Company: TH
Filing Date: 2025-02-28
Form Type: 8-K
Source: 0001104659-25-019190
Chunk: 1

Company: Target Hospitality Corp.
Filing Date: 2025-02-28
Form: 8-K
Item: Item 5.02
Chunk 1
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Item 5.02      Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of  

Form Equity Award Agreements

On February 27, 2025, the Compensation Committee
(the “ Compensation Committee”) of the Board of Directors the (“ Board”) of the Company
adopted (i) a new form Executive Restricted Stock Unit Agreement (the “ RSU Agreement”) and a new form Executive Performance
Stock Unit Agreement (the “ PSU Agreement”) with respect to the granting of restricted stock units (“ RSUs”)
and performance-based restricted stock units (“ PSUs”), respectively, under the Target Hospitality Corp. 2019 Incentive
Plan (the “ Plan”) and (ii) an amendment to the Plan (the “ Amendment”)
that would increase the number of shares of the Company’s common stock, par value $0.0001 per share (the “ Common Stock”)
authorized for issuance under the Plan, each of which were approved by the Board on February 27, 2025. Settlement upon vesting of the awards in the form of Common Stock is contingent on stockholder
approval of the Amendment at the Company’s 2025 annual meeting of stockholders, otherwise such awards will settle in cash upon
vesting. The new RSU Agreement and PSU Agreements will be used for all awards to executive officers made on or after February 27,
2025.

The RSU Agreement has material terms that are substantially
similar to those in the form Executive Restricted Stock Unit Agreement last approved by the Compensation Committee and previously disclosed
by the Company and filed as Exhibit 10.1 to its Current Report on Form 8-K filed on March 5, 2024.

Each PSU awarded under the PSU Agreement represents
the right to receive one share of Common Stock. PSUs vest and become unrestricted on
the third anniversary of the grant date. The number of PSUs that vest pursuant to the PSU Agreement is based on the Company’s Total
Shareholder Return (the “ TSR Based Award”) performance, measured based on the applicable Performance Period specified
in the PSU Agreement. The number of PSUs that vest pursuant to the TSR Based Award range from 0% to 200% of the Target Level (as defined
in the PSU Agreement) depending upon the achievement of a specified percentile rank during the applicable Performance Period. Vesting
of PSUs is contingent upon the executive’s continued employment through