Document:

Exhibit

Exhibit 4.3

Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934
Kindred Biosciences, Inc. (“KindredBio,” “we,” “our,” and “us”) has two classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: (1) our common stock, par value $0.0001 per share (the “common stock”); and (2) our preferred stock purchase rights (the “rights”). 
The following description of our common stock, preferred stock and rights is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to (1) our Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”), (2) our Amended and Restated Bylaws (the “Bylaws”), (3) our Certificate of Designations of Series A Preferred Stock (the “Certificate of Designations”), and (4) our Rights Agreement, dated as of May 19, 2017 (the “Rights Agreement”), with American Stock Transfer & Trust Company, LLC, as rights agent, each of which is filed as an exhibit to our Annual Report on Form 10-K of which this Exhibit 4.3 is a part. We encourage you to read the Certificate of Incorporation, the Bylaws, the Certificate of Designations, and the Rights Agreement, as well as the applicable provisions of the Delaware General Corporation Law (the “DGCL”), for additional information.
Authorized Capital Stock
Our authorized capital stock consists of 100,000,000 shares of common stock and 10,000,000 shares of preferred stock, par value $0.0001 per share (the “preferred stock”). As of December 31, 2019, 39,203,533 shares of our common stock were issued and outstanding, all of which are fully paid and nonassessable. No shares of our preferred stock are issued or outstanding. 
Common Stock
Voting Rights
Holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. An election of directors by our stockholders will be determined by a plurality of the votes cast by the stockholders entitled to vote on the election. 
Dividend Rights
Holders of common stock are entitled to receive proportionately any dividends that may be declared by our Board of Directors, subject to any preferential dividend rights of any series of preferred stock that we may designate and issue.
Liquidation Rights
In the event of our liquidation or dissolution, the holders of common stock are entitled to receive proportionately our net assets available for distribution to stockholders after the payment of all debts and other liabilities and subject to the preferential rights of any outstanding preferred stock. 
Absence of Other Rights
Holders of common stock have no preemptive, subscription, redemption, or conversion rights. The rights, preferences, and privileges of holders of common stock are subject to and may be adversely affected by the rights of the holders of shares of any series of preferred stock that we may designate and issue.
Stock Exchange Listing and Transfer Agent
Our common stock is listed on The NASDAQ Capital Market under the symbol “KIN.” The transfer agent and registrar for our common stock is American Stock Transfer & Trust Company, LLC. 
Preferred Stock
Under our Certificate of Incorporation, our Board of Directors has the authority, without further action by stockholders, to designate one or more series of preferred stock and to fix the voting powers, designations, preferences, limitations, restrictions, and relative rights granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference, and sinking fund terms, any or all of which may be preferential to or greater than the rights of the common stock.
The authority possessed by our Board of Directors to issue preferred stock could potentially be used to discourage attempts by third parties to obtain control of our company through a merger, tender offer, proxy contest, or otherwise by 

Exhibit 4.3

making such attempts more difficult or more costly. Our Board of Directors may issue preferred stock with voting rights, conversion rights, and other rights that, if exercised, could adversely affect the voting power of the holders of common stock.  
In connection with entering into the Rights Agreement summarized below, we filed with the Secretary of State of the State of Delaware the Certificate of Designations that designated 100,000 shares of our preferred stock as Series A preferred stock.  The dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference, and other rights of the Series A preferred stock are set forth in the Certificate of Designations.  No shares of our Series A preferred stock have been issued.  
Anti-Takeover Effects of Our Certificate of Incorporation and Bylaws
Certain provisions of our Certificate of Incorporation and Bylaws contain provisions that could have the effect of delaying or discouraging another party from acquiring control of us. These provisions, which are summarized below, are expected to discourage certain types of coercive takeover practices and inadequate takeover bids. These provisions are also designed in part to encourage anyone seeking to acquire control of us to first negotiate with our Board of Directors. We believe that the advantages gained by protecting our ability to negotiate with any unsolicited and potentially unfriendly acquirer outweigh the disadvantages of discouraging such proposals, including those priced above the then-current market value of our common stock because, among other reasons, the negotiation of such proposals could improve their terms.  However, these provisions may have the effect of preventing changes in our management. It is also possible that these provisions could make it more difficult to accomplish transactions that stockholders may otherwise deem to be in their best interests.
Our Certificate of Incorporation and Bylaws include provisions that:
		
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	authorize our Board of Directors to issue, without further action by the stockholders, up to 10,000,000 shares of preferred stock in one or more series designated by the Board of Directors;

		
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	require that any action to be taken by our stockholders be effected at a duly called annual or special meeting and not by written consent;

		
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	specify that special meetings of our stockholders can be called only by our Board of Directors, the Chairman of the Board, the Chief Executive Officer, or the President;

		
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	establish an advance notice procedure for stockholder approvals to be brought before an annual meeting of our stockholders, including proposed nominations of persons for election to our Board of Directors;

		
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	provide that directors may be removed only for cause and only by the affirmative vote of the holders of at least two-thirds in voting power of the outstanding stock entitled to vote;

		
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	provide that vacancies on our Board of Directors may be filled only by a majority of directors then in office, even though less than a quorum;

		
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	establish that our Board of Directors is divided into three classes, Class I, Class II, and Class III, with each class serving staggered terms;

		
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	specify that no stockholder is permitted to cumulate votes at any election of the Board of Directors; and

		
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	require the affirmative vote of the holders of at least two-thirds in voting power of the outstanding stock entitled to vote to amend certain of the above-mentioned provisions.

Our Bylaws also provide that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be the sole and exclusive forum for (1) any derivative action or proceeding brought on our behalf, (2) any action asserting a claim of breach of a fiduciary duty owed by any director, officer, or other employee of KindredBio to us or our stockholders, (3) any action asserting a claim arising pursuant to any provision of the DGCL, or (4) any action asserting a claim governed by the internal affairs doctrine. Our Bylaws further provide that any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock is deemed to have notice of, and to have consented to, the preceding provision.
Delaware Anti-Takeover Statute
We are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. In general, Section 203 prohibits a publicly-held Delaware corporation such as KindredBio from engaging in a “business combination” with an “interested stockholder” for a period of three years following the date the person became an interested stockholder unless:
		
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	prior to the date of the transaction, the board of directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;

		
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	upon completion of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding, but not for determining the outstanding voting stock owned by the interested stockholder, (1) shares owned by persons who 

Exhibit 4.3

are directors and also officers of the corporation and (2) shares owned by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
		
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	at or subsequent to the date of the transaction, the business combination is approved by the board of directors of the corporation and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66-2/3% of the outstanding voting stock which is not owned by the interested stockholder.

In this context, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. An “interested stockholder” is a person who, together with affiliates and associates, owns or, within three years prior to the determination of interested stockholder status, did own 15% or more of a corporation’s outstanding voting stock. We expect the existence of this provision to have an anti-takeover effect with respect to transactions our Board of Directors does not approve in advance. We also anticipate that Section 203 may discourage business combinations or other attempts that might result in a premium over the market price for the shares of common stock held by our stockholders.
Preferred Stock Purchase Rights
On May 19, 2017, our Board of Directors approved and adopted the Rights Agreement and, on July 24, 2017, our stockholders approved the adoption of the Rights Agreement. The Rights Agreement is intended to protect our stockholders from coercive or otherwise unfair proposals to acquire control of KindredBio by significantly diluting the ownership interest of any person who acquires at least 20% of our outstanding common stock by providing all other stockholders with the right to acquire additional shares of our preferred stock or common stock at a significant discount. The Rights Agreement is not intended to interfere with any merger or other acquisition that is approved by our Board of Directors because, among other things, the Board is entitled to redeem the rights for a nominal price before a person acquires at least 20% of our common stock. The Rights Agreement is intended to encourage an acquiring person to negotiate a proposed merger or other business combination with our Board of Directors and management.
Pursuant to the Rights Agreement, each share of our common stock, whether currently outstanding or issued in the future, has attached to it a “right” that, upon the occurrence of a “distribution date” event described below, initially entitles the registered holder (other than an “acquiring person”) to purchase one one-thousandth of a share of Series A preferred stock at a price of $25.00 per one one-thousandth of a share of preferred stock, subject to adjustment on the terms described in the Rights Agreement.  In general, a person or group of affiliated or associated persons will become an “acquiring person” upon acquiring beneficial ownership of 20% or more of our common stock.
Until the earlier to occur of (1) 10 business days following a public announcement that a person or group of affiliated or associated persons has become an acquiring person or (2) 10 business days (or such later date as may be determined by our Board of Directors prior to such time as any person or group of affiliated or associated persons becomes an acquiring person) following the commencement of, or public announcement of an intention to make, a tender or exchange offer the consummation of which would result in any person or group of affiliated or associated persons becoming an acquiring person (the earlier of such dates being called the “distribution date”), the rights will be transferred only with our common stock. The rights are not exercisable until the distribution date.
As provided in the Certificate of Designations for the Series A preferred stock, if and when shares of Series A preferred stock are issued following a distribution date, each Series A share will be entitled, when, as and if declared, to a minimum preferential quarterly dividend payment of the greater of (1) $10.00 per share and (2) an amount (subject to certain adjustments) equal to 1,000 times the dividend declared per share of common stock. In the event of our liquidation, dissolution or winding up, the holders of the Series A preferred stock will be entitled to a minimum preferential payment of the greater of (a) $10.00 per share (plus any accrued but unpaid dividends) and (b) an amount (subject to certain adjustments) equal to 1,000 times the payment made per share of common stock. Each share of Series A preferred stock will have 1,000 votes, voting together with the common stock. In the event of any merger, consolidation, or other transaction in which outstanding shares of common stock are converted or exchanged, each share of Series A preferred stock will be entitled to receive 1,000 times the amount received per share of common stock. These rights are protected by customary anti-dilution provisions. Because of the nature of the Series A preferred stock’s dividend, liquidation, and voting rights, the value of the one one-thousandth interest in a share of Series A preferred stock purchasable upon exercise of each right should approximate the value of one share of common stock.
In the event that any person or group of affiliated or associated persons becomes an acquiring person, each holder of a right, other than an acquiring person (whose rights will become void), will thereafter have the right to receive upon exercise of a right that number of shares of common stock having a market value of two times the exercise price of the right. In the event that, after a person or group has become an acquiring person, KindredBio is acquired in a merger or other business combination 

Exhibit 4.3

transaction or 50% or more of its consolidated assets or earning power are sold, provision will be made so that each holder of a right, other than an acquiring person, will thereafter have the right to receive upon the exercise of a right that number of shares of common stock of the entity with which KindredBio has engaged in such transaction (or its parent) that at the time of such transaction have a market value of two times the exercise price of the right.
At any time after any person or group becomes an acquiring person and prior to the earlier of one of the events described in the previous paragraph or the acquisition by such acquiring person of 50% or more of the outstanding shares of our common stock, our Board of Directors may exchange the rights (other than rights owned by the acquiring person, which will have become void), in whole or in part, for shares of common stock or Series A preferred stock (or a series of our preferred stock having equivalent rights, preferences, and privileges), at an exchange ratio of one share of common stock, or a fractional share of Series A preferred stock (or other preferred stock) equivalent in value thereto, per right.
At any time prior to the time an acquiring person becomes such, our Board of Directors may redeem the rights in whole, but not in part, at a price of $0.0001 per right payable, at our option, in cash, shares of common stock, or such other form of consideration as the Board of Directors may determine. Immediately upon any redemption of the rights, the right to exercise the rights will terminate and the only right of the holders of rights will be to receive the redemption price. For so long as the rights are redeemable, we may, except with respect to the redemption price, amend the Rights Agreement in any manner. After the rights are no longer redeemable, we may, except with respect to the redemption price, amend the Rights Agreement in a manner that does not adversely affect the interests of holders of the rights. Until a right is exercised or exchanged, the holder of the right, as such, will have no rights as a stockholder of KindredBio, including, without limitation, the right to vote or to receive dividends.
The rights will expire on May 18, 2020 unless that expiration date is extended by our Board of Directors or the rights are earlier redeemed or exchanged by us. The purchase price payable, and the number of shares of Series A preferred stock or other securities or property issuable, upon exercise of the rights is subject to adjustment from time to time to prevent dilution upon the terms described in the Rights Agreement.EX-10.1

 Exhibit 10.1 

FIVE BELOW, INC. 
 2020
PERFORMANCE BONUS PLAN 
 Section 1. Purpose. The purpose of the Five Below, Inc. Performance Bonus Plan (the
“Plan”) is to benefit and advance the interests of Five Below, Inc., a Pennsylvania corporation (the “Company”), by rewarding selected employees of the Company and its subsidiaries and divisions (each
such subsidiary or division is referred to herein as a “Business Unit”) for their contributions to the Company’s financial success and thereby motivate them to continue to make such contributions in the future by
granting performance-based awards (“Awards”). 
 Section 2. Certain Definitions. For the purposes of the
Plan the following terms shall be defined as set forth below: 
 (a)    “Base Salary Percentage”
means a percentage of an Eligible Person’s annual base salary in effect as of the later of (i) the first day of the Performance Period or (ii) the common salary adjustment date within the Performance Period. 

(b)    “Board” means the Board of Directors of the Company. 

(c)    “Code” means the Internal Revenue Code of 1986, as amended. 

(d)    “Committee” means the Compensation Committee of the Board. 

(e)    “Eligible Persons” has the meaning given to that term in Section 4 hereof. 

(f)    “Fiscal Year” means the fiscal year ending on the Saturday closest to January 31 of
each year or such other period that the Company may hereafter adopt as its fiscal year.  

(g)    “Performance Period” means the period of time over which the Performance Threshold must be
satisfied, which period may be of such length as the Committee, in its discretion, shall select. The Performance Period need not be identical for all Awards. Within one Fiscal Year, the Committee may establish multiple Performance Periods. 

(h)    “Performance Threshold” means, with respect to any Target, a minimum that must be attained
for a Participant to receive an Award based on such Target. 
 (i)    “Target” means any
financial, operational, individual or other Company goal, which shall be equal to a desired level or levels (as may be measured on an absolute or relative basis, where relative performance may also be measured by reference to: past performance of
the Company or a Business Unit, a group of peer companies or by a financial market index) of attainment for such goal, for any Performance Period, as determined by the Committee in its discretion. 

 Section 3. Administration of the Plan. 

(a)    Generally. The Plan shall be administered by the Committee. The Committee is authorized to administer,
interpret and apply the Plan and from time to time may adopt such rules, regulations and guidelines consistent with the provisions of the Plan as it may deem advisable to carry out the Plan, except that the Committee may authorize any one or more of
its members, or any officer of the Company, to execute and deliver documents on behalf of the Committee. The Committee’s interpretations of the Plan, and all actions taken and determinations made by the Committee pursuant to the powers vested
in it hereunder, shall be conclusive and binding on all parties concerned, including the Company, its stockholders and Participants (as defined below). The Committee shall have authority to determine the terms and conditions of the Awards granted to
Participants. 
 (b)    Delegation. The Committee may delegate its responsibilities for administering the Plan to
any executive officer of the Company, as the Committee deems necessary; provided however, that the Committee shall not delegate its responsibilities under the Plan relating to Eligible Persons who are subject to the requirements of Section 16
of the Securities Exchange Act of 1934, as amended. 
 (c)    Reliance and Indemnification. The Committee may
employ attorneys, consultants, accountants or other persons, and the Committee, the Company and its officers and directors shall be entitled to rely upon the advice, opinions or valuations of any such persons. No member of the Committee nor any
executive officer of the Company shall be personally liable for any action, determination or interpretation taken or made in good faith by the Committee or such executive officer of the Company with respect to the Plan or Awards granted hereunder,
and all members of the Committee and each executive officer of the Company shall be fully indemnified and protected by the Company in respect of any such action, determination or interpretation. 

Section 4. Eligible Persons. All employees of the Company shall be eligible to participate in the Plan (“Eligible
Persons”). An individual shall be deemed an employee for purposes of the Plan only if such individual receives compensation from either the Company or one of its Business Units for services performed as an employee of the Company or any
one of its Business Units for any period during a Performance Period. 
 Section 5. Awards; Participants. Awards may be granted
only to Eligible Persons with respect to each Performance Period, subject to the terms and conditions set forth in the Plan. An Eligible Person who has been chosen to receive an Award under the Plan shall be referred to as a
“Participant.” 
 Section 6. Determination of Targets, Performance Thresholds and Base Salary
Percentage. Prior to the end of the Performance Period, the Committee shall adopt each of the following with respect to each Participant: 

(a)    one or more Targets, which shall be equal to a desired level or levels for any Performance Period of any, or a
combination of any, quantitative criteria (the “Quantitative Criteria,” which Quantitative Criteria may include, without limitation, any financial criteria) or 

  
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qualitative criteria (the “Individual Criteria”). With respect to any Participant who is employed by a Business Unit, the Quantitative Criteria may be based on the results
of such Business Unit, consolidated results of the Company, or any combination of the two; 
 (b)    a
“Performance Threshold” with respect to each Target, applicable to one or more Quantitative Criteria or Individual Criteria; 

(c)    either (i) a Base Salary Percentage, or (ii) fixed monetary amounts, which, in each case, shall be
payable as an Award in the event that 100% of such Participant’s Targets are achieved; and 
 (d)    a mathematical
formula or matrix that shall contain weighting for each Target and indicate the extent to which Awards will be paid if such Participant’s Performance Thresholds with respect to his or her Targets are achieved or exceeded. 

The Committee may make such adjustments, to the extent it deems appropriate, to the Targets and Performance Thresholds to compensate for, or
to reflect, any material changes which may have occurred in accounting practices, tax laws, other laws or regulations, the financial structure of the Company, acquisitions or dispositions of Business Units or any unusual circumstances outside of
management’s control which, in the sole judgment of the Committee, alters or affects the computation of such Targets and Performance Thresholds or the performance of the Company or any relevant Business Unit (each an “Extraordinary
Event”). 
 Section 7. Calculation of Awards; Certification; Payment; Deferral. As soon as practicable after the
end of the Performance Period, and subject to any necessary verification, the Committee shall determine with respect to each Participant whether and the extent to which the Performance Thresholds applicable to such Participant’s Targets were
achieved or exceeded. Such Participant’s Award, if any, shall be calculated in accordance with the mathematical formula or matrix determined pursuant to Section 6. The Committee shall certify the amount of such Award and whether each
material term of the Plan relating to such Award has been satisfied. Such Award shall become payable in cash as promptly as practicable thereafter, provided, however, that any Award shall be paid within
2 1⁄2 months of the end of the Fiscal Year in which the Award is no longer subject to a risk of forfeiture.

 Section 8. Modifications to Awards. At any time prior to the payment of an Award, the Committee may, in its sole discretion,
increase, decrease or eliminate the Award payable to any Participant. The Committee may make such adjustments, to the extent it deems appropriate to any Award to compensate for, or to reflect, any Extraordinary Event. The determination of the
Committee as to matters set forth in this Section 8 shall be final and conclusive. 
 Section 9. Adjustment; Repayment of
Awards. All Awards paid or to be paid under the Plan are subject to rescission, cancellation or recoupment, in whole or in part, under any current or future “clawback” or similar policy of the Company that is applicable to the
Participant. 
 Section 10. Employment Requirement. No Participant shall have any right to receive payment of any Award unless
such Participant remains in the employ of the Company or a Business Unit through the date of payment of such Award; provided, however, that the Committee may, in its sole discretion, pay all or any part of an Award to any Participant
who, 

  
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prior to such date of payment, terminates employment, so long as the Performance Thresholds applicable to the Participant’s Targets were achieved or exceeded. The amount of such payment, if
any, will be calculated, and to the extent determined by the Committee, paid as provided in Section 7. The determination of the Committee shall be final and conclusive. 

Section 11. Miscellaneous. 

(a)    No Contract; No Rights to Awards or Continued Employment. The Plan is not a contract between the Company and
any Participant or other employee. No Participant or other employee shall have any claim or right to receive Awards under the Plan. Neither the Plan nor any action taken hereunder shall be construed as giving any employee any right to be retained by
the Company or any of its Business Units. 
 (b)    No Right to Future Participation. Participation in the Plan
during one Performance Period shall not guarantee participation during any other Performance Period. 

(c)    Restriction on Transfer. The rights of a Participant with respect to Awards under the Plan shall not be
transferable by the Participant to whom such Award is granted (other than by will or the laws of descent and distribution), and any attempted assignment or transfer shall be null and void and shall permit the Committee, in its sole discretion, to
extinguish the Company’s obligation under the Plan to pay any Award with respect to such Participant. 

(d)    Tax Withholding. The Company or a subsidiary thereof, as appropriate, shall have the right to deduct from
all payments made under the Plan to a Participant or to a Participant’s beneficiary or beneficiaries any Federal, foreign, state or local taxes required by law to be withheld with respect to such payments. 

(e)    No Restriction on Right of Company to Effect Changes. The Plan shall not affect in any way the right or
power of the Company or its stockholders to make or authorize any recapitalization, reorganization, merger, acquisition, divestiture, consolidation, spin off, combination, liquidation, dissolution, sale of assets, or other similar corporate
transaction or event involving the Company or a subsidiary thereof or any other event or series of events, whether of a similar character or otherwise. 

(f)    Source of Payments. The Plan shall be unfunded. The Plan shall not create or be construed to create a trust
or separate fund or segregation of assets of any kind or a fiduciary relationship between the Company and a Participant or any other individual, corporation, partnership, association, joint-stock company, trust, unincorporated organization, or
government or political subdivision thereof. To the extent that any Participant is granted an Award hereunder, such Participant’s right to receive payment of such Award shall be no greater than the right of any unsecured general creditor of the
Company. 
 (g)    No Interest. If the Company for any reason fails to make payment of an Award at the time such
Award becomes payable, the Company shall not be liable for any interest or other charges thereon. 
 (h)    Amendment
and Termination. The Committee may at any time and from time to time alter, amend, suspend or terminate the Plan in whole or in part. 

  
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 (i)    Headings. The headings of sections and subsections herein
are included solely for convenience of reference and shall not affect the meaning of any of the provisions of the Plan. 

(j)    Governing Law. The validity, construction, interpretation, administration and effect of the Plan and of its
rules and regulations, and rights relating to the Plan, shall be determined solely in accordance with the laws of the Commonwealth of Pennsylvania, without regard to the
choice-of-law principles thereof, and applicable federal law. 

(k)    Severability. If any term or provision (“Provision”) of the Plan or the application
thereof as to any Participant or circumstance is, to any extent, found to be illegal or invalid, then the Committee shall sever such Provision from the Plan and, thereupon, such Provision shall not be a part of the Plan. 

(l)    Effective Date. The Plan shall be effective as of March 10, 2020. 

  
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