the primary residence
•    Special packing needs
•    Costs unique to your personal move not covered by this policy
•    Laundry while in temporary living
•    Relocation costs that exceed your flexible and discretionary  relocation benefits described below

	Taxes Withheld

	Payment of your MEA will be made upon receipt of your signed Relocation Agreement and commencement of your relocation.  The MEA is reported as taxable income and taxes will be withheld based on your Discovery payroll records.

Relocation Policy Tier C                                                       12    Effective April 2017

Selling Your Current Home = Core Benefit

	
		
	Buyer Value Option Home Sale Program

	IMPORTANT:  Please do not contact any real estate agent to list your home until you speak with your Lexicon Relocation Counselor about the home sale program benefit called the Buyer Value Option (BVO) home sale program. 
The BVO program enables you to sell your home to Lexicon Relocation based on an acceptable offer from an outside buyer providing all requirements of the BVO program are met. When all requirements are met, broker commissions and closing costs paid as part of this home sale program are non-taxable under current IRS guidelines.

	Properties Not Eligible for Buyer Value Option Home Sale
	The home that you are selling must be considered your primary residence and you must occupy to the property prior to the acceptance of this relocation.   Discovery cannot assist with the sale of vacation homes or investment properties.   The following properties are not eligible for the BVO home sale program.  Please notify your Relocation Counselor if your home is any of the following:
•    Cooperative Housing 
•    Farms
•    Vacant Land
•    House trailers, Motor Homes or Mobile Homes not permanently affixed to the property
•    Houseboats
•    Multi-family dwellings 
•    Income producing properties
•    Real Estate under renovation or construction 
•    Residence with land in excess of what is typical for the neighborhood 
•    Residences acquired for commercial or speculative purposes
•    Residence containing or located near hazardous materials 
•    Residence that does not meet Fannie Mae mortgage guidelines 
•    Residences that are in need of excessive maintenance and/or repair
•    Residences for which financing or insurance are not obtainable
•    Residences without clear marketable title 
•    Residences with an Exterior Insulating Finish Systems (EIFS) or any brand of synthetic stucco not considered traditional cement based stucco.

	If Your Home Does Not Qualify for the BVO Program
	If your home is ineligible for the BVO home sale program based on the requirements above, you can submit your Settlement Statement (HUD1) to Lexicon for reimbursement of broker commissions and normal and customary seller’s closing costs. Tax assistance will be provided. Please see Tax Considerations at the end of this policy document for additional information.

Relocation Policy Tier C                                                       13    Effective April 2017

	
		
	

Properties Needing “Remedial” Steps to Become Eligible for BVO Home Sale
	Properties with the following issues would not qualify for the BVO Home Sale program until remedial steps are taken to correct the problem.
•    An “active” underground storage tank unless you are able to provide transferable “Tank Insurance” that covers spills and clean ups and is acceptable to Lexicon; the property will again be eligible.  The cost of such insurance is your responsibility. It will also be your responsibility to provide all clearance from applicable municipality state or federal governances.
•    Residences with an “inactive or abandoned” underground storage tank unless you are able to have the underground storage tank successfully removed and provide documentation (i.e. receipt from contractor or proof of payment) and re-inspection results in a clear report, acceptable to Lexicon. The cost of all remedial steps is the responsibility of the Relocating Employee. It will also be your responsibility to provide all clearance from applicable municipality state or federal governances.
•    Environmental, Structural and/or EPA related issues as it relates to environmental concerns (such as but not limited to asbestos, lead paint, toxic materials) and excessive repairs. If retesting results in a clear report, acceptable to Lexicon the property will again be eligible. The cost of all remedial steps is the responsibility of the Relocating Employee. It will also be your responsibility to provide all clearance from applicable municipality state or federal governances.

	Selection of an Agent
	Before you list, two Real Estate Firms/Agents will be recommended by Lexicon to provide a Broker Market Analysis (BMAs) to Lexicon and you.  The BMAs are reviewed by your Relocation Counselor; copies are sent to you for your review, and you and your Relocation Counselor will discuss the BMAs to set a target sale price.

	 
	Lexicon understands that getting the best price for your home is vital to a successful relocation.  The selection of a knowledgeable real estate agent is very important.  Lexicon has arranged to provide you access to a network of qualified real estate agents available in your community who specialize in assisting relocating employees and are trained in relocation home sale requirements.
Lexicon’s recommended real estate firms and agents are specially trained to effectively market your home, as well as, address the needs that are unique to relocation.  In addition using one of these agents may relieve you of any pressure you may feel to use the services of a friend, relative or acquaintance in the real estate field.
Lexicon Relocation will provide you with qualified agents in your area from which to select a listing agent/firm.  We recommend that you interview these agents to assess their ability to effectively market your home.  Please advise them that you are considering using their services and they have been referred by Lexicon Relocation.
Some of the questions you might ask them to help you in your selection process are: 
•    What is the current average marketing time for listings in my neighborhood?
•    How many homes similar to mine in price and location do you currently have listed?
•    How many homes similar to mine have you sold in the last 90 days?
•    In what locations and price ranges are you most active?
•    What are the comparable home listings and sales you will or have used to arrive at your recommended list price?
•    How do you intend to market my home (number/frequency of open broker and public houses, where and how will my home be advertised including number of websites, other recommendations)?

Relocation Policy Tier C                                                       14    Effective April 2017

	
		
	Marketing Strategy
	The agent’s marketing strategy will include:
•    Suggestions on how to prepare your home for sale
•    A recommended listing price and anticipated sales price
•    Information on competing properties for sale and recently closed comparable homes
•    Creative home sale promotion ideas
•    Bi-weekly marketing update/status reports to you and Lexicon

	Listing Your Home
	Agent listing commissions should be limited to 6% and the initial listing period should be no longer than 90 days. To ensure you are priced right for the market, your list price should be no more than 105% of the average of the 2 agents’ anticipated sales price.

	Home Marketing Assistance and Marketing Updates
	Your Relocation Counselor will monitor the entire listing effort, including a review of homes currently listed in your area and an evaluation of recently closed properties to ensure that a realistic pricing strategy is in place.  Marketing assistance also includes pro-active marketing strategy calls, follow-up on buyer and Realtor feedback, follow-up on advertising and open house events.  Your Relocation Counselor will also make recommendations to adjust your price, sales terms, and/or conditions accordingly.

	Property Condition Inspections
	At the same time you are making your agent selection, Lexicon must order property condition inspections on your home in order to purchase your home once an outside buyer is found.  These inspections include, but are not be limited to:
•    General Property Condition Inspection
•    Pest Inspection (Wood destroying Organism – WDO)
•    Radon Inspection, if applicable for your area
•    Well and/or septic system inspection, if applicable
Additional inspections, such as structural or roof inspection may be required based on recommendations on the General Property Condition Inspection report. When your Relocation Counselor receives the inspection reports from the inspection company, copies are sent to you and required repairs, if any, will be reviewed with you. You are required to make repairs before a buyer makes an offer. (See “Repair Allowance” below.).
When repairs are completed during the marketing process and prior to an outside buyer’s offer, the home has more market appeal and buyers are less likely to want to negotiate price based on condition.

	Repair Allowance
	Based on the Property Condition Inspection above, Lexicon may require you to undertake certain repairs, as determined by Lexicon. Should you be required to make repairs at Lexicon’s request, you may be eligible for a home repair allowance up to $5,000 to complete required repairs. Lexicon will arrange for hiring applicable contractors and arrange for direct billing of costs.  Any repairs over $5,000 will be at your expense. Receipts for work completed and a satisfactory re-inspection will be required for reimbursement.  Please discuss the options with your Relocation Counselor PRIOR TO making any repairs.

	Title Search
	In addition to property condition inspections, Lexicon will contact its national real estate title company to complete a title search on your home to ensure the title on your home is clear. The title company will also send you required documents necessary to close the sale with the outside buyer that you will need to complete and return so Lexicon can close the sale with the new buyer once an offer is accepted on your home.  Lexicon may not accept an offer with contingencies if repairs are not completed.

Relocation Policy Tier C                                                       15    Effective April 2017

	
		
	Receiving an Offer from an Outside Buyer
	When you receive an acceptable offer from an outside buyer, your Relocation Counselor can assist you with the negotiation process.  You can negotiate with the outside buyer until a verbal agreement is reached.  
DO NOT SIGN ANY CONTRACT OR PURCHASE OFFER. Signing an offer will disqualify you from the BVO program.
The written offer must list Lexicon Relocation, LLC as the seller. 
Sale cannot be contingent on the sale of the buyer’s current home.
The written offer packet must include all required Lexicon and state required documents including:
•    Buyer’s lender pre-approval letter
•    Lexicon and state property disclosure forms
•    Inspection reports initialed by buyer
Your Realtor® will send the outside buyer’s written offer including the above to your Relocation Counselor for review and approval.
If the offer meets all the requirements for the Buyer Value Option program, and you have completed and returned to Lexicon and the title company all your required paperwork; your Relocation Counselor will send you an Employee Home Purchase Agreement (EHPA) to purchase your home for the same price and terms as the outside buyer’s offer. After you sign and return Lexicon’s offer (EHPA), Lexicon will sign the written offer from the outside buyer.

	Closing the Sale with Lexicon
	When you accept Lexicon’s offer on your home and need your equity to purchase a home in your new location, Lexicon will have its title company determine the equity in your home.  Your equity will be based on the purchase price less any mortgage balance(s), taxes, interest and Homeowners’ Association fees, if applicable, prorated through your vacate date or offer acceptance date, whichever is later, and any agreed upon repair costs not previously completed. You will not be billed for any standard closing costs on the sale of your home to Lexicon.

	Non-covered Closing Expenses
	The following costs are examples of items that are NOT covered closing expenses and will be deducted from your equity if they are included in the sale to the outside buyer:
•    Home Owner Warranties
•    Closing Costs typically paid by the buyer
•    FHA/VA fees
•    Concessions to the Buyer (such as  homeowners’ association or property tax credits)
•    Buyer Broker Fees
•    Prepayment penalties over $2,500

This list is not all-inclusive.  Questionable items should be addressed with your Relocation Counselor during the sale negotiation process.

Relocation Policy Tier C                                                       16    Effective April 2017

Home Owner Rental Option = Core Benefit

	
		
	Property Rental Management
	The home that you are renting must be considered your primary residence and you must occupy to the property prior to the acceptance of this relocation.   Discovery cannot provide benefits for vacation homes or investment properties.   
If you decide to rent your home instead of selling through the Home Sale option above, you will be eligible for reimbursement of reasonable and customary management fees associated with renting your home until your benefit expiration date.  Your benefit expiration date is 24 months after your date of hire or transfer date, not from the date you rent the property.

Reimbursement is for management fees only including:
•    Leasing commission up to the equivalent of 1 month’s rent
•    On-going property management service fees, if any

Reimbursement does not include: 
•    costs of repairs
•    return trips to the property 
•    any rent payment shortfall

If you elect this option, and submit and are reimbursed for property management fees, you will forfeit the home sale benefit.

You must elect this option within 6 months from your date of hire or transfer date.

Notify your Relocation Counselor if you decide to select this option.  Your Relocation Counselor will provide you with contact information for firms in your location that provide property management services.

Renting your home instead of selling it may have tax consequences. We recommend that you consult with a tax advisor to evaluate any tax impact of renting your home.

Relocation Policy Tier C                                                       17    Effective April 2017

Destination Assistance = Core Benefit

	
		
	Finding the Right Home
	Lexicon understands that finding the right home in the new location is vital to a successful relocation.  Destination services provides access to either a rental finding professional or a qualified real estate agent who will be able to assist with area counseling and provide specific information such as: 
•    Types and price ranges of available rental housing or homes for sale
•    Town and neighborhood data
•    Property tax information
•    Commuting information
•    Education, medical, religious and other personal information

	For the Renter
	Help is available to assist you in renting a home or an apartment in your new location.  Your Relocation Counselor will refer you to a designated rental finding professional.  Discovery will pay the fees associated with the use of one of these agents.  These professionals are well qualified to assist you with area counseling and rental finding assistance.  You are responsible for fees charged by agents who have not been referred to you by your Relocation Counselor.  In Manhattan the customary cost of obtaining a rental property is 12% to 15% of the annual rent.   In the surrounding NY Metro area excluding CT, the customary fee is equal to one month rent.  Discovery will reimburse you for these customary costs to obtain a rental in these areas. 
It is uncommon for agents in other areas to charge rental commissions so please check with your Lexicon consultant before paying any fees to agents or landlords.

	For the Homeowner
	Selection of a knowledgeable and competent real estate broker in an unfamiliar area is very important.  Do not contact a real estate agent in your new location prior to speaking with your Lexicon Relocation Counselor.  

Lexicon has arranged to provide access to pre-qualified real estate firms and agents available in the new community who specialize in assisting relocating employees.  The realtors recommended by Lexicon Relocation have been specially trained to address issues that are unique to relocation.  Using one of these agents may relieve you of any pressure to use the services of a friend, relative or someone less qualified.

You are not required to use a Lexicon recommended agent to purchase or rent your new home. However, you must contact your Relocation Counselor to register your agent prior to contacting the agent yourself.

Use your login to Lexicon’s Web Portal to access links communities, schools and other useful information.

Relocation Policy Tier C                                                       18    Effective April 2017

House Hunting Trip = Flexible Benefit

	
		
	Eligibility
	Employees are eligible for up to two (2) trips of five (5) days each. Reimbursable expenses include transportation (either mileage reimbursement or airfare and local fares to/from airports and lodging.  Reasonable childcare expenses will be reimbursed if the children are not included on the trip.  Other expenses such as house sitting and animal care are covered by your MEA.

	Travel Arrangements
	All travel arrangements are in accordance with Discovery’s Travel Policy.

	Covered Expenses
	Two house-hunting trip(s) up to 5 days each including:
•    Round-trip transportation 
•    Economy Coach class – if travel by air (move distance must exceed 300 miles)
•    Rental car costs
•    Reasonable lodging 
•    Meal expenses at $40 per diem for employee or $60 per diem if additional family member(s) accompany the employee
•    If you travel by auto, you are eligible for reimbursement of the following costs:
•    Mileage reimbursement at corporate mileage rate (Cost of gasoline in not covered.)
•    Reasonable lodging 

	Tax Assistance
	Reimbursements for house hunting expenses are considered taxable income and will be reported as such.

Relocation Policy Tier C                                                       19    Effective April 2017

Homeowner Destination Inspection Program = Flexible Benefit

	
		
	Destination Home Inspection
	In addition to obtaining a mortgage on your new home, you may want to have a home inspection performed prior to completing the transaction.  To assist you with the inspection process your Relocation Counselor can arrange for a Home Inspection company representative to contact you and complete a Buyer’s Home Inspection on a property you wish to purchase. 

	Service Provides
	The service provides the following benefits:
•    Written property condition inspection results
•    Technical counseling
•    “Ask the Inspector” question and answer toll-free number
•    No conflict of interest
You will be reimbursed up to $500 for a destination home inspection.

Please contact your Relocation Counselor to arrange for new home inspections.

If you choose to use the Destination Inspection Program, please be aware that any fees you incur in connection with this service will be paid by you directly to the service provider and is not reimbursable.

Relocation Policy Tier C                                                       20    Effective April 2017

New Home Mortgage = Core Benefit

	
		
	Preferred Lender
	As an added benefit to the relocation policy, Lexicon has established a relationship with Lexicon Relocation’s national mortgage partners to assist eligible transferring employees in obtaining financing in the new area. These national mortgage lenders offer competitive interest rates and a wide variety of mortgage programs.  The service will include discrete, confidential mortgage counseling.  Pre-qualification will be available to the employee to utilize before going on the house-hunting trip.

	Direct Bill
	Because the mortgage companies are familiar with Lexicon and Discovery’s benefits, you should experience easy processing.  In addition, all reimbursable closing costs on the new home purchase that are within your relocation expense cap will be direct billed to Lexicon Relocation.

	Advantages
	Using the services of these preferred lenders offers many advantages:
•    Mortgage loan pre-approval process
•    Direct billing of closing costs based on your available Core Benefit cap
Your Relocation Counselor will describe the program options with you and can arrange to have a representative from these lenders contact you.  If you would like to contact the lenders directly, your Relocation Counselor will provide you with contact information.  Please identify yourself as an employee of Discovery.

	Closing Cost Reimbursement
	If you do not use the direct bill option, you must submit an official signed copy of the HUD-1 Settlement Statement within two weeks following the closing date.

Relocation Policy Tier C            Effective April 2017
Published April 2017

New Home Purchase Costs = Core Benefit

	
		
	Eligibility
	There are numerous expenses associated with the closing of a new home.  Discovery will reimburse your normal and customary buyer’s closing costs in connection with the purchase of your new home.  The following criteria must be met for reimbursement:
Your new home purchase must occur within two years of your date of hire or transfer date.

	Qualified Expenses
	Normal and customary closing costs for financing include, but are not limited to:
•    Origination charges including Mortgage application fee, processing and commitment, and/or service fee  (maximum $500) 
•    Reasonable attorney (legal) fees
•    Conveyance taxes
•    Title Insurance - Lender’s coverage only, if typically paid by the buyer
•    Recording fees (including tax stamps)
•    Credit reports
•    Appraisal fees
•    Flood certification
•    Inspections required by lender
•    Survey fees if required by lender
•    Reasonable fees for Property Inspection (Maximum $500)

	Non-reimbursable Expenses
	The following costs will not be considered:
•    Discount points
•    Property tax, insurance or interest
•    Expenses normally charged to seller
•    Private Mortgage Insurance (PMI)
•    Improvement assessments by State, City, County taxing authorities
•    If you have any questions on what is normal and customary for your new area, please check with your Relocation Counselor.

	Tax Assistance
	Reimbursement or payment of certain expenses may be considered taxable income and will be reported as such. These reimbursements or payments may be tax assisted.    (See Tax Considerations).

Relocation Policy Tier C                                                       22    Effective April 2017

	
		
	Buyer Brokerage
	Under Buyer Brokerage, a buyer may retain the services of a real estate broker who agrees to help the buyer locate and purchase a home for the best possible price.  
In contrast to the traditional approach, a buyer broker’s basic duty is to work in the best interest of the buyer, pointing out flaws or other potential problems with specific properties in order to help the buyer negotiate the most favorable purchase terms possible.
Since Buyer Brokerage creates a totally different set of responsibilities and loyalties for all the parties involved in real estate transactions, responsibility for the compensation of buyer brokers can also shift. 
 In some instances the buyer’s broker will split the total fee with the seller’s listing broker.  In other cases, the buyer of the property is responsible for paying a fee to the buyer’s broker.  The key point to remember is that Buyer Brokerage may create a financial obligation for purchasers that would otherwise not exist under a traditional approach.

If you choose to use Buyer Brokerage, please be aware that any fees you incur in connection with this service will not be reimbursed under this policy.  You are free to utilize the MEA to cover these potential additional costs.

Relocation Policy Tier C                                                       23    Effective April 2017

Renter’s Assistance = Core Benefit

	
		
	Eligibility
	If you are presently renting a home or apartment, you should read and become familiar with the provisions for canceling / terminating your lease.

	Lease Termination
	You should communicate your transfer date to the landlord as soon as possible and obtain a copy of the lease to review your options with the landlord.
•    The lease may contain a transfer clause, which would allow you to break it.
•    You or your landlord may be able to sublet the unit.
•    You may be required to pay a lease cancellation fee, which is reimbursable for up to two months rent for fees directly related to canceling the lease.  Every effort should be made to keep this expense to a minimum.  You are responsible for any damage or loss of security deposits.
Please speak to your Relocation Counselor for help determining the best schedule for your move and for preparing for discussions with your landlord.  In many cases, landlords can be very reasonable in dealing with matters of corporate relocation.

	New Lease, Finder’s Fees
	The Company will also reimburse customary finder’s fee in metro New York City only. The Customary commission is up to 12% to 15% of the annual rent in NYC or up to 1 month’s rent in the surrounding metro New York City area.   Outside of the NYC area, you are eligible for a one day tour with a Lexicon Relocation Destination Services agent at your new location.  You are responsible for fees charged by agents who have not been referred to you by your Relocation Counselor.  It is uncommon for rental agents to charge broker commission in locations other than the metro NYC area.  Please check with your Lexicon consultant before making any payments to your agent or landlord.

	New Lease Agreement
	A new lease should be examined carefully before it is signed.  Should the new lease not already contain one, negotiate a cancellation clause that will give you the right to cancel the lease without penalty in the event of an employer-initiated transfer.  However, if the landlord insists on a penalty, try to negotiate a cancellation fee of the equivalent of one month’s rent or not more than two month’s rent.

You SHOULD include the following “Transfer Clause” when executing a lease agreement:
“Notwithstanding any other provisions of this lease, it is agreed between the tenant and the landlord or his / her agent that in the event that the tenant is relocated by the tenant’s employer to a new location, the tenant shall have the option of terminating this lease:
Either:
Upon giving the Landlord or his / her agent at least thirty (30)   days notice in writing by certified mail;   
OR:
Upon the tenant paying to the landlord or his / her agent a sum of $_______*, exclusive of any security and / or damage deposit for said premises.

If this lease is terminated due to transfer, the security and / or damage deposit shall be returned to tenant as provided elsewhere in this lease.
A letter or copy of a letter from the tenant’s employer attesting to the transfer shall be considered satisfactory proof of such transfer.”
*Not to exceed two month’s rent – it is your responsibility to negotiate    this figure as low as possible.

Modifications may be made in the Transfer Clause to conform to local custom.

	Tax Assistance
	Reimbursements or payments for Lease Cancellation and Finder’s Fee expenses are considered taxable income and will be reported as such.  Tax assistance will be provided (see Tax Considerations).

Relocation Policy Tier C                                                       24    Effective April 2017

Moving Your Household Goods = Core Benefit

	
		
	Overview
	Benefit must be utilized within first 12 months from your start date in the new work location.
In anticipation of your forthcoming move, Discovery will pack and ship your household and personal goods.  Lexicon Relocation has contracted with a top quality, national van line to provide this service to you.  You will be given a mover who is best suited to provide you with quality service based on your location.
You should contact your Relocation Counselor as early as possible to establish a preliminary schedule as household goods shipments can take up to three weeks to book.  Once Lexicon Relocation contacts the mover, a representative will be contacting you to arrange for a pre-move survey.  This person will work with you in all subsequent scheduling of packing, moving and delivery.

	Covered Shipment Expenses
	The following expenses and services are covered:
•    Packing and shipping of ordinary household goods and personal effects
•    Disconnect and reconnect of normal household appliances (provided by the carrier)

	Items Not Eligible to be Transported – Expenses/Services Not Covered
	The following expenses and services are not covered:
•    Picking up or dropping off furnishings of secondary homes or items in storage
•    Shipment of hazardous materials such as explosives, chemicals, flammable materials, firearms, garden chemicals
•    Shipment of hot tubs/spas, sheds, above ground pools
•    Valuables such as jewelry, currency, dissertations or publishable papers, and other collectibles or items of extraordinary value
•    Removal, disassembling or installation of carpeting, drapery rods, storage sheds or other permanent fixtures
•    Shipment of boats, recreational vehicles and unusually heavy or cumbersome hobby materials
•    Extra pickups or deliveries at any location other than your primary residence
•    Special packing or transportation of frozen foods, plants, wine collections or other perishables
•    Moving or shipping such items as trees, shrubs, construction materials, firewood, livestock and other non-domestic and domestic animals 
•    Tips or other gratuities to the moving company’s employees
•    Any services performed by the employee, dependents or relatives
•    Special charges associated with assembly or disassembly of personal furnishings (exclusive of beds), antiques, specialty items, satellite dish/antennae, swing sets, patio furniture or other outdoor fixtures

Relocation Policy Tier C                                                       25    Effective April 2017

	
		
	Handling Oversized Items

	With prior review by your Relocation Counselor, Discovery may provide for the shipment of recreational vehicles; e.g., jet skis, snowmobiles, motorcycles, if they cannot be driven or towed.  They must be able to be shipped as part of the regular shipment of household goods and will be shipped in lieu of an vehicle.  Other large items such as grandfather clocks and slate pool tables that require crating will be shipped in the van with your other household goods.

	Valuation Coverage

	Valuation coverage at full replacement value (up to $100,000 based on the weight of your shipment) is provided for your personal property while in transit.  The valuation does not cover: bank accounts, bills, deeds, evidence of debt, currency, letters of credit, passports, airline or other tickets, securities, bullion, precious stones, stamp or coin collections.  Special arrangements should be made for these items.

Additional valuation is at your expense.  Consult your personal insurance policy representative for an explanation of coverage for items in transit, as well as coverage for vacant property at the former and/or new locations, if applicable.

Other Household Moving Benefits = Flexible Benefit

	
		
	Vehicles

	You are encouraged to drive your personal car(s) to the new location when you report to work.  Mileage reimbursement is made at the company’s current mileage rate.  If the distance to the new location is more than 500 miles you may ship two (2) vehicles.  Insurance on such vehicles will be provided, however, vehicles that are shipped are not eligible for mileage expense reimbursement. Shipment of Vehicles is a Flexible Relocation Benefit.

	Storage

	You should make every effort to move directly to your permanent residence.  If your new home is not accessible for delivery of your household goods or if you are required to vacate your previous residence due to a buyer requiring immediate occupancy, temporary storage will be provided for a period that coincides with your company sponsored temporary living.
Delivery out of storage will be covered as well.  If a partial shipment is made, you will be responsible for all expenses associated with additional shipments.  Storage of household goods is considered a Flexible relocation benefit.

	Pets

	Pet transportation is your responsibility and is not a covered expense in this policy.  Your Relocation Counselor can provide recommendations for pet transportation services.

Relocation Policy Tier C                                                       26    Effective April 2017

Temporary Living = Flexible Benefit

	
		
	Eligibility
	Temporary living expenses for fully furnished corporate apartment at origin and destination are limited to a combined total of 6 months. Your Lexicon consultant will arrange for accommodations through an approved corporate vendor.   Discovery cannot reimburse for personal leases.

Pre Departure – if you are forced to vacate your property prior to relocating to your new work location, Discovery will reimburse for corporate accommodations for up to 30 days.  This benefit is not provided for individuals who are preparing their home to market for sale; staging or refurbishing the home for example.

	Covered Expenses
	Your Relocation Counselor will assist you in obtaining suitable living facilities.  The expenses incurred for temporary living accommodations are billed directly to Lexicon.

	Excluded Expenses
	You will not receive reimbursement for any other expenses, including car rental expenses during your temporary living.  You should plan on using your personal vehicle during this time, as car rental fees are not reimbursable.  If the move distance is greater than 500 miles, you may pre-ship one car. Cost of meals or groceries while in temporary living are not reimbursable.

	Return Trips Home
	If you report to your new location before being joined by your family, you may be reimbursed for return trips to visit your family, providing that you have funds remaining in your Flexible Benefits.  Return trips must follow Discovery’s Travel Policy.

	Tax Assistance
	Reimbursements or payments for Temporary Living expenses are considered taxable income and will be reported as such.

Duplicate Mortgage Interest = Flexible Benefit

	
		
	Overview
	If you close on a home in your new location prior to the sale of your home in the former location, Discovery will reimburse you for duplicate mortgage interest expenses for up to a maximum of 6 months.  
The home in your departure location must be considered your primary residence and you must have occupied to the property prior to the acceptance of this relocation.  Discovery cannot provide benefits for vacation homes or investment properties.

	Reimbursed Expenses
	Discovery will reimburse you for the duplicate mortgage interest incurred on the lower of the two home payments for the following:
•    Mortgage Interest (1st mortgage only)
•    Payment of duplicate mortgage interest is based on the actual number of days which interest payments overlap and will be reimbursed based on the dates of homeownership.
Reimbursement will be made upon receipt of documented duplicate mortgage payment such as your mortgage statement.

	Tax Assistance
	Duplicate mortgage interest reimbursements are considered taxable income.  Interest expense is a tax deductible expense on your Federal Income Tax filing and the reimbursement will not be grossed up.

Relocation Policy Tier C                                                       27    Effective April 2017

Spousal Career Assistance = Flexible Benefit

	
		
	Overview
	Lexicon will initiate services with the Discovery preferred provider, Lee Hecht Harrison (LHH) upon request.  Services may include:
•    Career assessment tools and exploration of career options.
•    Resume preparation and comprehensive marketing plan development.
•    Coaching for interviewing and negotiating.
•    Participation in an LHH Job Search Work Team, a project management approach to job search with networking, teamwork, and accountability components.
•    LHH Career Resource NetworkTM – LHH’s proprietary online tool for market research, employment, and entrepreneurship opportunities.
•    Resume ReserveTM – LHH’s proprietary resume database, allowing job candidates to present their credentials to thousands of registered employers and recruiters and to network with other individuals receiving LHH services.
•    Use of LeadLinkTM – LHH’s job bank for accessing and collecting job leads.
•    Managing Your Search Project book set and other materials.
•    Administrative and office resources.

	Eligibility
	Eligible spouse will receive program expense up to $5,000 that must be initiated within the first 12 months from job start date.  The program must be completed within the first 24 months of your transfer.

Relocation Policy Tier C                                                       28    Effective April 2017

Final Move Trip = Flexible Benefit

	
		
	Overview
	Benefit for employee and accompanying members must be utilized within first 12 months from your start date in the new work location.  
You may be reimbursed for one-way transportation for you and your family to travel to the new location. Final Trip expenses are considered a Flexible relocation benefit.

	Final Move Defined
	The final move trip is defined as one day in the old and one day in the new and days en route.  Any remaining days are considered temporary living.

	Air Travel
	All travel arrangements are in accordance with Discovery’s Travel Policy.  Air Travel will be reimbursed as follows:

•    Airfare via coach class if the move is over 300 miles, 7-day advance purchase ticket is required. 
•    Actual and reasonable costs for subsistence in transit or related to transportation, including transportation to and from the airport, baggage transfer, rental car (if car (s) have been shipped).

	Personal Automobile Travel

	Personal Automobile Travel will be reimbursed as follows:
•    If the move is less than 300 miles, mileage will be reimbursed at the current corporate mileage rate.
•    If the move is over 300 miles and you choose to drive, you will be reimbursed for reasonable lodging, meals and mileage at the current corporate mileage rate.
•    Actual and reasonable costs for subsistence in transit for you and your dependents including meals and lodging.

	Tax Assistance
	Meals and mileage over the IRS mileage cap are considered taxable income and will be tax assisted.  All other items are excluded from income (see Tax considerations).

Discretionary Benefit

	
		
	Maximum Allowable Benefit
	The maximum Discretionary benefit is equal to 20% of your annual salary not to exceed a maximum of $50,000.

	Eligibility

	You may not apply for Discretionary benefits until your Flexible benefits or Core benefits have been exhausted.  This is not a cash benefit and will not be paid to you in lieu of other benefits.
The policy is designed to provide an extra measure of benefits on an as needed basis.  Eligibility for this benefit is in the sole discretion of the company and based on extenuating circumstances.  Please discuss with Lexicon if you believe you may be eligible for this benefit. It is not intended to be used for expenses under CORE or FLEX that are not otherwise covered or are not required in order to gain additional benefits under the policy.

	Example of Eligible Use
	Extend Short Term Storage – if you are unable to move into your new property immediately, you may decide to keep your goods in storage with the movers until your property is ready.

	Examples of Ineligible Use
	Discretionary Benefits may NOT be used to:
•    Increase the MEA
•    Pay for loss on sale or loss on equity
•    Paid as a cash benefit once all other benefits are exhausted

Relocation Policy Tier C                                                       29    Effective April 2017

Reduction in Force/Workforce Restructuring

The purpose of this paragraph is to clarify Discovery’s relocation policy as it may apply in situations where an employee’s employment ends due to Discovery’s decision to involuntarily terminate the employee’s employment without “cause,” including for restructuring. In its sole discretion, Discovery may provide relocation benefits for an employee whose employment is terminated without cause (most commonly due to a reduction in force or job elimination). An employee who has completed (or is in the process of completing) a relocation within one year prior to the effective date of a qualifying for involuntary termination is eligible to receive limited relocation benefits to return to their original home location at the time of the transfer/hire with Discovery (i.e., original city and state only).  

Benefit entitlements include:
		
	•
	Shipment of Household Goods back to home location (the entitlement is based on original shipment to the host work location, including up to two vehicles)

		
	•
	Home sale closing costs, if homeowner

		
	•
	Lease breakage up to three months, if renter 

		
	•
	Economy airfare, train travel for trip back to home location (Air travel if over 300 miles, per Discovery guidelines) or mileage reimbursement

The employee must complete a Relocation Notification Form and return it to the Global Mobility team within four (4) weeks (i.e., postmarked or faxed) of the termination date to apply for these benefits. Failure to notify Discovery as stated will forfeit relocation benefits. The employee will have a total of twenty-four (24) weeks from the termination date to complete their relocation and submit approved expenses for reimbursement. Any expenses submitted after the above stated time frame will not be reimbursed.

Employees that voluntarily terminate employment or are terminated for cause or poor performance are not eligible to receive relocation benefits.  In addition, if an employee is eligible for relocation benefits from another employer (for example, the employee finds another job in the home location and is eligible for relocation benefits from the new employer), the employee will not be eligible for relocation benefits from Discovery.

Relocation Policy Tier C                                                       30    Effective April 2017

Tax Considerations

	
		
	IRS – Federal Income Tax
	Federal income tax laws require many of the relocation expenses paid by an employer to or on behalf of an employee to be reported as income on the employee’s W-2 (Wage and Tax Statement) for the year in which payment is made.

Although Discovery does not guarantee any particular tax treatment relating to the benefits provided under this Relocation Policy, it is intended that such payments and benefits be exempt from, or comply with, all tax regulations, including but not limited to IRS Code Section 409(a). All taxable expenses or other reimbursements under the Relocation Policy shall be payable in accordance with Discovery's policies in effect. The right to such expenses and reimbursements shall not be subject to liquidation or exchange for another benefit, payment, or reimbursement. 

	Tax Assistance

	Discovery will provide tax assistance on many of the relocation benefits paid to you or on your behalf.  Assistance is provided for the following taxes:
•    Federal, State and Local Income Tax liability based on the supplemental rate, with a true-up to the marginal rate at year-end.  The marginal rate is based on your COMPANY earnings, your tax filing status and the number of exemptions claimed when you file your 1040 tax return.  There is no consideration for outside income, spouse income or other special circumstances which may affect your actual marginal rate.
•    Social Security/Medicare where applicable

	Definitions
	To better understand how tax assistance works, the following terms are defined:
•    Excludable expenses
•    Deductible expenses
•    Non-deductible expenses

	Excludable Expenses
	Some expenses are considered non-income items and do not require reporting to the IRS as income to you.  Examples of excludable expenses are:
•    Buyer Value Option Home Sale program costs
•    Shipment of your household goods
•    Storage of your household goods (first 30 days)
•    Final move expenses, excluding meals and mileage reimbursement up to the IRS limit for Final Trip mileage

	Deductible Expenses

	Deductible expenses are those that can be deducted from your taxable income at the time you prepare your annual federal income tax return. Examples of deductible expenses are: 
•    Mortgage interest provided for Duplicate Housing
•    Loan origination or discount points
•    Prepayment Penalty

Relocation Policy Tier C                                                       31    Effective April 2017

	
		
	Non-deductible Expenses
	Non-deductible expenses are all relocation expenses that are neither excludable nor deductible.  They will be included on your W-2 and are taxable as income.  Examples of non-deductible expenses are:
Final trip in route meals and mileage reimbursement over the IRS moving cap
House hunting and Temporary Living Cost
Lease Cancellation
MEA (taxes will be withheld from this payment)
Storage over 30 days

	Tax Assistance Payments
	Payments for tax assistance are not paid to you.  Instead, the payments are calculated and included in your W-2 as withheld taxes.  The tax assistance is then submitted to the proper government agencies on your behalf.

	Payments Not Eligible for Tax Assistance
	The relocation expense payments that are not tax assisted are identified in the appropriate sections of this handbook.   You can also refer to the tax summary information table located on the following page.  
For those expenses, taxes will be withheld from any reimbursement made to you.  The withholding amount is determined using supplemental rates.

	Record Keeping
	Please note:
You are encouraged to keep records and receipts of all your expenses
A year-end tax reporting statement that will itemize all of your relocation expenses will be prepared and posted to your relocation portal in January following the end of the tax year.

	Tax Advice
 
	Discovery does not assume responsibility for specific guidance in the matter of filing individual tax returns – this remains your responsibility.  You may wish to consult a professional tax advisor for details on the tax implications of your relocation.  Along with the seeking the assistance of a professional tax advisor, consider reading the following IRS information guides:
Publication 521 – Moving Expenses
Publication 523 – Tax Information on Selling Your Home
To order these guides or necessary tax forms call 1-800-TAX-FORM.  You can also access these forms on the IRS web site: www.irs.ustres.gov

Relocation Policy Tier C                                                       32    Effective April 2017

Tax Summary

	
				
	Provision
	Added to W-2
	Taxable Income
	Tax Assistance

	Buyer Value Option Home Sale on your Old Home
	No
	No
	N/A

	Duplicate Housing
	Yes
	Yes
	No1

	Final Move Trip
	No
	No
	Yes2

	Home Finding Trip
	Yes
	Yes
	Yes

	Lease Cancellation
	Yes
	Yes
	Yes

	MEA
	Yes
	Yes
	No

	Movement of Household Goods
	No
	No
	N/A

	New Home Closing Costs
	Yes
	Yes
	Yes

	Spousal Career Assistance
	Yes
	Yes
	Yes

	Storage of Household Goods up to 30 days
	No
	No
	N/A

	Storage of Household Goods over 30 days
	Yes
	Yes
	Yes

	Temporary Living/Trips Home
	Yes
	Yes
	Yes

1 Interest payments are considered deductible and will not be tax assisted for income taxes.
2 Mileage meeting the IRS excludable mileage cap will not be tax assisted.  All mileage reimbursement over the IRS excludable mileage cap is considered taxable income and will be tax assisted.  Meals incurred during your move to the new location are taxable income and will be tax assisted.

Relocation Policy Tier C                                                       33    Effective April 2017

Addendum 1
U.S. Relocation Policy
Relocation Agreement – Tier C/Bands 0-3

This Relocation Agreement must be signed and returned to Discovery Communications, LLC (“Discovery”) before any relocation related expenses are paid and/or reimbursed.

Employee Name: ______________________________________________________________________________
Please Print
New Location: _______________________
Effective Date of Hire/ Transfer: _________________________    Division / Dept.: _______________________
Manager’s Name: _____________________________________
This Agreement is effective as of date signed (the “Effective Date”).  It is between Discovery and 
_____________________________________________________________ (“Employee”)

As of the Effective Date of this Agreement, Discovery has spent or will spend a sum of money for the purpose of reassigning Employee and Employee’s eligible household members to a new work location.
Employee acknowledges receipt of the Relocation Policy, which is incorporated herein by reference.  This Policy sets forth those expenses for which Discovery will either pay on behalf of Employee or reimburse Employee, including, but not limited to:
		
	•
	Shipment, storage, and valuation of household goods and car shipment

		
	•
	Transportation to the new work location 

		
	•
	Temporary Housing

		
	•
	Housing (including, but not limited to, costs of accommodations and, if applicable, early termination fees for ending a lease, home sale and/or home purchase expenses, home marketing, duplicate housing)

		
	•
	Departure and Destination Services

		
	•
	Spousal Career Assistance

		
	•
	MEA/Lump Sum Payments

		
	•
	Any potential exceptions for services and payments not specifically referenced in this relocation policy

Employee acknowledges that relocation benefits must be used within twenty-four (24) months from hire date or transfer date.
If Employee resigns from employment, or if Discovery terminates Employee’s employment for “Cause” (defined as misconduct, violation of Discovery policy, or willful failure to perform Employee’s job responsibilities) within the first 24 months after relocation, Employee shall be required to reimburse Discovery the full amount of all of the relocation benefits paid to Employee or on Employee’s behalf to third parties. If Employee is employed pursuant to a fixed-term employment agreement, “resignation” shall mean resignation without Good Reason, and Cause shall be as defined by the applicable employment agreement. For the avoidance of doubt, this repayment obligation shall not apply in the event that Discovery 

Relocation Policy Tier C                                                       34    Effective April 2017

terminates Employee’s employment without Cause.  Such reimbursement shall be made within thirty (30) days after the effective termination date of employment with Discovery. For the avoidance of doubt, this repayment obligation shall not apply in the event that Discovery terminates Employee’s employment without Cause.  

Employee further acknowledges and agrees that nothing in this Relocation Agreement is intended to create a contract of, or guarantee of, employment by Discovery.  
Any unpaid balance of monies owed to Discovery may be deducted from Employee’s final payroll checks, if legally allowable, or from any other payments Employee receives from Discovery, including without limitation, for unused vacation. If the amount of money due to Employee is insufficient to fully reimburse Discovery, Employee will pay the additional amount required for full reimbursement.  
Further, Employee confirms that neither he/she nor any other members of Employee’s household is receiving relocation benefits from any other company or source.  Employee acknowledges and agrees that any relocation benefits paid by Discovery would be subject to reduction, if Employee or any member of Employee’s household receives relocation benefits from another source.
The employee agrees to follow and comply with all conditions of this policy.
AUTHORIZATION AND ROUTING:

_______________________________________________________________________________________
Employee’s Signature        Date Signed

_______________________________________________________________________________________
Discovery Signature         Date Signed

Note: Relocation benefits will not be processed without a signed Relocation Agreement. Please sign and return this document to your Human Resources Representative (HRM).

Relocation Policy Tier C                                                       35    Effective April 2017Exhibit

Exhibit 10.2

Global Mobility 
Standard Company-Initiated 
Permanent International Transfer 
Relocation Benefits

Discovery Global Mobility

Effective 2012 – updated October 2014

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 1

Contents

	
		
	Benefits Summary
	4

	Introduction
	5

	Congratulations!
	5

	International Relocation Counselor
	5

	Planning
	5

	General Terms and Conditions
	6

	Definitions
	6

	Eligibility
	6

	Eligible Family Members
	6

	Letter of Understanding
	6

	Relocation Repayment Agreement
	6

	Confidentiality
	6

	Personal Data Protection
	7

	Interpretation & Changes in Policy
	7

	Effective Date
	7

	Transfer Effective Date
	7

	Exceptions
	7

	Visa, Immigration, and Inoculations
	8

	Compensation & Benefits
	8

	Compensation
	8

	Benefits
	8

	Vacation
	8

	Company Holidays
	8

	Social Security
	8

	Retirement Benefits
	8

	Healthcare
	8

	Other insurances
	8

	Move days
	8

	Expense Reimbursement
	9

	Relocation Expenses
	9

	Travel Benefits
	10

	Discovery Travel Services
	10

	Pre-Acceptance Trip
	10

	Final Trip
	10

	Housing and Transportation Services
	11

	Home Owners Assistance
	11

	Lease Breakage
	11

	Loss on Car Sale
	11

	Temporary Living
	12

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 2

	
		
	Origination Country Pre Departure and Hiring Country Post Arrival
	12

	Short-Stay Accommodations
	12

	Transportation
	12

	Moving Household Goods
	13

	Personal Belongings
	13

	Shipping Household Goods
	13

	Storage
	13

	Destination Services Benefits
	14

	Settling-In Program
	14

	Home finding Services
	14

	Language Training
	14

	Spouse or Partner Career Counseling
	14

	Mail Forwarding Service
	14

	Miscellaneous Expense Allowance (MEA)
	15

	Taxation
	15

	Tax Consultation Benefit
	15

	Tax Gross Up
	15

	Resignation
	16

	Voluntary Resignation
	16

	Involuntary Resignation Redundancy or Not for Cause
	16

	Involuntary Resignation for Cause
	16

	Appendix A
	17

	IRS Code Section 409A Compliance
	17

	Definitions
	18

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 3

Benefits Summary
	
		
	 
	Permanent Transfer (Company Initiated)

	Family Eligible to Accompany Employee on Assignment
	Yes

	Immigration Benefits
	 

	Immigration Authorized
	Yes

	Benefits (Home/Host or Hiring Country)
	 

	Compensation
	Hiring

	Benefits
	Hiring

	Vacation
	Hiring

	Company Holidays
	Hiring

	Social Security
	Hiring

	Retirement
	Hiring

	Healthcare
	Hiring

	Other Insurances
	Hiring

	Move days (3 days off from work post relocation)
	Yes

	EXPENSE REIMBURSEMENT BENEFIT
	 

	Expense Reimbursement Service (Relocation provider)
	Yes

	TRAVEL BENEFITS
	 

	Pre-Acceptance trip
	Yes

	Assignment Trip
	Yes -employee and family

	Housing and Transportation Services
	 

	Lease Breakage
	Yes

	Loss on Sale of Vehicle
	Yes

	Temporary Living
	 

	Temporary Living
	Yes - 60 days

	Temporary Transportation
	Yes, Reimbursement of public transportation or car rental expense for 30 days

	Moving Household Goods
	 

	Household Goods Shipment (Surface)
	Yes

	In -Transit Storage
	Yes

	Air Shipment
	Yes

	Excess Baggage
	Yes

	Destination Services Benefits
	 

	Settling-in Services
	Yes

	Home Finding
	Yes

	Language Training
	Yes

	Spouse/Partner Career Counseling
	Yes

	Mail Forwarding Service
	Yes

	Miscellaneous Expense Allowance (MEA)
	Yes

	TAX BENEFITS
	 

	Tax Counseling/Preparation Assistance
	Yes

	Number of Years
	assignment-related compensation- year of or following transfer

	Tax Gross UP
	Yes, on relocation expenses

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 4

Introduction
	
		
	Congratulations!

	Congratulations on your upcoming Permanent International Relocation with Discovery.  This is an exciting and challenging time for you as you prepare for your move.  We are looking forward to making this process as stress-free as possible!

	 
	

This policy provides you with benefits to offset some of your expenses associated with your relocation.

	 
	Throughout your relocation there are numerous personal, legal and tax issues to be considered.  Making well-informed decisions requires an understanding of Discovery’s relocation policy and your role in the process.  Please take the time to read this policy carefully as you are responsible for understanding and adhering to policy guidelines.

If there is a change to the assignment length, whether an extension of or a reduction in time, it is important to contact your manager, Human Resources Management, and the Discovery Global Mobility team immediately. 

	International Relocation Counselor
            
	Discovery has partnered with Relocation provider Relocation (Relocation provider) to assist you in coordinating all aspects of your relocation.  Upon receiving relocation authorization from Discovery, Relocation provider will assign a dedicated International Relocation Counselor who will be your primary point of contact throughout your move.  Your Counselor will navigate you through the relocation process and answer any questions.  

Immigration and tax vendors may also be engaged to assist you in coordinating aspects of your relocation.

	Planning

	Discovery encourages you to become fully involved in your relocation and to work closely with the professionals who have been made available to you.  The more actively you participate and provide information, the more effectively Relocation provider and others can serve and assist you.  Planning a move with a clear understanding of this policy will also help to avoid unpleasant surprises.  The most successful moves are those that are well planned.

Best wishes for a successful relocation!

This policy is not an employment offer or employment contract or a guaranty of continued employment.  The company’s decisions regarding the application and interpretation of the relocation policy are final.  Discovery also reserves the right to change or cancel all or any part of these benefits at any time.  

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 5

General Terms and Conditions
	
		
	Definitions
	A Permanent International Relocation means you have accepted employment in a Discovery office or location other than your origination country.  You will be treated as a local national. For example, 
An individual living in London is hired to fill a job that exists in the United States as a regular full time “permanent” employee.  There is no assignment end date under this policy.  International moves are considered a permanent transfer to where the job is located.  
You will be placed on the local payroll, pay local taxes and social taxes, and be eligible for local benefits.  You will also have the responsibilities and privileges of local employees. You will no longer receive a salary based on your origination country, no longer receive a payroll, benefits or have taxes deducted from your origination country and no longer contribute social taxes to origination country.
The use of the term “permanent” is not intended to guarantee or promise permanent employment with the company.  If you are involuntarily terminated, not “For Cause”, during the first year of the transfer the Company may provide limited repatriation benefits to the origination country.  
If you are a Discovery employee, not a new hire, prior service with Discovery may be counted towards any benefits or programs based on years of service.  Service credit applies to actively employed Discovery employees at the time of the transfer.  Former employees applying for re-employment with the company will be subject to Discovery’s policies on bridging of prior service and may not be eligible for service credit.

	Eligibility
	You are eligible for assistance described in this policy, if:
a)    You are a current, full-time employee, or a new hire, and
b)    You and your immediate family member(s) (e.g., spouse/partner and children or legal dependents residing with you) are requested to relocate by Discovery and are designated as eligible to receive these benefits
If you are receiving any relocation benefits through a third party such as your previous employer or via your spouse/partner, you are required to disclose this information to Discovery.  Discovery, at its sole discretion, may offset or withdraw any or all benefits for your relocation. 

	Eligible Family Members 

	For Permanent International Relocation you may be eligible to be reimbursed for qualifying expenses of any eligible family member who accompanies you. 

	 
	Eligible Family Member – for purposes of accompanying you on an assignment or permanent transfer, eligible family includes your:
•    current spouse (including a common law spouse according to applicable law) or domestic partner; 
•    any child age eighteen or under who is in your legal custody or the custody of your accompanying spouse or domestic partner and who depends upon you for financial support; 
•    any unmarried son or daughter up to age twenty-five who is a registered full-time student working toward a degree. 

	

Letter of Understanding

	Terms of employment will be documented in a Letter of Understanding.  The relocation process will not start until the necessary approvals are received and the employment letter is signed and returned. You must sign and return the Letter of Understanding to Discovery before any relocation services can start and any payments can be processed. 

	Relocation Repayment Agreement
	Relocating an employee requires a substantial commitment by Discovery.  Therefore, if you should elect to voluntarily terminate your employment with Discovery during the 12-month period immediately following your effective start date in the new location, you will be required to repay Discovery all third-party costs incurred by the Company. You must also sign and return a Relocation Repayment Agreement to Discovery before any relocation services can start and any payments can be processed. 

	Confidentiality

	In order for our vendors to administer the provisions of this policy, Discovery provides certain employee information to vendors such as base salary, tax information or information regarding family members, should they be authorized to accompany you. Our vendors and their employees are obligated to maintain the confidentiality of your personal information and use it only for the purposes set forth in the policy.

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 6

	
		
	Personal Data Protection

	You should be aware that privacy laws in many countries may differ significantly from those in your origination country. These variations may impose legal requirements and/or limitations on the access, processing, and transfer of personal data (yours and others) while you are on assignment. Consult with your hiring Human Resources Management for more information.

	Interpretation & Changes in Policy
	This policy establishes the criteria for receiving payment or reimbursement for your assignment expenses. Expense limits and payment guidelines are established by the Global Mobility Department. This document provides most of the information you will need to know about the Discovery Long Term Assignment policy.  However, Discovery reserves the right to end, suspend or amend this policy at any time without notice.  Further, Discovery retains the ultimate discretionary authority to establish and interpret the provisions of this policy and determine eligibility for benefits.

	

Effective Date

Transfer Effective Date
	

This policy describes the provisions of the Discovery Relocation Policy effective as of September 2011.  It replaces all relocation policies and materials issued prior to that date.
The effective start date of your permanent transfer is determined by your business unit. Your effective start date is the day you depart from your origination country.

	Exceptions

	Any deviations from this policy must be requested in writing by completion of the Discovery Exception Request form. Relocation Exception Request forms can be requested from your International Relocation Counselor.  Exception Request forms should be completed and submitted to Relocation provider’s International Relocation Counselor and Relocation provider will submit the form to Discovery Global Mobility for consideration. Discovery Global Mobility has the sole discretion to approve any exception requests prior to any reimbursement.  Requests for exceptions after you have incurred expenses may not be eligible for reimbursement. Neither your manager nor division head has the authority to grant any exceptions to this policy.  

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 7

Visa, Immigration, and Inoculations
	
		
	 
	If you need immigration support or inoculations for your long term assignment Discovery will arrange and pay for the cost of your visa application, including your work visa. Discovery will arrange and pay for the cost of your immediate family members’ visas as necessary. Discovery does not arrange work visas for spouses or partners.  Discovery will reimburse you for inoculations required for travel to the hiring location. You and your authorized accompanying eligible family members must pass all medical examinations that the hiring country requires as a condition for providing required visas, work permits, or both.  Reimbursable expenses include: 
•    Visa photos
•    Travel to and from the embassies/consulates for filing and obtaining immigration approval.  If necessary, reasonable meals and hotel costs will be included
•    Inoculations required for travel to hiring country

Compensation & Benefits
	
			
	Compensation
	You will be placed on the hiring country payroll system and your compensation will be based on the local country compensation standards (base salary and bonus target).  The performance metrics for your annual bonus will be based on your new position, in accordance with the terms and conditions of the applicable bonus plan.  

	 

	Benefits

	Hiring country terms and conditions apply for benefits.  The Discovery Benefits team will contact you to review the hiring country’s benefit plans.

	 

	Vacation
	Hiring country terms and conditions apply for vacation.

	 

	Company Holidays

	Hiring country terms and conditions company holidays.
	 

	Social Security

	Hiring country terms and conditions apply for country contributions.
	 

	Retirement Benefits

	Hiring country terms and conditions apply for retirement benefits systems.
	 

	Healthcare

	Hiring country terms and conditions apply for your healthcare.

	 

	Other insurances

	Hiring country terms and conditions apply for any other.
	 

	Move days
	You are allowed three days off from work post relocation to attend to home finding, settling in and manage the delivery of household goods. This benefit is to be agreed upon with your HRM and hiring manager.
	 

	 
	 

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 8

Expense Reimbursement  
	
		
	Relocation Expenses
	Discovery has partnered with a relocation provider to assist you with administering the reimbursement of reasonable, necessary and properly authorized expenses covered under this policy. If you have questions about this process, please contact your relocation provider relocation consultant.
You are expected to manage expenses at a conservative level and to be familiar with which expenses are reimbursable and which are not.  You will receive additional information on reimbursable expenses under this policy.  The Company, at its discretion, may choose not to reimburse, in full or in part, an expense that is deemed unreasonable or excessive.  All expenses, unless otherwise specified, must be in accordance with Discovery’s policies.  Receipts are required for all reimbursable expenses.  Credit card statements cannot be used in lieu of receipts.

	 
	It is important to remember:
•    Relocation expenses are separate and distinct from business expenses  
•    Business travel and entertainment expenses should be incurred and submitted in accordance with the Travel and Entertainment policy 
•    YOU MUST NOT USE YOUR DISCOVERY CORPORATE CREDIT CARD FOR ANY RELOCATION EXPENSES.  If you do incur a relocation-related expense on your corporate credit card in error, you should reconcile it as a personal expense on the corporate card and then separately submit for reimbursement under the relocation expense process
•    You should keep records and original receipts of all expenses, as this will assist in the completion of origination and hiring country tax returns at year-end
•    Cash payment may not be substituted or exchanged for any specific benefit.
•    Any unused benefits are not interchangeable for or may not be replaced by any other benefits or cash monetary value
•    All requests for reimbursements must be submitted on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred. Please note: tax years may vary by country. Please seek further guidance from your tax advisor

If you have questions about this process, please contact your Relocation provider relocation consultant.

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 9

Travel Benefits	
			
	Discovery Travel Services
	All travel arrangements must be booked through Discovery’s Travel Services Department per Discovery’s Travel and Entertainment Policy.
Please note: this relocation policy governs in conjunction with Entity Level Control Policy Manual ELCPM 130 – 1 Corporate Travel and Entertainment Policy.

	Pre-Acceptance Trip
	Prior to accepting an offer of employment, Discovery may provide you and your spouse/partner (no children, family members or other relatives) one trip, not to exceed 7 days including travel time, to the hiring location to tour the area, view housing options, and meet with local school officials (if necessary). 

Discovery may reimburse pre-acceptance trip expenses including:
•    Airfare per Discovery Travel and Entertainment Policy in effect at the time. Class of travel for your spouse/partner is based on the class of travel for which you are eligible and in line with Discovery travel policy in effect at that time
•    Hotel room rates per travel policy
•    Taxi/rental car will be reimbursed to eligible trip participants
•    Actual meal expenses will be reimbursed after submission of receipts per Discovery travel policy. 

Approval of this trip is determined solely at the discretion of the Company based on needs and circumstances.

	Final Trip
	Discovery will reimburse assignment trip expenses including:
•    A one-way airfare per Discovery travel policy in effect at the time. Class of travel for family to be the same as yours in line with DCL travel policy in effect at that time
•    Reasonable hotel and taxi for the final trip from the origination location to the hiring location (per Discovery travel policy)
•    Excess checked baggage fees for two additional bags beyond the number of bags permitted without charge by the airline (four additional bags if you are traveling with family members). 
•    Actual meal expenses will be reimbursed after submission of receipts.  The allowable daily amounts are based on Discovery travel policy. Children under 18 are reimbursed up to 50% of the allowable daily amounts
If you are in need of temporary housing or short stay accommodations, please refer to the Temporary Living section for meal allowances and payments.

	 

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 10

Housing and Transportation Services
	
		
	Home Owners Assistance
	All home ownership costs related to purchase, sale, or operation of an owned residence in the country of employment will be your responsibility. Discovery recognizes no responsibility for losses on housing purchased at the hiring location, whether those losses are a result of market conditions, exchange rate fluctuations, or any other causes. Discovery will not reimburse closing costs of either purchase or sale. In addition, should the purchase of housing increase your tax liability in the assignment location, you will be responsible for the increased cost.

	Lease Breakage
	If you are a renter, it is your responsibility to provide the landlord with the proper and required notification to terminate the lease per the lease agreement.  Lease breakage costs may be reimbursed only if you are not able to provide the required advance notification. If a lease termination penalty is incurred, you may be reimbursed only for the required amount up to a maximum of 3 months normal rent. A copy of the original lease and proof of payment is required for reimbursement.

	Loss on Car Sale
	Loss on the sale of vehicle(s) owned by you is provided for up to 2 vehicles and capped at USD 
$2500/1 car and USD $5,000/2 cars (or home-country currency equivalent at current exchange rates).  You may be reimbursed for the difference between the documented appraised value vs. actual sale amount not to exceed the maximum amounts noted.
Generally, automobiles will not be transported to the hiring country. However, the shipment of an employee’s car may be provided if you are relocating within or intra-country.

	 
	 

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 11

Temporary Living 
	
		
	Origination Country Pre Departure and Hiring Country Post Arrival 

	If needed, Discovery provides temporary living accommodations to employees in their origination country and/or hiring country. Temporary corporate housing is provided through Discovery approved properties. 
Corporate housing provides and offers:
•    Fully furnished apartments including linens, telephone service and television. The size of the apartment will be in line with the family size, not to exceed 3 bedrooms
o    Costs for corporate housing will include utilities, internet access, weekly housekeeping, crib costs, and one parking space, if applicable
o    Telephone charges and other incidentals will be at your expense
o    Discovery provides up to sixty (60) days of temporary living accommodations in any combination depending on your needs 
For Example:
An employee may not need temporary housing in the origination country, but may need 60 days of housing in the hiring country. Or alternatively, an employee may need 30 days of housing in the origination country and 30 days in the hiring country. 
•    You may use any combination of the temporary housing benefit between the origination and hiring country, not to exceed a total of 30 days.  
•    If you are in corporate housing with a kitchen, Goods and Services allowances, if applicable, will be implemented effective with your  assignment start date
•    If corporate housing is not available or is not available with a kitchen, Discovery will reimburse reasonable meals expenses based on Discovery travel policy. Children under 18 are reimbursed up to 50% of the allowable daily amounts

	Short-Stay Accommodations
	Only if corporate housing is not available, you may be authorized up to 2 weeks of lodging accommodation in the origination and/or hiring country in a Discovery preferred hotel.  
•    The daily hotel rate cannot exceed the Discovery travel policy maximum hotel rate
•    If you stay in a hotel, Discovery will reimburse reasonable meals expenses based on Discovery travel policy. Children under 18 are reimbursed up to 50% of the allowable daily amounts

	Transportation

	Car rental, car service, and public transportation costs to and from work may be approved on an as needed basis for up to 30 days.  Rental car arrangement will exclude gas, maintenance, and insurance. In locations where public transportation is customary, the Company may reimburse costs of public transportation.

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 12

Moving Household Goods
	
		
	Personal Belongings
	Discovery may provide an air shipment in addition to shipment of household goods. The air shipment is based on family size (300 pounds per adult, 100 pound per child).

	 
	 

	Shipping Household Goods
	Discovery may provide a shipment of Household Goods (HHG) as follows:
•    Single Employee: one (1) 20 foot container (or equivalent in cubic feet/meters)
•    Employee plus spouse/partner:  one (1) 40 foot container (or equivalent in cubic feet/meters)
•    Family:  one (1) 40 foot container  (or equivalent in cubic feet/meters)
Moving expense will only apply for moving HHG from the main residence in the origination country to the main residence in the hiring country.  Delivery of HHG should be arranged for business days to avoid additional charges. Should circumstances require a weekend delivery schedule, please contact your Relocation provider International Counselor.
 The following goods and services are not covered:
•    Appliances
•    Picking up or dropping off furnishings of secondary homes or items in storage
•    Shipment of hazardous materials such as explosives, chemicals, flammable materials, firearms, garden chemicals
•    Shipment of hot tubs/spas, sheds, above ground pools
•    Valuables such as jewelry, currency, dissertations or publishable papers, and other collectibles or items of extraordinary value
•    Removal, disassembling or installation of carpeting, drapery rods, storage sheds or other permanent fixtures
•    Shipment of boats, recreational vehicles and unusually heavy or cumbersome hobby materials
•    Pickups or deliveries at any location other than your primary residence
•    Special packing or transportation of frozen foods, plants, wine collections or other perishables
•    Moving or shipping items such as trees, shrubs, construction materials, firewood, livestock and other non-domestic and domestic animals 
•    Tips or other gratuities to the moving company’s employees
•    Any services performed by you, your dependents or relatives
•    Special charges associated with assembly or disassembly of personal furnishings (exclusive of beds), antiques, specialty items, satellite dish/antennae, swing sets, patio furniture or other outdoor fixtures
•    No unpacking assistance (organizing, maid, hanging, fixing to walls, etc.) will be covered by Discovery; assembly of items that had to be disassembled before shipping will be covered
•    Costs to board, ship and quarantine pets is not covered under the relocation policy. However, Relocation provider Relocation can provide recommendations for pet transportation services.

	Storage

	Storage of goods will be provided as needed up to a total maximum of 60 days in the hiring country and/or in the origination country during the hotel and/or temporary housing stay period of time. You may use any combination of the storage benefit between the origination and hiring country, not to exceed a total of 60 days.  
You should be aware that not all household goods can be transported internationally due to limitations in the hiring country, and may require long term storage at your expense.

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 13

Destination Services Benefits
	
		
	Settling-In Program
	Discovery may sponsor a two-day program in the hiring country using a preferred Discovery vendor. Settling-in services may include assistance for the employee and spouse/partner with the following as needed:
•    Emergency procedures (police, emergency room, walk-in ambulatory care procedures)
•    Local government registration, if applicable
•    Banking & school registration assistance
•    Driver license/auto registration, plus explanation of auto insurance
•    Shopping fundamentals (grocery, appliance, furniture stores)
•    Medical facility(s) options (doctor visits, medical insurance process)
•    Community referrals (doctors, dentists, insurance agents, etc.)
•    Network into international community (clubs, organizations)
•    Recreation/leisure options & places of worship
•    Rental Furniture assistance, if needed

	Home finding Services

	Discovery may authorize home finding services administered in conjunction with your destination services.  

	Language Training
	Language training may be provided as approved by Discovery during the initial year of transfer for you and your authorized accompanying family members. 
Relocation provider Relocation will assist you with coordination of these benefits, if applicable

	Spouse or Partner Career Counseling
	Discovery may provide counseling or out placement services for working spouses/partners during the initial year of the transfer using Discovery preferred vendors (maximum USD $5,000 or home-country currency equivalent).
Spouse/partner transition assistance will help the accompanying spouse/partner acclimate to the hiring country/area.  Services are based on a needs assessment, the hiring country visa requirements, the spouse/partner’s objectives, and a personalized action plan. If applicable, work options are evaluated or career enhancement alternatives are identified if visa restrictions apply. Support can be provided for job search, pursuing education, training, volunteer opportunities or other career development pursuits.

	Mail Forwarding Service
	You may be eligible for reimbursement of a mail forwarding service for the first three months following your transfer. 

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 14

	
		
	Miscellaneous Expense Allowance (MEA)
	A Miscellaneous Expense Allowance (MEA) is provided for incidentals not covered by the relocation policy.  The following expenses and services, if required, are not eligible for reimbursement and are expected to be paid by the employee from the Miscellaneous Expense Allowance (MEA):

•    Boarding or shipment of pets
•    Appliances including TVs or electrical items that cannot transfer to a foreign country
•    Replacement appliances, if applicable
•    Extra pickup/drop off of household goods
•    Excess shipping or special packing costs, duty tax
•    Long term storage
•    Replacement automobile(s)
•    Driver’s licenses
•    Telephone costs
•    Extended temporary housing above relocation policy limits
•    Additional tax consultation services above and outside relocation policy limits

The MEA is based on one (1) month of hiring location base pay not to exceed USD $25,000 (or hiring-country currency equivalent at current exchange rates) excluding any commission, bonus, incentive pay, or other allowances. This payment is subject to applicable tax withholdings. This payment is not tax protected or eligible for tax gross up and is paid net of any wage or income taxes.

Taxation 
	
		
	

Tax Consultation Benefit

	Discovery provides a tax consultation with a designated accounting firm benefit during your first year of transfer and reimburses for tax consultation and filing fees related to your relocation.  It is your responsibility to work with the designated accounting firm so that you are aware of all applicable tax implications as a result of your relocation. You are responsible for submitting any required tax filings and any associated payments.
•    The tax consultation benefit is only provided for tax services related to you and your relocation between the origination country and the hiring country. Tax advice is for the employee only and spouses are not covered under this benefit  
•    The designated accounting firm will be paid on your behalf up to the maximum benefit authorized  
•    Any tax advisor services that are in excess of the authorized allowance will be your responsibility 
This benefit will be provided for each year in which you receive assignment-related compensation. You will be notified the specifics of the allowance and the accounting firm prior to the start of your relocation.

	Tax Gross Up
	If you are taxed on relocation benefits in the origination or hiring country, Discovery may offset the additional tax burden on those items deemed imputed income in accordance with governing tax laws. For example, in the US an employee may receive an imputed income that is taxable for benefits received during the relocation process.  
Discovery will provide this benefit to you in the year immediately following the transfer year and once tax returns have been filed and completed. This benefit payment is grossed up for taxes.  Any additional taxes due will be at your expense.

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 15

Resignation
	
		
	Voluntary Resignation
	If you voluntarily resign, you will forfeit all benefits and your visas may be revoked.  
Voluntary resignation also may violate the Relocation Agreement and subject you to reimburse Discovery for some of the costs incurred by Discovery in your assignment (MEA, relocation expenses, and travel expenses).  Any visa(s) contingent on continued employment by Discovery may be revoked. 
Under no circumstance will benefits be provided in the event of a voluntary termination to accept a new position outside of Discovery.

	Involuntary Resignation Redundancy or Not for Cause
	If you are terminated within the first six months of transfer due to a job redundancy, reduction in force, job elimination or for any other reason except “For Cause,” benefits may include:
•    Lease breakage up to three months
•    Tax services for year of transfer for Discovery-related compensation
•    Any severance benefits will be in accordance with the Discovery policy that is in effect at that time
Any visa(s) contingent on continued employment by Discovery may be revoked. 
You have four (4) weeks to notify Discovery of your intent to use relocation benefits and you will have up to six (6) months from your termination date to use this benefit, subject to visa requirements.

	Involuntary Resignation for Cause

	If you are terminated for Cause as defined by Discovery policy, you are not eligible for benefits except as may be required by law.  This may require you to remit payment for costs incurred for your relocation.  Discovery sponsored visas may be revoked.  
 “For Cause” shall mean the commission of any of the following acts in Discovery’s sole determination:
•    the conviction of, or nolo contendere or guilty plea, to a felony (whether any right to appeal has been or may be exercised)
•    conduct constituting embezzlement, material misappropriation or fraud, whether or not related to employee’s employment with the Company
•    conduct constituting a financial crime, material act of dishonesty or conduct in violation of Company’s Code of Business Conduct and Ethics
•    improper conduct substantially prejudicial to the Company’s business or reputation
•    willful unauthorized disclosure or use of Company confidential information
•    material improper destruction of Company property
•    willful misconduct in connection with the performance of your duties 
•    conduct inconsistent with the general policies and practices of the Company 

	 
	 

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 16

Appendix A
	
		
	

IRS Code Section 409A Compliance
	Although Discovery does not guarantee any particular tax treatment relating to the benefits provided under this Relocation Policy, it is intended that such payments and benefits be exempt from, or comply with, U.S. Tax Code Section 409A. All taxable expenses or other reimbursements under the this policy shall be payable in accordance with Discovery's policies in effect from time to time, but in any event shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by or on behalf of, and no such reimbursement or expenses eligible for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any other taxable year.  The right to such expenses and reimbursements shall not be subject to liquidation or exchange for another benefit, payment, or reimbursement.

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 17

Definitions 
Accompanied – The employee is accompanied if the business has authorized an eligible family member to travel with the employee at company expense to the host location. 
Assignment Letter – A document prepared by Global Mobility that outlines the authorized benefits, allowances, and terms and conditions of the assignment. 
Base Salary – The regular compensation, determined by the business, that the employee receives as part of the regular salary payment to do the job required within the hours agreed excluding shift, overtime, bonuses, allowances, premiums, and benefits. 
Designated Accounting Firm (DAF) – The firm Discovery selects to provide the employee with tax services while on assignment. 
Designated Cost-of-Living Data Firm (DCF) – The firm Discovery selects to provide cost-of-living data, including goods and services, transportation, and housing allowances. 
Designated Relocation Firm (designated relocation firm) – The firm Discovery selects to provide the employee with relocation and destination services.
Eligible Family Member – for purposes of accompanying the employee on an assignment or relocation, eligible family includes the:
		
	•
	current spouse (including a common law spouse according to host country law) or domestic partner; 

		
	•
	any child age eighteen or under who is in the legal custody or the custody of the accompanying spouse or domestic partner and who depends upon the employee for financial support; 

		
	•
	any unmarried son or daughter through age twenty-five who is a registered full-time student working toward a degree. 

Emergency Medical Services Firm – The firm Discovery selects to provide the employee and the authorized accompanying Eligible Family Members with medical assistance, including referrals, hospital admittance assistance, and evacuation when medically necessary. The employee qualifies for such services when the employee is on assignment or international business travel. 
Global Mobility – The corporate organization that administers international assignments and relocations. 
Home Location and Host Location – The home location is the point of origin from which we hire the employee and from which the employee transfer. The host location is any location in any other country where the employee works. 
Immediate Family – For purposes of emergency leave, the immediate family includes the: 
		
	•
	parents, including step parents or an individual who stood in place of a parent to the employee when the employee was a child; 

		
	•
	current spouse (including a common law spouse according to host country law) or domestic partner; 

		
	•
	children, step children, and their current spouses; 

		
	•
	siblings, step siblings, half siblings, and their current spouses; 

		
	•
	grandparents, step grandparents, grandchildren, and step grandchildren; 

		
	•
	current spouse’s or domestic partner’s parents (as defined above), grandparents, step grandparents, children, step children, grandchildren, and step grandchildren; 

		
	•
	current spouse’s or domestic partner’s siblings, step siblings, half siblings and their current spouses. 

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 18

Incidental Expenses – Laundry; dry cleaning; and fees and tips given to porters, baggage carriers, bellhops, and hotel maids. 
International Assignment Request (IAR) – The system the business uses to initiate the international assignment and to establish the compensation and relocation package for such assignment. 
Letter of Understanding – An agreement letter signed by the employee acknowledging the terms and conditions outlined in the Assignment Letter.
Partner – Meets a) the requirements of a domestic partner in the home location for purposes of establishing benefit-related entitlements under Discovery’s compensation and benefit guidelines, and b) the legal requirements of a domestic partner in the host location for purposes of immigration as an accompanying partner.
Point of Origin – The city and home country of primary residence in which the employee resides when selected for the  assignment, or the city and country determined by the business  if the employee is  selected for the assignment while outside of the home country. 
Reasonable – While a precise definition of "reasonable" is not possible, by applying sound business judgment to various indicators–such as economy, business objectives, facts and circumstances, necessity, and availability of alternatives–an opinion can be formed as to the action or cost a prudent person could have reasonably been expected to take or incur under similar circumstances. 
Relocation Repayment Agreement –An agreement letter between Discovery and the employee whereby the employee acknowledges and agrees to the circumstances under which the employee is responsible for repayment of the relocation.
Unaccompanied – The employee is unaccompanied if an eligible family member authorized to travel with the employee at company expense to the host location does not accompany the employee.

Standard Company-Initiated Permanent International Transfer 

Relocation Benefits- Effective 2012    Page 19

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