Company: TH
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0001104659-25-032818
Chunk: 32

Company: Target Hospitality Corp.
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 32
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 | Maximum    | ​ | ​ | 85thPercentile and above             | ​ | ​ | 200% of Target Level | ​ |
| ​ | Target     | ​ | ​ | 50thPercentile                       | ​ | ​ | 100% of Target Level | ​ |
| ​ | Threshold  | ​ | ​ | 25thPercentile                       | ​ | ​ | 50% of Target Level  | ​ |
| ​ | <Threshold | ​ | ​ | Below 25thPercentile                 | ​ | ​ | 0%                   | ​ |

(1) Any payment will be based on linear interpolation between threshold, target, and maximum award levels. Notwithstanding the preceding, if the Company’s absolute TSR over the performance period is negative, the payout percentage will be limited to 100% of target level regardless of relative TSR results. ■ TSR is calculated by dividing (a) the sum of (i) the cumulative amount of dividends for the measurement period, assuming dividend reinvestment if applicable, and (ii) the difference between the Company’s share price at the end of each fiscal year shown and the beginning of the measurement period, and the beginning of the measurement period by (b) the Company’s share price at the beginning of the measurement period. The beginning of the measurement period for each year in the table is market close on December 31, 2020. ■ Strategic EBITDA Diversification: ■ Reducing Business Concentration Risk. The decision to diversify EBITDA reflects the Compensation Committee’s strategic approach to managing risk. By incentivizing executives based on the diversification of Adjusted EBITDA, the Compensation Committee aims to reduce the Company’s dependence on specific revenue streams or business segments. This diversification strategy enhances the Company’s resilience to market fluctuations and industry challenges. ■ Encouraging Portfolio Optimization. Executives are encouraged to explore and invest in areas that contribute to a more diversified Adjusted EBITDA. This may involve inorganic

| ​ | 2025proxy statement | ​ | ​ | ​ | 39 | ​ |

TABLE OF CONTENTS COMPENSATION DISCUSSION & ANALYSIS

growth as well as organic growth. The Compensation Committee believes that such diversification efforts contribute to the overall health and sustainability of the Company. ■ Balancing Short-Term and Long-Term Objectives: ■ Incentivizing Strategic Decision-Making : The combination of relative TSR and Diversification EBITDA diversification strikes a balance between short-term