Company: CWAN
Filing Date: 2025-02-11
Form Type: S-4
Source: 0001193125-25-023759
Chunk: 166

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-02-11
Form: S-4
Chunk 166
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ii) such U.S. Holder’s adjusted tax basis in its shares of
Enfusion Common Stock exchanged in the Merger. Gain or loss must be calculated separately for each block of shares of Enfusion Common Stock exchanged by such U.S. Holder if such blocks were acquired at different times or for different prices. Any
gain or loss generally will be capital gain or loss and will be long-term capital gain or loss if the holding period in a particular block of shares of Enfusion Common Stock exchanged in the Merger is greater than one year as of the effective date
of the Merger. Long-term capital gains of certain non-corporate holders, including individuals, generally are taxed at preferential rates. The deductibility of capital losses is subject to certain limitations.
A U.S. Holder’s holding period in shares of Clearwater Common Stock received in the Merger would begin on the day following the Merger.

Receipt of cash in lieu of fractional shares

A U.S. Holder of shares of Enfusion Common Stock that receives cash in lieu of a fractional share of Clearwater Common Stock generally should
be treated as having received such fractional share pursuant to the Merger and then as having sold such fractional share to Clearwater for cash. As a result, and subject to the discussion below under “—Possible dividend treatment,”
such U.S. Holder generally will recognize gain or loss equal to the difference, if any, between the amount of cash received for such fractional share and the tax basis allocated to such fractional share (determined as described above). Such gain or
loss generally will be long-term capital gain or loss if, as of the effective date of the Merger, the U.S. Holder’s holding period for such fractional share (determined as described above) is more than one year. Long-term capital gains of
certain non-corporate holders, including individuals, generally are taxed at preferential rates. The deductibility of capital losses is subject to certain limitations.

Possible dividend treatment

In some cases, if a holder of Enfusion Common Stock actually or constructively owns a sufficient amount of Enfusion Common Stock or Clearwater
Common Stock either before or after the Merger, any cash Merger Consideration (including cash in lieu of a fractional share of Clearwater Common Stock) received by such holder could be treated as being received as a distribution under the tests set
forth in Section 302 of the Code (including as a result of the application of Section 304 of the Code). In such a case,