false 0001217234 0001217234 2025-01-06 2025-01-06

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 6, 2025

 

 

CAREDX, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Delaware   001-36536   94-3316839

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

8000 Marina Boulevard, 4th Floor

Brisbane, California 94005

(Address of Principal Executive Offices) (Zip Code)

(415) 287-2300

Registrant’s telephone number, including area code

N/A

(Former Name, or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Exchange Act:

 

(Title of each class)

 

(Trading

Symbol)

 

(Name of exchange

on which registered)

Common Stock, $0.001 Par Value   CDNA   The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


Item 5.02.

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On January 6, 2025, the Compensation and Human Capital Committee of the Board of Directors (the “Board”) of CareDx, Inc. (the “Company”) adopted amendments to the Company’s outside director compensation policy (as amended, the “Amended Outside Director Compensation Policy”) to, among other things, (i) revise the vesting schedules of the annual nonstatutory stock option and restricted stock unit awards provided to the members of the Board who are not employees of the Company (the “outside directors”) such that the annual awards fully vest upon the day immediately before the first annual meeting of the Company’s stockholders that occurs after the grant date if such date occurs prior to the one year anniversary of the grant date of the awards, in each case, subject to the outside director’s continued service through the applicable vesting date, (ii) remove the additional quarterly retainers previously provided to Michael Goldberg, Chairperson of the Board, for Mr. Goldberg’s additional efforts and services while he served as a member of the Office of the Chief Executive Officer, and (iii) update certain outdated references to the predecessor equity plan.

The foregoing description of the Amended Outside Director Compensation Policy does not purport to be complete and is qualified in its entirety by the terms and conditions of the Amended Outside Director Compensation Policy, which is attached hereto as Exhibit 10.1 and incorporated herein by reference.

 

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit
No.
   Description
10.1    CareDx, Inc. Outside Director Compensation Policy, as amended and restated January 6, 2025.
104    Cover Page Interactive Data File, formatted in Inline Extensible Business Reporting Language (iXBRL).

 

 

- 2 -


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: January 8, 2025   CAREDX, INC.
    By:  

/s/ John Hanna

      John Hanna
      Chief Executive Officer

 

- 3 -

Exhibit 10.1

CAREDX, INC.

OUTSIDE DIRECTOR COMPENSATION POLICY

Most Recently Amended Effective as of January 6, 2025

CareDx, Inc. (the “Company”) believes that the granting of equity and cash compensation to its members of the Board of Directors (the “Board,” and members of the Board, the “Directors”) represents an effective tool to attract, retain and reward Directors who are not employees of the Company (the “Outside Directors”). This Outside Director Compensation Policy (the “Policy”) is intended to formalize the Company’s policy regarding cash compensation and grants of equity to its Outside Directors. Unless otherwise defined herein, capitalized terms used in this Policy will have the meaning given to such term in the Company’s 2024 Equity Incentive Plan (the “Plan”), or, as applicable, any Equity Incentive Plan that succeeds the Plan and is adopted by the Company after 2024 (the “Successor Plan”). Each Outside Director will be solely responsible for any tax obligations incurred by such Outside Director as a result of the equity and cash payments such Outside Director receives under this Policy.

 

  1.

RETAINERS

BOARD MEMBERSHIP

 

Chairperson of Board:

   $ 80,000        Annual Retainer  

Outside Directors (including Chairperson):

   $ 45,000        Annual Retainer  

AUDIT & FINANCE COMMITTEE

Annual compensation for Audit & Finance Committee members is as follows:

 

Chairperson of Committee:

   $ 20,000        Annual Retainer  

Committee Members (other than Chairperson)

   $ 10,000        Annual Retainer  

COMPENSATION & HUMAN CAPITAL COMMITTEE

Annual compensation for the Compensation & Human Capital Committee is as follows:

 

Chairperson of Committee:

   $ 15,000        Annual Retainer  

Committee Members (other than Chairperson)

   $ 7,500        Annual Retainer  

GOVERNANCE & NOMINATING COMMITTEE

Compensation for the Governance & Nominating Committee is as follows:

 

Chairperson of Committee:

   $ 10,000        Annual Retainer  

Committee Members (other than Chairperson):

   $ 5,000        Annual Retainer  

SCIENCE & TECHNOLOGY COMMITTEE

Compensation for the Science & Technology Committee is as follows:

 

Chairperson of Committee:

   $ 10,000        Annual Retainer  

Committee Members (other than Chairperson):

   $ 5,000        Annual Retainer  


Notwithstanding anything in this Policy to the contrary, the maximum cash compensation payable to any Outside Director in any fiscal year shall not exceed any maximum cash compensation permitted to be paid to an Outside Director under the Plan.

There are no per meeting attendance fees for attending Board, Audit & Finance Committee, Compensation & Human Capital Committee, Governance & Nominating Committee and/or Science & Technology Committee meetings.

Retainers (other than Chairperson retainers) will be paid quarterly in arrears on a prorated basis.

The retainers will be paid in shares of Company common stock (“Shares”) and/or in cash. Each Director can elect the ratio of Shares to cash for the payment of these retainers by notifying the Company in writing (with email notification being sufficient). Such elections will be effective commencing in the first quarter after the quarter in which they are made. For purposes of determining the payment of the retainer, Shares will be valued at the average closing price in the quarter for which the retainer is paid.

 

  2.

EQUITY COMPENSATION

Outside Directors will be entitled to receive all types of Awards (except Incentive Stock Options) under the Plan (or the applicable equity plan in place at the time of grant, including the Successor Plan), including discretionary Awards not covered under this Policy. All grants of Awards to Outside Directors pursuant to Section 2 of this Policy will be automatic and nondiscretionary, except as otherwise provided herein, and will be made in accordance with the following provisions:

(a) No Discretion. No person will have any discretion to select which Outside Directors will be granted any Awards under this Policy or to determine the number of Shares to be covered by such Awards.

(b) Appointment Awards. Subject to Section 3(d) of the Plan, or any similar limitation in the Successor Plan, upon an Outside Director’s appointment to the Board, such Outside Director automatically will be granted (i) a Nonstatutory Stock Option to purchase Shares having a grant date fair value of $100,000, rounded down to the nearest whole share (the “NSO Appointment Award”), and (ii) Restricted Stock Units having a grant date fair value of $100,000, rounded down to the nearest whole share (the “RSU Appointment Award”). Subject to Section 5 below and Section 6 of the Plan or any similar limitation in the Successor Plan, each NSO Appointment Award will vest in thirty-six (36) substantially equal, monthly installments beginning with the first monthly anniversary after the grant date, and each RSU Appointment Award will vest in three (3) substantially equal, annual installments beginning with the first annual anniversary after the grant date. Each NSO Appointment Award and RSU Appointment Award will vest fully immediately prior to the consummation of a Change in Control (as defined in the Plan or the Successor Plan), in each case, provided that the Outside Director continues to serve as a Service Provider through the applicable vesting date or immediately prior to the consummation of a Change in Control, as applicable.

(c) Annual Awards. Subject to Section 3(d) of the Plan, or any similar limitation in the Successor Plan, on the first business day after each Annual Meeting of the Company’s stockholders (the “Annual Meeting”) beginning with the 2025 Annual Meeting, each Outside Director will automatically be granted (i) a Nonstatutory Stock Option to purchase Shares having a grant date fair value of $150,000, rounded down to the nearest whole share (the “Annual NSO Award”), and (ii) Restricted Stock Units having a grant date fair value of $150,000, rounded down to the nearest whole share (the “Annual RSU Award”). Subject to Section 5 below and Section 6 of the Plan or any similar limitation in the Successor Plan, each Annual NSO Award will vest in twelve (12) substantially equal, monthly installments beginning with the first monthly anniversary after the grant date (provided that each Annual NSO Award will vest fully on the day immediately before the first Annual Meeting that occurs after the grant date if such date occurs prior to the one year anniversary of the grant date), and each Annual RSU Award will vest in one (1) installment on the earlier of the one year anniversary of the grant date and the day immediately before the first Annual Meeting that occurs after the grant date. Each Annual NSO Award and Annual RSU Award will vest fully immediately prior to the consummation of a Change in Control (as defined in the Plan or the Successor Plan), in each case, provided that the Outside Director continues to serve as a Service Provider through the applicable vesting date or immediately prior to the consummation of a Change in Control, as applicable.

 

2


(d) Terms Applicable to all Options Granted Under this Policy. The per Share exercise price for all other Options granted under this Policy will be one hundred percent (100%) of the Fair Market Value on the grant date.

(e) Prior Grants. All Awards granted to Outside Directors prior to the effective date of this Policy shall be governed by the terms of the predecessor to this Policy that was in place at the time such Award was granted.

 

  3.

TRAVEL EXPENSES

Each Outside Director’s reasonable, customary and documented travel expenses to Board meetings will be reimbursed by the Company.

 

  4.

ADDITIONAL PROVISIONS

All provisions of the Company’s 2014 Equity Incentive Plan (the “2014 Plan”), the Plan or the Successor Plan (as applicable) not inconsistent with this Policy will apply to Awards granted to Outside Directors.

 

  5.

ADJUSTMENTS

In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company or other change in the corporate structure of the Company affecting the Shares occurs, the Board or a committee thereof having the authority to administer the 2014 Plan, the Plan or the Successor Plan (as applicable), in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under this Policy, will adjust the number of Shares issuable pursuant to Awards granted under this Policy.

 

  6.

REVISIONS

The Board in its discretion may change and otherwise revise the terms of Awards granted under this Policy, including, without limitation, the number of Shares subject thereto, for Awards of the same or different type granted on or after the date the Board determines to make any such change or revision.

 

3

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Document and Entity Information
Jan. 06, 2025
Cover [Abstract]  
Amendment Flag false
Entity Central Index Key 0001217234
Document Type 8-K
Document Period End Date Jan. 06, 2025
Entity Registrant Name CAREDX, INC.
Entity Incorporation State Country Code DE
Entity File Number 001-36536
Entity Tax Identification Number 94-3316839
Entity Address, Address Line One 8000 Marina Boulevard
Entity Address, Address Line Two 4th Floor
Entity Address, City or Town Brisbane
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94005
City Area Code (415)
Local Phone Number 287-2300
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Common Stock, $0.001 Par Value
Trading Symbol CDNA
Security Exchange Name NASDAQ
Entity Emerging Growth Company false

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