Company: TH
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0001104659-25-032818
Chunk: 31

Company: Target Hospitality Corp.
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 31
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YSIS

of target at the end of the three-year performance period running from February 29, 2024 through February 28, 2027 based on Diversification EBITDA received by the Company on a cumulative basis as of the end of the performance period, in each case, subject to continued employment on the date performance achievement is certified by the Compensation Committee. For the 2024 PSUs, the Diversification EBITDA performance measure may be earned based on the amount of qualifying EBITDA (“Qualifying EBITDA”) received during the applicable performance Period. Qualifying EBITDA is defined as EBITDA received during the performance period that is (i) incremental to any EBITDA used to determine “Baseline EBITDA” as approved in the Company’s budget for 2024 Adjusted EBITDA, and (ii) supported by (a) multi-year contracts or (b) single-year contracts where there is a reasonable expectation of extension, renewal, continuation, or any other increase in duration; provided, however, that Qualifying EBITDA does not include any amounts accounted for as occupancy-based variable services revenue generated under a former U.S. government sub-contract that was terminated effective February 21, 2025. Any determination of Qualifying EBITDA may include EBITDA growth resulting from expansion of the Company’s existing operations and EBITDA growth resulting from acquisitions. In addition, any contract assumed by the Company as a result of an acquisition will be treated as a new contract when determining Qualifying EBITDA. The Compensation Committee carefully considered a range of factors and strategic objectives when deciding to grant the 2024 PSUs based on relative TSR and Diversification EBITDA for the Company. The rationale for this decision reflects the Compensation Committee’s commitment to aligning executive compensation with the Company’s overall performance and long-term sustainability. ■ Alignment with Shareholder Interests (TSR): ■ Relative TSR as a Key Performance Metric. The Compensation Committee recognizes that relative TSR is a comprehensive measure of the Company’s performance that directly aligns with shareholder interests. By incorporating relative TSR into the performance units, executives are incentivized to focus on actions and strategies that enhance shareholder value over the long-term. ■ For the relative TSR component of the 2024 PSUs, the award level will be based on the following table:

| ​ | Level      | ​ | ​ | Percentile Rank vs. Comparator Group | ​ | ​ | Payout %(1)          | ​ |
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