The Tarrant Texas Stockholders' Rights Plan of Data scope Corp. is a corporate governance measure put in place by the company to protect the rights and interests of its stockholders. This plan, also known as a "poison pill" strategy, is designed to prevent hostile takeovers or other unsolicited attempts to gain control of the company. Under the Tarrant Texas Stockholders' Rights Plan, Data scope Corp. issues rights, known as "rights certificates," to its stockholders. These certificates entitle the holders to purchase additional shares of common stock or preferred stock at a discounted price in the event of certain triggering events. These events typically include the acquisition of a significant number of shares by a single entity or group, or the announcement of an intention to do so. The purpose of the plan is to make it financially unattractive for an acquiring entity to pursue a takeover without the approval of Data scope Corp.'s board of directors. By diluting the ownership of the acquiring entity and making it more costly to gain control, the plan acts as a deterrent, encouraging potential acquirers to negotiate with the board instead. There may be different types of Tarrant Texas Stockholders' Rights Plan of Data scope Corp. depending on the specific terms and conditions set by the company. These variations might include the specific triggering events that activate the rights plan, the exercise price and ratio of the rights, the duration of the plan, and any provisions for adjustment or termination. Some common features of stockholders' rights plans that may be applicable to the Tarrant Texas Stockholders' Rights Plan of Data scope Corp. include a provision that allows the board of directors to redeem the rights before they are exercised, an expiration date for the plan, and a "flip-in" provision that allows stockholders to acquire shares of the acquiring company at a discounted price if a takeover occurs. In summary, the Tarrant Texas Stockholders' Rights Plan of Data scope Corp. is a protective measure implemented to safeguard the interests of stockholders and deter hostile takeovers. It involves issuing rights certificates that grant stockholders the ability to purchase additional shares at a reduced price in certain triggering events. By making it financially burdensome for potential acquirers, the plan encourages negotiations with the board and protects the company's long-term stability.