Company: CSTL
Filing Date: 2025-04-09
Form Type: DEF 14A
Source: 0001447362-25-000054
Chunk: 38

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-04-09
Form: DEF 14A
Chunk 38
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, to eliminate the monetary liability of certain officers of the Company for breaches of the fiduciary duty of care in any direct claim. This provision is narrowly-tailored to such fiduciary duty of care claims and would not eliminate the monetary liability of such officers for (i) breaches of the duty of loyalty, (ii) acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law, (iii) any transaction from which the officer derived an improper personal benefit or (iv) claims brought by or in the right of the corporation, such as derivative claims. As noted above, only certain officers may be exculpated from liability: (i) a corporation’s president, chief executive officer, chief operating officer, chief financial officer, chief legal officer, controller, treasurer or chief accounting officer; (ii) an individual identified in public filings as one of the most highly compensated officers of the corporation; and (iii) an individual who, by written agreement with the corporation, has consented to be identified as an officer for purposes of Delaware’s long-arm jurisdiction statute. The Officer Exculpation Amendment would eliminate the liability of these statutorily defined officers as described above, but will not be retroactive, and will not apply to any act or omission occurring prior to the effectiveness of the Officer Exculpation Amendment. Consistent with Article VI of the Restated Certificate, the Officer Exculpation Amendment would provide that the affirmative vote of the holders of at least 66 2/3% of the voting power of all of the then-outstanding shares of capital stock of the Company entitled to vote generally in the election of directors, voting together as a single class, shall be required to alter, amend or repeal new Article IX, as set forth in Appendix A .

#### 40Castle Biosciences 2025 Proxy Statement

#### Proposal Four

#### Reason for the Proposed Amendment
Stockholder plaintiffs have previously employed a tactic of bringing certain claims that would otherwise be exculpated if brought against directors, against individual officers to avoid dismissal of such claims and/or to drive companies toward settlements. The amendment to Section 102(b)(7) was adopted to address inconsistent treatment between officers and directors and address rising litigation and insurance costs for stockholders. As a result, adopting an officer exculpation provision that aligns with the protections afforded under the DGCL could prevent protracted or otherwise meritless litigation that distracts from our primary objective of creating stockholder value over the long