Document:

a2022630-exhibit1018

      EMPLOYEE RSU FORM  #ParticipantName#    Dear #ParticipantFirstName#,    Congratulations, you have been awarded a restricted stock unit (“RSU”) by Warner Bros. Discovery, Inc.  (the “Company”).  A restricted stock unit entitles you to receive a specific number of shares of the  Company’s Common Stock at a future date, assuming that you satisfy conditions of the Plan and the  implementing agreement.  We would like you to have an opportunity to share in the continued success of  the Company through this RSU under the Warner Bros. Discovery, Inc. Stock Incentive Plan (the  “Plan”).  The Company’s general program to offer equity and equity-type awards to eligible employees is  referred to as the Performance Equity Program (“PEP”).  The following represents a brief description of  your grant.  Additional details regarding your RSU are provided in the attached Restricted Stock Unit  Agreement (the “Grant Agreement”) and in the Plan. In addition, if you are located in a country other  than the United States, you will receive an International Addendum with your award under the Plan that  you must review and acknowledge.  If you are subject to this requirement, the International Addendum is  attached.     RSU Grant Summary     Date of Grant #GrantDate#  RSU Shares #QuantityGranted#  Vesting Schedule #VestingDateandQuantity#     You have been granted an RSU for shares (“Shares”) of Warner Bros. Discovery, Inc. Common  Stock for the number of Shares specified under “RSU Shares” in the chart.     The potential value of your RSU increases if the price of the Company’s stock increases, but you  also have to continue to be employed by the Company or a Subsidiary (except as the Grant  Agreement provides) to actually receive such value.  Of course, the value of the stock may go up  and down over time.   You will not receive the Shares represented by the RSU until the RSU vests. Your RSU vests as  provided in the chart above under “Vesting Schedule” and “Vesting Dates,” assuming you remain  an employee or become and remain a member of the Company’s Board of Directors and subject  to the terms in the Grant Agreement.   Once you have received the Shares, you will own the Shares and may decide whether to hold the  Shares, sell the Shares or give the Shares to someone as a gift.   Your ability to receive Shares under the RSU is conditioned upon compliance with any local laws  that apply to you.    Please note the Clawback section of the Grant Agreement, which reflects an important policy of ours.   The Compensation Committee of our Board of Directors has determined that awards made under the Plan  are subject to a clawback in certain circumstances.  By accepting this award, you agree that the  Compensation Committee may change the Clawback section of any or all of the grant agreements from  time to time without your further consent to reflect changes in law or company policy.    You can access the People & Culture Portal and review the Equity Page for more information by clicking  Compensation & Recognition and then Equity.    

 

        Page 2    WARNER BROS. DISCOVERY, INC.  RESTRICTED STOCK UNIT GRANT AGREEMENT FOR EMPLOYEES     Warner Bros. Discovery, Inc. (the “Company”) has granted you a restricted stock unit (the  “RSU”) under the Warner Bros. Discovery, Inc. Stock Incentive Plan (the “Plan”).  The RSU lets you  receive a specified number (the “RSU Shares”) of shares (“Shares”) of the Company’s Common Stock  upon satisfaction of the conditions to receipt.      The individualized communication you received (the “Cover Letter”) provides the details for  your RSU.  It specifies the number of RSU Shares, the Date of Grant, the schedule for vesting (the  “Vesting Schedule”), and the Vesting Date(s).     The RSU is subject in all respects to the applicable provisions of the Plan.  This grant agreement  does not cover all of the rules that apply to the RSU under the Plan; please refer to the Plan document.   Capitalized terms are defined either further below in this grant agreement (the “Grant Agreement”) or in  the Plan.  If you are located in a country other than the United States, you are also receiving (or  previously have received) an International Addendum to this Grant Agreement (the “International  Addendum”).    The International Addendum is incorporated into the Grant Agreement by reference and  supplements the terms of this Grant Agreement and future grants to you under the Plan.                            The Plan document is available on the Fidelity web site.  The Prospectus for the Plan, the Company’s S-8,  Annual Report on Form 10-K, and other filings the Company makes with the Securities and Exchange  Commission are available for your review on the Company’s web site.  You may also obtain paper copies  of these documents upon request to the Company’s People and Culture department.    Neither the Company nor anyone else is making any representations or promises regarding the duration of  your service, vesting of the RSU, the value of the Company’s stock or of this RSU, or the Company’s  prospects.  The Company is not providing any advice regarding tax consequences to you or regarding  your decisions regarding the RSU.  You agree to rely only upon your own personal advisors.    NO ONE MAY SELL, TRANSFER, OR DISTRIBUTE THE RSU OR THE SECURITIES THAT MAY BE  RECEIVED UNDER IT WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATING THERETO OR  AN OPINION OF COUNSEL SATISFACTORY TO WARNER BROS. DISCOVERY, INC. OR OTHER  INFORMATION AND REPRESENTATIONS SATISFACTORY TO IT THAT SUCH REGISTRATION IS NOT  REQUIRED.        

 

        Page 3    In addition to the Plan’s terms and restrictions, the following terms and restrictions apply:    1.  Vesting Schedule.  Your RSU becomes nonforfeitable (“Vested”) as provided in the Cover Letter and  the Grant Agreement assuming you remain employed (or serve as a member of the Company’s Board  of Directors (“Board”) until the Vesting Date(s).  For purposes of this Grant Agreement, employment  with the Company will include employment with any Subsidiary whose employees are then eligible to  receive Awards under the Plan (provided that a later transfer of employment to an ineligible Subsidiary  will not terminate employment unless the Board determines otherwise).      While you are employed (or serving as a member of the Board), vesting will accelerate fully on your  death, Disability or Retirement.  If your employment and, if applicable, Board service is terminated by  the Company or a Subsidiary without Cause (other than by reason of your death or Disability) before  the RSU is fully vested and such termination does not constitute a Retirement, the RSU will remain or  become Vested on the original schedule as though you remained working through any Vesting Date(s)  occurring during the period that is the greater of 90 days after the date of termination and the period  over which you receive base salary severance payments from the Company pursuant to an applicable  employment or severance agreement, plan or policy, if any.     “Cause” has the meaning provided in Section 11.2(b) of the Plan.  “Disability” has the meaning  provided in Section 2.1 of the Plan. “Retirement” means your employment and, if applicable, board  service ends for any reason other than Cause, your death or your Disability at a point at which (i) you  are at least age 55, (ii) you have been employed by the Company or a Subsidiary (or served as a  member of the Board), any of its current or future Subsidiaries or Affiliates, or Warner Bros.  Discovery, Inc for at least ten years, where your period of service is determined using the Company’s  Prior Employment Service Policy or a successor policy chosen by the Committee, and (iii) you have  been actively employed or actively served as a member of the Company’s Board as described in the  foregoing clause (ii) for at least six months since the Date of Grant.      2.  Change in Control.  Notwithstanding the Plan’s provisions, if an Approved Transaction,    Control Purchase, or Board Change (each a “Change in Control”) occurs before the RSU is fully  Vested and while you remain actively employed by the Company or a Subsidiary (or serve as a  member of the Board) (without reference to any deemed continuous employment or service following  an involuntary termination without Cause pursuant to the Vesting Schedule section above), and  provided that there is an equitable substitution or replacement for the RSU in connection with a  Change in Control, the RSU will have accelerated Vesting as a result of the Change in Control only if  (i) within 12 months after the Change in Control, (A) the Company or a Subsidiary terminates your  employment other than for Cause, or (B) if you are a party to an employment agreement with the  Company or a Subsidiary that permits you to resign for Good Reason, you resign for Good Reason or  (ii) during such 12-month period after the Change in Control, you are given notice by the Company  that, in connection with a termination of your employment by the Company or a Subsidiary other than  for Cause, you shall no longer be required to provide services for the Company or its affiliates or  subsidiaries as an employee or member of the Board and you cease to provide such services, but due to  the length of any statutorily or contractually required notice period, your employment actually  terminates following the expiration of such 12-month period.     “Good Reason” has the meaning provided in your employment agreement with the Company (or a  Subsidiary), if any.         Accelerated Vesting will accelerate the Distribution Date only if and to the extent permitted under  Section 409A of the Code and the regulations thereunder (“Section 409A”); otherwise, any RSUs that  may become Vested on an accelerated basis, whether on or following a Change in Control (or  

 

        Page 4    otherwise hereunder), will be settled pursuant to the original Vesting Schedule and its associated  Distribution Date(s).    3.  Distribution Date.  Subject to any overriding provisions in the Plan or in Section 14 below, you will  receive a distribution of the Shares equivalent to your Vested RSU Shares as soon as practicable  following the date on which you become Vested (with the actual date being the “Distribution Date”)  and, in any event, no later than 60 days following the Vesting Date(s) or other event hereunder on  which the RSUs become Vested (or, if earlier, December 31 of the calendar year in which an  applicable Vesting Date occurred), unless the Board determines that you may make a timely deferral  election to defer distribution to a later date and you have made such an election (in which case the  deferred date will be the “Distribution Date”).     4.  Clawback.  If the Company’s Board of Directors or its Compensation Committee (the “Committee”)  determines, in its sole discretion, that you engaged in fraud or misconduct as a result of which or in  connection with which the Company is required to or decides to restate its financial statements, the  Committee may, in its sole discretion, impose any or all of the following:    (a) Immediate expiration of the RSU, whether vested or not, if granted within the first 12 months  after issuance or filing of any financial statement that is being restated (the “Recovery  Measurement Period”); and  (b) Payment or transfer to the Company of the Gain from the RSU, where the “Gain” consists of  the greatest of (i) the value of the RSU Shares on the applicable Distribution Date on which you  received them within the Recovery Measurement Period, (ii) the value of RSU Shares received  during the Recovery Measurement Period, as determined on the date of the request by the  Committee to pay or transfer, (iii) the gross (before tax) proceeds you received from any sale of  the RSU Shares during the Recovery Measurement Period, and (iv) if transferred without sale  during the Recovery Measurement Period, the value of the RSU Shares when so transferred.    This remedy is in addition to any other remedies that the Company may have available in law or  equity.  You expressly agree that the Company may take such actions as are necessary or appropriate  to effectuate the foregoing (as applicable to you) or applicable law without further consent or action  being required by you.    Payment is due in cash or cash equivalents within 10 days after the Committee provides notice to you  that it is enforcing this clawback.  Payment will be calculated on a gross basis, without reduction for  taxes or commissions.  The Company may, but is not required to, accept retransfer of shares in lieu of  cash payments.      5.  Restrictions  and Forfeiture.  You may not sell, assign, pledge, encumber, or otherwise transfer any  interest (“Transfer”) in the RSU Shares until the RSU Shares are distributed to you. Any attempted  Transfer that precedes the Distribution Date is invalid.     Unless the Board determines otherwise or the Grant Agreement provides otherwise, if your  employment or service with the Company (including its Subsidiaries) terminates for any reason before  your RSU is Vested, then you will forfeit the RSU (and the Shares to which they relate) to the extent  that the RSU does not otherwise vest as a result of the termination, pursuant to the rules in the Vesting  Schedule or Change in Control section.  You forfeit any unvested RSU immediately if the Company  or a Subsidiary terminates your employment for Cause or if you resign your employment (other than a  

 

        Page 5    resignation that would constitute a Retirement).  The forfeited RSU will then immediately revert to the  Company.  You will receive no payment for the RSU if you forfeit it.    Your employment or service with the Company or a Subsidiary will be treated as terminating through  a resignation that does not qualify for treatment applicable to terminations without Cause if either (i)  the entity that employs you ceases to qualify as a Subsidiary because of its sale, distribution, or other  disposition to an unrelated entity or (ii) because the entity that employs you sold a substantial portion  of its assets and your employment ended for any reason at or in connection with the closing of that  sale, distribution, or other disposition. For the avoidance of doubt, however, any termination of your  employment or service by reason of either of the occurrences described in (i) and (ii) of the  immediately preceding sentence may nevertheless qualify for treatment applicable to terminations  upon Retirement to the extent such Retirement constitutes a “separation from service” under Section  409A.    6.  Limited Status.  You understand and agree that the Company will not consider you a shareholder for  any purpose with respect to the RSU Shares, unless and until the RSU Shares have been issued to you  on the Distribution Date.  You will not receive dividends with respect to the RSU.     7.  Voting.  You may not vote the RSU.  You may not vote the RSU Shares unless and until the Shares  are distributed to you.    8.  Taxes and Withholding.  The RSU provides tax deferral, meaning that the RSU Shares are not  taxable to until you actually receive the RSU Shares on or around the Distribution Date.    You will  then owe taxes at ordinary income tax rates as of the Distribution Date at the Shares’ value.  As an  employee of the Company or a Subsidiary, you may owe FICA and HI (Social Security and Medicare)  taxes before the Distribution Date.     Issuing the Shares under the RSU is contingent on satisfaction of all obligations with respect to  required tax or other required withholdings (for example, in the U.S., Federal, state, and local taxes).   The Company may take any action permitted under Section 11.9 of the Plan to satisfy such obligation,  including, if the Board so determines, satisfying the tax obligations by (i) reducing the number of RSU  Shares to be issued to you by that number of RSU Shares (valued at their Fair Market Value on the  Distribution Date) that would equal all taxes required to be withheld (at their minimum withholding  levels), subject to approval by the Committee if you are subject to Section 16 of the Exchange Act, (ii)  accepting payment of the withholdings from a broker in connection with a sale of the RSU Shares or  directly from you, or (iii) taking any other action under Section 11.9 of the Plan.      9.  Compliance with Law.  The Company will not issue the RSU Shares if doing so would violate any  applicable Federal or state securities laws or other laws or regulations.  You may not sell or otherwise  dispose of the RSU Shares in violation of applicable law.    10.  Additional Conditions to Receipt.  The Company may postpone issuing and delivering any RSU  Shares for so long as the Company determines to be advisable to satisfy the following:      (a) its completing or amending any securities registration or qualification of the RSU Shares or its  or your satisfying any exemption from registration under any Federal or state law, rule, or  regulation;    (b) its receiving proof it considers satisfactory that a person seeking to receive the RSU Shares  after your death is entitled to do so;  

 

        Page 6    (c) your complying with any requests for representations under the Plan; and  (d) your complying with any Federal, state, or local tax withholding obligations.    11.  Additional Representations from You.  If the vesting provisions of the RSU are satisfied and you  are entitled to receive RSU Shares at a time when the Company does not have a current registration  statement (generally on Form S-8) under the Securities Act of 1933 (the “Act”) that covers issuances  of shares to you, you must comply with the following before the Company will issue the RSU Shares  to you.  You must     (a) represent to the Company, in a manner satisfactory to the Company’s counsel, that you are  acquiring the RSU Shares for your own account and not with a view to reselling or distributing  the RSU Shares; and  (b) agree that you will not sell, transfer, or otherwise dispose of the RSU Shares unless:    (i) a registration statement under the Act is effective at the time of disposition with  respect to the RSU Shares you propose to sell, transfer, or otherwise dispose of; or  (ii) the Company has received an opinion of counsel or other information and  representations it considers satisfactory to the effect that, because of Rule 144 under the  Act or otherwise, no registration under the Act is required.    12.  No Effect on Employment or Other Relationship.  Nothing in this Grant Agreement restricts the  Company’s rights or those of any of its affiliates to terminate your employment or other relationship  at any time and for any or no reason.  The termination of employment or other relationship, whether  by the Company or any of its affiliates or otherwise, and regardless of the reason for such termination,  has the consequences provided for under the Plan, this Grant Agreement and any applicable  employment or severance agreement or plan.    13.  No Effect on Running Business.  You understand and agree that the existence of the RSU will not  affect in any way the right or power of the Company or its stockholders to make or authorize any  adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure or  its business, or any merger or consolidation of the Company, or any issuance of bonds, debentures,  preferred or other stock, with preference ahead of or convertible into, or otherwise affecting the  Company’s Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or  any sale or transfer of all or any part of its assets or business, or any other corporate act or  proceeding, whether or not of a similar character to those described above.    14.  Section 409A.  The RSU is intended to comply with the requirements of Section 409A and must be  construed consistently with that section.  Notwithstanding anything in the Plan or this Grant  Agreement to the contrary, if the RSU Vests in connection with your “separation from service” within  the meaning of Section 409A (as determined by the Company), and if (x) you are then a “specified  employee” within the meaning of Section 409A at the time of such separation from service (as  determined by the Company, by which determination you agree you are bound) and (y) the  distribution of RSU Shares under such accelerated RSU will result in the imposition of additional tax  under Section 409A if distributed to you within the six month period following your separation from  service, then the distribution under such accelerated RSU will not be made until the earlier of (i) the  date six months and one day following the date of your separation from service or (ii) the 10th day  after your date of death.  Neither the Company nor you shall have the right to accelerate or defer the  delivery of any such RSU Shares or benefits except to the extent specifically permitted or required by  

 

        Page 7    Section 409A.  In no event may the Company or you defer the delivery of the RSU Shares beyond the  date specified in the Distribution Date section, unless such deferral complies in all respects with  Treasury Regulation Section 1.409A-2(b) related to subsequent changes in the time or form of  payment of nonqualified deferred compensation arrangements, or any successor regulation.  In any  event, the Company makes no representations or warranty and shall have no liability to you or any  other person, if any provisions of or distributions under this Grant Agreement are determined to  constitute deferred compensation subject to Section 409A but not to satisfy the conditions of that  section.    15.  Unsecured Creditor.  The RSU creates a contractual obligation on the part of the Company to make  a distribution of the RSU Shares at the time provided for in this Grant Agreement.  Neither you nor  any other party claiming an interest in deferred compensation hereunder shall have any interest  whatsoever in any specific assets of the Company.  Your right to receive distributions hereunder is  that of an unsecured general creditor of Company.    16.  Governing Law.  The laws of the State of Delaware will govern all matters relating to the RSU,  without regard to the principles of conflict of laws.    17.  Notices.  Any notice you give to the Company must follow the procedures then in effect.  If no other  procedures apply, you must send your notice in writing by hand or by mail to the office of the  Company’s Secretary (or to the Chair of the Board if you are then serving as the sole Secretary).  If  mailed, you should address it to the Company’s Secretary (or the Chair of the Board) at the  Company’s then corporate headquarters, unless the Company directs RSU holders to send notices to  another corporate department or to a third-party administrator or specifies another method of  transmitting notice.  The Company and the Board will address any notices to you using its standard  electronic communications methods or at your office or home address as reflected on the Company’s  personnel or other business records.  You and the Company may change the address for notice by  notice to the other, and the Company can also change the address for notice by general  announcements to RSU holders.     18.  Amendment.  Subject to any required action by the Board or the stockholders of the Company, the  Company may cancel the RSU and provide a new Award under the Plan in its place, provided that the  Award so replaced will satisfy all of the requirements of the Plan as of the date such new Award is  made and no such action will adversely affect the RSU to the extent then Vested.    19.  Plan Governs.  Wherever a conflict may arise between the terms of this Grant Agreement and the  terms of the Plan, the terms of the Plan will control.  The Board may adjust the number of RSU  Shares and other terms of the RSU from time to time as the Plan provides.a2022630-exhibit1019

            EMPLOYEE NQSO AGREEMENT  #ParticipantName#    Dear #ParticipantFirstName#,       Congratulations, you have been given a stock option grant in recognition of your contributions to the  success of Warner Bros. Discovery, Inc. (the “Company”).  A stock option grant gives you the right to  purchase a specific number of shares of the Company’s Common Stock at a fixed price, assuming that  you satisfy conditions of the Plan and the implementing agreement.  We would like you to have an  opportunity to share in the continued success of the Company through this stock option grant under the  Warner Bros. Discovery, Inc. Stock Incentive Plan (the “Plan”).  The Company’s general program to  offer equity and equity-type awards to eligible employees is referred to as the Performance Equity  Program (“PEP”).  The following represents a brief description of your grant.  Additional details  regarding your award are provided in the attached Nonqualified Stock Option Agreement (the “Grant  Agreement”) and in the Plan. In addition, if you are located in a country other than the United States, you  will receive an International Addendum with your award under the Plan that you must review and  acknowledge.  If you are subject to this requirement, the International Addendum is attached.     Stock Option Grant Summary     Date of Grant #GrantDate#  Option Shares #QuantityGranted#  Grant Price per Share #GrantPrice#  Exercisability Dates #VestingDateandQuantity#  Term Expiration Date #ExpirationDate#       You have been granted a nonqualified stock option to purchase a certain number of shares of  Warner Bros. Discovery, Inc. Common Stock at a specific price.  The total number of shares  under your grant is specified in the chart above under “Option Shares.” The price per share is  under “Grant Price per Share.”     The potential value of your stock option grant increases if the price of the Company’s stock  increases, but you also have to continue to work for the Company (except as the Grant  Agreement provides) to actually receive such value.  Of course, the value of the stock may go  up and down over time.   You may not exercise the stock option (actually purchase the shares) until it becomes  exercisable.  Your stock option becomes exercisable as provided in the chart above under  “Exercisability Dates”, assuming you remain an employee or become and remain a member of  the Company’s Board of Directors and subject to the terms in the Grant Agreement.   Whether or not you decide to exercise your stock option and purchase the stock is your  decision, and, except with respect to certain instances when your stock option will be  automatically exercised, you have until the stock option expires (which will be no later than the  seventh anniversary of the Date of Grant, which date is specified in the chart above under Term  Expiration Date, but can end earlier in various situations) to make that decision.   

 

          Page 2     Once you have purchased the stock, you will own the stock and may decide whether to hold the  stock, sell the stock or give the stock to someone as a gift.   In most countries, you will be taxed on your stock option as soon as you exercise the stock  option to purchase or sell the stock.  However, tax laws vary by country, so please check with  your tax advisor or government tax office.   Your ability to purchase shares through the exercise of a stock option is conditioned upon  compliance with any local laws that apply to you.    Please note the Clawback section of the Grant Agreement, which reflects an important policy of ours.   The Compensation Committee of our Board of Directors has determined that awards under the Plan are  subject to a clawback in certain circumstances.  By accepting this award, you agree that the Compensation  Committee may change the Clawback section of any or all of the grant agreements from time to time  without your further consent to reflect changes in law or company policy.    You can access the People & Culture Portal and review the Equity Page for more information by clicking  Compensation & Recognition and then Equity.                                                                        

 

          Page 3    WARNER BROS. DISCOVERY, INC. PERFORMANCE EQUITY PROGRAM  NONQUALIFIED STOCK OPTION GRANT AGREEMENT FOR EMPLOYEES       Warner Bros. Discovery, Inc. (the “Company”) has granted you an option (the “Option”) under  the Warner Bros. Discovery, Inc. Stock Incentive Plan (the “Plan”).  The Option lets you purchase a  specified number (the “Option Shares”) of shares of the Company’s Common Stock, at a specified price  per share (the “Grant Price”).      The individualized communication you received (the “Cover Letter”) provides the details for  your Option.  It specifies the number of Option Shares, the Grant Price, the Date of Grant, the schedule  for exercisability (“Exercisability Dates”), and the latest date the Option will expire (the “Term  Expiration Date”).     The Option is subject in all respects to the applicable provisions of the Plan.  This Grant  Agreement does not cover all of the rules that apply to the Option under the Plan; please refer to the Plan  document.  Capitalized terms are defined either further below in this grant agreement (the “Grant  Agreement”) or in the Plan.  If you are located in a country other than the United States, you are also  receiving (or previously have received) an International Addendum to this Grant Agreement (the  “International Addendum”).  The International Addendum is incorporated into the Grant Agreement by  reference and supplements the terms of this Grant Agreement and future grants to you under the Plan.                    The Plan document is available on the Fidelity web site.  The Prospectus for the Plan, the Company’s S-8,  Annual Report on Form 10-K, and other filings the Company makes with the Securities and Exchange  Commission are available for your review on the Company’s web site.  You may also obtain paper copies  of these documents upon request to the Company’s People and Culture department.    Neither the Company nor anyone else is making any representations or promises regarding the duration of  your service, exercisability of the Option, the value of the Company’s stock or of this Option, or the  Company’s prospects.  The Company is not providing any advice regarding tax consequences to you or  regarding your decisions regarding the Option.  You agree to rely only upon your own personal advisors.    NO ONE MAY SELL, TRANSFER, OR DISTRIBUTE THE OPTION OR THE SECURITIES THAT MAY BE  PURCHASED UPON EXERCISING THE OPTION WITHOUT AN EFFECTIVE REGISTRATION STATEMENT  RELATING THERETO OR AN OPINION OF COUNSEL SATISFACTORY TO WARNER BROS. DISCOVERY,  INC. OR OTHER INFORMATION AND REPRESENTATIONS SATISFACTORY TO IT THAT SUCH  REGISTRATION IS NOT REQUIRED.     

 

          Page 4    In addition to the Plan’s terms and restrictions, the following terms and restrictions apply:    1.  Option Exercisability.  While your Option remains in effect under the Option Expiration section,  below, you may exercise any exercisable portions of the Option (and buy the Option Shares) under the  timing rules of this section.    The Option will become exercisable on the schedule provided in the Cover Letter to this Grant  Agreement, assuming you remain employed (or serve as a member of the Company’s Board of  Directors (the “Board”) through each Exercisability Date.  Any fractional shares will be carried  forward to the following Exercisability Date, unless the Compensation Committee of the Board (the  “Committee”) selects a different treatment.  For purposes of this Grant Agreement, employment with  the Company will include employment with any Subsidiary whose employees are then eligible to  receive Awards under the Plan (provided that a later transfer of employment to an ineligible Subsidiary  will not terminate employment unless the Committee determines otherwise).    Exercisability will accelerate fully on your Retirement, or, while you are employed (or serving as a  member of the Company’s Board), your Disability or death.  If the Company terminates your  employment and, if applicable, your service on the Board without Cause during a calendar year before  the Option is fully exercisable and such termination does not constitute a Retirement, the Option shall  remain or become exercisable over time as though you remained working through any Exercisability  Dates occurring during the period that is the greater of 90 days after the date of termination and the  period over which you receive base salary severance payments from the Company pursuant to an  applicable employment or severance agreement plan or policy, if any (the “Additional Vesting  Period”).      “Cause” has the meaning provided in Section 11.2(b) of the Plan.  “Disability” has the meaning  provided in Section 2.1 of the Plan.  “Retirement” means your employment and, if applicable, board  service ends for any reason other than Cause, your death or your Disability at a point at which (i) you  are at least age 55, (ii) you have been employed by the Company or a Subsidiary (or served as a  member of the Company’s Board), any of its current or future Subsidiaries or Affiliates, or Discovery  Communications, LLC for at least ten years, where your period of service is determined using the  Company’s Prior Employment Service Policy or a successor policy chosen by the Committee, and (iii)   you have been actively employed or actively served as a member of the Company’s Board as  described in the foregoing clause (ii) for at least six months since the Date of Grant.  Acceleration  upon Retirement does not apply in countries subject to the EU Directive on Discrimination.     Your employment or service with the Company will be treated as terminating through a resignation  that does not qualify for treatment applicable to terminations without Cause if either (i) the entity that  employs you ceases to qualify as a Subsidiary because of its sale, distribution, or other disposition to  an unrelated entity or (ii) because the entity that employs you sold a substantial portion of its assets  and your employment ended for any reason at or in connection with the closing of that sale,  distribution, or other disposition. For the avoidance of doubt, however, any termination of your  employment or service by reason of either of the occurrences described in (i) and (ii) of the  immediately preceding sentence may nevertheless qualify for treatment applicable to terminations  upon Retirement.    2.  Change in Control.  Notwithstanding the Plan’s provisions, if an Approved Transaction, Control  Purchase, or Board Change (each a “Change in Control”) occurs before the Option is fully exercisable  and while you remain actively employed by the Company or a Subsidiary (or serve as a member of the  Board) (without reference to the Additional Vesting Period, above), the Option will have accelerated  exercisability as a result of the Change in Control only if within 12 months after the Change in  

 

          Page 5    Control, the Company or Subsidiary terminates your employment without Cause, or, if you are a party  to an employment agreement with the Company or a Subsidiary that permits you to resign for Good  Reason, you resign for Good Reason.    “Good Reason” has the meaning provided in your employment agreement with the Company (or a  Subsidiary), if any.       The Committee reserves its ability under Section 11.1(b) of the Plan to vary this treatment if the  Committee determines there is an equitable substitution or replacement award in connection with a  Change in Control.    3.  Option Expiration. You cannot exercise the Option after it has expired.  The Option will expire no  later than the close of business on the Term Expiration Date. Unexercisable portions of the Option  expire immediately when you cease to be employed (unless you are concurrently remaining or  becoming a member of the Board, or unless the Company or a Subsidiary terminates your employment  without Cause, as specified above).  If the Company terminates your employment for Cause, the  Option will immediately expire without regard to whether it is then exercisable.    Exercisable portions of the Option remain exercisable until the first to occur of the following (the  “Final Exercise Date”), each as defined further in the Plan or the Grant Agreement, and then  immediately expire:       Immediately upon termination of employment by the Company for Cause   The 30th day after your employment (or directorship) ends if you resign other than on  Retirement (including resignation for Good Reason, if applicable) (the “30-Day Period”)   The 90th day after the Additional Vesting Period ends (the “90-Day Period”)    For death, Disability, or Retirement, the first anniversary of the date employment ends.  If  you die during the 30-Day Period or the 90-day period after employment ends, the first  anniversary of the date employment ends will be substituted for the end of the 30-Day Period  or the 90-Day Period, as applicable.   The Term Expiration Date    The Committee can override the expiration provisions of this Grant Agreement, such as in connection  with a Change in Control.    4.  Automatic Exercise.  At close of business on the Final Exercise Date (or the preceding trading day if  the Final Exercise Date is not a trading day), if the Exercise Spread Test (defined below) is met, the  Option will be automatically exercised using the “net exercise” method described below, without  regard to the notice requirement and with additional shares retained for purposes of satisfying the  minimum applicable tax withholdings (the “Automatic Exercise”).  The Option satisfies the “Exercise  Spread Test” if the per share spread between the closing price of the Company’s Common Stock and  the Grant Price (the “Exercise Spread”) on the Final Exercise Date is at least one dollar.  If the  Exercise Spread Test is not satisfied, the unexercised portions of the Option will expire as of close of  business on the Final Exercise Date.    For avoidance of doubt, you may exercise any exercisable portion of the Option prior to the time of an  Automatic Exercise and no portion of the Option may or will be exercised at or after your termination  for Cause.    

 

          Page 6    The Automatic Exercise procedure is provided as a convenience and as a protection against inadvertent  expiration of an Option.  Because any exercise of an Option is normally your responsibility, you  hereby waive any claims against the Company or any of its employees or agents if an Automatic  Exercise does not occur for any reason and the Option expires.     5.  Method of Exercise and Payment for Shares.  Subject to this Grant Agreement and the Plan, and  other than for portions of the Option that are automatically exercised as described in the section, you  may exercise the Option only by providing a written notice (or notice through another previously  approved method, which could include a web-based or voice- or e-mail system) to the Secretary of the  Company or to whomever the Committee designates, received on or before the date the Option  expires.  Each such notice must satisfy whatever then-current procedures apply to that Option and  must contain such representations (statements from you about your situation) as the Company requires.   You must, at the same time, pay the Grant Price using one or more of the following methods:    (a) Cash/Check. Cash or check in the amount of the Grant Price payable to the order of the  Company;    (b) Cashless Exercise. An approved cashless exercise method, including directing the Company    to send the stock certificates (or other acceptable evidence of ownership) to be issued under  the Option to a licensed broker acceptable to the Company as your agent in exchange for the  broker’s tendering to the Company cash (or acceptable cash equivalents) equal to the Grant  Price and, if you so elect, any required tax withholdings; or    (c) Net Exercise.  By delivery of a notice of “net exercise” to or as directed by the Company, as a  result of which you will receive (i) the number of shares underlying the portion of the Option  being exercised less (ii) such number of shares as is equal to (X) the aggregate Grant Price for  the portion of the Option being exercised divided by (Y) the Fair Market Value on the date of  exercise.    The Committee can approve additional payment methods, including use of a fully or partially recourse  promissory note, subject to any prohibitions of applicable law.    6.  Clawback.  If the Company’s Board or the Committee determines, in its sole discretion, that you  engaged in fraud or misconduct as a result of which or in connection with which the Company is  required to or decides to restate its financial statements, the Committee may, in its sole discretion,  impose any or all of the following:    (a) Immediate expiration of the Option, whether vested or not, if granted within the first 12  months after issuance or filing of any financial statement that is being restated (the “Recovery  Measurement Period”)    (b) As to any exercised portion of the Option (to the extent, during the Recovery Measurement  Period, the Option is granted, vests, is exercised, or the purchased shares are sold), prompt  payment to the Company of any Option Gain.  For purposes of this Agreement, the “Option  Gain” per share you received on exercise of options is    for stock you have sold or transferred without sale, the greater of (i) the Exercise  Spread and (ii) the spread between the price at which you sold (or the fair market  value on the date of other disposition of) the stock and the Grant Price paid, and    

 

          Page 7    for stock you have retained, the greater of (i) Exercise Spread and (ii) the spread  between the closing price on the date of the Committee’s request for repayment and  the Grant Price paid.    This remedy is in addition to any other remedies that the Company may have available in law or  equity.  You expressly agree that the Company may take such actions as are necessary or appropriate  to effectuate the foregoing (as applicable to you) or applicable law without further consent or action  being required by you.    Payment is due in cash or cash equivalents within 10 days after the Committee provides notice to you  that it is enforcing this clawback.  Payment will be calculated on a gross basis, without reduction for  taxes or commissions.  The Company may, but is not required to, accept retransfer of shares in lieu of  cash payments.    7.  Withholding.  Issuing the Option Shares is contingent on satisfaction of all obligations with respect to  required tax or other required withholdings (for example, in the U.S., Federal, state, and local taxes  generally are due upon exercise of the Option).  Except as provided in the Automatic Exercise section,  the Company may take any action permitted under Section 11.9 of the Plan to satisfy such obligation,  including, if the Committee so determines, satisfying the tax obligations by (i) reducing the number of  Option Shares to be issued to you in connection with any exercise of the Option by that number of  Option Shares (valued at their Fair Market Value on the date of exercise) that would equal all taxes  required to be withheld (at their minimum withholding levels), subject to approval by the Committee if  you are subject to Section 16 of the Exchange Act, (ii) accepting payment of the withholdings from a  broker in connection with a Cashless Exercise of the Option or directly from you, or (iii) taking any  other action under Section 11.9.  You may satisfy such tax obligations in whole or in part by delivery  (either by actual delivery or attestation) of shares of Common Stock, including shares retained from  the award creating the tax obligation, valued at their Fair Market Value; provided, however, except as  otherwise provided by the Board, that the total tax withholding where stock is being used to satisfy  such tax obligations cannot exceed the Company’s minimum statutory withholding obligations (based  on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that  are applicable to such supplemental taxable income).  Shares used to satisfy tax withholding  requirements cannot be subject to any repurchase, forfeiture, unfulfilled vesting or other similar  requirements.      8.  Compliance with Law.  You may not exercise the Option if the Company’s issuing stock upon such  exercise would violate any applicable Federal or state securities laws or other laws or regulations.  You  may not sell or otherwise dispose of the Option Shares in violation of applicable law.  As part of this  prohibition, you may not use the Cashless Exercise methods if the Company’s insider trading policy  then prohibits you from selling to the market.    9.  Additional Conditions to Exercise.  The Company may postpone issuing and delivering any Option  Shares for so long as the Company determines to be advisable to satisfy the following:      (a) its completing or amending any securities registration or qualification of the Option Shares or  its or your satisfying any exemption from registration under any Federal or state law, rule, or  regulation;    (b) its receiving proof it considers satisfactory that a person seeking to exercise the Option after  your death is entitled to do so;    (c) your complying with any requests for representations under the Plan; and  

 

          Page 8      (d) your complying with any Federal, state, or local tax withholding obligations.    10.  Additional Representations from You.  If you exercise the Option at a time when the Company  does not have a current registration statement (generally on Form S-8) under the Securities Act of  1933 (the “Act”) that covers issuances of shares to you, you must comply with the following before  the Company will issue the Option Shares to you.  You must —    (a) represent to the Company, in a manner satisfactory to the Company’s counsel, that you are  acquiring the Option Shares for your own account and not with a view to reselling or  distributing the Option Shares; and    (b) agree that you will not sell, transfer, or otherwise dispose of the Option Shares unless:  (i) a registration statement under the Act is effective at the time of disposition with  respect to the Option Shares you propose to sell, transfer, or otherwise dispose of; or    (ii) the Company has received an opinion of counsel or other information and  representations it considers satisfactory to the effect that, because of Rule 144 under the  Act or otherwise, no registration under the Act is required.    11.  No Effect on Employment or Other Relationship.  Nothing in this Grant Agreement restricts the  Company’s rights or those of any of its affiliates to terminate your employment or other relationship  at any time and for any or no reason.  The termination of employment or other relationship, whether  by the Company or any of its affiliates or otherwise, and regardless of the reason for such termination,  has the consequences provided for under the Plan, this Grant Agreement and any applicable  employment or severance agreement or plan.    12.  Not a Stockholder.  You understand and agree that the Company will not consider you a stockholder  for any purpose with respect to any of the Option Shares until you have exercised the Option, paid for  the shares, and received evidence of ownership.    13.  No Effect on Running Business.  You understand and agree that the existence of the Option will not  affect in any way the right or power of the Company or its stockholders to make or authorize any  adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure or  its business, or any merger or consolidation of the Company, or any issuance of bonds, debentures,  preferred or other stock, with preference ahead of or convertible into, or otherwise affecting the  Company’s common stock or the rights thereof, or the dissolution or liquidation of the Company, or  any sale or transfer of all or any part of its assets or business, or any other corporate act or  proceeding, whether or not of a similar character to those described above.    14.  Governing Law.   The laws of the State of Delaware will govern all matters relating to the Option,  without regard to the principles of conflict of laws.    15.  Notices.  Any notice you give to the Company must follow the procedures then in effect.  If no other  procedures apply, you must send your notice in writing by hand or by mail to the office of the  Company’s Secretary (or to the Chair of the Committee if you are then serving as the sole Secretary).   If mailed, you should address it to the Company’s Secretary (or the Chair of the Committee) at the  Company’s then corporate headquarters, unless the Company directs optionees to send notices to  another corporate department or to a third-party administrator or specifies another method of  transmitting notice.  The Company and the Committee will address any notices to you using its  standard electronic communications methods or at your office or home address as reflected on the  

 

          Page 9    Company’s personnel or other business records.  You and the Company may change the address for  notice by like notice to the other, and the Company can also change the address for notice by general  announcements to optionees.     16.  Amendment.  Subject to any required action by the Board or the stockholders of the Company, the  Company may cancel the Option and provide a new Award in its place, provided that the Award so  replaced will satisfy all of the requirements of the Plan as of the date such new Award is made and no  such action will adversely affect the Option to the extent then exercisable.    17.  Plan Governs.  Wherever a conflict may arise between the terms of this Grant Agreement and the  terms of the Plan, the terms of the Plan will control.  The Committee may adjust the number of  Option Shares and the Grant Price and other terms of the Option from time to time as the Plan  provides.

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