Company: TIPT
Filing Date: 2025-10-17
Form Type: PREM14A
Source: 0001140361-25-038514
Chunk: 309

Company: TIPTREE INC.
Filing Date: 2025-10-17
Form: PREM14A
Chunk 309
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 based on IRR targets of 17% to 24% determined at the time of a change of control of Fortegra or sale by Warburg of more than 50% of all the Fortegra securities (on an as converted basis) acquired in 2022. The time and performance options granted in 2023 must be exercised in the calendar year they vest and shall be deemed automatically exercised if not otherwise done so by December 31 of the calendar year in which they vest. The fair value option grants were estimated on the date of grant using a Black-Scholes Merton option pricing formula embedded within a Monte Carlo model used to simulate the future value of Fortegra Common Stock, which assumes the market requirement is achieved. As of June 30, 2025, 275,634 options were vested and unexercised and 2,575,416 were unvested after consideration of 610,864 awards that were forfeited in the six months ended June 30, 2025, respectively. In 2024, 316,008 options were vested and exercised. The following table presents the assumptions used to measure the fair value of the options as of the grant date.

|                       |     | Assumption |     |        |
| Valuation Input       |     |       2024 |     |   2023 |
| Historical volatility |     |     45.00% |     | 45.00% |
| Risk-free rate        |     |      4.24% |     |  3.64% |
| Dividend yield        |     |         —% |     |     —% |
| Expected term (years) |     |        4.0 |     |    4.2 |

Performance Restricted Stock Units In May 2023 and November 2023, the Company granted performance based restricted stock units (PRSUs) that vest based on the achievement of specified gross written premium volume targets and underwriting ratios for selected specialty insurance lines written in 2024. If and upon vesting, the PRSUs entitle recipients to participate in an aggregate pool of between $5,000 and $20,000 payable in shares of Fortegra. The PRSUs are accounted for as liability awards and were unvested as of June 30, 2025. Equity Based Compensation Expense The following table presents the total equity based compensation expense and the related income tax benefit recognized on the condensed consolidated statements of operations for awards issued under the Fort