The San Antonio Texas Stockholders' Rights Plan of Data scope Corp., also known as a "poison pill," is a defensive strategy adopted by the company's board of directors to safeguard shareholders' interests and prevent hostile takeovers. These rights plan is designed to give stockholders certain rights and preferences in the event of an unsolicited acquisition attempt. The plan aims to ensure that shareholders have a fair opportunity to evaluate and respond to takeover proposals, thus maximizing shareholder value and providing protection against coercive or unfair tactics. Under the San Antonio Texas Stockholders' Rights Plan, Data scope Corp. issues special stock purchase rights or "poison pills" to existing stockholders. These rights become exercisable if a person or entity (referred to as an "acquiring person") acquires a certain percentage of the company's outstanding common stock without the approval of the board of directors. When the rights become exercisable, they typically allow shareholders (other than the acquiring person) to purchase additional shares of the company's stock at a discounted price or provide other benefits. This mechanism dilutes the acquiring person's ownership stake, making a hostile takeover financially unattractive. The San Antonio Texas Stockholders' Rights Plan, as implemented by Data scope Corp., includes various provisions and triggers, such as threshold levels triggering the rights, specific conditions for triggering the poison pill, exceptions for friendly or negotiated transactions, and a time frame for the rights to expire. It is important to note that the San Antonio Texas Stockholders' Rights Plan of Data scope Corp. may have different variations or adaptations, depending on the specific needs and circumstances of the company. These variations could include amendments to the plan's provisions to address certain legal or market changes, different rights issuance thresholds, or alternative measures to protect the company from hostile takeovers without overly diluting shareholder value. Overall, the San Antonio Texas Stockholders' Rights Plan of Data scope Corp. is a vital protection mechanism designed to preserve the rights and interests of shareholders in the face of potential hostile takeovers, ensuring fair evaluation and preventing coercive tactics that may harm shareholder value.