Company: CWAN
Filing Date: 2025-02-11
Form Type: S-4
Source: 0001193125-25-023759
Chunk: 19

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-02-11
Form: S-4
Chunk 19
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land & Ellis LLP and (ii) Enfusion receives an opinion from Dechert LLP (or, in either case, another nationally recognized tax counsel reasonably acceptable to both Clearwater and Enfusion) (collectively, “ Tax Counsel”), in each case, that the Corporate Mergers, taken together, will qualify as a “reorganization” under Section 368(a) of the Code (together, the “ Opinions”, and the receipt of the Opinions, the “ Second Merger Conditions”), and Clearwater and Acquirer’s obligations to complete the Second Merger are conditioned upon delivery of the Opinions. Each of Clearwater and Enfusion have covenanted in the Merger Agreement to use commercially reasonable efforts to obtain the Opinions. In addition, the Merger Agreement provides that none of Clearwater, Acquirer, Merger Sub or Merger Sub II shall take any action or fail to take any action that would reasonably be expected to cause the Corporate Mergers, taken together, to fail to qualify as a “reorganization” within the meaning of Section 368(a) of the Code. For the Corporate Mergers to qualify as a “reorganization” under Section 368(a) of the Code, certain requirements must be satisfied. These requirements include the “continuity of interest” requirement as described in the U.S. Department of the Treasury Regulations (“ Treasury Regulations”) Section 1.368-1(e).Under regulatory guidance, for the “continuity of interest” requirement to be satisfied, at least 40% (by value) of the aggregate total consideration received by Enfusion Stockholders in the Merger must consist of 5

Clearwater Common Stock. The value of Clearwater Common Stock received by Enfusion Stockholders as Merger Consideration will not be determined until the second to last trading day prior to (but
not including) the Closing Date. The “continuity of interest” requirement is expected to be satisfied unless the value of Clearwater Common Stock declines significantly from its value as of the last business day prior to the execution of
the Merger Agreement on January 10, 2025.

Assuming the Corporate Mergers, taken together, qualify as a “reorganization”
under Section 368(a) of the Code, a U.S. Holder (as defined in the section titled “The Transactions—Material U.S. Federal Income Tax Consequences of the Corporate Mergers”) generally will not recognize any gain or loss for U.S.
federal income