San Bernardino California Stockholders' Rights Plan of Data scope Corp., also known as a "poison pill" strategy, is a protective mechanism implemented by Data scope Corp. to safeguard the interests of its stockholders in the event of a hostile takeover attempt. The San Bernardino California Stockholders' Rights Plan serves as a deterrent against unsolicited acquisition attempts by giving existing shareholders the right to purchase additional shares at a discounted price if an individual or entity acquires a specified percentage of the company's outstanding stock without approval from the board of directors. This provision makes it more expensive and difficult for the potential acquirer to gain control of the company. There are two main types of San Bernardino California Stockholders' Rights Plan: 1. Flip-In Rights Plan: Under this type, if an acquiring entity crosses the predefined ownership threshold (typically 15-20%), all existing shareholders, except the acquirer, are granted the right to purchase additional shares of the corporation's stock at a discounted price. This dilutes the hostile entity's stake and makes the acquisition more difficult to accomplish. 2. Flip-Over Rights Plan: In this variant, if a merger or acquisition takes place without the approval of the board of directors, the acquiring entity's stockholders are granted the right to purchase the stock of the acquiring entity at a discounted price. This right is triggered when a specified percentage of the target company's shares is acquired without approval. The aim is to deter the acquirer by increasing the cost of the merger or acquisition. These San Bernardino California Stockholders' Rights Plans help to protect stockholders' interests by ensuring that the board of directors has a say in any potential change of control transactions. It provides the board with time to evaluate an unsolicited offer, seek alternative buyers, or negotiate better terms, thereby maximizing shareholder value. Overall, the San Bernardino California Stockholders' Rights Plan of Data scope Corp. acts as a valuable safeguard against hostile takeover attempts, allowing the company and its stockholders to maintain control and protect their investments.