EXHIBIT
4.2


 


Description
of Registrant’s Securities Registered under Section 12 of the Securities Exchange Act of 1934


 


The
following description sets forth certain material terms and provisions of the common stock of ENGlobal Corporation, which is registered
under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). This description also summarizes
relevant provisions of the Nevada Revised Statutes (“NRS”). The following description is a summary and does not purport
to be complete. It is subject to, and qualified in its entirety by reference to, the relevant provisions of the NRS, and to our
Restated Articles of Incorporation dated August 8, 2002 and Amendment to the Restated Articles of Incorporation dated June 2,
2006 (collectively, the “Articles of Incorporation”) and our Second Amended and Restated Bylaws dated April 14, 2016
(the “Bylaws”), which are filed as Exhibit 3.1 and Exhibit 3.2, and Exhibit 3.3, respectively, to the Annual Report
on Form 10-K of which this Exhibit 4.2 is a part, and are incorporated by reference herein. We encourage you to read the Articles
of Incorporation and the Bylaws, and the relevant provisions of the NRS for additional information. Unless the context requires
otherwise, all references to “we,” “us,” “our” and the “Company” in this Exhibit
4.2 refer solely to ENGlobal Corporation and not to its subsidiaries.


 


Authorized
Capital Stock


 


The
Company is authorized to issue 75,000,000 shares of common stock, par value $0.001 per share (“Common Stock”), and
2,000,000 shares of undesignated (blank check) preferred stock, par value $0.001 per share (“Preferred Stock”). As
of March 26, 2020, there were 27,413,626 shares of Common Stock and no shares of Preferred Stock issued and outstanding.


 


Common
Stock


 


Voting.
Holders of shares of the Common Stock are entitled to one vote for each share held of record on matters properly submitted to
a vote of our stockholders. Stockholders are not entitled to vote cumulatively for the election of directors.


 


Dividends.
Subject to the dividend rights of the holders of any outstanding series of Preferred Stock, holders of shares of Common Stock
will be entitled to receive ratably such dividends, if any, when, as, and if declared by our Board of Directors out of the Company’s
assets or funds legally available for such dividends or distributions.


 


Liquidation
Rights. In the event of any liquidation, dissolution, or winding up of the Company’s affairs, holders of the Common
Stock would be entitled to share ratably in the Company’s assets that are legally available for distribution to its stockholders.
If the Company has any Preferred Stock outstanding at such time, holders of the Preferred Stock may be entitled to distribution
preferences, liquidation preferences, or both. In such case, the Company must pay the applicable distributions to the holders
of its Preferred Stock before it may pay distributions to the holders of Common Stock.


 


Conversion,
Redemption, and Preemptive Rights. Holders of the Common Stock have no preemptive, subscription, redemption or conversion
rights.


 


Sinking
Fund Provisions. There are no sinking fund provisions applicable to the Common Stock.


 


Anti-Takeover
Effects of Nevada Law and the Articles of Incorporation and Bylaws


 


General.
Certain provisions of the Articles of Incorporation and Bylaws, and certain provisions of the NRS could make our acquisition by
a third party, a change in our incumbent management, or a similar change of control more difficult. These provisions, which are
summarized below, are likely to reduce our vulnerability to an unsolicited proposal for the restructuring or sale of all or substantially
all of our assets or an unsolicited takeover attempt. The summary of the provisions set forth below does not purport to be complete
and is qualified in its entirety by reference to the Articles of Incorporation and the Bylaws and the relevant provisions of the
NRS.


 




    	 



     


    

 


Preferred
Stock. The authorization of undesignated (blank check) Preferred Stock makes it possible for our Board of Directors to issue
Preferred Stock with voting or other rights or preferences that could impede the success of any attempt to acquire control of
the Company.


 


No
Action by Written Consent. Our Bylaws provide that no action required or permitted to be taken at a meeting of the stockholders
may be taken by written consent.


 


Advance
Notice Requirements. Stockholders wishing to nominate persons for election to our Board of Directors at a meeting or to propose
any business to be considered by our stockholders at a meeting must comply with certain advance notice and other requirements
set forth in our Bylaws.


 


Special
Meetings. Our Bylaws provide that special meetings of stockholders may only be called by the President or Secretary, by a
majority of the Board of Directors, or by the President at the written request of at least fifty percent (50%) of the number of
shares of the Company then outstanding and entitled to vote.


 


Board
Vacancies. Our Bylaws provide that any vacancy on our Board of Directors, howsoever resulting, may be filled by a majority
vote of the remaining directors.


 


Removal
of Directors. Our Bylaws provide that any directors may be removed either with or without cause at any time by the vote of
stockholders representing two-thirds of the voting power of the issued and outstanding capital stock entitled to vote.


 


Nevada
Anti-Takeover Statutes. The NRS contains provisions restricting the ability of a Nevada corporation to engage in business
combinations with an interested stockholder. Under the NRS, except under certain circumstances, business combinations with interested
stockholders are not permitted for a period of two years following the date such stockholder becomes an interested stockholder.
The NRS defines an interested stockholder, generally, as a person who is the beneficial owner, directly or indirectly, of 10%
of the outstanding shares of a Nevada corporation. In addition, the NRS generally disallows the exercise of voting rights with
respect to “control shares” of an “issuing corporation” held by an “acquiring person,” unless
such voting rights are conferred by a majority vote of the disinterested stockholders. “Control shares” are those
outstanding voting shares of an issuing corporation which an acquiring person and those persons acting in association with an
acquiring person (i) acquire or offer to acquire in an acquisition of a controlling interest and (ii) acquire within ninety days
immediately preceding the date when the acquiring person became an acquiring person. An “issuing corporation” is a
corporation organized in Nevada which has two hundred or more stockholders, at least one hundred of whom are stockholders of record
and residents of Nevada, and which does business in Nevada directly or through an affiliated corporation. The NRS also permits
directors to resist a change or potential change in control of the corporation if the directors determine that the change or potential
change is opposed to or not in the best interest of the corporation.


 


Stock
Exchange Listing


 


The
Common Stock is traded on the NASDAQ Capital Market under the symbol “ENG.”


 


Transfer
Agent


 


The
transfer agent and registrar for the Common Stock is Computershare Investor Services, LLC located at P.O. Box 30170, College Station,
TX 77842-3170.