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EFTA01378094

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Expected volatility 47% 41% 29% Risk-free interest rate 0.5% 0.8% 1.3% Expected term 3.7 years 4.2 years 4.2 years Dividend yield —% —% —% Approximately 0.2 million, less than 0.1 million and 0.4 million stock options were granted by the Company during the years ended December 31, 2012, 2013 and 2014. respectively. The weighted average fair value of stock options granted during the years ended December 31, 2012. 2013 and 2014 with exercise prices equal to the fair value of Match Group, Inc. common stock on the date of grant are $79.73, $79.57 and $83.24, respectively. There are no stock options issued during the years ended December 31, 2012, 2913 and 2014 with exercise prices greater than the fair value of Match Group, Inc. common stock on the date of grant. There was no cash received from stock option exercises as the stock options were net settled in IAC's common stock. Equity instruments denominated in the shares of certain subsidiaries IAC has granted stock options in certain subsidiaries within Match Group, Inc to certain employees. These equity awards vest over a period of years. which is typically four years. The value of the stock options is F-45 Table of Cnntentg tied to the value of the common stock of the entity, with the equity awards management receives as a whole generally representing a small minority of the total common stock outstanding. Accordingly. these interests only have value to the extent the fair value of the relevant business appreciates in value above the initial fair value utilized to determine the exerase price. These stock options can have significant value in the event of significant appreciation. The interests are ultimately settled in IAC common stock at various dates through 2021. The expense associated with these equity awards is initially measured at fair value at the grant date and is expensed as stock-based compensation over the vesting term. The fair value of each stock option award is estimated

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