Company: CWAN
Filing Date: 2025-02-11
Form Type: S-4
Source: 0001193125-25-023759
Chunk: 164

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-02-11
Form: S-4
Chunk 164
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 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.

U.S. Holders that Receive a combination of Clearwater Common Stock and cash Merger Consideration in a “reorganization”

A U.S. Holder that exchanges its shares of Enfusion Common Stock for a combination of Clearwater Common Stock and cash Merger Consideration
(i.e., Per Share Mixed Consideration) pursuant to the Merger generally will recognize gain (but not loss) in an amount equal to the lesser of (i) the amount by which the sum of the fair market value of Clearwater Common Stock (including any
fractional share of Clearwater Common Stock the U.S. Holder is treated as having received) and cash received by the U.S. Holder in the Merger (excluding any cash received in lieu of a fractional share of Clearwater Common Stock) exceeds such U.S.
Holder’s adjusted tax basis in its shares of Enfusion Common Stock surrendered in the Merger and (ii) the amount of cash Merger Consideration received by such U.S. Holder in the Merger (excluding any cash received in lieu of a fractional
share of Clearwater Common Stock). Any cash received in lieu of a fractional share will be treated as discussed below under “—Receipt of cash in lieu of fractional shares.”

Subject to the discussion below under “—Possible dividend treatment,” any gain recognized by a U.S. Holder in connection with
the Merger generally will constitute capital gain and will constitute long-term capital gain if such U.S. Holder has held the shares of Enfusion Common Stock that it surrendered in the Merger for more 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 aggregate tax basis of the shares of Clearwater Common Stock received by
a U.S. Holder in the Merger (including any fractional share of Clearwater Common Stock deemed to be received) will be the same as the aggregate tax basis of the shares of Enfusion Common Stock surrendered in exchange therefor in the Merger,
(i) decreased by the amount of cash Merger Consideration received in the Merger (excluding any cash received in lieu of a fractional share of Clearwater Common Stock) and (ii) increased by the amount of gain recognized in the exchange
(regardless