Company: TVRD
Filing Date: 2025-02-14
Form Type: S-4/A
Source: 0001104659-25-013053
Chunk: 643

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-02-14
Form: S-4/A
Chunk 643
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 the executive’s potential to impact future business results. Base salary is the only element of compensation that is fixed; the remainder and majority of each executive officer’s potential compensation is composed of variable compensation that is designed to incentivize shorter-term (annual) or longer-term performance.

With respect to the fiscal year 2024, in February 2024 the Compensation Committee reviewed and evaluated base salaries of Cara’s executive officers and determined that 2024 base salaries would remain at the 2023 levels of $728,000, $478,400 and $463,840 for Mr. Posner, Mr. Maynard and Mr. Terrillion, respectively.

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Annual Performance-Based Cash Compensation Pursuant to Cara’s executive bonus plan, each executive officer is eligible to receive a target bonus determined as a percentage of his or her annual base salary. Annual performance-based cash compensation is variable and its purpose is to motivate and reward Cara’s executive officers for achievement of annual goals and align management and stockholder interests by linking pay and performance. Cara’s Compensation Committee determines these target bonus percentages for each executive officer position primarily based on the range of target bonus percentages for similar positions at peer companies. Cara’s Compensation Committee periodically reviews and evaluates each executive officer’s target bonus percentage. The target bonus percentages for Cara’s named executive officers are as follows:

| Named Executive Officer | ​ | ​ | TargetBonus % |   |     |   | ​ |
| Christopher Posner      | ​ | ​ | ​             | ​ | 60% | ​ | ​ |
| Ryan Maynard            | ​ | ​ | ​             | ​ | 40% | ​ | ​ |
| Scott Terrillion        | ​ | ​ | ​             | ​ | 40% | ​ | ​ |

In August 2024, the Compensation Committee established a predefined performance objective for Cara’s named executive officers, which provides that 100% of the target bonus for each named executive officer is payable if Cara enters into a definitive agreement for a merger transaction on or before March 31, 2025, which has now occurred, with the payment of the bonus conditioned on the closing of the merger. The actual performance-based bonus paid, if any, will be calculated by multiplying the executive’s annual base salary, target bonus percentage and percentage achievement of the performance objectives. Equity Incentive Awards Cara uses equity awards to motivate its executive officers, including the named executive officers, to increase the long-term value of its common stock and