Company: TIPT
Filing Date: 2025-10-31
Form Type: DEFM14A
Source: 0001140361-25-039949
Chunk: 307

Company: TIPTREE INC.
Filing Date: 2025-10-31
Form: DEFM14A
Chunk 307
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 one, two and three year anniversaries of the grant date, July 27, 2022, and expire at the earlier of the ten year anniversary of the grant date, or the date that is ninety days after any termination of the participants service on the board. The weighted average exercise price is $11.25 per common share with a weighted average grant date fair value of $4.57 per share based on 45% selected volatility, 2.78% risk free rate and an expected term of 6 years. In 2023, 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

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THE FORTEGRA GROUP, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) September 30, 2025 (in thousands, unless otherwise noted) $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 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 September 30, 2025, 316,039 options were vested and unexercised and 2,575,416 were unvested after consideration of 610,864 awards that were forfeited in the nine months ended September 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.

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