Company: TIPT
Filing Date: 2025-10-31
Form Type: DEFM14A
Source: 0001140361-25-039949
Chunk: 99

Company: TIPTREE INC.
Filing Date: 2025-10-31
Form: DEFM14A
Chunk 99
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 investment in Tiptree to fund the repurchase of the WP Investor’s interest in Fortegra.

Also on September 9, 2025, Latham shared a revised draft of the Merger Agreement (the “September 9 Merger Agreement Draft”) with Ropes & Gray reflecting, among other changes, (i) a broader definition of burdensome condition and the deletion of a covenant requiring the parties to attempt to agree to modify the terms of the Merger Agreement and other transaction documents to eliminate any burdensome condition prior to the parties’ exercising their applicable termination rights, (ii) the replacement of a purchase price adjustment mechanism based on adjusted net income of Fortegra with a profit sharing mechanism pursuant to which, in the event that the closing date occurs following June 1, 2026, the purchase price would be increased at a rate of three percent per annum on the difference between $1.65 billion and the amount of any Leakage, such increase accruing from the day after June 1, 2026 until the closing, (iii) a termination fee of 3.75% of the equity value of Fortegra, (iv) the reinstatement of a termination fee of 0.5% of the equity value of Fortegra payable by Tiptree in the event that the Merger Agreement is terminated as a result of the failure to obtain the Tiptree stockholder approval (in a circumstance in which the termination fee was not otherwise payable), (v) the addition of a closing condition related to the obtaining of required regulatory approvals not specifically identified in the Merger Agreement or the disclosure schedule (whether or not identified prior to the date of the Merger Agreement), (vi) the expansion of definitions of Leakage and Transaction Expenses, and (vii) the reinstatement of a closing condition that specified employment agreements remain in full force and effect.

On September 10, 2025, BofA Securities provided to Ropes & Gray an updated relationship disclosure addressed to the Fortegra Board regarding BofA Securities’ past or existing relationships, if any, with Fortegra, Tiptree, Warburg Pincus and Purchaser.

On September 11, 2025, representatives of Tiptree, Fortegra, the WP Investor, Purchaser, Ropes & Gray, Sidley, Latham, Barclays, BofA Securities and Goldman Sachs held a call to discuss open points in the Merger Agreement and other transaction documents. Issues discussed included, among others, the start date and method of