As I've heard it, to spot someone "and out" means that and all the following balls are winning balls for the spotee. "I'll spot you the five-out," is the way I think it is usually said, and that means the 5, 6, 7, and 8 are immediate wins. However, it is better to ask all the details before the game starts. Like whether balls count on the break. So in the fourth rack you finally get to break and finally make a ball -- the 8 -- and the opponent says, "No, they don't count on the break, of course. They never count on the break. And it stays down."