What is the difference between the Option A prorated or prorata spinoff, and the Option B prorated or prorata spinoffHINT: Focus on what Cookie Monster is gaining or losing under either option, and what the other party would be gaining or losing under either option

Reorganization - Spin-Off In a sp n off a new free-standing com pany is created from the subsidiary or division of an existing parent) com pany. In a spin off, existing shareholders are NOT required to give up or exchange any of their existing shares in the parent com pany, butm ore often than NOT do. They essentially receive shares of the new com pany on a pro rata basis; th is pro rata allocation also allws for a non taxable event Option A Option B Prora te Zero Shares To Shares Cookie Monster Stock Prora te 100% ofs Parent Parent Subsidiary Parent Subsidiary This is often referred to as a Carve Out-When you issue shares to new shareholders and old shareholders don't particpate. Subsidiary Revealunderlying Iotration-1 eetJoe Black 34 I eet Joe Black Board I eeting