Document:

exv10w4

Exhibit 10.4

DISCOVERY COMMUNICATIONS LLC

SUPPLEMENTAL DEFERRED COMPENSATION PLAN

Effective as of October 1, 1999

Amended and Restated as of October 1, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS
	 	 	2	 
	ARTICLE II ELIGIBILITY AND PARTICIPATION
	 	 	5	 
	ARTICLE III CONTRIBUTIONS AND CREDITS
	 	 	5	 
	ARTICLE IV ALLOCATION OF FUNDS
	 	 	8	 
	ARTICLE V ENTITLEMENT TO BENEFITS
	 	 	11	 
	ARTICLE VI DISTRIBUTION OF BENEFITS
	 	 	11	 
	ARTICLE VII BENEFICIARIES; PARTICIPANT DATA
	 	 	14	 
	ARTICLE VIII ADMINISTRATION AND RECORDKEEPING
	 	 	14	 
	ARTICLE IX AMENDMENT
	 	 	16	 
	ARTICLE X TERMINATION
	 	 	16	 
	ARTICLE XI MISCELLANEOUS
	 	 	17	 
	ARTICLE XII THE TRUST
	 	 	19	 

 

 

DISCOVERY COMMUNICATIONS LLC

SUPPLEMENTAL DEFERRED COMPENSATION PLAN

Amended and restated effective as of October 1, 2007

RECITALS

               This Discovery Communications LLC Supplemental Deferred Compensation Plan (the “Plan”) was
adopted by Discovery Communications LLC (the “Employer”) for certain of its management employees.
The purpose of the Plan is to offer those employees deferred compensation benefits taxable under
Section 451 of the Internal Revenue Code of 1986, as amended (the “Code”) and to supplement such
employees’ retirement benefits under the Employer’s tax-qualified retirement plan and other
retirement programs. The Plan is intended to be a “top-hat plan” (i.e., an unfunded deferred
compensation plan maintained for a select group of management or highly compensated employees)
pursuant to Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act
of 1974, as amended (“ERISA”).

               The Employer has previously amended and restated the Plan, and desires to further amend and
restate Plan to provide for changes relating to compliance with Section 409A of the Code (as
defined below) and the regulations thereunder. Accordingly, the Plan is hereby restated as follows.

ARTICLE I

DEFINITIONS

               The following terms, as used herein, unless a different meaning is implied by the context,
have the following meaning:

     1.1 ACCOUNT means the balance credited to a Participant’s Plan account, including
amounts credited under the Base Compensation Deferral Account, the Incentive Compensation
Deferral Account, the EIP Transfer Account, the DAP Transfer Account, the Employer Contribution
Credit Account (but excluding any benefits referred to in Section 3.5) and the Five Year Vesting
Account. Said Account shall be determined as of the date of reference.

     1.2 BASE COMPENSATION means “compensation” as defined in the Qualifed Plan,
determined without regard to the limitation on the amount of compensation that may be recognized
under the Qualified Plan due to the application of Code Section 401(a)(17), but not in excess of
five hundred and fifty thousand dollars ($550,000).

     1.3 BENEFICIARY means any person or persons so designated in accordance with the
provisions of Article VII.

     1.4 CODE means the Internal Revenue Code of 1986 and the regulations thereunder, as
amended from time to time.

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     1.5 COMPENSATION means the total of Base Compensation and Incentive Compensation,
as such terms are defined herein.

     1.6 COMPENSATION DEFERRAL ACCOUNTS is defined in Section 3.3.

     1.7 COMPENSATION DEFERRALS is defined in Section 3.2.

     1.8 DAP means the Discovery Appreciation Plan.

     1.9 DESIGNATION DATE means the date or dates as of which a designation of deemed
investment directions by an individual pursuant to Section 4.4 shall become effective. The
Employer has determined that the Designation Dates in any Plan Year include each day of the Plan
Year upon which investment directions may be acted.

     1.10 DISABILITY means a condition under which a Participant (1) is unable to engage
in any substantial gainful activity by reason of any medically determined physical or mental
impairment that can be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, or (2) is, by reason of any medically determinable physical
or mental impairment that can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, receiving income replacement benefits for a period
of not less than three months under an accident and health policy covering employees of
Employer, as defined pursuant to Section 409A of the Code.

     1.11 EFFECTIVE DATE means the effective date of the Plan, which was October 1,
1999.

     1.12 ELIGIBLE EMPLOYEE means any person employed by the Employer who the
Retirement Plan Committee determines (in its sole discretion) is a member of a select group of
management or highly compensated employees of the Employer (within the meaning of ERISA).

          By each December 1, the Employer shall notify those individuals, if any, who will be
Eligible Employees for the next Plan Year. If the Employer determines that an individual first
becomes an Eligible Employee during a Plan Year, the Employer shall notify such individual of
its determination and of the date during the Plan Year on which the individual shall first
become an Eligible Employee.

     1.13 EMPLOYER means Discovery Communications LLC and its successors and assigns
unless otherwise herein provided, or any other corporation or business organization which, with
the consent of Discovery Communications LLC or its successors or assigns, assumes the Employer’s
obligations hereunder, or any other corporation or business organization which agrees, with the
consent of Discovery Communications LLC, to become a party to the Plan.

     1.14 EMPLOYER CONTRIBUTION CREDIT ACCOUNT is defined in Section 3.1.

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     1.15 EMPLOYER CONTRIBUTION CREDITS is defined in Section 3.1.

     1.16 INCENTIVE COMPENSATION  means a Participant’s bonuses, commissions, incentive
compensation and such other amounts as may be reflected on the Participant’s Form W-2, but not
included in Base Compensation. Notwithstanding the foregoing, Incentive Compensation shall not
include payments from the DAP.

     1.17 LONG-TERM INCENTIVE PLAN TRANSFER ACCOUNT is defined in Section 3.5.

     1.18 PARTICIPANT means any Eligible Employee designated as a Participant in
accordance with the provisions of Article II, including, where appropriate according to the
context of the Plan, any former employee who is or may become (or whose Beneficiaries may
become) eligible to receive a benefit under the Plan and solely with respect to the Five Year
Vesting Account, any employee designated as a Participant in respect of receiving a contribution
to the Five Year Vesting Account; provided, however, that any such employee is not otherwise
entitled to participate in the Plan with respect to other contributions, except as permitted
under Article II.

     1.19 PARTICIPANT ENROLLMENT AND ELECTION FORM means the form (or forms) on which a
Participant agrees to make a salary reduction contribution election under the Qualified Plan, on
which a Participant elects to defer Compensation hereunder, on which the Participant makes an
election concerning the manner of payment of his or her Account, and on which the Participant
makes certain other designations as required thereon.

     1.20 PLAN means this Discovery Communications LLC Supplemental Deferred
Compensation Plan, as amended from time to time.

     1.21 PLAN YEAR means the twelve (12) month period ending on the December 31 of each
year during which the Plan is in effect. Notwithstanding the preceding, the period beginning
October 1, 1999 and ending December 31, 1999 was deemed a short Plan Year.

     1.22 QUALIFIED PLAN means the Discovery Communications LLC Retirement Savings Plan,
as amended from time to time.

     1.23 SEPARATION FROM SERVICE means the cessation of a Participant’s services within
the meaning of Treas. Reg. §1.409A-1(h).

     1.24 TRUST means the trust fund, if any, established pursuant to the Plan.

     1.25 TRUSTEE means the trustee named in the agreement establishing the Trust and
such successor and/or additional trustees as may be named pursuant to the terms of the agreement
establishing the Trust.

     1.26 UNFORESEEABLE EMERGENCY means a severe financial hardship to the Participant
resulting from an illness or accident of the Participant, the Participant’s spouse, or the
Participant’s dependent (as defined in Code Section 152(a), as the same may

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be amended from time
to time), loss of the Participant’s property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of the Participant.

     1.27 VALUATION DATE means the last day of each Plan Year or such other date the
Employer, in its sole discretion, designates as a Valuation Date.

ARTICLE II

ELIGIBILITY AND PARTICIPATION

     2.1 REQUIREMENTS. An Eligible Employee shall become a Participant by filing a
Participant Enrollment and Election Form with the Employer prior to the beginning of the Plan
Year and agreeing to make Compensation Deferrals into the Plan. No individual shall become a
Participant, however, if he or she is not an Eligible Employee on the date his or her
participation is to begin. Notwithstanding the foregoing, with respect to an employee who first
becomes eligible to participate in the Plan during a Plan Year, a Participant Enrollment and
Election Form must be filed with the Employer within thirty (30) calendar days after the date
the employee first becomes eligible to participate in the Plan.

          Participation in the Plan is voluntary. In order to participate in the Plan an Eligible
Employee must make an irrevocable written application in such manner as may be required by
Section 3.2.

     2.2 RE-EMPLOYMENT. If a Participant whose employment with the Employer is
terminated is subsequently re-employed with the Employer, he or she may become a Participant in
accordance with the provisions of Section 2.1.

     2.3 CHANGE OF EMPLOYMENT CATEGORY. During any period in which a Participant remains
in the employ of the Employer, but ceases to be an Eligible Employee, he or she shall not be
eligible to make Compensation Deferrals or to be credited with Employer Contribution Credits
hereunder.

ARTICLE III

CONTRIBUTIONS AND CREDITS

     3.1 EMPLOYER CONTRIBUTION CREDITS. There shall be established and maintained a
separate Employer Contribution Credit Account in the name of each Participant. Such Account
shall be credited or debited, as applicable, with (a) amounts equal to the Employer’s
Contribution Credits credited to that Account; and (b) amounts equal to any deemed earnings and
losses (to the extent realized, based upon deemed fair market value of the Account’s deemed
assets as determined by the Employer, in its discretion) allocated to that Account; and (c)
expenses and/or taxes charged to that Account.

          The Employer’s Contribution Credits credited to a Participant’s Employer Contribution
Credit Account for a Plan Year shall equal the sum of (a) and (b) below:

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          (a) the excess of (i) the sum of the matching contributions that would have been made by
the Employer under the Qualified Plan on behalf of the Participant for the Plan Year, but
calculated based on his Base Compensation as defined hereunder, over (ii) the sum of the
matching contributions actually made by the Employer to the Qualified Plan on behalf of the
Participant for the Plan Year; and

          (b) additional amounts, if any, that the Employer, in its sole discretion, contributes to
the Participant’s Employer Contribution Credit Account.

          (c) A Participant shall at all times be one hundred percent (100%) vested in amounts
credited to his or her Employer Contribution Credit Account.

     3.2 PARTICIPANT ELECTIVE COMPENSATION DEFERRALS. In accordance with rules
established by the Employer, a Participant may elect to defer Compensation which is due to be
earned and which would otherwise be paid to the Participant, in any fixed percentage designated
by the Participant; provided, however, that such deferral may not exceed fifty percent (50%) of
Compensation. A Participant must make a separate election to defer Base Compensation (“Base
Compensation Deferrals”) and Incentive Compensation (“Incentive Compensation Deferrals”).
Amounts so deferred will be considered collectively as a Participant’s “Compensation Deferrals.”
A Participant shall make such elections with respect to a coming twelve (12) month Plan Year
during a period designated by the Employer prior to the Plan Year (the “annual enrollment
period”) or, if an employee is not eligible to participate at such time, no later than thirty
(30) calendar days after the date the employee is first eligible to participate in the Plan.

          A Participant may not cancel his or her Base Compensation Deferral election or his or her
Incentive Compensation Deferral election unless so required under the Qualified Plan in order
for the Participant to obtain a hardship withdrawal from the Qualified Plan or upon the
occurrence of an Unforeseeable Emergency. After the lifting of a period of suspension from the
Plan, the Participant shall be treated as a newly Eligible Employee.

          Unless so canceled, a Base Compensation Deferral deduction election and
an Incentive Compensation Deferral deduction election shall both continue in force for the
remainder of the Plan Year. Compensation Deferrals shall be deducted by the Employer from the
appropriate pay of a deferring Participant and shall be credited to the Account of the deferring
Participant.

     3.3 COMPENSATION DEFERRAL ACCOUNTS. There shall be established and maintained by
the Employer a separate Base Compensation Deferral Account and a separate Incentive Compensation
Deferral Account in the name of each Participant, to which shall be credited or debited, as
applicable: (a) amounts equal to the Participant’s Compensation Deferrals under Section 3.2; (b)
amounts equal to any deemed earnings and losses (to the extent realized, based upon deemed fair
market value of the Accounts’ deemed assets as determined by the Employer in its discretion)
attributable or allocable thereto; and (c) expenses and/or taxes charged to those Accounts.

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          A Participant shall at all times be one hundred percent (100%) vested in amounts credited
to both his or her Base Compensation Deferral Account and his or her Incentive Compensation
Deferral Account.

     3.4 PARTICIPANT SEVERANCE DEFERRALS. In accordance with rules established by the
Employer, a Participant may elect to defer any severance payment to which the Participant may
become entitled (in twenty-five percent (25%) increments) for Separation from Service on or
prior to December 31, 2007 by irrevocably electing, upon the later of the 2005 election period
or the Participant’s initial enrollment in the Plan prior to 2007 to have such payments made in
installment form (in the manner provided in Section 6.2) rather than as a lump sum.

          Notwithstanding anything herein to the contrary, except for the deferral opportunity
described in this Section 3.4 with respect to Separations from Service on or prior to December
31, 2007, the Participant’s severance benefits shall be governed by the Employer plan or plans,
or the Employer policy or policies, which provide for severance benefits, and not by the Plan.

          Notwithstanding anything elsewhere to the contrary, no deferral elections pursuant to this
Plan shall be effective with respect to severance payments, if any, payable to Participants with
respect to Separations from Service on or after January 1, 2008.

     3.5 LONG-TERM INCENTIVE PLAN TRANSFER ACCOUNTS. There shall be established and
maintained by the Employer a separate Long-term Incentive Plan Transfer Account in the name of
each Participant on whose behalf is transferred, in accordance with the provisions of this
Section, vested benefits under the DAP. Such transfers, and the amounts transferred, shall be
subject to the following provisions:

          (a) Eligible Employees and Participants who are actively employed by the Employer may
request no later than the December 31st of the calendar year preceding the calendar
year in which the DAP award is made the Committee (as that term is defined in the DAP) to effect
a transfer of all or a portion of such Participant’s DAP award to this Plan on the date such
award would otherwise be payable under the DAP under certain circumstances described in the DAP
and in
accordance with Section 409A. Such request shall be made on such forms and at such times
as the Employer may prescribe in accordance with Section 409A. If such request is approved, the
amount of the transferable benefit shall be determined under the DAP, in accordance with the
provisions, terms and conditions of the DAP, and the Participant’s vested benefit under the DAP
shall be reduced by an amount equal to the amount of the transfer.

          (b) The Long-Term Incentive Plan Transfer Account shall be credited or debited, as
applicable with: (a) amounts transferred from the DAP in accordance with this Section; (b)
amounts equal to any deemed earnings and losses (to the extent realized, based upon deemed fair
market value of the Account’s deemed assets as determined by the Employer in its discretion)
attributable or allocable thereto; and (c) expenses and/or taxes charged to that Account.

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          (c) A Participant shall at all times be one hundred percent (100%) vested in amounts
credited to his or her Long-Term Incentive Plan Transfer Account. Notwithstanding the
foregoing, to the extent all or any portion of a DAP award which was to be transferred to this
Plan is forfeited under the terms of the DAP, no such award shall be transferred or payable
under this Plan.

     3.6 FIVE YEAR VESTING ACCOUNT. There shall be established and maintained by the
Employer a separate Five Year Vesting Account in the name of any designated Participant, to
which shall be credited or debited, as applicable: (a) amounts contributed to the Five Year
Vesting Account by the Employer on behalf of any such Participant; (b) amounts equal to any
deemed earnings or losses (to the extent realized, based upon deemed fair market value of the
Five Year Vesting Account’s deemed assets as determined by the Employer in its discretion)
attributable or allocable thereto; and (c) expenses and/or taxes charged to the Five Year
Vesting Account.

          Amounts contributed to the Five Year Vesting Account of a Participant, together with
earnings thereon, shall vest in five equal annual installments on the first, second, third,
fourth, and fifth anniversaries of the dates such amounts are deemed contributed to the Plan (or
such other date as the Employer may designate in writing), subject to the continuous employment
of any such Participant by the Employer through a relevant vesting date.

          Upon any termination of employment of a Participant (notwithstanding the basis therefor),
any amounts contributed to the Five Year Vesting Account that have not vested as of the date of
such termination, together with any earnings thereon, shall be forfeited. Upon a termination of
a Participant’s employment for “Cause” (as defined in an employment agreement between the
Company and such Participant, or if there is no such agreement, “cause” in accordance with the
Company’s policies) or upon a Participant’s violation of such Participant’s employment agreement
with the Company, all amounts contributed to the Five Year Vesting Account, and any earnings
thereon, shall be forfeited.

ARTICLE IV

ALLOCATION OF FUNDS

     4.1 ALLOCATION OF DEEMED EARNINGS OR LOSSES ON ACCOUNTS. Pursuant to Section 4.4,
each Participant shall have the right to direct the Employer as to how amounts in his or her
Plan Account shall be deemed to be invested in the deemed investment options made available
under the Plan. Subject to such limitations as may from time to time be required by law, imposed
by the Employer or the Trustee or contained elsewhere in the Plan, and subject to such operating
rules and procedures as may be imposed from time to time by the Employer, prior to the date on
which a direction will become effective, the Participant shall have the right to direct the
Employer as to how amounts in his or her Account shall be deemed to be invested. The Employer
shall direct the Trustee to invest the account maintained in the Trust on behalf of the
Participant pursuant to the deemed investment directions the Employer properly has received from
the Participant.

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          The value of the Participant’s Account shall be equal to the value of the account
maintained under the Trust on behalf of the Participant. As of each Valuation Date of the Trust,
the Participant’s Account will be credited or debited to reflect the Participant’s deemed
investments of the Trust. The Participant’s Plan Account will be credited or debited with the
increase or decrease in the realizable net asset value or credited interest, as applicable, of
the designated deemed investments, as follows. As of each Valuation Date, an amount equal to the
net increase or decrease in realizable net asset value or credited interest, as applicable (as
determined by the Trustee), of each deemed investment option within the Account since the
preceding Valuation Date shall be allocated among all Participants’ Accounts deemed to be
invested in that investment option in accordance with the ratio which the portion of the Account
of each Participant which is deemed to be invested within that investment option, determined as
provided herein, bears to the aggregate of all amounts deemed to be invested within that
investment option.

     4.2 ACCOUNTING FOR DISTRIBUTIONS. As of the date of any distribution hereunder, the
distribution made hereunder to a Participant or his or her Beneficiary or Beneficiaries shall be
charged to such Participant’s Account. Such amounts shall be charged on a pro rata basis against
the investment options in which the Participant’s Account is deemed to be invested.

     4.3 SEPARATE BOOKKEEPING ACCOUNTS. A separate bookkeeping account under the Plan
shall be established and maintained by the Employer to reflect the Account for each Participant,
with bookkeeping sub-accounts to show separately the Participant’s Base Compensation Deferral
Account, Incentive Compensation Deferral Account, Long-Term Incentive Plan Transfer Account, and
the Participant’s Employer Contribution Credit Account and Five Year Vesting Account, if any.
Each sub-account will separately account for the credits and debits described in Article III.

     4.4 DEEMED INVESTMENT DIRECTIONS OF PARTICIPANTS. Subject to such limitations as
may from time to time be required by law, imposed by the Employer or the Trustee or contained
elsewhere in the Plan, and subject to such operating rules and procedures as may be imposed from
time to time by the Employer, prior to and effective for each Designation Date, each Participant
may communicate to the Employer a direction (in accordance with (a), below) as to how his or her
Plan Accounts should be deemed to be invested among such categories of deemed investments as may
be made available by the Employer hereunder. Such direction shall designate the percentage (in
any whole percent
multiples) of each portion of the Participant’s Plan Accounts which is requested to be
deemed to be invested in such categories of deemed investments, and shall be subject to the
following rules:

          (a) Any initial or subsequent deemed investment direction shall be in writing, on a form
supplied by and filed with the Employer, and/or, as required or permitted by the Employer, shall
be by oral designation and/or electronic transmission designation. A designation shall be
effective as of the Designation Date next following the date the direction is received and
accepted by the Employer on which it would be reasonably practicable for the Employer to effect
the designation.

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          (b) All amounts credited to the Participant’s Account shall be
deemed to be invested in
accordance with the then effective deemed investment direction, and as of the Designation Date
with respect to any new deemed investment direction, all or a portion of the Participant’s
Account at that date shall be reallocated among the designated deemed investment funds according
to the percentages specified in the new deemed investment direction unless and until a
subsequent deemed investment direction shall be filed and become effective. An election
concerning deemed investment choices shall continue indefinitely as provided in the
Participant’s most recent Participant Enrollment and Election Form, or other form specified by
the Employer.

          (c) If the Employer receives an initial or revised deemed investment direction which it
deems to be incomplete, unclear or improper, the Participant’s investment direction then in
effect shall remain in effect (or, in the case of a deficiency in an initial deemed investment
direction, the Participant shall be deemed to have filed no deemed investment direction) until
the next Designation Date, unless the Employer provides for, and permits the application of,
corrective action prior thereto.

          (d) If the Employer possesses (or is deemed to possess as provided in (c), above) at any
time directions as to the deemed investment of less than all of a Participant’s Account, the
Participant shall be deemed to have directed that the undesignated portion of the Account be
deemed to be invested in a money market, fixed income or similar fund made available under the
Plan as determined by the Employer in its discretion.

          (e) Each Participant hereunder, as a condition to his or her participation hereunder,
agrees to indemnify and hold harmless the Employer and its agents and representatives from any
losses or damages of any kind relating to the deemed investment of the Participant’s Account
hereunder.

          (f) Each reference in this Section to a Participant shall be deemed to include, where
applicable, a reference to a Beneficiary.

     4.5 PAYMENT OF TAXES AND EXPENSES. Expenses, including Trustee fees, associated
with the administration or operation of the Plan shall be paid by the Employer, unless, in the
discretion of the Employer, the Employer elects to charge such expenses against the appropriate
Participant’s Account or Participants’ Accounts. Any taxes (or net operating loss reductions)
allocable to an Account (or portion thereof) maintained under the Plan which arise prior to the
complete distribution of the Account,
shall be absorbed by the Employer, unless, in the discretion of the Employer, the Employer
elects to charge such taxes against the appropriate Participant’s Account or Participants’
Accounts.

     4.6 FORFEITURES. Amounts forfeited by the Participants in the Plan shall
immediately be allocated to a forfeiture account. Amounts allocated to the forfeiture account,
and adjusted by any earnings or losses thereon, shall be used to offset the amount of future
contributions or as otherwise directed by the Employer.

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ARTICLE V

ENTITLEMENT TO BENEFITS

     5.1 TERMINATION OF EMPLOYMENT/SEPARATION FROM SERVICE. Upon the Participant’s
Separation from Service with the Employer for any reason, the Participant’s Account at the date
of such termination shall be valued and payable at or commencing at such date of Separation from
Service according to the provisions of Article VI, except as provided in Section 3.5.

     5.2 RE-EMPLOYMENT OF RECIPIENT. If a Participant receiving installment
distributions pursuant to Section 6.2 is re-employed by the Employer as an employee, the
remaining distributions due to the Participant shall continue to be paid in accordance with the
election or instruction applicable to such distribution. In order for such re-employed employee
to become a Participant under the Plan again, all of the terms and conditions of the Plan,
including Section 2.1 hereof, must first be satisfied. In such event, a new Account will be
established for amounts deferred in connection with such re-employment.

     5.3 DEATH, DISABILITY OR UNFORESEEABLE EMERGENCY. In the event of a Participant’s
death or Disability, or Unforeseeable Emergency with respect to a Participant, payment shall or
may be made in accordance with the provisions of Article VI hereof.

ARTICLE VI

DISTRIBUTION OF BENEFITS

     6.1 AMOUNT. A Participant (or his or her Beneficiary) shall become entitled to
receive upon the Participant’s Separation from Service, a distribution in an aggregate amount
equal to the Participant’s Account. Any payment due hereunder will be paid by the Employer from
its general assets or from the Trust, if any.

     6.2 METHOD OF PAYMENT.

          (a) Medium of Payments. All payments under the Plan shall be made in cash or in a
cash equivalent.

          (b) Timing and Manner of Payment. (i) In the case of distributions to a
Participant or his or her Beneficiary by virtue of an entitlement pursuant to Section 5.1, an
aggregate amount equal to the Participant’s Account will be paid by the Employer or the Trust,
as provided by Section 6.1, in a lump sum or in substantially equal monthly installments
(adjusted for gains, losses and expenses) over a period of sixty (60) months or one hundred
twenty (120) months, subject to clause (ii), as previously elected by the
Participant. If a Participant fails to designate properly the manner of payment of the
Participant’s benefit under the Plan, such payment will be in a lump sum. Such designation shall
be made by the Participant on his or her Participant Enrollment and Election Form in accordance
with this Plan.

               (ii) The preceding notwithstanding, if the payment hereunder by the Employer is to be in
installments, (A) the initial installment shall be no less than twenty-five thousand dollars
($25,000) (or, if less, the balance of the Participant’s Account) and each subsequent
installment shall be no less than one thousand dollars ($1,000) (or, if less, the balance of the
Participant’s

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Account), and (B) the total to be so paid shall continue to be deemed to be
invested pursuant to Sections 4.1 and 4.4 under such procedures as the Employer may establish,
in which case any deemed income, gain, loss or expense attributable thereto (as determined by
the Employer, in its discretion) shall be reflected in the installment payments.

               (iii) If an installment method of payment is elected by the Participant, or his or her
Beneficiary, such Participant, or Beneficiary, may further elect to have the installment
payments paid in the form of a check payable to the Participant, or Beneficiary, or as a direct
deposit into his or her United States bank account. Unless the Participant, or Beneficiary,
specifically elects to receive payment via direct deposit and has completed all required forms
to initiate such direct deposits, the installment payments will be made in the form of a check
payable to the Participant, or Beneficiary. Such election relative to the form of future
installment payments may be made at any time, provided the election form and any additional
required forms are completed by the Participant, or Beneficiary, and returned to the Employer at
least thirty (30) days prior to the date of the next installment payment.

               (iv) Payments hereunder shall be made, or shall commence (in case of installments), no
later than sixty (60) days following the Participant’s Separation from Service, subject to
Section 11.5 hereof, if applicable.

               (v) Notwithstanding anything in this Section to the contrary, payments from a
Participant’s Long-Term Incentive Plan Transfer Account shall be made in a single lump sum.

               (vi) A Participant may elect to change the form of payment hereunder as set forth in an
existing Participant Enrollment and Election Form, but such a change must include the
lengthening of the deferral period by no less than five years from the original payment date (as
in effect before such change). Such election must be filed with the Employer at least 12 months
prior to the date of the first scheduled payment and shall not be effective for a period of 12
months. Under no circumstances may a Participant’s Enrollment and Election Form be retroactively
entered into, modified or revoked.

     6.3 DEATH BENEFITS. If a Participant dies before terminating his or her employment
with the Employer and before the commencement of payments to the Participant hereunder, the
entire value of the Participant’s Account shall be paid, as provided in Section 6.2, to the
person or persons designated in accordance with Section 7.1.

          Upon the death of a Participant after payments hereunder have begun but before he or she
has received all payments to which he or she is entitled under the Plan, the remaining benefit
payments shall be paid to the person or persons designated in accordance with Section 7.1, in
the manner in which such benefits were payable to the Participant, unless the Employer elects a
more rapid form of distribution.

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     6.4 DISABILITY. In the event of a Participant’s Disability, the entire value
of the Participant’s Account shall be paid as provided in Section 6.2.

     6.5 UNFORESEEABLE EMERGENCY. In the event of an Unforeseeable Emergency, a
Participant may request and the Employer may make an accelerated payout of that portion of such
Participant’s Account that is not more than the amount necessary to satisfy the emergency and
pay taxes reasonably anticipated as a result of the payout, after taking into account the extent
to which such Unforeseeable Emergency is or may be relieved through reimbursement or
compensation by insurance or by liquidation of the Participant’s other assets to the extent
liquidation would not itself cause severe financial hardship.

13

 

ARTICLE VII

BENEFICIARIES; PARTICIPANT DATA

     7.1 DESIGNATION OF BENEFICIARIES. Each Participant from time to time may designate
any person or persons (who may be named contingently or successively) to receive such benefits
as may be payable under the Plan upon or after the Participant’s death, and such designation may
be changed from time to time by the Participant by filing a new designation. Each designation
will revoke all prior designations by the same Participant, shall be in the form prescribed by
the Employer, and will be effective only when filed in writing with the Employer during the
Participant’s lifetime.

          In the absence of a valid Beneficiary designation, or if, at the time any benefit payment
is due to a Beneficiary, there is no living Beneficiary validly named by the Participant, the
Employer shall pay any such benefit payment to the Participant’s legal spouse, if then living,
but otherwise to the Participant’s estate.

     7.2 INFORMATION TO BE FURNISHED BY PARTICIPANTS AND BENEFICIARIES;
INABILITY TO LOCATE PARTICIPANTS OR BENEFICIARIES. Any communication, statement or notice
addressed to a Participant or to a Beneficiary at his or her last post office address as shown
on the Employer’s records, shall be binding on the Participant or Beneficiary for all purposes
of the Plan. Neither the Trustee nor the Employer shall be obliged to search for any Participant
or Beneficiary beyond the sending of a registered letter to such last known address. If the
Employer notifies any Participant or Beneficiary that he or she is entitled to an amount under
the Plan and the Participant or Beneficiary fails to claim such amount or make his or her
location known to the Employer within three (3) years thereafter, then, except as otherwise
required by law, if the location of one or more of the next of kin of the Participant is known
to the Employer, the Employer may direct distribution of such amount to any one or more or all
of such next of kin, and in such proportions as the Employer determines. If the location of none
of the foregoing persons can be determined, the Employer shall have the right to direct that the
amount payable shall be deemed to be a forfeiture and paid to the Employer, except that the
dollar amount of the forfeiture, unadjusted for deemed gains or losses in the interim, shall be
paid by the Employer if a claim for the benefit subsequently is made by the Participant or the
Beneficiary to whom it was payable. If a benefit payable to an unlocated Participant or
Beneficiary is subject to escheat pursuant to applicable state law, neither the Trustee nor the
Employer shall be liable to any person for any payment made in accordance with such law.

ARTICLE VIII

ADMINISTRATION AND RECORDKEEPING

     8.1 ADMINISTRATIVE AND RECORDKEEPING AUTHORITY. Except as otherwise specifically
provided herein, the Employer shall have the sole responsibility for and the sole control of the
operation, administration and recordkeeping of the Plan, and shall have the power and authority
to take all action and to make all decisions and interpretations which may be necessary or
appropriate in order to administer and operate the Plan, including, without limiting the
generality of the foregoing, the power, duty and responsibility to:

14

 

          (a) Resolve and determine all disputes or questions arising under the Plan, including the
power to determine the rights of Participants and Beneficiaries, and their respective benefits,
and to remedy any ambiguities, inconsistencies or omissions, in the Plan.

          (b) Adopt such rules of procedure and regulations as in its opinion may be necessary for
the proper and efficient administration of the Plan and as are consistent with the Plan.

          (c) Implement the Plan in accordance with its terms and the rules and regulations adopted
as above.

          (d) Subject to Section 9.1, make determinations concerning the crediting and distribution
of Participants’ benefits.

     8.2 LITIGATION. In any action or judicial proceeding affecting the Plan, it shall
be necessary to join as a party only the Employer. Except as may be otherwise required by law,
no Participant or Beneficiary shall be entitled to any notice or service of process, and any
final judgment entered in such action shall be binding on all persons interested in, or claiming
under, the Plan.

     8.3 CLAIMS PROCEDURE. Any person claiming a benefit under the Plan (a “Claimant”)
shall present the claim, in writing, to the Employer and the Employer shall respond in writing.
If the claim is denied, the written notice of denial shall state, in a manner calculated to be
understood by the Claimant:

          (a) The specific reason or reasons for denial, with specific references to the Plan
provisions on which the denial is based;

          (b) A description of any additional material or information necessary for the Claimant to
perfect his or her claim and an explanation of why such material or information is necessary;
and

          (c) An explanation of the Plan’s claims review procedure.

          The written notice denying or granting the Claimant’s claim shall be provided to the
Claimant within ninety (90) days after the Employer’s receipt of the claim, unless special
circumstances require an extension of time for processing the claim. If such an extension is
required, written notice of the extension shall be furnished by the Employer to the Claimant
within the initial ninety (90) day period and in no event shall such an extension exceed a
period of ninety (90) days from the end of the initial ninety (90) day period. Any extension
notice shall indicate the special circumstances requiring the extension and the date on which
the Employer expects to render a decision on the claim. Any claim not granted or denied within
the period noted above shall be deemed to have been denied.

          Any Claimant whose claim is denied, or deemed to be denied under the preceding sentence (or
such Claimant’s authorized representative), may, within sixty (60) days after the Claimant’s
receipt of notice of the denial, or after the date of the deemed denial, request a review of the
denial by notice given, in writing, to the Employer. Upon such a request for review, the claim
shall be reviewed by the Employer (or its designated

15

 

representative) which may, but shall not be
required to, grant the Claimant a hearing. In
connection with the review, the Claimant may have representation, may examine pertinent
documents, and may submit issues and comments in writing.

          The decision on review normally shall be made within sixty (60) days of the Employer’s
receipt of the request for review. If an extension of time is required due to special
circumstances, the Claimant shall be notified, in writing, by the Employer, and the time limit
for the decision on review shall be extended to one hundred twenty (120) days. The decision on
review shall be in writing and shall state, in a manner calculated to be understood by the
Claimant, the specific reasons for the decision and shall include references to the relevant
Plan provisions on which the decision is based. The written decision on review shall be given to
the Claimant within the sixty (60) day (or, if applicable, the one hundred twenty (120) day)
time limit discussed above. If the decision on review is not communicated to the Claimant within
the sixty (60) day (or, if applicable, the one hundred twenty (120) day) period discussed above,
the claim shall be deemed to have been denied upon review. All decisions on review shall be
final and binding with respect to all concerned parties.

ARTICLE IX

AMENDMENT

     9.1 RIGHT TO AMEND. The Employer, by action of its Board of Directors, shall have
the right to amend the Plan at any time and with respect to any provisions hereof, and all
parties hereto or claiming any interest hereunder shall be bound by such amendment; provided,
however, that no such amendment shall deprive any Participant or Beneficiary of a right accrued
hereunder prior to the date of the amendment, and provided further that the Employer may, with
prospective or retroactive effect, amend or suspend the Plan or any portion thereof at any time
for the purpose of rendering the Plan consistent with applicable law.

     9.2 AMENDMENT TO ENSURE PROPER CHARACTERIZATION OF THE PLAN. Notwithstanding the
provisions of Section 9.1, the Plan may be amended at any time, retroactively if required, if
found necessary, in the opinion of the Employer, in order to ensure that the Plan is
characterized as a non-tax-qualified “top hat” plan of deferred compensation maintained for a
select group of management or highly compensated employees, as described under ERISA Sections
201(2), 301(a)(3) and 401(a)(1) and to conform the Plan and the Trust to the provisions and
requirements of any applicable law (including ERISA and the Code).

ARTICLE X

TERMINATION

     10.1 EMPLOYER’S RIGHT TO TERMINATE PLAN. The Employer reserves the right, at any
time, to terminate the Plan and/or its obligation to make further credits to Plan Accounts by
action of its Board of Directors; provided, however, that no such termination shall deprive any
Participant or Beneficiary of a right accrued hereunder prior to the date of termination. In the
event of such termination of the Plan, the

16

 

Participant’s Plan account(s) shall continue to be
credited or debited with deemed earnings or losses in accordance with the Participant’s deemed
investment elections pursuant to Article IV
hereof, until distributed in accordance with the terms of the Plan or earlier to the extent
permitted under Code Section 409A, including, without limitation, Treas. Reg.
§1.409A-3(j)(4)(ix).

     10.2 AUTOMATIC TERMINATION OF PLAN. The Plan shall terminate automatically upon the
dissolution of the Employer or upon a Change in Control of the Employer (as such term is defined
in Section 409A(a)(2)(A)(v) of the Code and the regulations and other guidance issued
thereunder) in the event any successor to the Employer did not specifically adopt and agree to
continue the Plan; provided, however, that no such termination shall deprive any Participant or
Beneficiary of a right accrued hereunder prior to the date of termination and provided further
that, upon termination pursuant to this Section 10.2, if compliant with applicable law including
Code Section 409A and the regulations thereunder, each Participant shall become fully and
immediately vested in his or her Plan account(s) and the full amount of each Participant’s Plan
account(s) shall become immediately distributable to him or her.

     10.3 SUCCESSOR TO EMPLOYER. Any corporation or other business organization which is
a successor to the Employer by reason of a consolidation, merger or purchase of substantially
all of the assets of the Employer shall have the right to become a party to the Plan by adopting
the same by resolution of the entity’s board of directors or other appropriate governing body.
If, within thirty (30) days from the effective date of such consolidation, merger or sale of
assets, such new entity does not become a party hereto, as above provided, the Plan shall be
terminated only in accordance with this Article X.

ARTICLE XI

MISCELLANEOUS

     11.1 LIMITATIONS ON LIABILITY OF EMPLOYER. Neither the establishment of the Plan
nor any modification hereof, nor the creation of any account under the Plan, nor the payment of
any benefits under the Plan, shall be construed as giving to any Participant or any other person
any legal or equitable right against the Employer or any officer or employee thereof, except as
provided by law or by any Plan provision. The Employer does not in any way guarantee any
Participant’s Account from loss or depreciation, whether caused by poor investment performance
of a deemed investment or the inability to realize upon an investment due to an insolvency
affecting an investment vehicle or any other reason. In no event shall the Employer, or any
successor, employee, officer, director or stockholder of the Employer, be liable to any person
on account of any claim arising by reason of the provisions of the Plan or of any instrument or
instruments implementing its provisions, or for the failure of any Participant, Beneficiary or
other person to be entitled to any particular tax consequences with respect to the Plan, or any
credit or distribution hereunder.

     11.2 CONSTRUCTION. If any provision of the Plan is held to be illegal or void, such
illegality or invalidity shall not affect the remaining provisions of the Plan, but shall be
fully severable, and the Plan shall be construed and enforced as if said illegal or

17

 

invalid provisions had never been inserted herein. For all purposes of the Plan, where the context
permits, the singular shall include the plural, and the plural shall include the singular.
Headings of Articles and Sections herein are inserted only for convenience of
reference and are not to be considered in the construction of the Plan. The laws of
Maryland shall govern, control and determine all questions of law arising with respect to the
Plan and the interpretation and validity of its respective provisions, except where those laws
are preempted by the laws of the United States. Participation under the Plan will not give a
Participant the right to be retained in the service of the Employer nor any right or claim to
any benefit under the Plan unless such right or claim has specifically accrued hereunder.

               The Plan is intended to be and at all times shall be interpreted and administered so as to
qualify as an unfunded plan of deferred compensation, and no provision of this Plan shall be
interpreted so as to give any individual any right in any assets of the Employer which right is
greater than the rights of any general unsecured creditor of the Employer.

          11.3 SPENDTHRIFT PROVISION. No amount payable to a Participant or any Beneficiary
under the Plan will, except as otherwise specifically provided by law, be subject in any manner
to anticipation, alienation, attachment, garnishment, sale, transfer, assignment (either at law
or in equity), levy, execution, pledge, encumbrance, charge or any other legal or equitable
process, and any attempt to do so will be void; nor will any benefit hereunder be in any manner
liable for or subject to the debts, contracts, liabilities, engagements or torts of the person
entitled thereto. Further, (a) the withholding of taxes from Plan benefit payments, (b) the
recovery under the Plan of overpayments of benefits previously made to a Participant or any
Beneficiary, (c) if applicable, the transfer of benefit rights from the Plan to another plan, or
(d) the direct deposit of Plan benefit payments to an account in a banking institution (if not
actually part of an arrangement constituting an assignment or alienation) shall not be construed
as an assignment or alienation.

               In the event that a Participant’s or any Beneficiary’s benefits hereunder are garnished or
attached by order of any court, the Employer may bring an action for a declaratory judgment in a
court of competent jurisdiction to determine the proper recipient of the benefits to be paid
under the Plan. During the pendency of said action, any benefits that become payable shall be
held as credits to a Participant’s or Beneficiary’s Account or, if the Employer prefers, paid
into the court as they become payable, to be distributed by the court to the recipient as it
deems proper at the close of said action.

     11.4 Section 409A. The benefits under this Plan are intended to be provided in
compliance with Section 409A of the Code and, accordingly, to the maximum extent permitted, this
Plan shall be interpreted to be in compliance therewith. Notwithstanding any provision of the
Plan, to the extent that any distribution or Account would be subject to Section 409A of the
Code, no such distribution or Account may be granted if it would fail to comply with the
requirements set forth in Section 409A of the Code. To the extent that the Employer determines
that the Plan or any distribution or Account under it is subject to Section 409A of the Code and
fails to comply with the requirements of Section 409A of the Code, notwithstanding anything to
the contrary contained in the Plan, the Employer reserves

18

 

the right to amend or terminate the
Plan and/or amend, restructure, terminate or replace the distribution or Account in order to
cause the same to either not be subject to Section 409A of the Code or to comply with the
applicable provisions of Section 409A of the Code. Notwithstanding the foregoing, neither the
Company nor any of their employees or agents
shall have any liability to any Participant or Beneficiary as a result of any tax, interest
or penalty or other payments required to be paid or due, pursuant to or because of a violation
of Section 409A of the Code.

     11.5 SPECIFIED EMPLOYEES. If the Participant is a specified employee as defined in,
and pursuant to Treas. Reg. §1.409A-1(i) or any successor regulation, on the date of Separation
from Service for any reason except the death of the Participant, any payment hereunder
designated as being subject to this Section 11.5 shall be made to the Participant no earlier
than (i) the date which is six months from the date of Separation from Service or (ii) the date
of the Participant’s death (the “Delay Period”). If any payment or installment is delayed
pursuant to the preceding sentence, all payments or installments due during the Delay Period
will be paid to the Participant or his or her Beneficiary in a lump sum, on the first business
day following the expiration of the six month period referred in the prior sentence or the date
of the Participant’s death, as applicable.

ARTICLE XII

THE TRUST

     12.1 ESTABLISHMENT OF TRUST. The Employer may, but need not, establish the Trust
with the Trustee pursuant to such terms and conditions as are set forth in the Trust agreement
to be entered into between the Employer and the Trustee. The Trust is intended to be treated as
a “grantor” trust under the Code and the establishment of the Trust is not intended to cause the
Participant to realize current income on amounts contributed thereto nor to cause the Plan to be
“funded” within the meaning of ERISA, and the Trust shall be so interpreted.

          IN
WITNESS WHEREOF the Employer has caused this restated Plan to be
executed this 22nd day of October, 2007

	 	 	 	 	 	 	 
	 	 	DISCOVERY	 	 
	 	 	COMMUNICATIONS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	/s/ Adria Alpert Romm	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title	 	SEVP Human Resources	 	 
	 

	 	 	 	 	 	 
	ATTEST: 
	 	 	 	 	 	 
	 
	/s/ Jennifer
Johnson
	 	 	 	 	 	 
	Director
- Benefits

	 	 	 	 	 	 

19exv10w5

Exhibit 10.5

FINAL

Discovery Communications, LLC

Discovery Appreciation Plan

(Amended and Restated Effective as of August 17, 2007)

     Section 1. Purpose.

          The purpose of the Plan is to provide financial incentives and rewards to key executive and
managerial employees of the Company and its Subsidiaries. The Plan also provides a means to
attract and retain the executive and managerial talent needed to achieve the Company’s long-term
growth and profitability objectives.

     Section 2. Definitions.

          When used herein, the following terms shall have the following meanings:

          “Account” shall mean the unfunded, bookkeeping account maintained to record the vested
and unvested Appreciation Units awarded to each Participant under the Plan.

          “Additional Amount” shall mean the additional 25% Unit Benefit amount described in
Section 7.3(a)(iii) hereof.

          “Affiliate” shall mean any person directly or indirectly controlling or controlled by
any shareholder of the Company, or any person under direct or indirect common control with any
shareholder of the Company.

          “Appreciation Period” shall mean the period beginning on the Grant Effective Date and
ending (i) on the Regular Maturity Date or (ii) in the circumstances described in Section 7.3, on
the applicable Early Termination Date.

          “Appreciation Unit” shall mean the right to receive, in accordance with the provisions
of the Plan, a payment based on the appreciation, if any, in the value of the Company during the
relevant Appreciation Period.

          “Award” shall mean the grant of a number of Appreciation Units which are allocated to
a Participant’s Account in accordance with the provisions of the Plan.

          “Beginning Unit Value” shall mean the value per Appreciation Unit as of the Grant
Effective Date. Subject to Section 3.3, the Beginning Unit Value as of October 1, 2005 and each
Grant Effective Date thereafter shall be determined as the product of: (A) the average closing
price of a single Class A share of DHC (trading on the Nasdaq National Market under the symbol
“DISCA”) for the ten (10) trading days preceding and including the Grant Effective Date and the ten
(10) trading days following the Grant Effective Date, such closing prices as according to the Wall
Street Journal or a comparable successor publication in the United States as of such dates,
multiplied by (B) one hundred ten percent.

          “Beneficiary” shall mean any person designated in accordance with Section 13.1 to
receive the amount, if any, payable under the Plan in the event of the death of a Participant.

 

 

          “Cause” shall mean the commission of any of the following acts: (i) disorderly
conduct; (ii) reporting to work under the influence of alcohol or illegal drugs, or abuse of
alcohol or use of illegal drugs on Company premises or while on Company business, or use outside of
the Company premises which impairs the employee’s ability to perform his or her work; (iii)
committing or attempting to commit deliberate damage to Company property, misuse of Company
property, advocating or taking part in seizure or theft of, or trespassing on, Company property;
(iv) failing to observe established safety rules or participating in activities which would
endanger the safety of others or damage the property or inventory of the Company; (v) dishonesty or
any act reflecting negatively on the good reputation of the Company; (vi) obtaining employment on
the basis of false or misleading information; (vii) falsifying time sheets, attendance or other
Company records; (viii) being absent from work without proper authority; or (ix) consistent with
the general policies and practices of the Company, such other acts as may be determined by the
Company in its sole discretion.

          “Change in Control” shall mean (i) the merger, consolidation or reorganization of the
Company with any other company (or the issuance by the Company of its voting securities as
consideration in a merger, consolidation or reorganization of a Subsidiary with any other company)
other than such a merger, consolidation or reorganization which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the other entity) at least
fifty percent of the combined voting power of the voting securities of the Company or such other
entity outstanding immediately after such merger, consolidation or reorganization, provided that
DHC or Advance Newhouse Communications Inc. (and their respective Affiliates) shall hold, in the
aggregate, at least fifty percent of the voting power of the voting securities of the Company; (ii)
the approval by the shareholders of the Company of a plan of complete liquidation of the Company or
an agreement for the sale or disposition by the Company of all or substantially all of the
Company’s assets, other than any such sale or disposition to an entity at least fifty percent of
the combined voting power of the voting securities of which is owned immediately after the sale or
disposition by DHC or Advance Newhouse Communications Inc. (and their respective Affiliates); or
(iii) any sale, transfer or issuance of voting securities of the Company (including any series of
related transactions) as a result of which DHC or Advance Newhouse Communications Inc. (and their
respective Affiliates) shall cease to hold, in the aggregate, directly or indirectly, at least
fifty percent of the voting power of the voting securities of the Company.

          “Company”
shall mean Discovery Communications, LLC.

          “Compensation Committee” shall mean the Compensation Committee of the Company,
consisting of shareholder representatives of the Company.

          “Competitor” shall mean any entity in the media or consumer products industries that
is in competition with one or more of the businesses of the Company and its Subsidiaries as so
determined by the Company from time to time in its sole discretion.

          “DHC” shall mean Discovery Holding Company, Inc.

2

 

          “Disability” and “Disabled” shall mean a condition under which a Participant
(1) is unable to engage in any substantial gainful activity by reason of any medically determined
physical or mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, or (2) is, by reason of any medically
determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, receiving income replacement
benefits for a period of not less than three months under an accident and health policy covering
employees of Company, as defined pursuant to Section 409A.

          “Early Termination Date” shall mean a date determined in accordance with Section 7.3
hereof.

          “EIP” shall mean the Discovery Communications, Inc. Executive Incentive Plan, as the
same may hereafter be amended from time to time.

          “EIP Conversion Units” shall mean unvested units or vested units that have not yet
appreciated, which such units were previously awarded to a Participant under the EIP and which have
been converted to Units under the Plan following such Participant’s election with respect to the
same.

          “Employee” shall mean an active and regular employee of the Company or of any
Subsidiary who is not classified as a temporary, seasonal, leased, contingent and/or contracted
worker. For purposes of the Plan and this definition of “Employee,” a “regular employee” of the
Company or of any Subsidiary shall mean a full-time or part-time employee of the Company or any
Subsidiary who: (i) is classified by the Company or any Subsidiary as eligible to receive health
or welfare benefits from the Company or any Subsidiary and (ii) is issued an IRS Form W-2 by the
Company or any Subsidiary for tax reporting purposes. Notwithstanding anything in the Plan to the
contrary, an “Employee” shall not include any individual (i) who is classified as an independent
contractor by the Company or any Subsidiary, (ii) who is provided compensation by or through an
employee leasing or staffing company or other third-party agency or organization, (iii) whose
compensation from the Company or any Subsidiary is not subject to tax withholding or does not
provide a basis upon which employer contributions may be made by the Company or any Subsidiary to
an employee benefit plan, or (iv) who is classified by the Company or any Subsidiary as a leased
employee or contingent worker, in each case during the period the individual is so described in one
or more of clauses (i) through (iv) even if such individual is later retroactively reclassified as
a common-law employee of the Company or of any Subsidiary during all or any portion of such period
pursuant to applicable law or otherwise.

          “Ending Unit Value” shall mean the value of a given Unit as of the end of the
applicable Appreciation Period. Subject to Section 3.3, the Ending Unit Value shall be determined
as the product of: (A) the average closing price of a single Class A share of DHC (trading on the
Nasdaq National Market under the symbol “DISCA”) for the ten (10) trading days preceding and
including the last day of the applicable Appreciation Period and the ten (10) trading days
following the last day of the applicable Appreciation Period, such closing prices as according to
the Wall Street Journal or a comparable successor publication in the United States as of such
dates, multiplied by (B) one hundred ten percent.

3

 

          “Full-Time Employee” shall mean an Employee whose regular work schedule (excluding
vacation and sick days to which such employee is entitled under then-applicable Company policy and
excluding overtime and any other non-regularly scheduled work) is at least 40 hours per week.

          “General Liability Release” shall mean the General Release in the form annexed hereto
as Attachment A.

          “Grant Effective Date” shall mean the date on which a grant of Appreciation Units is
made to a Participant, or such other date (which may, without limitation, be the date on which a
Participant first becomes eligible for an Award hereunder) on which the Compensation Committee or
its delegates in accordance with Section 3.2 shall determine that a grant of Appreciation Units to
a Participant is to be effective. A given Grant Effective Date is a function of Plan
administration subject to the discretion of the Compensation Committee and its delegates.

          “Non-Compete Terms” shall mean the terms of a certain covenant not to compete as
provided in accordance with Section 7.3(a)(ii) hereof.

          “Part-Time Employee” shall mean an Employee whose regular work schedule (excluding
vacation and sick days to which such employee is entitled under then-applicable Company policy and
excluding overtime and any other non-regularly scheduled work) is less than 40 hours per week (or
such number of hours per week constituting a regular work week at an Employee’s work location, as
determined by the Company).

          “Participant” shall mean an Employee who is selected to participate in the Plan as
provided in Section 3.2.

          “Plan” shall mean this Discovery Communications, LLC Discovery Appreciation Plan, as
the same may hereafter be amended from time to time.

          “Regular Maturity Date” shall have the meaning set forth in Section 6 hereof.

          “Retirement” shall mean the Separation From Service by an Employee (other than for
Cause) after such employee’s attainment of age 62 with five years of service with the Company or
any Subsidiary [(with such service credited pursuant to the rules in effect for vesting purposes
under the Company’s 401(k) retirement plan)].

          “Section 409A” shall mean Section 409A of the Internal Revenue Code of 1986, as it may
be amended from time to time.

          “Separation From Service” (and variations on the form of the same) shall mean a
separation from service with the Company within the meaning of Section 409A.

          “SRP” shall mean the Discovery Communications LLC Supplemental Deferred Compensation
Plan, as the same may hereafter be amended from time to time.

4

 

          “SRP Election” shall mean, in accordance with Section 3.2(b), an election by a
Participant to transfer to the SRP the Unit Benefits that otherwise would have become payable with
respect to certain designated Appreciation Units as a result of (a) the Participant’s death,
Disability, involuntary (except for Cause) or voluntary (including Retirement) Separation From
Service; or (b) in connection with a Regular Maturity Date.

          “Subsidiary” shall mean (i) any corporation, limited liability company, partnership or
other entity a majority of the voting power of which is owned, directly or indirectly, by the
Company and (ii) any other entity in which the Company directly or indirectly holds an interest and
that is designated by the Compensation Committee or its delegates as eligible to have its employees
participate in the Plan.

          “Unforeseeable Emergency” shall mean a severe financial hardship to the Participant
resulting from an illness or accident of the Participant, the Participant’s spouse, or the
Participant’s dependent (as defined in Internal Revenue Code Section 152(a), as the same may be
amended from time to time), loss of the Participant’s property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events beyond the control of
the Participant, as defined pursuant to Section 409A.

          “Unit Benefit” shall mean the benefits payable pursuant to Section 7.1 of the Plan
with respect to each vested Appreciation Unit credited to a Participant’s Account, and “Unit
Benefits” shall mean the aggregate benefits payable pursuant to Section 7.1 with respect to all
vested Appreciation Units credited to a Participant’s Account.

     Section 3. Administration; Designation of Participants and Grant Elections; Share
Adjustments.

          3.1 Administration. The Compensation Committee shall have the general discretionary
responsibility and authority for the administration of the Plan, including the ability to amend or
terminate the Plan. The Compensation Committee shall have the discretionary authority to establish
from time to time policies, procedures and guidelines for the administration of the Plan and the
discretionary authority to construe and interpret the terms of the Plan (including the
discretionary authority to determine eligibility for benefits under the Plan) and any such
policies, procedures and guidelines, and the Compensation Committee may, in its discretion,
delegate such authority to the Chief Executive Officer or to senior management of the Company;
provided, however, that granting of Awards shall be as set forth in Section 3.2(a) hereof, and the
Compensation Committee may not delegate authority to amend or terminate the Plan. Unless otherwise
required by applicable law or regulation, such delegates may also be participants in the Plan;
provided, however, to the extent any determination directly affects the rights or benefits of any
delegate (except with respect to determinations that may affect Plan participants or classes of
Plan participants generally), the delegation shall be deemed to be revoked as to such delegate.
Special rules may be adopted in respect of grants of Awards to Employees based outside the United
States.

5

 

          3.2 Designation of Participants and Grant Elections.

               (a) Designation of Participants. Key employees of the Company and its Subsidiaries
shall be eligible to participate in the Plan, provided such individuals are Employees (as defined
in Section 2). The Compensation Committee may, from time to time and in its sole discretion,
select those Employees who shall become Participants in the Plan, and determine the number of
Appreciation Units to be awarded to any such Participant and the terms and conditions that shall
apply to any such Award (which eligibility and other terms and conditions may vary); provided,
however, that effective as of the date hereof, the Compensation Committee shall delegate authority
in respect of this Section 3.2(a) to the Chief Executive Officer until such time as the
Compensation Committee may revoke such delegation. Upon payment of (or appropriate deferral of
payments of) any of a Participant’s Appreciation Units, a replenishment grant may be awarded at the
discretion of the Compensation Committee.

               (b) SRP Deferral. If a Participant is eligible to participate in the SRP, such
Participant may elect, pursuant to various SRP Elections, to transfer to the SRP the Unit Benefits
that otherwise would have become payable with respect to certain designated Appreciation Units as a
result of the Participant’s death, Disability, involuntary Separation From Service (other than for
Cause), voluntary Separation From Service (including Retirement), or upon a Regular Maturity Date,
by having the Unit Benefit amount, if any, attributable to such Appreciation Units credited to an
unfunded bookkeeping account maintained on his or her behalf under the SRP, to be valued thereafter
in accordance with the Participant’s elections pursuant to and in accordance with the SRP, and in
accordance with the following terms and conditions.

                    (i) Such SRP Election shall be made, in such form and manner as may be prescribed by the
Company, before the time of Award. Unless otherwise permitted by the Company in accordance with
Section 409A of the Internal Revenue Code of 1986, as amended, such SRP Election must be filed with
the Company prior to the December 31 of the calendar year preceding the calendar year in which the
Award is made (or, if a service provider is not eligible to participate at such time, not later
than the earlier of (v) thirty (30) calendar days after the date the Participant is first eligible
to participate in the Plan or (w) the date of the Award). For purposes of this Section 3.2(b)(i),
a Participant who terminates employment, and then becomes eligible to participate again will be
treated as a newly eligible Participant only if (x) payment for all of such Participant’s
Appreciation Units previously granted has been made, and on and before the date of the last such
payment, such Participant was not eligible to continue to participate in the Plan for periods after
the last such payment, (y) such Participant was not eligible to participate (other than accrual of
earnings) at any time during the 24-month period ending on the date the employee again becomes
eligible to participate, or (z) as otherwise permitted by the Company in accordance with Section
409A. This Section is intended to comply with Section 409A.

                    (ii) Such SRP Election may be made with respect to all or a portion of the Appreciation Units
(in such minimum increments as may be determined by the Company).

                    (iii) Such SRP Election shall be effective commencing upon election and shall be irrevocable.

6

 

                    (iv) In the event of such a deferral election, the Unit Benefits, if any, to be credited to
the SRP with respect to the Appreciation Units for which such deferral election has been made shall
be determined in accordance with Section 7.1. The date such Unit Benefits are credited to the SRP
shall be no later than the date that such Unit Benefits would have become payable under Section
7.2(a) in the absence of such SRP Election.

                    (v) To the extent an SRP Election is made by a Participant with respect to Appreciation Units
hereunder and an amount of Unit Benefits, if any, is credited to the SRP, such benefit amount shall
be valued thereafter in accordance with the participant’s elections pursuant to, and payable solely
from and in accordance with the terms and conditions of the SRP, and following the crediting of
such Unit Benefits to the SRP no Unit Benefits attributable to such Appreciation Units shall be
valued pursuant to or payable under the Plan, and such Appreciation Units shall be terminated and
canceled under the Plan.

          3.3 Share Adjustments. In the event of any Change in Capitalization, an equitable
substitution or proportionate adjustment shall be made in the number of shares of Company stock
underlying Appreciation Units and/or in the value of outstanding Appreciation Units, in each case
as may be determined by the Compensation Committee in its sole discretion. For purposes of this
Section 3.3, “Change in Capitalization” means any increase, reduction, or change or exchange of
shares of the Company or DHC for a different number or kind of shares or other securities or
property by reason of a reclassification, recapitalization, merger, consolidation, reorganization,
issuance of warrants or rights, stock dividend, stock split or reverse stock split, combination or
exchange of shares, repurchase of shares, change in corporate structure or otherwise or any other
corporate action, such as a declaration of a special dividend, that affects the capitalization of
the Company or DHC.

     Section 4. Vesting.

          4.1 Vesting Schedule. Except as otherwise provided in Section 5 or as the
Compensation Committee may otherwise determine, a Participant’s interest in the Appreciation Units
awarded to him or her under the Plan shall vest in accordance with the following schedule:

	 	 	 	 	 
	Period of Continuous	 	 
	Employment with the	 	 
	Company Following the	 	Cumulative Vested
	Grant Effective Date	 	Percentage
	Less than 1 year
	 	 	0	%
	 
	 	 	 	 
	At least 1 year, but less than 2 years
	 	 	25	%
	 
	 	 	 	 
	At least 2 years, but less than 3 years
	 	 	50	%
	 
	 	 	 	 
	At least 3 years, but less than 4 years
	 	 	75	%
	 
	 	 	 	 
	At least 4 years
	 	 	100	%

7

 

          4.2 Continuous Service; Breaks in Service. Solely for purposes of Section 4.1, and
unless the Compensation Committee otherwise determines in its sole discretion, (a) a Participant’s
period of continuous employment with the Company shall mean continuous service as a Full-Time
Employee and/or Part-Time Employee for the relevant vesting period, provided that any such
continuous service as a Full-Time Employee and/or a Part-Time Employee shall include such service
with any Subsidiary, and (b) a Participant’s period of continuous employment with the Company
following the Grant Effective Date shall mean a period commencing on the day immediately following
the applicable Grant Effective Date, and thus vesting shall occur on the applicable anniversary
dates of the Grant Effective Date (provided, however, if any period of service is disregarded under
Section 5.4 in determining a Participant’s vested interest, then vesting shall occur on the
applicable dates coinciding with the completion of the required period of continuous employment
following the Grant Effective Date). To the extent that the application of the Vested Percentage
specified in Section 4.1 would otherwise result in vesting of fractional Appreciation Units, then
the number of such Appreciation Units that first vest shall be the next higher whole number of
Appreciation Units and the remaining unvested fractional Appreciation Units with respect to such
Award shall be forfeited.

     Section 5. Special Vesting Provisions.

          5.1 Termination for Cause. If a Participant’s employment with the Company and its
Subsidiaries is terminated for Cause, then, notwithstanding any other provision of the Plan, his or
her interest in (i) any Appreciation Units credited to his or her Account, whether or not then
vested, and (ii) any Unit Benefit transferred to the SRP Plan and earnings thereupon, shall be
forfeited immediately upon the giving of notice of such termination, and no Unit Benefits or
benefits under the SRP Plan arising from or relating to any transferred Unit Benefit shall be
payable with respect to such Participant.

          5.2 Certain Terminations. If a Participant voluntarily or involuntarily (other than
for Cause) Separates From Service with the Company and its Subsidiaries other than for death,
Disability or Retirement, any unvested Appreciation Units as of the date such termination is
effective shall be forfeited and any vested Appreciation Units shall be payable in accordance with
Section 7.

          5.3 Other Vesting Events. If either (a) a Participant’s employment with the Company
and its Subsidiaries is terminated as a result of his or her death, Disability or Retirement, (b) a
Participant’s employment with the Company and its Subsidiaries is terminated by the Company not for
Cause within twelve months after the date of a Change in Control, or (c) the Plan shall be
terminated as provided in Section 17, then upon the happening of any of such events, any unvested
Appreciation Units credited to the Participant’s Account as of the date of such event (other than
any Appreciation Units that have been forfeited or are otherwise subject to forfeiture under
Section 5.4(a)) shall become one hundred percent (100%) vested.

8

 

          5.4 Change in Status.

               (a) Change in Status from Full-Time Employee to Part-Time Employee. If a Participant
who is a Full-Time Employee becomes a Part-Time Employee, or if the number of hours normally worked
by a Part-Time Employee is reduced but the Participant remains a Part-Time Employee, then (i) as of
the date such change in status is effective, that percentage of any unvested Appreciation Units
that is proportional to the percentage of hours by which such Employee’s regular work schedule was
reduced shall be forfeited, (ii) unvested Appreciation Units not so forfeited shall continue to
vest in accordance with Section 4.1 and the terms and conditions of the Plan as long as such
Participant remains an Employee, and (iii) any vested Appreciation Units shall be payable on the
Regular Maturity Dates in accordance with Section 7 or deferred in accordance with Section 3.2(b).
If any Participant who is subject to the foregoing sentence has unvested Appreciation Units that
vest in more than one tranche, or tranches of vested Appreciation Units to which more than one
Appreciation Period applies, then forfeiture or payment (or deferral into the SRP), as applicable,
shall be made with respect to the applicable proportional amount of each tranche; provided that, if
such forfeiture or payment (or deferral into the SRP) would otherwise result in the forfeiture or
payment (or deferral into the SRP) of fractional Appreciation Units, then to the extent necessary
to prevent the forfeiture or payment (or deferral into the SRP) of fractional Appreciation Units,
in the Company’s discretion, (A) the total number of Appreciation Units to be so forfeited or paid
(or deferred into the SRP) shall be rounded to the next lower whole number of Appreciation Units,
and/or (B) the number of Appreciation Units so forfeited or paid (or deferred into the SRP) shall
be adjusted by rounding the tranche that was or would be the last to vest to the next higher number
and the other fractions of an Appreciation Unit shall be forfeited.

               (b) Temporary Change in Status; Leaves of Absence. Notwithstanding any other
provision of this Section 5.4, an Employee who temporarily changes status or takes an authorized
leave of absence (including, without limitation, as a result of a condition which could, with the
passage of time, cause a Participant to become Disabled), in either case for a period generally not
to exceed six months, may, if the Company shall in its sole discretion so consent, have the
provisions of subsection (a) suspended, or shall deem that no Separation from Service has occurred
(to the extent permitted by Section 409A), during the period of such temporary change in status or
leave of absence; provided that, during the period in which such Participant is on such temporary
status: (i) if, but for the provisions of this subsection (b) such Participant would incur a
Separation from Service, then (x) no Appreciation Units shall vest during the period of such
temporary change in status; and (y) for purposes of vesting under Section 4.1, the period of such
temporary change in status shall not be included in calculating the Participant’s period of
continuous employment, but shall not be deemed to be a break in service for purposes of the
continuity of service requirement for vesting, except that authorized leave under the Family and
Medical Leave Act or relevant State statute shall be included in calculating the Participant’s
period of continuous employment; (ii) if, but for the provisions of this subsection (b) such
Participant would be subject to the provisions of subsection (a) of this Section 5.4, then the
provisions of subclauses (x) and (y) of clause (i) of this subsection (b) shall apply, but only
with respect to the applicable percentage of such Participant’s Appreciation Units corresponding to
the reduction in such Participant’s work schedule; (iii) if after six months (or such other period
up to one year as the Company shall in its sole discretion determine) such Participant has not
returned to his or her prior status, then the provisions of subsection (a), or Section 5 relating
to a

9

 

Separation from Service, as the case may be, shall apply, effective as of the date such
Participant’s change in status first became effective; and (iv) the provisions of this Section 5.4
shall not apply in the case of a Participant who has become Disabled.

          5.5 EIP.

               (a) EIP Conversion Units. As of the date hereof, EIP Conversion Units have been
converted into Appreciation Units.

               (b) Impact on Employment Agreements. If any Participant has entered into an
employment agreement with the Company which employment agreement makes reference to the EIP, it is
understood that this Plan shall take the place of the EIP for purposes of such employment
agreement.

     Section 6. Regular Maturity Dates.

          6.1 Regular Maturity Date. Except as otherwise provided in Section 7 or Section 6.2,
the Appreciation Units shall be paid out in accordance with Section 7 hereof (or deferred into the
SRP in accordance with Section 3.2(b)) as soon as practicable following the date the Appreciation
Units vest in accordance with Section 4.1 (the “Regular Maturity Date”).

          6.2 Certain Appreciation Units Previously Granted. Appreciation Units granted to
Participants hereunder prior to the effective date of this amendment and restatement and that
remain outstanding as of such date that

                    (i) were EIP Conversion Units originally granted prior to January 1, 2005 shall have a Regular
Maturity Date of October 1, 2007 as to 25% of such Appreciation Units, and a Regular Maturity Date
of October 1, 2008 as to 75% of such Appreciation Units;

                    (ii) were granted in calendar year 2005 and that vest after at least one year, but less than
two years, of continuous service following the Grant Effective Date in accordance with Section 4.1
(i.e., 25% of such Appreciation Units granted in calendar year 2005) shall have a Regular Maturity
Date of the second anniversary of the Grant Effective Date or if later, the date such Appreciation
Units vest in accordance with Section 4.1;

                    (iii) were granted in calendar year 2005 and that vest after at least two years, but less than
three years, of continuous service following the Grant Effective Date in accordance with Section
4.1 (i.e., 25% of such Appreciation Units granted in calendar year 2005) shall have a Regular
Maturity Date of the third anniversary of the Grant Effective Date, or if later, the date such
Appreciation Units vest in accordance with Section 4.1;

                    (iv) were granted in calendar year 2006 and that vest after at least one year, but less than
two years, of continuous service following the Grant Effective Date in accordance with Section 4.1
(i.e., 25% of such Appreciation Units granted in calendar year 2006) shall have a Regular Maturity
Date of the second anniversary of the Grant Effective Date, or if later, the date such Appreciation
Units vest in accordance with Section 4.1; and

10

 

                    (v) were granted to former participants in the EIP who were no longer regular active employees
of the Company due to retirement or disability at the time of such grant shall have a Regular
Maturity Date as set forth in such grant, shall be payable pursuant to Section 7.2(a) hereof, and
shall not be subject to Sections 7.3(a) or 7.3(b).

     Section 7. Payment of Benefits.

          7.1 Amount of Unit Benefit. Subject to the provisions of this Section 7, a
Participant (or, as applicable, his or her Beneficiary) shall be entitled to receive, with respect
to each vested Appreciation Unit credited to his or her Account, a benefit equal to the
appreciation, if any, in the value of such Appreciation Unit during the applicable Appreciation
Period. The appreciation, if any, in the value of an Appreciation Unit shall be determined in the
following manner: (i) the Ending Unit Value shall be determined; (ii) the Beginning Unit Value
shall be determined; (iii) if the amount described in (i) is greater than the amount described in
(ii), then the amount described in (ii) shall be subtracted from the amount described in (i), with
the calculated amount thereof representing the appreciation in value of the Appreciation Unit and
such amount shall be payable as provided in this Section 7. Notwithstanding anything herein to the
contrary, if the Ending Unit Value for the applicable Appreciation Period does not exceed the
Beginning Unit Value with respect to that Appreciation Period, then the Appreciation Units whose
value is measured with respect to such Appreciation Period will have no value and no Unit Benefits
will be payable with respect to those Appreciation Units.

          7.2 Form and Commencement of Unit Benefits.

               (a) Payment in Connection with Regular Maturity Dates. Except as provided in Section
7.2(b) (Early Termination), and subject to a Participant’s having made an election in accordance
with Section 3.2(b), and subject further to the Company’s right to pay Unit Benefits in the form of
Company common stock pursuant to Section 7.2(c), the Unit Benefits payable in respect of a
Participant’s vested Appreciation Units shall be paid in the form of a single lump sum cash payment
no later than the regular Company payroll date that is closest in time to the date that is sixty
(60) days following the end of the applicable Appreciation Period.

               (b) Early Termination Payment. If an Early Termination Date has occurred under
Section 7.3(a) (Separation From Service), (b) (Death, Disability or Retirement), or (c)
(Unforeseeable Emergency), then the Unit Benefits payable in respect of a Participant’s vested
Appreciation Units shall be determined based on an Appreciation Period ending on the applicable
Early Termination Date and, subject to a Participant’s having made an election in accordance with
Section 3.2(b), shall be paid in the form of a single sum cash payment no later than the regular
Company payroll date that is closest in time to the date that is sixty (60) days following the
applicable Early Termination Date; provided, however, that payment in respect of the following
Appreciation Units shall be subject to Section 7.3(e):

                    (i) Appreciation Units that were EIP Conversion Units, originally granted prior to 1/1/2004;

                    (ii) Appreciation Units that were EIP Conversion Units, originally granted in calendar year
2004 and that vest in or prior to calendar year 2007;

11

 

                    (iii) Appreciation Units granted in calendar year 2005 vesting in accordance with Section 4.1
in calendar year 2007 and having a Regular Maturity Date (determined in accordance with Section
6.2) in calendar year 2008;

                    (iv) Appreciation Units granted in calendar year 2006 vesting in accordance with Section 4.1
in calendar year 2007 and having a Regular Maturity Date (determined in accordance with Section
6.2) in calendar year 2008; and

                    (v) Appreciation Units granted to a Participant who has the ability to terminate his or her
employment due to Retirement and receive a payment pursuant to this Section 7.2(b) for such
Appreciation Units in a calendar year that is earlier than the calendar year in which the Regular
Maturity Date with respect to such Appreciation Units occurs, whether or not such Participant
elects to so terminate his or her employment.

For the avoidance of doubt, it is acknowledged that in the event of death, Disability, Retirement,
Plan termination, or termination of a Participant’s employment by the Company not for Cause within
twelve months after a Change in Control, any unvested Appreciation Units credited to the
Participant’s Account as of the date of such event (other than any Appreciation Units that have
been forfeited or are otherwise subject to forfeiture under Section 5.4(a)) shall become one
hundred percent (100%) vested in accordance with Section 5.3.

               (c) Payment in Form of Common Stock. Following any underwritten initial public
offering of shares of common stock of the Company, the Company shall have the right to pay to a
Participant his or her Unit Benefits under Section 7.2(a) hereof in the form of common stock of the
Company having a fair market value equal to the Unit Benefits. For this purpose, the fair market
value of the Company common stock shall be determined using the average closing price of a share of
such common stock for the ten (10) trading days preceding the applicable payment date, such closing
prices as according to the Wall Street Journal or a comparable successor publication in the United
States.

          7.3 Early Termination.

               (a) Separation from Service Other than Retirement.

                    (i) Notwithstanding any provisions of this Section 7 to the contrary, but except as otherwise
provided in Section 7.3(b) (death, Disability or Retirement), if (y) a Participant voluntarily
Separates From Service with the Company and its Subsidiaries, or (z) the Participant is
involuntarily (other than for Cause) Separated From Service with the Company and its Subsidiaries
prior to the applicable Regular Maturity Date, then, with respect to all of such Participant’s
Appreciation Units that vested on or prior to the date of such Separation From Service, but except
as otherwise provided in Section 5.4(c), (I) the date of such Separation From Service shall be the
applicable Early Termination Date and (II) in the case only of the Participant’s voluntary
Separation of Service from the Company and its Subsidiaries other than for Retirement, the amount
of the Unit Benefits payable to such Participant in respect of all vested Appreciation Units shall
be equal to seventy-five percent (75%) of the Unit Benefits otherwise determined in accordance with
the provisions of Section 7.1, provided, however, if the Participant described in subclause (II)
elects to: (1) comply with the General Liability Release

12

 

and the Non-Compete Terms (as provided in clause (ii) of this Section 7.3(a)), and (2) execute
and deliver to the Company within 45 days following such separation, pursuant to this Section
7.3(a), and not revoke, the General Liability Release, then, subject to clauses (iii) and (iv) of
this Section 7.3(a), the percentage referred to in such subclause (II) shall be one hundred percent
(100%) in lieu of seventy-five percent (75%).

                    (ii) For the purpose of increasing the percentage of Unit Benefits payable to a Participant
who voluntarily Separates from Service for the Company and its Subsidiaries from seventy-five
percent (75%) to one hundred percent (100%), the Participant shall not (x) for a period of one year
immediately following the date of the Participant’s voluntary Separation From Service with the
Company and its Subsidiaries, provide services to or otherwise act (in any capacity, including but
not limited to, as an employee, officer, director, partner, manager, member, consultant or advisor)
on behalf of any Competitor or directly solicit any employees of the Company or any of its
Affiliates to leave their employment or indirectly aid in the solicitation of such employees and
(y) at any time following the Participant’s voluntary Separation From Service with the Company and
its Subsidiaries, disparage the Company or any of its Affiliates or make or publish any
communication that reflects adversely upon such entities, including communications concerning the
Company or its Affiliates, as well as their respective current or former shareholders, directors,
officers, employees or agents (collectively, the “Non-Compete Terms”). If a Participant renders or
reasonably expects to render services to or otherwise act on behalf of a Competitor, as provided
above, such Participant shall promptly notify the Company in writing of such fact.

                    (iii) If a Participant executes and delivers to the Company within 45 days of such separation
pursuant to Section 7.3(a), and does not revoke, the General Liability Release, but fails to comply
with his or her obligations under the General Liability Release or the Non-Compete Terms or
otherwise breaches or threatens to breach the promises and covenants contained therein (either
before or after the execution and delivery of such General Liability Release), the Company shall
have the right to the immediate return, in cash, of the additional twenty-five percent (25%)
referred to in the proviso of clause (i) of this Section 7.3(a) theretofore paid to the Participant
(or, as applicable, his or her Beneficiary) upon the provision of written notice of same by
telecopier, U.S. Mail or delivery service to the last known address of the Participant’s principal
residence on the Company’s books and records. If the Participant (or, as applicable, his or her
Beneficiary) fails to return such amount to the Company within ten (10) days of delivery of notice
by the Company, the Company shall be entitled to pursue all rights and remedies the Company or any
of its affiliates may have at law, in equity or otherwise, including but not limited to injunctive
relief in any court of competent jurisdiction and damages relating to any such breach or threatened
breach.

                    (iv) If any portion of the Non-Compete Terms is determined by a court of competent
jurisdiction to be invalid, void, unenforceable or to exceed the limitations permitted by
applicable law, the remaining provisions of the Non-Compete Terms shall nevertheless continue in
full force without being impaired or invalidated and the provisions determined to be invalid, void,
unenforceable or to exceed permitted limitations shall be reformed to the maximum limitations
permitted by applicable law.

13

 

               (b) Death, Disability or Retirement. In the case of a Participant’s Separation From
Service with the Company and its Subsidiaries as a result of his or her death, Disability or
Retirement before the Regular Maturity Date with respect to any Award, the date of such death,
Disability or Retirement shall be the applicable Early Termination Date for all purposes hereunder.

               (c) Plan Termination. If the Plan shall be terminated in accordance with Section 17,
then with respect to any Participant who is employed with the Company or a Subsidiary as an
Employee on the date of such termination, (i) the date of such Plan termination shall be the Early
Termination Date; (ii) the Unit Benefits otherwise payable with respect to vested Appreciation
Units (acknowledging that any unvested Appreciation Units credited to the Participant’s Account as
of the date of such Plan termination (other than any Appreciation Units forfeited or subject to
forfeiture under Section 5.4(a)) shall become 100% vested in accordance with Section 5.3) shall be
one hundred and twenty-five percent (125%) of the amount calculated under Section 7.1 and (iii)
such Unit Benefits shall be paid on the Regular Maturity Dates, subject to Participants’ SRP
Elections and Section 7.2(c). Notwithstanding anything in the foregoing to the contrary, in the
event the Plan is terminated but a long-term incentive plan providing comparable benefits to
participants (in the Compensation Committee’s reasonable discretion) is offered in lieu of the
Plan, the 125% amount described in Section 7.3(c)(ii) shall instead be 100%, i.e., the 25% Plan
termination “premium” shall not be paid.

               (d) Unforeseeable Emergency. In the event of an Unforeseeable Emergency, a
Participant may request and the Company may make an accelerated payout of that portion of vested
Unit Benefits in such Participant’s Account that is not more than the amount necessary to satisfy
the emergency and pay taxes reasonably anticipated as a result of the payout, after taking into
account the extent to which such Unforeseeable Emergency is or may be relieved through
reimbursement or compensation by insurance or by liquidation of the Participant’s other assets, to
the extent liquidation would not itself cause severe hardship.

               (e) Specified Employees. Notwithstanding any other provision herein, if the
Participant is a “specified employee”, as defined in, and pursuant to Treas. Reg. Section 1.409A
1(i) or any successor regulation, on the date of Separation From Service for any reason except the
death of the Participant, any payment hereunder designated as being subject to this Section 7.3(e)
shall be made to the Participant no earlier than (i) the date which is six months from the date of
Separation From Service; or (ii) the date of the Participant’s death (the “Delay Period”). If any
payment to the Participant is delayed pursuant to the preceding sentence, all payments due during
the Delay Period will be paid to the Participant or his or her Beneficiary in a lump sum on the
first business day following the expiration of the six month period referred to in the prior
sentence, or the date of the Participant’s death, as applicable.

     Section 8. Unsecured Creditor Status.

          Participants shall have no right, title or interest whatsoever in or to any investments which
the Company may make to aid in meeting its obligations under the Plan. Nothing contained in the
Plan, and no action taken pursuant to its provisions, shall create or be construed to create a
trust of any kind, or a fiduciary relationship between the Company or any Subsidiary and any
Participant, legal representative or any other person. To the extent that any

14

 

person acquires a right to receive payments from the Company under the Plan, such right shall
be no greater than the right of an unsecured general creditor of the Company. All payments to be
made hereunder shall be paid from the general funds of the Company and no special or separate fund
shall be established, and no segregation of assets shall be made, to assure payment of such amount.
Further, notwithstanding anything herein to the contrary, the Plan constitutes a mere promise of
the Company to make benefit payments in the future and it is the intention of the Company that the
Plan be unfunded for tax purposes and for purposes of Title I of the Employee Retirement Income
Security Act of 1974, as amended.

     Section 9. Successors.

          The obligations of the Company under the Plan shall be binding upon any successor company and
shall continue to be binding upon the Company notwithstanding any change in ownership of the
Company.

     Section 10. Non-Alienation of Benefits; Offset and Counterclaim.

          Except insofar as applicable law may otherwise require, (i) no Appreciation Units, rights or
interests of Participants under the Plan shall be subject in any manner to alienation by
anticipation, sale, transfer, assignment, bankruptcy, pledge, attachment, charge or encumbrance of
any kind, and any attempt to so alienate, sell, transfer, assign, pledge, attach, charge or
otherwise encumber any such units, rights or interests shall be void; and (ii) to the full extent
permitted by law, the Plan shall in no manner be liable for, or subject to, claims, liens,
attachments or other like proceedings or to the debts, liabilities, contracts, engagements, or
torts of any Participant. Notwithstanding the foregoing or anything elsewhere to the contrary, the
Company’s obligation to make any payment pursuant to, and otherwise to perform its obligations
under, the Plan with respect to a Participant shall be subject to setoff, counterclaim and the
Company’s other rights with respect to any claim the Company may have against such Participant for
any reason; provided that, to the extent required by Section 409A, the setoff shall occur no
earlier than the time any such payment would otherwise occur pursuant to the Plan.

     Section 11. No Right to Participation or Employment.

          No employee of the Company, any Subsidiary or any other entity controlled by the Company shall
at any time have the right to be selected as a Participant in the Plan or, having been selected as
a Participant and granted an Award, to be granted any additional Award. No Participant shall at
any time have any right to receive payments under the Plan except as provided under Section 7.
Neither the action of the Company in establishing the Plan or any action taken by it or by the
shareholders, the Compensation Committee, any delegate thereof, nor any provision of the Plan, nor
participation in the Plan, shall be construed to (i) give, and shall not give, to any person the
right to be retained in the employ of the Company or any Subsidiary or other entity, (ii) interfere
in any way with the right of the Company or any Subsidiary or other entity to discharge or
terminate any person at any time without regard to the effect such discharge or termination may
have upon such person’s rights, if any, under the Plan, or (iii) cause any Participant to be (or be
deemed to be) a shareholder of the Company.

15

 

     Section 12. Taxes

          The Company may make such provisions and take such actions as it deems necessary or
appropriate for the withholding of all federal, state, local and other taxes required by law to be
withheld with respect to Appreciation Units or payments made under the Plan. In the event the
Company pays Unit Benefits to any Participant in the form of shares of common stock of the Company
pursuant to Section 7.2(c) hereof, the Company may either require such Participant to pay the
amount of any applicable taxes, withhold enough of such payment in shares to pay any such taxes, or
take such other measures as may be necessary for the payment of taxes hereunder.

     Section 13. Payments to Persons Other Than Participants.

          13.1 Designation and Change of Beneficiary. Each Participant shall file with the
Company, on a form prescribed for such purpose by the Company (or on such other form as the
Company, in its sole discretion, may deem acceptable), a written designation of one or more persons
as the Beneficiary who shall be entitled to receive the amount, if any, payable under the Plan in
the event of his or her death. A Participant may, from time to time, revoke or change his
Beneficiary designation without the consent of any prior Beneficiary by filing a new designation
with the Company. The last such designation received by the Company shall be controlling; provided,
however, that no designation, or change or revocation thereof, shall be effective unless received
by the Company prior to the Participant’s death, and in no event shall it be effective as of a date
prior to such receipt. In the case of any election that may be made by a Beneficiary of a
Participant hereunder, such election shall not be valid unless agreed to by all then-designated
Beneficiaries of such Participant. If, and to the extent, an effective written beneficiary
designation has not been made as of the Participant’s death, then any Unit Benefits payable with
respect to the Participant following his or her death shall be paid to, and the Beneficiary for
purposes of the Plan shall be deemed to be, the Participant’s estate.

          13.2 Payments to Non-Beneficiaries/Non-Participants. If any person to whom any amount
is payable under the Plan has died or if the Company shall find that such person is unable to care
for his or her affairs because of illness or accident, then any payment due to such person may be
paid to his or her estate, spouse or other relative, an institution maintaining or having custody
of the person, or any other person deemed by the Company to be a proper recipient on behalf of such
person otherwise entitled to payment. Any such payment shall be a complete discharge of the
liability of the Plan, the Compensation Committee, its delegate(s), and the Company therefor.

     Section 14. Missing Persons.

          If the Company cannot ascertain the whereabouts of any person to whom a payment is due under
the Plan, and if, after two years from the date such payment is due, a notice of such payment due
is mailed to the last known address of such person, as shown on the Company’s records, the Company,
or an entity controlled by the Company, and within three months after such mailing such person has
not made written claim therefor, the Company may direct that such payment and all remaining
payments that are or may become otherwise due to such person be canceled. Upon such cancellation,
the Company shall have no further liability therefor; provided appropriate provision is made to credit such payments, without interest, if
such person subsequently makes a claim therefor.

16

 

     Section 15. No Liability of Compensation Committee Members and Others.

          No member of the Compensation Committee or its delegates, or any officer or employee of the
Company, shall be personally liable by reason of any contract or other instrument executed by such
person on his or her behalf in his or her capacity as a member of the Compensation Committee or as
a delegate, officer or employee, for any mistake of judgment made in good faith, and the Company
shall indemnify and hold harmless each member of the Compensation Committee and each employee and
shareholder of the Company to whom any duty or power relating to the administration or
interpretation of the Plan may be allocated or delegated against any cost or expense (including
counsel fees) or liability (including any sum paid in settlement of a claim with the approval of
the Company) arising out of any act or omission to act in connection with the Plan unless arising
out of such person’s own fraud or bad faith.

     Section 16. Other Plans.

          Nothing contained in the Plan is intended to amend, modify or rescind any previously approved
compensation plans, programs or arrangements entered into by the Company or any Subsidiary or other
entity. The Plan shall be construed to be in addition to any and all such plans, programs or
arrangements, provided it is understood that Participants who have elected to participate in this
Plan are no longer participants in the EIP. No Award of Appreciation Units or payment under the
Plan shall be construed as compensation under any other executive compensation or employee benefit
plan of the Company or any Subsidiary or other entity, except as specifically provided in any such
plan or as otherwise provided by the Company. In case any provision of any summary, or prior
version, of the Plan shall be inconsistent with the terms set forth herein, the terms set forth
herein, or in any amendment hereof, shall be controlling.

     Section 17. Amendment, Suspension or Termination.

          The Compensation Committee may, with prospective or retroactive effect, amend or suspend the
Plan or any portion thereof at any time; provided, however, that no amendment or suspension of the
Plan shall adversely affect the rights of any Participant with respect to any vested Awards already
made under the Plan, without his or her written consent. Notwithstanding anything in the foregoing
to the contrary, the Compensation Committee may, with prospective or retroactive effect, (a) amend
or suspend the Plan or any portion thereof at any time for the purpose of rendering the Plan
consistent with applicable law; (b) modify the method for valuing Appreciation Units in the event
DHC obtains a controlling interest in the Company or upon the first underwritten initial public
offering of shares of common stock by the Company; and/or (c) to the extent permitted by Section 409A, accelerate the
payment of awards under the Plan. The Plan may not be terminated except in
compliance with applicable law.

17

 

     Section 18. Claims Procedures.

          A Participant may notify the Compensation Committee in writing of a claim for benefits under
the Plan. If the claim is denied, the Compensation Committee (or its delegate (in accordance with
the discretionary authority of the Compensation Committee to construe and interpret the terms of
the Plan)) will provide the claimant with written notice specifying the reason for denial and
indicating the Plan provisions on which the denial is based, and explaining what additional
information (if any) the claimant should submit to prove that he or she is entitled to the benefit
claimed. Generally, except as otherwise required by law, notice of denial must be communicated
within 90 days of receipt of the claim, although this period may be extended for up to 90 more days
under special circumstances. If an extension is necessary, the claimant will be notified within the
first 90-day period. If the Compensation Committee (or its delegate) does not provide the claimant
with written notice of its decision regarding the claim, within the applicable time period, the
claim will be deemed denied as of the last day of the applicable claim period.

          If the Participant’s initial claim is denied (or deemed denied), the Participant will be given
an explanation of the claims review procedures and at least 60 days to request a review of the
claim. The claimant’s request for a review of the claim denial shall be made to the Compensation
Committee. The claimant is entitled to review pertinent Plan documents and records and to submit
issues and comments in support of the claim in writing. Except as otherwise required by law, the
decision of the Compensation Committee on review will be made and communicated to the claimant in
writing no later than 60 days after receipt of the request for review, unless there are special
circumstances requiring an extension of up to 60 additional days. If an extension is necessary, the
claimant will be notified within the first 60-day period. A Participant must exhaust his or her
rights under the Plan’s claims procedures before the Participant may pursue his or her claim in
court.

     Section 19. Captions.

          The captions preceding the sections of the Plan have been inserted solely as a matter of
convenience and shall not, in any manner, define or limit the scope or intent of any provisions of
the Plan.

     Section 20. Governing Law.

          The Plan and all rights thereunder shall be governed by, and construed in accordance with, the
laws of the State of Maryland, without reference to the principles of the conflicts of laws
thereof.

     Section 21. Severability.

          If any provision of the Plan is held to be void, illegal, unenforceable or otherwise in
conflict with the law governing the Plan, such provision shall be deemed to be restated to reflect
as nearly as possible the original intentions of the parties in accordance with applicable law, and
the other provisions of the Plan shall remain in full force and effect.

18

 

     Section 22. Expenses.

          All expenses of administering the Plan shall be borne by the Company.

     Section 23. Notices.

          All notices, requests, demands, claims and other communications required or permitted
hereunder shall be deemed to be duly given only if made in writing and personally delivered, mailed
by first class, certified or registered mail, postage prepaid, or sent by telecopier (if written
confirmation of completed transmission is obtained by the sender) and, unless notified otherwise by
a party, addressed to:

With respect to the Company:

Discovery Communications, LLC

One Discovery Place

Silver Spring, Maryland 20910

Attn: General Counsel

Facsimile No.: (240) 662-1489

          With respect to a Participant (or, as applicable, his or her Beneficiary), such communications
shall be addressed to the Participant’s last known principal residence as provided in the books and
records of the Company. Any such communications shall be effective (i) on the fifth day following
the date of deposit in the mail, postage prepaid, if mailed, (ii) on the day of delivery if sent by
overnight courier, (iii) upon receipt, if delivered by hand, or (iv) on the date the transmission
is completed (as shown by the receipt of a written confirmation of completed transmission), if sent
by telecopier.

     Section 24. Section 409A. Notwithstanding any provision of the Plan, to the extent
that any award would be subject to Section 409A, no such award may be granted if it would fail to
comply with the requirements set forth in Section 409A. To the extent that the Company determines
that the Plan or any award is subject to Section 409A and fails to comply with the requirements of
Section 409A, notwithstanding anything to the contrary contained in the Plan, the Company reserves
the right to amend or terminate the Plan and/or amend, restructure, terminate or replace the Award
in order to cause the Award to either not be subject to Section 409A or to comply with the
applicable provisions of Section 409A.

     Section 25. Effective Date.

          The Plan is effective as of the date first written above.

19

 

ATTACHMENT A

GENERAL RELEASE

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

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

20

 

          I hereby acknowledge that I am executing this General Release pursuant to Section 7.3(a) of
Discovery’s Discovery Appreciation Plan (the “Plan”), and that certain consideration to be provided
to me pursuant to Section 7.3(a) of the Plan is in addition to what I would have been entitled to
receive in the absence of this General Release. I hereby acknowledge that I am executing this
General Release voluntarily and with full knowledge of all relevant information and any and all
rights I may have. I hereby acknowledge that I have been advised to consult with an independent
attorney of my own choosing in connection with this General Release to explain to me the legal
effect of the terms and conditions of this General Release. I hereby acknowledge that I am
voluntarily and knowingly agreeing to the terms and conditions of this General Release without any
threats, coercion or duress, whether economic or otherwise, and that I agree to be bound by the
terms of this General Release. I acknowledge that I have been given twenty-one (21) days (or 45
days if required by law) to consider this General Release, and that I may execute this General
release prior to the expiration of the twenty-one days that I have to consider this release and
that if I do so it will be without any coercion, threats or duress, and that if I am over the age
of forty (40), I understand that I have seven (7) days following my execution of this General
Release in which to revoke my agreement to comply with this General Release by providing written
notice of revocation to the General Counsel of Discovery no later than one business day following
such period.

          I further hereby covenant and agree that this General Release shall be binding in all respects
upon myself, my heirs, executors, administrators, assigns and transferees and all persons claiming
under them, and shall inure to the benefit of all of the officers, directors, agents, employees,
stockholders, members and partners and successors in interest of Discovery, as well as all parents,
subsidiaries, affiliates, related entities and representatives of any of the foregoing persons and
entities.

          I understand and agree that in connection with my voluntary termination of employment with
Discovery, I am entitled to receive benefits under Section 7.3(a) of the Plan, subject to the
obligations imposed on and assumed by me, as described in Section 7.3(a) of the Plan, which I have
read, understood, agreed to and complied with. Without limiting the generality of the foregoing, I
hereby certify and agree that (a) during the twelve-month period following my last day of
employment with Discovery and/or its subsidiaries and affiliates, I have not and will not provide
services to or otherwise act (in any capacity, including, but not limited to, as an employee,
officer, director, partner, manager, member, consultant or advisor) on behalf of any Competitor (as
such term is defined in the Plan) of Discovery or directly solicit any employees of Discovery to
leave their employment or indirectly aid in the solicitation of such employees, and (b) at no time
following the termination of my employment with Discovery have I disparaged or will I disparage
Discovery or make or publish any communication that reflects adversely upon such entities,
including communications concerning Discovery, its subsidiaries or affiliates, as well as the
current or former shareholders, directors, officers, employees or agents of any of the foregoing.

          I agree that if I render or reasonably expect to render services to or otherwise act on behalf
of a Competitor (as defined in the Plan), I shall promptly notify Discovery in writing of such
fact. I acknowledge and agree that, if I fail to comply with the obligations imposed on and
assumed by me, as described in Section 7.3(a) of the Plan and this General Release, or I

21

 

otherwise breach or threaten to breach such promises and covenants, Discovery shall have the
right to the immediate return, in cash, of the additional twenty-five percent (25%) referred to in
the proviso of clause (i) of Section 7.3(a) upon the provision of written notice of same by
telecopier, U.S. Mail or delivery service to me at the last known address of my principal residence
on the Company’s books and records. I acknowledge and agree that if I (or, as applicable, my
beneficiary) fail to return such amount to Discovery within ten (10) days of delivery of notice by
Discovery, Discovery shall be entitled to pursue all rights and remedies Discovery or any of its
affiliates may have at law, in equity or otherwise, including but not limited to injunctive relief
in any court of competent jurisdiction and damages relating to any such breach or threatened
breach.

          IN WITNESS WHEREOF, I have signed this General Release this ___ day of
                                                            , 200_.

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Print Name:	 	 
	 

	 	 	 	 	 	 

          Subscribed and sworn to before me this ___day of                     , 200_.

	 	 	 	 	 
	 	 	 
	 

	 	Notary Public	 	 
	 

	 	My Commission Expires	 	 
	 

	 	 	 	 

22

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