{"component": "clause", "props": {"groups": [{"size": 15, "samples": [{"hash": "6uNUcmlazKR", "uri": "/contracts/6uNUcmlazKR#spin-offs", "label": "Agreement and Plan of Merger (Pluralsight, Inc.)", "score": 32.1813812256, "published": true}, {"hash": "immguJxwb9v", "uri": "/contracts/immguJxwb9v#spin-offs", "label": "Merger Agreement (Pluralsight, Inc.)", "score": 31.9514026642, "published": true}, {"hash": "a3yCMhtotVm", "uri": "/contracts/a3yCMhtotVm#spin-offs", "label": "Merger Agreement (MINDBODY, Inc.)", "score": 29.9828891754, "published": true}], "snippet": "None of the members of the Company Group has constituted either a \u201cdistributing corporation\u201d or a \u201ccontrolled corporation\u201d in a distribution of stock intended to qualify for tax-free treatment pursuant to Section 355 of the Code.", "snippet_links": [{"key": "the-company-group", "type": "definition", "offset": [23, 40]}, {"key": "distribution-of-stock", "type": "clause", "offset": [128, 149]}, {"key": "to-qualify", "type": "clause", "offset": [159, 169]}, {"key": "section-355", "type": "clause", "offset": [205, 216]}, {"key": "the-code", "type": "clause", "offset": [220, 228]}], "hash": "8f376a2fb6735fffb58405ba5e275df7", "id": 7}, {"size": 206, "samples": [{"hash": "jMODyWmWdD9", "uri": "/contracts/jMODyWmWdD9#spin-offs", "label": "Indenture (Peabody Energy Corp)", "score": 37.4161533196, "published": true}, {"hash": "3ybcIyPneXK", "uri": "/contracts/3ybcIyPneXK#spin-offs", "label": "Indenture (Mirum Pharmaceuticals, Inc.)", "score": 37.3750839233, "published": true}, {"hash": "eYhdLtVEIEi", "uri": "/contracts/eYhdLtVEIEi#spin-offs", "label": "Indenture (Lucid Group, Inc.)", "score": 36.8767967224, "published": true}], "snippet": "If the Company distributes or dividends shares of Capital Stock of any class or series, or similar equity interests, of or relating to an Affiliate, a Subsidiary or other business unit of the Company to all or substantially all holders of the Common Stock (other than solely pursuant to (x) a Common Stock Change Event, as to which Section 5.09 will apply; or (y) a tender offer or exchange offer for shares of Common Stock, as to which Section 5.05(A)(v) will apply), and such Capital Stock or equity interests are listed or quoted (or will be listed or quoted upon the consummation of the transaction) on a U.S. national securities exchange (a \u201cSpin-Off\u201d), then the Conversion Rate will be increased based on the following formula: where: CR0 = the Conversion Rate in effect immediately before the Close of Business on the last Trading Day of the Spin-Off Valuation Period for such Spin-Off; CR1 = the Conversion Rate in effect immediately after the Close of Business on the last Trading Day of the Spin-Off Valuation Period; FMV = the product of (x) the average of the Last Reported Sale Prices per share or unit of the Capital Stock or equity interests distributed in such Spin-Off over the ten (10) consecutive Trading Day period (the \u201cSpin-Off Valuation Period\u201d) beginning on, and including, the Ex-Dividend Date for such Spin-Off (such average to be determined as if references to Common Stock in the definitions of Last Reported Sale Price, Trading Day and Market Disruption Event were instead references to such Capital Stock or equity interests); and (y) the number of shares or units of such Capital Stock or equity interests distributed per share of Common Stock in such Spin-Off; and SP = the average of the Last Reported Sale Prices per share of Common Stock for each Trading Day in the Spin-Off Valuation Period. Notwithstanding anything to the contrary in this Section 5.05(A)(iii)(2), (i) if any VWAP Trading Day of the Observation Period for a Note whose conversion will be settled pursuant to Cash Settlement or Combination Settlement occurs during the Spin-Off Valuation Period for such Spin-Off, then, solely for purposes of determining the Conversion Rate for such VWAP Trading Day for such conversion, such Spin-Off Valuation Period will be deemed to consist of the Trading Days occurring in the period from, and including, the Ex-Dividend Date for such Spin-Off to, and including, such VWAP Trading Day; and (ii) if the Conversion Date for a Note whose conversion will be settled pursuant to Physical Settlement occurs during the Spin-Off Valuation Period for such Spin-Off, then, solely for purposes of determining the Conversion Consideration for such conversion, such Spin-Off Valuation Period will be deemed to consist of the Trading Days occurring in the period from, and including, the Ex-Dividend Date for such Spin-Off to, and including, such Conversion Date. To the extent any dividend or distribution of the type set forth in this Section 5.05(A)(iii)(2) is declared but not made or paid, the Conversion Rate will be readjusted to the Conversion Rate that would then be in effect had the adjustment been made on the basis of only the dividend or distribution, if any, actually made or paid.", "snippet_links": [{"key": "shares-of-capital-stock", "type": "clause", "offset": [40, 63]}, {"key": "class-or-series", "type": "clause", "offset": [71, 86]}, {"key": "equity-interests", "type": "definition", "offset": [99, 115]}, {"key": "relating-to", "type": "definition", "offset": [123, 134]}, {"key": "an-affiliate", "type": "clause", "offset": [135, 147]}, {"key": "business-unit", "type": "clause", "offset": [171, 184]}, {"key": "of-the-company", "type": "clause", "offset": [185, 199]}, {"key": "all-or-substantially-all", "type": "clause", "offset": [203, 227]}, {"key": "holders-of", "type": "clause", "offset": [228, 238]}, {"key": "the-common-stock", 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"distribution-of", "type": "clause", "offset": [2922, 2937]}, {"key": "the-adjustment", "type": "clause", "offset": [3118, 3132]}, {"key": "basis-of", "type": "clause", "offset": [3150, 3158]}, {"key": "the-dividend", "type": "clause", "offset": [3164, 3176]}], "hash": "f7a55f93da77d8842758b8bc3f89a0a1", "id": 1}, {"size": 81, "samples": [{"hash": "b18HfaiB9BV", "uri": "/contracts/b18HfaiB9BV#spin-offs", "label": "Indenture (Wolfspeed, Inc.)", "score": 37.2299804688, "published": true}, {"hash": "lwHbc7d2Srq", "uri": "/contracts/lwHbc7d2Srq#spin-offs", "label": "Indenture (Wolfspeed, Inc.)", "score": 36.7453804016, "published": true}, {"hash": "3bRayWd0pvn", "uri": "/contracts/3bRayWd0pvn#spin-offs", "label": "Indenture (Wolfspeed, Inc.)", "score": 36.7453804016, "published": true}], "snippet": "If the Issuer distributes or dividends shares of Equity Interests of any class or series, or similar equity interests, of or relating to a Subsidiary or other business unit of the Issuer to all or substantially all holders of the Common Stock (other than solely pursuant to (x) a Common Stock Change Event, as to which Section 5.09 will apply; or (y) a tender offer or exchange offer for Common Stock, as to which Section 5.05(A)(v) will apply), and such Equity Interests are listed or quoted (or will be listed or quoted upon the consummation of the transaction) on a U.S. national securities exchange (a \u201cSpin-Off\u201d), then the Conversion Rate will be increased based on the following formula: where: CR0 = the Conversion Rate in effect immediately before the Close of Business on the last Trading Day of the Spin-Off Valuation Period for such Spin-Off; CR1 = the Conversion Rate in effect immediately after the Close of Business on the last Trading Day of the Spin-Off Valuation Period; FMV = the product of (x) the average of the Last Reported Sale Prices per share or unit of the Equity Interests distributed in such Spin-Off over the ten (10) consecutive Trading Day period (the \u201cSpin-Off Valuation Period\u201d) beginning on, and including, the Ex- Dividend Date for such Spin-Off (such average to be determined as if references to Common Stock in the definitions of Last Reported Sale Price, Trading Day and Market Disruption Event were instead references to such Equity Interests); and (y) the number of shares or units of such Equity Interests distributed per share of Common Stock in such Spin-Off; and SP = the average of the Last Reported Sale Prices of the Common Stock for each Trading Day in the Spin-Off Valuation Period. Notwithstanding anything to the contrary in this Section 5.05(A)(iii)(2), (i) if any VWAP Trading Day of the Observation Period for a Note whose conversion will be settled pursuant to Cash Settlement or Combination Settlement occurs during the Spin-Off Valuation Period for such Spin-Off, then, solely for purposes of determining the Conversion Rate for such VWAP Trading Day for such conversion, such Spin-Off Valuation Period will be deemed to consist of the Trading Days occurring in the period from, and including, the Ex-Dividend Date for such Spin- Off to, and including, such VWAP Trading Day; and (ii) if the Conversion Date for a Note whose conversion will be settled pursuant to Physical Settlement occurs during the Spin-Off Valuation Period for such Spin-Off, then, solely for purposes of determining the Conversion Consideration for such conversion, such Spin-Off Valuation Period will be deemed to consist of the Trading Days occurring in the period from, and including, the Ex-Dividend Date for such Spin-Off to, and including, such Conversion Date. To the extent any dividend or distribution of the type set forth in this Section 5.05(A)(iii)(2) is declared but not made or paid, the Conversion Rate will be readjusted to the Conversion Rate that would then be in effect had the adjustment been made on the basis of only the dividend or distribution, if any, actually made or paid.", "snippet_links": [{"key": "the-issuer", "type": "definition", "offset": [3, 13]}, {"key": "shares-of", "type": "clause", "offset": [39, 48]}, {"key": "class-or-series", "type": "clause", "offset": [73, 88]}, {"key": "relating-to", "type": "definition", "offset": [125, 136]}, {"key": "business-unit", "type": "clause", "offset": [159, 172]}, {"key": "all-or-substantially-all", "type": "clause", "offset": [190, 214]}, {"key": "holders-of", "type": "clause", "offset": [215, 225]}, {"key": "the-common-stock", "type": "clause", "offset": [226, 242]}, {"key": "pursuant-to", "type": "definition", "offset": [262, 273]}, {"key": "common-stock-change-event", "type": 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"offset": [1079, 1099]}, {"key": "trading-day-period", "type": "definition", "offset": [1159, 1177]}, {"key": "beginning-on", "type": "clause", "offset": [1212, 1224]}, {"key": "dividend-date", "type": "definition", "offset": [1249, 1262]}, {"key": "to-be-determined", "type": "clause", "offset": [1295, 1311]}, {"key": "references-to-common-stock", "type": "clause", "offset": [1318, 1344]}, {"key": "the-definitions-of", "type": "definition", "offset": [1348, 1366]}, {"key": "last-reported-sale-price", "type": "definition", "offset": [1367, 1391]}, {"key": "market-disruption-event", "type": "definition", "offset": [1409, 1432]}, {"key": "number-of-shares", "type": "definition", "offset": [1496, 1512]}, {"key": "notwithstanding-anything-to-the-contrary", "type": "clause", "offset": [1732, 1772]}, {"key": "vwap-trading-day", "type": "definition", "offset": [1817, 1833]}, {"key": "observation-period", "type": "definition", "offset": [1841, 1859]}, {"key": "a-note", "type": "definition", 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"type": "clause", "offset": [3069, 3081]}], "hash": "9fda84112e99235bae5ad3a4b7d279e5", "id": 2}, {"size": 29, "samples": [{"hash": "4kHI2L5qS49", "uri": "/contracts/4kHI2L5qS49#spin-offs", "label": "Securities Purchase Agreement (Bristow Group Inc)", "score": 29.9062290192, "published": true}, {"hash": "gqLdiSFPs7L", "uri": "/contracts/gqLdiSFPs7L#spin-offs", "label": "Indenture (NRG Energy, Inc.)", "score": 29.3942508698, "published": true}, {"hash": "hnLDZ0cSwGa", "uri": "/contracts/hnLDZ0cSwGa#spin-offs", "label": "Indenture (Corium International, Inc.)", "score": 29.1724853516, "published": true}], "snippet": "If the Company distributes or dividends shares of Capital Stock of any class or series, or similar equity interest, of or relating to an Affiliate, a Subsidiary or other business unit of the Company to all or substantially all holders of the Common Stock (other than solely pursuant to a Common Stock Change Event, as to which Section 5.08 will apply), and such Capital Stock or equity interest is listed or quoted (or will be listed or quoted upon the consummation of the transaction) on a U.S. national securities exchange (a \u201cSpin-Off\u201d), then the Conversion Rate will be increased based on the following formula: where: CR0 = the Conversion Rate in effect immediately before the Open of Business on the Ex-Dividend Date for such Spin-Off; CR1 = the Conversion Rate in effect immediately after the Open of Business on such Ex-Dividend Date; FMV = the product of (x) the average of the Last Reported Sale Prices per share or unit of the Capital Stock or equity interests distributed in such Spin-Off over the ten (10) consecutive Trading Day period (the \u201cSpin-Off Valuation Period\u201d) beginning on, and including, such Ex-Dividend Date (such average to be determined as if references to Common Stock in the definitions of Last Reported Sale Price and Trading Day were instead references to such Capital Stock or equity interests); and (y) the number of shares or units of such Capital Stock or equity interests distributed per share of Common Stock in such Spin-Off; and SP = the average of the Last Reported Sale Prices per share of Common Stock for each Trading Day in the Spin-Off Valuation Period. The adjustment to the Conversion Rate pursuant to this Section 5.05(A)(iii)(2) will be calculated as of the Close of Business on the last Trading Day of the Spin-Off Valuation Period but will be given effect immediately after the Open of Business on the Ex-Dividend Date for the Spin-Off, with retroactive effect. If a Note is converted and the Conversion Date (in the case of Physical Settlement) or any VWAP Trading Day of the applicable Observation Period (in the case of Cash Settlement or Combination Settlement) occurs during the Spin-Off Valuation Period, then, notwithstanding anything to the contrary in this Indenture or the Notes, the Company will, if necessary, delay the settlement of such conversion until the second (2nd) Business Day after the last day of the Spin-Off Valuation Period. To the extent any dividend or distribution of the type set forth in this Section 5.05(A)(iii)(2) is declared but not made or paid, the Conversion Rate will be readjusted to the Conversion Rate that would then be in effect had the adjustment been made on the basis of only the dividend or distribution, if any, actually made or paid.", "snippet_links": [{"key": "shares-of-capital-stock", "type": "clause", "offset": [40, 63]}, {"key": "class-or-series", "type": "clause", "offset": [71, 86]}, {"key": "relating-to", "type": "definition", "offset": [122, 133]}, {"key": "an-affiliate", "type": "clause", "offset": [134, 146]}, {"key": "business-unit", "type": "clause", "offset": [170, 183]}, {"key": "of-the-company", "type": "clause", "offset": [184, 198]}, {"key": "all-or-substantially-all", "type": "clause", "offset": [202, 226]}, {"key": "holders-of", "type": "clause", "offset": [227, 237]}, {"key": "the-common-stock", "type": "clause", "offset": [238, 254]}, {"key": "pursuant-to-a", "type": 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comparable non-U.S. equivalent (as determined by the Parent Board) (a \u201cSpin-Off), then the Conversion Rate will be increased based on the following formula: where: CR0 = the Conversion Rate in effect immediately before the Open of Business on the Ex-Dividend Date for such Spin-Off; CR1 = the Conversion Rate in effect immediately after the Open of Business on such Ex-Dividend Date; FMV = the product of (x) the average of the Last Reported Sale Prices per-share or unit of the Capital Stock or equity interests distributed in such Spin-Off over the ten (10) consecutive Trading Day period (the \u201cSpin-Off Valuation Period\u201d) beginning on, and including, such Ex-Dividend Date (such average to be determined as if references to Ordinary Shares in the definitions of Last Reported Sale Price, Trading Day and Market Disruption Event were instead references to such Capital Stock or equity interests); and (y) the number of shares or units of such Capital Stock or equity interests distributed per Ordinary Share in such Spin-Off; and SP = the average of the Last Reported Sale Prices per Ordinary Share for each Trading Day in the Spin-Off Valuation Period. The adjustment to the Conversion Rate pursuant to this Section 5.05(A)(iii)(2) will be calculated as of the Close of Business on the last Trading Day of the Spin-Off Valuation Period but will be given effect immediately after the Open of Business on the Ex-Dividend Date for the Spin-Off, with retroactive effect. If a Note is converted and the Conversion Date (in the case of Physical Settlement) or any VWAP Trading Day of the applicable Observation Period (in the case of Cash Settlement or Combination Settlement) occurs during the Spin-Off Valuation Period, then, notwithstanding anything to the contrary in this Indenture or the Notes, the Company will, if necessary, delay the settlement of such conversion until the second (2nd) Business Day after the last day of the Spin-Off Valuation Period. To the extent any dividend or distribution of the type set forth in this Section 5.05(A)(iii)(2) is declared but not made or paid, the Conversion Rate will be readjusted, effective as of the date the Parent Board determines not to make such distribution, to the Conversion Rate that would then be in effect had the adjustment been made on the basis of only the dividend or distribution, if any, actually made or paid.", "snippet_links": [{"key": "shares-of-capital-stock", "type": "clause", "offset": [35, 58]}, {"key": "class-or-series", "type": "clause", "offset": [66, 81]}, {"key": "relating-to", "type": "definition", "offset": [117, 128]}, {"key": "an-affiliate", "type": "clause", "offset": [129, 141]}, {"key": "business-unit", "type": "clause", "offset": [165, 178]}, {"key": "all-or-substantially-all", "type": "clause", "offset": [192, 216]}, {"key": "holders-of", "type": "clause", "offset": [217, 227]}, {"key": "the-ordinary-shares", "type": "clause", "offset": [228, 247]}, {"key": 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["adjustments-to-the-conversion-rate", "Adjustments to the Conversion Rate"], ["conversion", "Conversion"], ["events-requiring-an-adjustment-to-the-conversion-rate", "Events Requiring an Adjustment to the Conversion Rate"], ["tax-matters", "Tax Matters"]], "children": [["certain-events", "Certain Events"], ["litigation-claims", "LITIGATION;  CLAIMS"], ["no-undisclosed-liabilities", "NO  UNDISCLOSED  LIABILITIES"], ["fixed-assets", "FIXED  ASSETS"], ["employee-benefit-plans", "EMPLOYEE  BENEFIT PLANS"]], "title": "Spin-Offs", "id": "spin-offs", "related": [["spin-off", "Spin-Off", "Spin-Off"], ["combination-split-up", "Combination & Split Up", "Combination & Split Up"], ["recapitalization-reorganization-reclassification-consolidation-merger-or-sale", "Recapitalization, Reorganization, Reclassification, Consolidation, Merger or Sale", "Recapitalization, Reorganization, Reclassification, Consolidation, Merger or Sale"], ["recapitalization", "Recapitalization", "Recapitalization"], ["adjustment-in-number-of-shares", "Adjustment in Number of Shares", "Adjustment in Number of Shares"]], "related_snippets": [], "updated": "2026-06-04T04:23:11+00:00", "also_ask": ["What are the essential elements to include in a spin-off clause to ensure enforceability?", "How can the clause be structured to maximize strategic flexibility for the parent company?", "What are the most common legal pitfalls or risks in spin-off provisions?", "How do spin-off clauses in this jurisdiction compare to those in other key markets?", "What factors do courts consider when determining the validity of a spin-off arrangement?"], "drafting_tip": "Define 'spin-off' precisely to avoid ambiguity; specify rights and obligations post-spin-off to ensure enforceability; address consent requirements to protect parties' interests.", "explanation": "The Spin-Offs clause defines the rights and procedures related to the separation of a business unit or subsidiary from the parent company, resulting in the creation of an independent entity. Typically, this clause outlines how assets, liabilities, and contractual obligations are allocated between the original and new entities, and may specify notification requirements or restrictions on the spin-off process. Its core function is to provide a clear framework for handling corporate restructuring events, thereby minimizing disputes and ensuring a smooth transition during the spin-off."}, "json": true, "cursor": ""}}