Document:

eng_ex42

 

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 January 29,
2021 (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, 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 and Outstanding 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 preferred stock, par value $0.001
per share (“Preferred Stock”). As of March 11, 2021, there were 27,553,186
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 and Distribution.
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.

 

Authorized but Unissued Shares.
Our authorized but unissued shares of common stock and preferred
stock are available for future issuance, subject to any limitations
imposed by the listing standards of The Nasdaq Capital Market.
These additional shares may be used for a variety of corporate
finance transactions, acquisitions and employee benefit plans. The
existence of authorized but unissued and unreserved common stock
and preferred stock could make it more difficult or discourage an
attempt to obtain control of us by means of a proxy contest, tender
offer, merger or otherwise..

 

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 and Registrar

 

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 and its telephone number is
1-800-662-7232.Document

Exhibit 10.11
Castle Biosciences, Inc.
Non-Employee Director Compensation Policy
Adopted: June 8, 2019
Amended: January 28, 2021 (the “Effective Date”)

Each member of the Board of Directors (the “Board”) of Castle Biosciences, Inc. (the “Company”) who is a non-employee director of the Company (each such member, a “Non-Employee Director”) will receive the compensation described in this Non-Employee Director Compensation Policy (the “Director Compensation Policy”) for his or her Board service.  This policy is updated and effective as of the Effective Date and may be amended at any time in the sole discretion of the Board or the Compensation Committee of the Board.

A Non-Employee Director may decline all or any portion of his or her compensation by giving notice to the Company prior to the date cash is to be paid or equity awards are to be granted, as the case may be.

Annual Cash Compensation

Commencing at the beginning of the first calendar quarter following the Effective Date, each Non-Employee Director will receive the cash compensation set forth below for service on the Board.  The annual cash compensation amounts will be payable in equal quarterly installments, in arrears following the end of each quarter in which the service occurred, pro-rated for any partial months of service. All annual cash fees are vested upon payment.

1.Annual Board Service Retainer
a.All Eligible Directors: $40,000

2.Annual Board Chair Service Retainer (in addition to Board Service Retainer):
a.Chair of the Board: $40,000

3.Annual Committee Member Service Retainer (committee chairs will not receive this retainer in addition to the Committee Chair Service Retainer):
a.Member of the Audit Committee: $10,000
b.Member of the Compensation Committee: $7,500
c.Member of the Nominating and Corporate Governance Committee: $5,000

4.Annual Committee Chair Service Retainer:
a.Chair of the Audit Committee: $20,000
b.Chair of the Compensation Committee: $15,000
c.Chair of the Nominating and Corporate Governance Committee: $10,000

Equity Compensation

The equity compensation set forth below will be granted under the Company’s 2019 Equity Incentive Plan (the “Plan”).  All stock options granted under this policy will be Nonstatutory Stock Options (as defined in the Plan), with a term of 10 years from the date of grant (subject to earlier termination in connection with a termination of service as provided in the Plan) and an exercise price per share equal to 100% of the Fair Market Value (as defined in the Plan) of the underlying common stock of the Company on the date of grant. 

(a) Automatic Equity Grants.

(i) Initial Grants for New Directors.  Without any further action of the Board, each person who, after the Effective Date, is elected or appointed for the first time to be a Non-Employee Director will automatically, upon the date of his or her initial election or appointment to be a Non-Employee Director (or, if such date is not a market trading day, the first market trading day thereafter), be granted two equity awards (the “Initial Grants”) 

having an aggregate value of $350,000, which shall be comprised of a Nonstatutory Stock Option to purchase shares of common stock (the “Initial Option Grant”) and a restricted stock unit (“RSU”) award covering shares of common stock (the “Initial RSU Grant”).  The total number of shares subject to the Initial Grants will be calculated as follows: 

•First, the number of stock option equivalent shares equal to the aggregate value of the Initial Grants (the “Total Initial Shares”) will be determined in accordance with the Company’s Black-Scholes valuation methodology for stock options, assuming solely for such valuation purposes a fair value of the Company’s common stock and an assumed exercise price equal to the average of the closing prices of the Company’s common stock for each trading day within the 30 calendar days prior to the grant date (such price, the “Average Price”) as well as other relevant assumptions consistent with the Company’s option valuation policies used for financial reporting purposes (the “30-Day Black-Scholes Method”), rounded down to the nearest whole share. 

•Next, the Total Initial Shares shall be allocated as follows: (x) 67% of the Total Initial Shares, rounded down to the nearest whole number, shall be subject to the Initial Option Grant; and (y) 33% of the Total Initial Shares, divided by two and rounded to the nearest five shares, shall be subject to the Initial RSU Grant. 

In the event that more than one Non-Employee Director is elected or appointed within a single calendar year, for each Non-Employee Director elected or appointed after the first election or appointment of a Non-Employee Director in such calendar year (each, a “Subsequent Director”), if the Average Price calculated for purposes of determining the Total Initial Shares underlying the Initial Grants for a Subsequent Director has not increased or decreased more than 10% compared to the Average Price calculated for purposes of determining the Total Initial Shares underlying the Initial Grants for the first Non-Employee Director elected or appointed in that same calendar year (the “First Director”), then the Total Initial Shares underlying the Initial Grants for such Subsequent Non-Employee Director shall be equal to the Total Initial Shares calculated for the First Director. 

1/3rd of the shares subject to the Initial Option Grant will vest one year from the date of grant, with the remainder vesting in equal monthly installments over the remaining two-year period.  The shares subject to the Initial RSU Grant will vest in a series of three successive equal annual installments over the three-year period measured from the date of grant. 

(ii) Annual Grants.  Without any further action of the Board, at the close of business on the date of each Annual Meeting of Stockholders following the Effective Date, each person who is then a Non-Employee Director will automatically be granted two equity awards (the “Annual Grants”) having an aggregate value of $175,000, which shall be comprised of a Nonstatutory Stock Option to purchase shares of common stock (the “Annual Option Grant”) and a RSU award covering shares of common stock (the “Annual RSU Grant”). The total number of shares subject to the Annual Grants will be calculated as follows. 

•First, the number of stock option equivalent shares equal to the aggregate value of the Annual Grants (the “Total Annual Shares”) will be determined in accordance with the 30-Day Black-Scholes Method, rounded down to the nearest whole share. 

•Next, the Total Annual Shares shall be allocated as follows: (x) 67% of the Total Annual Shares, rounded down to the nearest whole number, shall be subject to the Annual Option Grant; and (y) 33% of the Total Annual Shares, divided by two and rounded to the nearest five shares, shall be subject to the Annual RSU Grant.  

The shares subject to each Annual Grant will vest in full on the one-year anniversary of the date of grant.

(b) Vesting; Change in Control. All vesting is subject to the Non-Employee Director’s Continuous Service (as defined in the Plan) on each applicable vesting date.  Notwithstanding the foregoing vesting schedules, for each Non-Employee Director who remains in Continuous Service with the Company until immediately prior to 

the closing of a Change in Control (as defined in the Plan), the shares subject to his or her then-outstanding equity awards that were granted pursuant to this policy will become fully vested immediately prior to the closing of such Change in Control.

(c) Remaining Terms.  The remaining terms and conditions of each award, including transferability, will be as set forth in the Company’s Director Option Grant Package in the form adopted from time to time by the Board.

Eligible Director Compensation Limit

Notwithstanding anything herein to the contrary, the cash compensation and equity compensation that each Eligible Director is entitled to receive under this Policy shall be subject to the limits set forth in Section 3(d) of the Plan.

Expenses

The Company will reimburse Non-Employee Director for ordinary, necessary and reasonable out-of-pocket travel expenses to cover in-person attendance at and participation in Board and committee meetings; provided, that the Non-Employee Director timely submit to the Company appropriate documentation substantiating such expenses in accordance with the Company’s travel and expense policy, as in effect from time to time.

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