Company: TIPT
Filing Date: 2025-10-31
Form Type: DEFM14A
Source: 0001140361-25-039949
Chunk: 274

Company: TIPTREE INC.
Filing Date: 2025-10-31
Form: DEFM14A
Chunk 274
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 the Company granted 1,755,633 time vested options and 1,755,624 performance vested options to management under the Fortegra Plan. In 2024, the Company granted an additional 133,333 time vested options and 133,332 performance vested options. The 2023 and 2024 awards contain a strike price per share of $11.25 and $15.50, respectively. The time vested options vest in equal parts over 5 years. The performance vested options vest 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

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THE FORTEGRA GROUP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2024 & 2023 (in thousands, unless otherwise noted) 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 December 31, 2024, 316,008 options were vested and exercised and 2,914,254 were unvested (after consideration of 547,661 awards that were forfeited in the year ended December 31, 2024, respectively. 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