The Puerto Rico Stockholders' Rights Plan of Data scope Corp., also known as the "Rights Plan," is a comprehensive framework put in place by Data scope Corp. to safeguard the rights and interests of its stockholders. It is designed to enhance corporate governance and provide protection against potential hostile takeovers and coercive tactics by certain entities aiming to gain control of the company without adequate compensation for all shareholders. These Rights Plan acts as a powerful tool in promoting long-term shareholder value by ensuring that any potential acquisition or change in control is in the best interests of stockholders and is carried out through a fair and transparent process. By implementing this plan, Data scope Corp. aims to protect the future growth and prosperity of the company while maintaining the integrity of its shareholder base. Under the Puerto Rico Stockholders' Rights Plan, stockholders are granted a "right" for each outstanding share of common stock they own. These rights are triggered if an acquiring entity, without the approval of the Board of Directors, attempts to acquire a certain percentage of Data scope Corp.'s outstanding stock. In such circumstances, the rights become exercisable and allow stockholders (excluding the acquiring entity) to purchase additional shares at a discounted price. This provision helps to dilute the acquiring entity's ownership and discourages hostile takeovers. Furthermore, the Puerto Rico Stockholders' Rights Plan of Data scope Corp. establishes certain conditions and procedures that must be followed in the event of a change of control. This includes requirements for the Board of Directors to evaluate any proposed transaction and consider its potential impact on shareholders, employees, customers, and the community. The plan also ensures that stockholders have the opportunity to express their views and vote on any significant acquisition or consolidation involving the company. It is important to note that the specific provisions and terms of the Puerto Rico Stockholders' Rights Plan may vary based on the version adopted by Data scope Corp. at any given time. Different types of the plan may exist, each tailored to address specific circumstances or objectives. Examples include "Series A Rights Plan," "Series B Rights Plan," or variations based on amendments or modifications made by the Board of Directors. To summarize, the Puerto Rico Stockholders' Rights Plan of Data scope Corp. is a critical mechanism that protects the rights of stockholders and ensures that changes in control or acquisitions are conducted in a shareholder-friendly manner, respecting the long-term interests of the company and its owners.