Document:

Exhibit

Exhibit 10.2

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE CASTLE BIOSCIENCES, INC. HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO CASTLE BIOSCIENCES, INC. IF PUBLICALLY DISCLOSED.
THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT

THIS THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as of March 4, 2020 (the “Third Amendment Date”), by and among OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314, as collateral agent (in its individual capacity, “Oxford”; and in its capacity as collateral agent, “Collateral Agent”), the Lenders listed on Schedule 1.1 of the Loan Agreement (as defined below) or otherwise party thereto from time to time including Oxford in its capacity as a Lender and SILICON VALLEY BANK, a California corporation with an office located at 3003 Tasman Drive, Santa Clara, CA 95054 (“Bank” or “SVB”) (each a “Lender” and collectively, the “Lenders”), and CASTLE BIOSCIENCES, INC., a Delaware Corporation with offices located at 820 S. Friendswood, Suite 201, Friendswood, TX 77546 (“Borrower”).

WHEREAS, Collateral Agent, Borrower and the Lenders party to the Loan Agreement from time to time have entered into that certain Loan and Security Agreement, dated as of November 30, 2018 (as amended, supplemented or otherwise modified from time to time, including, but without limitation, pursuant to that certain First Amendment to Loan and Security Agreement dated as of June 13, 2019, and that certain Waiver and Second Amendment to Loan and Security Agreement dated as of February 28, 2020, collectively, the “Loan Agreement”) pursuant to which the Lenders have provided to Borrower certain loans in accordance with the terms and conditions thereof; and

WHEREAS, Borrower, the Lenders and Collateral Agent also desire to amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below;

NOW, THEREFORE, in consideration of the promises, covenants and agreements contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Borrower, the Lenders and Collateral Agent hereby agree as follows:

		
	1.
	Capitalized terms used herein but not otherwise defined shall have the respective meanings given to them in the Loan Agreement.

		
	2.
	Borrower hereby reaffirms the security interest granted by Borrower previously in Section 4.1 of the Loan Agreement with respect to the Collateral.

		
	3.
	Section 6.10 of the Loan Agreement is hereby amended and restated in their entirety as follows:

“6.10    Financial Covenant. Borrower shall achieve the following, to be tested as of the last day of the applicable quarter, on a consolidated basis with respect to Borrower and its Subsidiaries:

(i) Revenues for the three months ended at the end of the applicable quarter-end month set forth below of at least:
	
		
	Trailing 3-Month Period Ending
	Minimum Trailing 3 Months Revenue ([***]% of Plan)

	6/30/2019
	$7,646,880.00

	9/30/2019
	$7,596,081.00

	12/31/2019
	$8,014,761.00

	3/31/2020
	$11,062,938.00

	6/30/2020
	$15,110,788.00

	9/30/2020
	$15,661,698.00

	12/31/2020
	$14,372,737.00

, and thereafter, the required revenues of Borrower shall be determined by Collateral Agent and the Lenders upon receipt and review by Collateral Agent and the Lenders of Borrower’s Annual Projections delivered in

[***]=CERTAIN CONFIDENTIAL INFORMATION OMITTED

1

accordance with Section 6.2(a)(iii); provided that such required revenues shall be (i) based on a minimum requirement of at least [***] percent ([***]%) of Borrower’s board of directors-approved revenue plan (provided that such plan is acceptable to Collateral Agent and the Lenders), (ii) in no event less than the amounts required hereunder with respect to [***], and (iii) at such levels that [***]. Collateral Agent, Borrower and the Lenders shall execute and deliver to each other an amendment to this Agreement which provides the terms of such Future Minimum Revenue Covenants no later than March 31st of each year. It shall be an immediate Event of Default if Borrower, Collateral Agent and the Lenders (in each case acting reasonably) fail to enter into the aforementioned amendment on or prior to March 31st of each year.

GAAP revenue recognized from consolidated DecisionDx-CM Medicare claims in which a payment decision was awarded through an Administrative Law Judge appeal process shall not be part of GAAP revenue as measured by this performance-to-plan revenue covenant.”

		
	4.
	Exhibit C of the Loan Agreement is hereby amended and restated in its entirety as set forth on Exhibit C attached hereto.

		
	5.
	Limitation of Amendment.

		
	a.
	The amendments set forth in Sections 3 and 4, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (i) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (ii) otherwise prejudice any right or remedy which the Lenders, or obligation which Borrower, may now have or may have in the future under or in connection with any Loan Document.

		
	b.
	This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

		
	6.
	Release by Borrower.

		
	a.
	FOR GOOD AND VALUABLE CONSIDERATION, Borrower hereby forever relieves, releases, and discharges Collateral Agent and each Lender and their respective present or former employees, officers, directors, agents, representatives, attorneys, and each of them, from any and all claims, debts, liabilities, demands, obligations, promises, acts, agreements, costs and expenses, actions and causes of action, of every type, kind, nature, description or character whatsoever, whether known or unknown, suspected or unsuspected, absolute or contingent, arising out of or in any manner whatsoever connected with or related to facts, circumstances, issues, controversies or claims existing or arising from the beginning of time through and including the date of execution of this Amendment solely to the extent such claims arise out of or are in any manner whatsoever connected with or related to the Loan Documents, the Recitals hereto, any instruments, agreements or documents executed in connection with any of the foregoing or the origination, negotiation, administration, servicing and/or enforcement of any of the foregoing (collectively “Released Claims”).

		
	b.
	In furtherance of this release, Borrower expressly acknowledges and waives any and all rights under Section 1542 of the California Civil Code, which provides as follows:

“A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or releasing party.” (Emphasis added.)

		
	c.
	By entering into this release, Borrower recognizes that no facts or representations are ever absolutely certain and it may hereafter discover facts in addition to or different from those which it presently

[***]=CERTAIN CONFIDENTIAL INFORMATION OMITTED

2

knows or believes to be true, but that it is the intention of Borrower hereby to fully, finally and forever settle and release all matters, disputes and differences, known or unknown, suspected or unsuspected in respect of the Released Claims; accordingly, if Borrower should subsequently discover that any fact that it relied upon in entering into this release was untrue, or that any understanding of the facts was incorrect, Borrower shall not be entitled to set aside this release by reason thereof, regardless of any claim of mistake of fact or law or any other circumstances whatsoever. Borrower acknowledges that it is not relying upon and has not relied upon any representation or statement made by Bank with respect to the facts underlying this release or with regard to any of such party’s rights or asserted rights.

		
	d.
	This release may be pleaded as a full and complete defense and/or as a cross-complaint or counterclaim against any action, suit, or other proceeding that may be instituted, prosecuted or attempted in breach of this release. Borrower acknowledges that the release contained herein constitutes a material inducement to Collateral Agent and the Lenders to enter into this Amendment, and that Collateral Agent and the Lenders would not have done so but for Collateral Agent’s and the Lenders’ expectation that such release is valid and enforceable in all events.

		
	e.
	Borrower hereby represents and warrants to Collateral Agent and the Lenders, and Collateral Agent and the Lenders are relying thereon, as follows:

		
	i.
	Except as expressly stated in this Amendment, neither Collateral Agent, the Lenders nor any agent, employee or representative of any of them has made any statement or representation to Borrower regarding any fact relied upon by Borrower in entering into this Amendment.

		
	ii.
	Borrower has made such investigation of the facts pertaining to this Amendment and all of the matters appertaining thereto, as it deems necessary.

		
	iii.
	The terms of this Amendment are contractual and not a mere recital.

		
	iv.
	This Amendment has been carefully read by Borrower, the contents hereof are known and understood by Borrower, and this Amendment is signed freely, and without duress, by Borrower.

		
	v.
	Borrower represents and warrants that it is the sole and lawful owner of all right, title and interest in and to every claim and every other matter which it releases herein, and that it has not heretofore assigned or transferred, or purported to assign or transfer, to any person, firm or entity any claims or other matters herein released. Borrower shall indemnify Collateral Agent and the Lenders, defend and hold each harmless from and against all claims based upon or arising in connection with prior assignments or purported assignments or transfers of any claims or matters released herein.

		
	7.
	To induce Collateral Agent and the Lenders to enter into this Amendment, Borrower hereby represents and warrants to Collateral Agent and the Lenders as follows:

		
	a.
	Immediately after giving effect to this Amendment (i) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date) and (ii) no Event of Default has occurred and is continuing;

		
	b.
	Borrower has the power and due authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

3

		
	c.
	The organizational documents of Borrower delivered to Collateral Agent on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

		
	d.
	The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (i) any law or regulation binding on or affecting Borrower, (ii) any contractual restriction with a Person binding on Borrower, (iii) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (iv) the organizational documents of Borrower;

		
	e.
	The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and

		
	f.
	This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

		
	8.
	Except as expressly set forth herein, the Loan Agreement shall continue in full force and effect without alteration or amendment. This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.

		
	9.
	This Amendment shall be deemed effective as of the Third Amendment Date upon (a) the due execution and delivery to Collateral Agent of this Amendment by each party hereto, and (b) Borrower’s payment of all Lenders’ Expenses incurred through the date hereof, which may be debited (or ACH’d) from any of Borrower’s accounts with the Lenders.

		
	10.
	This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, and all of which, taken together, shall constitute one and the same instrument.

		
	11.
	This Amendment and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of California.

[Balance of Page Intentionally Left Blank]

4

IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to Loan and Security Agreement to be executed as of the date first set forth above.

	
		
	BORROWER:

	CASTLE BIOSCIENCES, INC.

	By:
	/s/ Frank Stokes

	Name:
	Frank Stokes

	Title:
	Chief Financial Officer

	 
	 

	COLLATERAL AGENT AND LENDER:

	OXFORD FINANCE LLC

	By:
	/s/ Colette H. Featherly

	Name:
	Colette H. Featherly

	Title:
	Senior Vice President

	 
	 

	LENDER:

	SILICON VALLEY BANK

	By:
	/s/ Kristine Rohmer

	Name:
	Kristine Rohmer

	Title:
	Vice President

[Signature Page - Third Amendment to Loan and Security Agreement]

EXHIBIT C

Compliance Certificate

	
		
	TO:
	OXFORD FINANCE LLC, as Collateral Agent and Lender

	 
	SILICON VALLEY BANK, as Lender

	FROM:
	CASTLE BIOSCIENCES, INC.

The undersigned authorized officer (“Officer”) of CASTLE BIOSCIENCES, INC. (“Borrower”), hereby certifies that in accordance with the terms and conditions of the Loan and Security Agreement by and among Borrower, Collateral Agent, and the Lenders from time to time party thereto (the “Loan Agreement;” capitalized terms used but not otherwise defined herein shall have the meanings given them in the Loan Agreement),

(a)Borrower is in complete compliance for the period ending ________________with all required covenants except as noted below;

(b)There are no Events of Default, except as noted below;

(c)Except as noted below, all representations and warranties of Borrower stated in the Loan Documents are true and correct in all material respects on this date and for the period described in (a), above; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date.

(d)Borrower, and each of Borrower’s Subsidiaries, has timely filed all required tax returns and reports, or obtain extensions thereof, Borrower, and each of Borrower’s Subsidiaries, has timely paid all foreign, federal, state, and local taxes, assessments, deposits and contributions owed by Borrower, or Subsidiary, except as otherwise permitted pursuant to the terms of Section 5.8 of the Loan Agreement;

(e)No Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Collateral Agent and the Lenders.

Attached are the required documents, if any, supporting our certification(s). The Officer, on behalf of Borrower, further certifies that the attached financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes and except, in the case of unaudited financial statements, for the absence of footnotes and subject to year-end audit adjustments as to the interim financial statements.

Please indicate compliance status since the last Compliance Certificate by circling Yes, No, or N/A under “Complies” column.

	
											
	 
	 
	Reporting Covenant
	 
	Requirement
	 
	Actual
	 
	Compiles

	1)
	 
	Financial statements
	 
	Quarterly within 5 days SEC Filings
	 
	 
	 
	Yes
	No
	N/A

	2)
	 
	Annual (CPA Audited) statements
	 
	Within 150 Days after FYE or
within 5 days SEC Filings
	 
	 
	 
	Yes
	No
	N/A

	3)
	 
	Annual Financial
Projections/Budget (prepared on a
quarterly basis)
	 
	Annually (within earlier of 60 days
of FYE or 7 Business Days of
approval by Board), and within 7
Business Days of any revision
	 
	 
	 
	Yes
	No
	N/A

	
											
	4)
	 
	A/R & A/P agings
	 
	Quarterly within 30 days
	 
	 
	 
	Yes
	No
	N/A

	5)
	 
	8-K, 10-K and 10-Q Filings
	 
	If applicable, within 5 days of filing
	 
	 
	 
	Yes
	No
	N/A

	6)
	 
	Security Holder reports and notices
	 
	Within 5 days of delivery
	 
	 
	 
	Yes
	No
	N/A

	7)
	 
	Compliance Certificate
	 
	Quarterly/Annually within 5 days of SEC Filings
	 
	 
	 
	Yes
	No
	N/A

	8)
	 
	IP Report
	 
	When required
	 
	 
	 
	Yes
	No
	N/A

	9)
	 
	Total amount of Borrower’s cash and cash equivalents at the last day of the measurement period
	 
	 
	 
	$______
	 
	Yes
	No
	N/A

	10)
	 
	Total amount of Borrower’s Subsidiaries’ cash and cash equivalents at the last day of the measurement period
	 
	 
	 
	$______
	 
	Yes
	No
	N/A

Deposit and Securities Accounts
(Please list all accounts; attach separate sheet if additional space needed)
	
							
	 
	Institution Name
	Account Number
	New Account?
	Account Control Agreement in place?

	1)
	 
	 
	Yes
	No
	Yes
	No

	2)
	 
	 
	Yes
	No
	Yes
	No

	3)
	 
	 
	Yes
	No
	Yes
	No

	4)
	 
	 
	Yes
	No
	Yes
	No

Financial Covenants

	
											
	Covenant
	 
	Requirement
	 
	Actual
	 
	Compliance

	 
	 
	Trailing
	Minimum
	 
	 
	 
	 
	 

	 
	 
	trailing
	 
	 
	 
	 
	 
	 

	 
	 
	3-month
	3 months
	 
	 
	 
	 
	 

	 
	 
	revenue
	 
	 
	 
	 
	 
	 

	 
	 
	period ending
	([***]% of plan)
	 
	 
	 
	 
	 

	Minimum Revenues
	 
	 
	 
	 
	 
	 
	 
	 

	(trailing three months)
	 
	6/30/2019
	$
	7,646,880.00
	

	 
	 
	 
	 
	 

	 
	 
	9/30/2019
	$
	7,596,081.00
	

	 
	[$________]
	 
	Yes
	No

	 
	 
	12/31/2019
	$
	8,014,761.00
	

	 
	 
	 
	 
	 

	 
	 
	3/31/2020
	$
	11,062,938.00
	

	 
	 
	 
	 
	 

	 
	 
	6/30/2020
	$
	15,110,788.00
	

	 
	 
	 
	 
	 

	 
	 
	9/30/2020
	$
	15,661,698.00
	

	 
	 
	 
	 
	 

	 
	 
	12/31/20
	$
	14,372,737.00
	

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Thereafter, at least [***]% of projections
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	[***] Bank Account
	 
	Not above $[***] as of the end of any Business day
	 
	$[________]
	 
	Yes
	No

[***]=CERTAIN CONFIDENTIAL INFORMATION OMITTED

Other Matters
	
				
	1)
	Have there been any changes in management since the last Compliance Certificate?
	Yes
	No

	 
	 
	 
	 

	2)
	Have there been any transfers/sales/disposals/retirement of Collateral or IP prohibited by the Loan Agreement?
	Yes
	No

	 
	 
	 
	 

	3)
	Have there been any new or pending claims or causes of action against Borrower that involve more than [***] Dollars ($[***])?
	Yes
	No

	 
	 
	 
	 

	4)
	Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries other than as already included in a Quarterly Report on Form 10-Q, an Annual report on Form 10-K or a Current Report on Form 8-K? If yes, provide copies of any such amendments or changes with this Compliance Certificate.
	Yes
	No

[***]=CERTAIN CONFIDENTIAL INFORMATION OMITTED

Exceptions

Please explain any exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions.” Attach separate sheet if additional space needed.)

	
									
	CASTLE BIOSCIENCES, INC.
	 
	 
	 
	 
	 
	 
	 

	By:
	 
	 
	 
	 
	 
	 
	 
	 

	Name:
	 
	 
	 
	 
	 
	 
	 
	 

	Title:
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	Date:
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	LENDER USE ONLY
	 
	 
	 

	 
	 
	 
	Received by:
	 
	 
	Date:
	 

	 
	 
	 
	Verified by:
	 
	 
	Date:
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	Compliance Status:
	Yes
	NoExhibit

Exhibit 10.3

CASTLE BIOSCIENCES, INC.
NON-EMPLOYEE DIRECTOR COMPENSATION POLICY
ADOPTED:  JUNE 8, 2019 
AMENDED: APRIL 1, 2020

Each member of the Board of Directors (the “Board”) of Castle Biosciences, Inc. (the “Company”) who is a non-employee director of the Company (each such member, a “Non-Employee Director”) will receive the compensation described in this Non-Employee Director Compensation Policy (the “Director Compensation Policy”) for his or her Board service following the closing of the initial public offering of the Company’s common stock (the “IPO”).
The Director Compensation Policy will be effective upon the execution of the underwriting agreement in connection with the IPO (the date of such execution being referred to as the “IPO Date”). The Director Compensation Policy may be amended at any time in the sole discretion of the Board or the Compensation Committee of the Board.

A Non-Employee Director may decline all or any portion of his or her compensation by giving notice to the Company prior to the date cash is to be paid or equity awards are to be granted, as the case may be.  

Annual Cash Compensation
Commencing at the beginning of the first calendar quarter following the IPO Date, each Non-Employee Director will receive the cash compensation set forth below for service on the Board.  The annual cash compensation amounts will be payable in equal quarterly installments, in arrears following the end of each quarter in which the service occurred, pro-rated for any partial months of service.  All annual cash fees are vested upon payment. 

1.    Annual Board Service Retainer: 
a.    All Eligible Directors: $40,000

2.    Annual Board Chair Service Retainer (in addition to Board Service Retainer): 
a.    Chair of the Board: $40,000 

3.    Annual Committee Member Service Retainer (committee chairs will not receive this retainer in addition to the Committee Chair Service Retainer):
a.    Member of the Audit Committee: $10,000
b.    Member of the Compensation Committee: $7,500
c.    Member of the Nominating and Corporate Governance Committee: $5,000

4.    Annual Committee Chair Service Retainer:
a.    Chair of the Audit Committee: $20,000
b.    Chair of the Compensation Committee: $15,000
c.    Chair of the Nominating and Corporate Governance Committee: $10,000

1

Equity Compensation
Equity awards will be granted under the Company’s 2019 Equity Incentive Plan (the “Plan”), adopted in connection with the IPO.  All stock options granted under this policy will be Nonstatutory Stock Options (as defined in the Plan), with a term of ten years from the date of grant and an exercise price per share equal to 100% of the Fair Market Value (as defined in the Plan) of the underlying common stock of the Company on the date of grant.  
(a)Automatic Equity Grants.  
(i)    Initial Grant for New Directors.   Without any further action of the Board, each person who, after the IPO Date, is elected or appointed for the first time to be a Non-Employee Director will automatically, upon the date of his or her initial election or appointment to be a Non-Employee Director (or, if such date is not a market trading day, the first market trading day thereafter), be granted a Nonstatutory Stock Option to purchase 16,000 shares of common stock of the Company (the “Initial Option Grant”).  12/36ths  of the Initial Option Grant will vest on the one year anniversary of the Vesting Commencement Date (as defined below) and 1/36th of the Initial Option Grant will vest in a series of 24 successive equal monthly installments over the two-year period measured from the Vesting Commencement Date. The “Vesting Commencement Date” means the 15th day of the month in which the Initial Option Grant was granted; provided that if the Initial Option Grant was granted after the 15th day of a month, the Vesting Commencement Date shall be the 1st day of the month immediately following the month in which the Initial Option Grant was granted.
(ii)    Annual Grant.  Without any further action of the Board, at the close of business on the date of each Annual Meeting of Stockholders following the IPO, each person who is then a Non-Employee Director will automatically be granted a Nonstatutory Stock Option to purchase 8,000 shares of common stock (the “Annual Option Grant”).  Each Annual Option Grant will vest on the one-year anniversary of the date of grant.
(b)    Vesting; Change in Control.  All vesting is subject to the Non-Employee Director’s “Continuous Service” (as defined in the Plan) on each applicable vesting date.  Notwithstanding the foregoing vesting schedules, for each Non-Employee Director who remains in Continuous Service with the Company until immediately prior to the closing of a “Change in Control” (as defined in the Plan), the shares subject to his or her then-outstanding equity awards that were granted pursuant to this policy will become fully vested immediately prior to the closing of such Change in Control.
(c)    Remaining Terms.  The remaining terms and conditions of each award, including transferability, will be as set forth in the Company’s Director Option Grant Package in the form adopted from time to time by the Board. 
Expenses

The Company will reimburse Non-Employee Director for ordinary, necessary and reasonable out-of-pocket travel expenses to cover in-person attendance at and participation in Board and committee meetings; provided, that the Non-Employee Director timely submit to the Company 

2

appropriate documentation substantiating such expenses in accordance with the Company’s travel and expense policy, as in effect from time to time.

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}]]