Document:

Exhibit
10.2

 

THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE OR
OTHER JURISDICTION, AND MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH, OR PURSUANT
TO AN EXEMPTION FROM, THE REQUIREMENTS OF SUCH ACT OR SUCH LAWS.

 

 

 

OMNIA
WELLNESS INC.

 

DISCOUNTED
PROMISSORY NOTE

 

	Principal
    Amount: $750,000	Issue
    Date: January 10, 2022

 

OMNIA
WELLNESS INC., a Nevada corporation (the “Company”), for value received, hereby promises to pay to Formul8
LLC or its permitted assigns or successors (the “Holder”), the principal amount of Seven hundred and Fifty
thousand Dollars ($750,000) (the “Principal Amount”), on which a $25,000 discount will be applied for a purchase
price of $725,000 (the “Discounted Purchase Price”), without demand, on the Maturity Date (as hereinafter defined),
together with any accrued and unpaid interest due thereon. This Note shall bear interest at a fixed rate of twelve percent (12%) per
annum, beginning on the Issue Date. Interest shall be computed based on a 360-day year of twelve 30-day months and shall be payable,
along with the Principal Amount, on the Maturity Date. Except as set forth in Section 3, payment of all principal and interest
due shall be in such coin or currency of the United States of America as shall be legal tender for the payment of public and private
debts at the time of payment.

 

		1.	DEFINITIONS.

 

1.1 DEFINITIONS.
The terms defined in this Section 1 whenever used in this Note shall have the respective meanings hereinafter specified.

 

“Applicable
Laws” means any and all applicable foreign, federal, state and local statutes, laws, regulations, ordinances, policies,
and rules or common law (whether now existing or hereafter enacted or promulgated), of any and all governmental authorities, agencies,
departments, commissions, boards, courts, or instrumentalities of the United States, any state of the United States, any other nation,
or any political subdivision of the United States, any state of the United States or any other nation, and all applicable judicial and
administrative, regulatory or judicial decrees, judgments and orders, including common law rules and determinations.

 

“Event
of Default” shall have the meaning set forth in Section 5.1.

 

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“Holder”
or “Holders” means the Person named above or any Person who shall thereafter become a recordholder
of this Note in accordance with the terms hereof.

 

“Issue
Date” means the issue date stated above.

 

“Maturity
Date” shall mean the earlier of: (a) the eighteenth (18) month anniversary of the Issue Date.

 

“Note”
means this Note, as amended, modified or restated.

 

“Person”
means an individual, corporation, partnership, limited liability company, association, trust, joint venture, unincorporated organization
or any government, governmental department or agency or political subdivision thereof.

 

“Securities
Act” means the United States Securities Act of 1933, as amended.

 

		2.	GENERAL
                                            PROVISIONS.

 

2.1 LOSS,
THEFT, DESTRUCTION OF NOTE. Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of
this Note and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security reasonably satisfactory to the
Company, or, in the case of any such mutilation, upon surrender and cancellation of this Note, the Company will make and deliver, in
lieu of such lost, stolen, destroyed or mutilated Note, a new Note of like tenor and unpaid principal amount dated as of the date hereof.
This Note shall be held and owned upon the express condition that the provisions of this Section 2.1 are exclusive with respect
to the replacement of a mutilated, destroyed, lost or stolen Note and shall preclude any and all other rights and remedies notwithstanding
any law or statute existing or hereafter enacted to the contrary with respect to the replacement of negotiable instruments or other securities
without their surrender.

 

2.2 PREPAYMENT;
REDEMPTION. This Note may not be prepaid by the Company in whole or in part, except with the prior written consent of the Holder.
This Note may be redeemed by the Holder in whole or in part, with 45 days prior written notice of the Holder.

 

		3.	STATUS;
                                            RESTRICTIONS ON TRANSFER.

 

3.1 STATUS
OF NOTE. This Note is a direct, general and unconditional obligation of the Company, and constitutes a valid and legally binding
obligation of the Company, enforceable in accordance with its terms subject, as to enforcement, to bankruptcy, insolvency, reorganization
and other similar laws of general applicability relating to or affecting creditors’ rights and to general principles of equity.
This Note does not confer upon the Holder any right to vote or to consent or to receive notice as a stockholder of the Company, as such,
in respect of any matters whatsoever, or any other rights or liabilities as a stockholder, prior to conversion hereof into Conversion
Shares.

 

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3.2 RESTRICTIONS
ON TRANSFERABILITY. This Note has not been registered under the Securities Act, or under any state securities or so-called “blue
sky laws,” and may not be offered, sold, transferred, hypothecated or otherwise assigned except (a) pursuant to a registration
statement with respect to such securities which is effective under the Act or (b) upon receipt from counsel satisfactory to the Company
of an opinion, which opinion is satisfactory in form and substance to the Company, to the effect that such securities may be offered,
sold, transferred, hypothecated or otherwise assigned (i) pursuant to an available exemption from registration under the Act and (ii)
in accordance with all applicable state securities and so-called “blue sky laws.” The Holder agrees to be bound by such restrictions
on transfer.

 

4. COVENANTS.
In addition to the other covenants and agreements of the Company set forth in this Note, the Company covenants and agrees that so
long as this Note shall be outstanding:

 

4.1 PAYMENT
OF NOTE. The Company will punctually, according to the terms hereof, (a) within thirty (30) days after the Maturity Date, pay or
cause to be paid all amounts due under this Note. Interest on the Note will be paid monthly on the 1st of each month the Note
is outstanding. If any monthly interest payment is past due by more than 5 business days, a penalty of $100 per day will be added to
the interest payment until paid.

 

4.2 NOTICE
OF DEFAULT. If any one or more events occur which constitute or which, with the giving of notice or the lapse of time or both, would
constitute an Event of Default or if the Holder shall demand payment or take any other action permitted upon the occurrence of any such
Event of Default, the Company will forthwith give notice to the Holder, specifying the nature and status of the Event of Default or other
event or of such demand or action, as the case may be.

 

4.3 COMPLIANCE
WITH LAWS. The Company will comply in all material respects with all Applicable Laws, except where the necessity of compliance therewith
is contested in good faith by appropriate proceedings.

 

4.4 USE
OF PROCEEDS. The Company shall use the proceeds of this Note for general working capital.

 

		5.	REMEDIES.

 

5.1 EVENTS
OF DEFAULT. “Event of Default” wherever used herein means any one of the following events:

 

(a) Default
in the due and punctual payment of the principal of, or any other amount owing in respect of (including interest), this Note when and
as the same shall become due and payable, subject to a thirty (30) day cure period;

 

(b) Default
in the performance or observance of any covenant or agreement of the Company in this Note (other than a covenant or agreement a default
in the performance of which is specifically provided for elsewhere in this Section 6.1), and the continuance of such default for
a period of 10 days after there has been given to the Company by the Holder a written notice specifying such default and requiring it
to be remedied;

 

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(c) The
entry of a decree or order by a court having jurisdiction adjudging the Company as bankrupt or insolvent; or approving as properly filed
a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under the Federal Bankruptcy
Code or any other applicable federal or state law, or appointing a receiver, liquidator, assignee, trustee or sequestrator (or other
similar official) of the Company or of any substantial part of its property, or ordering the winding-up or liquidation of its affairs,
and the continuance of any such decree or order unstayed and in effect for a period of 60 calendar days;

 

(d) The
institution by the Company of proceedings to be adjudicated as bankrupt or insolvent, or the consent by it to the institution of bankruptcy
or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under the
Federal Bankruptcy Code or any other applicable federal or state law, or the consent by it to the filing of any such petition or to the
appointment of a receiver, liquidator, assignee, trustee or sequestrator (or other similar official) of the Company or of any substantial
part of its property, or the making by it of an assignment for the benefit of creditors;

 

(e) The
Company seeks the appointment of a statutory manager or proposes in writing or makes a general assignment or an arrangement or composition
with or for the benefit of its creditors or any group or class thereof or files a petition for suspension of payments or other relief
of debtors or a moratorium or statutory management is agreed or declared in respect of or affecting all or any material part of the indebtedness
of the Company; or

 

(f) It
becomes unlawful for the Company to perform or comply with its obligations under this Note.

 

5.2 EFFECTS
OF DEFAULT. If an Event of Default occurs and is continuing, then and in every such case the Holder may declare this Note to be due
and payable immediately, by a notice in writing to the Company, and upon any such declaration, the Company shall pay to the Holder the
outstanding principal amount of this Note plus all accrued and unpaid interest through the date the Note is paid in full.

 

5.3 REMEDIES
NOT WAIVED; EXERCISE OF REMEDIES. No course of dealing between the Company and the Holder or any delay in exercising any rights hereunder
shall operate as a waiver by the Holder. No failure or delay by the Holder in exercising any right, power or privilege under this Note
shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or
the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of
any rights or remedies provided by Applicable Law.

 

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		6.	SUBORDINATION.

 

6.1 The
Company agrees and the Holder, by acceptance of this Note, agrees, expressly for the benefit of the present and future holders of Senior
Indebtedness (as defined below), that, except as otherwise provided herein, upon (a) an event of default under any Senior Indebtedness
(as defined below), or (b) any dissolution, winding up or liquidation of the Company, whether or not in bankruptcy, insolvency or receivership
proceedings, the Company shall not pay, and the Holder shall not be entitled to receive, any amount in respect of the principal and interest
of such Note unless and until the Senior Indebtedness shall have been paid or otherwise discharged. For purposes of this Note, “Senior
Indebtedness” shall mean, unless expressly subordinated to or made on a parity with the amounts due under this Note, the
principal of (and premium, if any), unpaid interest on and amounts reimbursable, fees, expenses, costs of enforcement and other amounts
due in connection with, indebtedness for borrowed money of the Company, to banks, insurance companies, commercial finance lenders, leasing
or equipment financing institutions or other regulated lending institutions (excluding any indebtedness convertible into equity securities
of the Company). Upon (i) an event of default under any Senior Indebtedness, or (ii) any dissolution, winding up or liquidation of the
Company, any payment or distribution of assets of the Company, which the Holder would be entitled to receive in respect of the Note but
for the provisions hereof, shall be paid by the liquidating trustee or agent or other Person making such payment or distribution directly
to the holders of Senior Indebtedness ratably according to the aggregate amounts remaining unpaid on Senior Indebtedness after giving
effect to any concurrent payment or distribution to the holders of Senior Indebtedness. Subject to the payment in full of the Senior
Indebtedness and until this Note is paid in full, the Holder shall be subrogated to the rights of the holders of the Senior Indebtedness
(to the extent of payments or distributions previously made to the holders of Senior Indebtedness pursuant to this Section 7.1
to receive payments or distributions of assets of the Company applicable to the Senior Indebtedness).

 

6.2 Nothing
in this Section 7 is intended to impair, as between the Company, its creditors (other than the holders of Senior Indebtedness)
and the Holder, the unconditional and absolute obligation of the Company to pay the principal of and interest on this Note or affect
the relative rights of the Holder and the other creditors of the Company, other than the holders of Senior Indebtedness. Nothing in this
Note shall prevent the Holder from exercising all remedies otherwise permitted by Applicable Law upon default under the Note, subject
to the rights, if any, of the holders of Senior Indebtedness in respect to cash, property or securities of the Company received upon
the exercise of any such remedy.

 

7.REPRESENTATIONS
AND WARRANTIES BY THE HOLDER.The Holder represents and warrants to the Company that:

 

7.1 The
Holder is acquiring this Note for the Holder’s own account, as principal, for investment purposes only and not with any intention
to resell, distributes or otherwise dispose of the Note, as the case may be, in whole or in part.

 

7.2 The
Holder has had an unrestricted opportunity to: (i) obtain information concerning this Note and the offering thereof (the “Offering”),
the Company, and its proposed and existing business, assets and financial condition; and (ii) ask questions of, and receive answers from
the Company concerning the terms and conditions of the Offering and to obtain such additional information as may have been necessary
to verify the accuracy of the information contained in this Note or otherwise provided.

 

7.3 The
Holder is an Accredited Investor, within the meaning of Securities and Exchange Commission (“SEC”) Rule 501
of Regulation D, and has such knowledge and experience in financial and business matters that he is capable of evaluating the merits
and risks of investing in the Company, and all information that the Holder has provided concerning the Holder, the Holder’s financial
position and knowledge of financial and business matters is true, correct and complete. The Holder acknowledges and understands that
the Company will rely on the information provided by the Holder in this Note for purposes of complying with federal and applicable state
securities laws.

 

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7.4 Except
as otherwise disclosed in writing by the Holder to the Company, the Holder has not dealt with a broker in connection with the purchase
of this Note and agrees to indemnify and hold the Company and its officers and directors harmless from any claims for brokerage or fees
in connection with the transactions contemplated herein.

 

7.5 The
Holder is not relying on the Company or any of its management, officers or employees with respect to any legal, investment or tax considerations
involved in the purchase, ownership and disposition of Notes. The Holder has relied solely on the advice of, or has consulted with, in
regard to the legal, investment and tax considerations involved in the purchase, ownership and disposition of Notes, the Holder’s
own legal counsel, business and/or investment adviser, accountant and tax adviser.

 

7.6 The
Holder understands that this Note, or the securities into which it may convert, cannot be sold, assigned, transferred, exchanged, hypothecated
or pledged, or otherwise disposed of or encumbered except in accordance with the Securities Act or the Securities and Exchange Act of
1934, as amended (the “Exchange Act”), and that no market will exist for the resale of any such securities.
In addition, the Holder understands that this Note or the securities into which it may convert, have not been registered under the Securities
Act, or under any applicable state securities or blue sky laws or the laws of any other jurisdiction, and cannot be resold unless they
are so registered or unless an exemption from registration is available. The Holder understands that there is no current plan to register
the Notes or the securities into which they may convert.

 

7.7 The
Holder is willing and able to bear the economic and other risks of an investment in the Company for an indefinite period of time. The
Holder has read and understands the provisions of this Note.

 

7.8 The
Holder maintains the Holder’s domicile, and is not merely a transient or temporary resident, at the residence address shown on
the signature page of this Note.

 

7.9 The
Holder is not participating in the Offering as a result of or subsequent to: (i) any advertisement, article, notice or other communication
published in any newspaper, magazine or similar media or broadcast over television or radio; (ii) any seminar or meeting whose attendees
have been invited by any general solicitation or general advertising; or (iii) any registration statement the Company may have filed
with the SEC.

 

7.10 If
the Holder is an entity, the Holder is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation
or organization, as the case may be. The Holder has all requisite power and authority to own its properties, to carry on its business
as presently conducted, to enter into and perform this Note and to carry out the transactions contemplated hereby. This Note is a valid
and binding obligation of the Holder, enforceable against it in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, moratorium, reorganization or similar laws, from time to time in effect, which affect enforcement
of creditors’ rights generally. If applicable, the execution, delivery and performance of this Note has been duly authorized by
all necessary action of the Holder. The execution, delivery and performance of this Note and the performance of any transactions contemplated
by this Note will not: (i) violate, conflict with or result in a default (whether after the giving of notice, lapse of time or both)
under any contract or obligation to which the Holder is a party or by which it or its assets are bound, or any provision of its organizational
documents (if an entity), or cause the creation of any lien or encumbrance upon any of the assets of the Holder; (ii) violate, conflict
with or result in a default (whether after the giving of notice, lapse of time or both) under, any provision of any law, regulation or
rule, or any order of, or any restriction imposed by any court or other governmental agency applicable to the Holder; (iii) require from
the Holder any notice to, declaration or filing with, or consent or approval of any governmental authority or other third party other
than pursuant to federal or state securities or blue sky laws; or (iv) accelerate any obligation under, or give rise to a right of termination
of, any agreement, permit, license or authorization to which the Holder is a party or by which it is bound.

 

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7.11 The
Holder acknowledges and agrees that the Company intends, in the future, to raise additional funds to expand its business which may include,
without limitation, the need to: fund more rapid expansion; fund additional marketing expenditures; enhance its operating infrastructure;
hire additional personnel; respond to competitive pressures; or acquire complementary businesses or necessary technologies.

 

7.12 The
Holder acknowledges and agrees that the Company will have broad discretion with respect to the use of the proceeds from this Offering,
and the Holder will be relying on the judgment of management regarding the application of these proceeds.

 

7.13 Neither
the Holder nor any of its Rule 506(d) Related Parties is a “bad actor” within the meaning of Rule 506(d) promulgated under
the Securities Act. For purposes of this Note, “Rule 506(d) Related Party” shall mean a Person covered by the
“Bad Actor disqualification” provision of Rule 506(d) of the Securities Act.

 

7.14 The
Holder understands the various risks of an investment in the Company, and has carefully reviewed the various risk factors and other disclosures
of the Company set forth in the periodic reports and other documents it files with the SEC under the Exchange Act.

 

		8.	MISCELLANEOUS.

 

8.1 SEVERABILITY.
If any provision of this Note shall be held to be invalid or unenforceable, in whole or in part, neither the validity nor the enforceability
of the remainder hereof shall in any way be affected.

 

8.2 NOTICE.
Where this Note provides for notice of any event, such notice shall be given (unless otherwise herein expressly provided) in writing
and either (a) delivered personally, (b) sent by certified, registered or express mail, postage prepaid or (c) sent by other electronic
transmission, and shall be deemed given when so delivered personally, sent by electronic transmission (confirmed in writing) or mailed.
Notices shall be addressed, if to Holder, to its address as provided below or subsequently to the Company from time to time and, if to
the Company, to its principal office.

 

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8.3 GOVERNING
LAW. This Note shall be governed by, and construed in accordance with, the laws of the State of Nevada (without giving effect to
any conflicts or choice of law provisions that would cause the application of the domestic substantive laws of any other jurisdiction).

 

8.4 FORUM.
The Holder and the Company hereby agree that any dispute which may arise out of or in connection with this Note shall be adjudicated
before a court of competent jurisdiction in the State of Nevada and they hereby submit to the exclusive jurisdiction of the federal or
state courts of the State of Nevada, as well as to the jurisdiction of all courts to which an appeal may be taken from such courts, with
respect to any action or legal proceeding commenced by either of them and hereby irrevocably waive any objection they now or hereafter
may have respecting the venue of any such action or proceeding brought in such a court or respecting the fact that such court is an inconvenient
forum.

 

8.5 HEADINGS.
The headings of the Articles and Sections of this Note are inserted for convenience only and do not constitute a part of this Note.

 

8.6
AMENDMENTS. This Note may be amended or waived only with the written consent of the Company and the Holder.

 

8.7
NO RECOURSE AGAINST OTHERS. The obligations of the Company under this Note are solely obligations of the Company and no officer,
employee or stockholder shall be liable for any failure by the Company to pay amounts on this Note when due or perform any other
obligation.

 

8.8
ASSIGNMENT; BINDING EFFECT. This Note may be assigned by the Company without the prior written consent of the Holder. This Note
shall be binding upon and inure to the benefit of both parties hereto and their respective permitted successors and
assigns.

 

SIGNATURE
ON THE FOLLOWING PAGE

 

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IN
WITNESS WHEREOF, the Company and the Holder have caused this Note to be signed as of the date hereinabove written.

 

	 	OMNIA
    WELLNESS INC.
	 	 	 
	 	By:
    	/s/
    Steve Howe
	 	Name:	Steve
    Howe
	 	Title:
    	Executive
    Chairman

 

	HOLDER:	 	 
	 	 	 	 
	Signature of Holder(s):	 	 
	 	 	 	 
	By:	/s/
    Jainal Bhuiyan	 	Formula8,
    LLC
	Name:	Jainal
    Bhuiyan	 	Print
    Name of Holder(s)
	Title:	Manager	 	 
	 	 	 	 
	 	 	 
	Social Security Number(s) or EIN	 	 
	 	 	 	 
	Mailing Address of Holder(s)	 	Residence
    of Holder(s)
	 	 	 	 
	 	 	 
	Street	 	Street
	 	 	 	 
	 	 	 
	City          State         Zip Code	 	City         State         Zip Code

 

	If
    Joint Ownership, check one:
	 	 
	☐	Joint
    Tenants with Right of Survivorship
	☐	Tenants-in-Common
	☐	Tenants
    by the Entirety
	☐	Community
    Property
	☐	Other
    (specify):______________Document

Exhibit 4(x)

DESCRIPTION OF CENTERPOINT ENERGY, INC.’S SECURITIES 
REGISTERED PURSUANT TO SECTION 12 
OF THE SECURITIES EXCHANGE ACT OF 1934

As of December 31, 2021, CenterPoint Energy, Inc. has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): (1) our common stock, par value $0.01 per share. As used in this Exhibit 4(x), the terms “CenterPoint Energy,” “us,” “we” or “our” refer to CenterPoint Energy, Inc. and not any of its subsidiaries. 
CenterPoint Energy, Inc. is authorized to issue up to 1,000,000,000 shares of common stock, par value $0.01 per share, and 20,000,000 shares of preferred stock, par value $0.01 per share.
 
 
DESCRIPTION OF OUR COMMON STOCK

The following description of our common stock is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Restated Articles of Incorporation (“Articles of Incorporation”) and Third Amended and Restated Bylaws (“Bylaws”), each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4(x) is a part. We encourage you to read our Articles of Incorporation, our Bylaws and the applicable provisions of the Texas Business Organizations Code (“TBOC”) for additional information.
Voting Rights. Holders of our common stock are entitled to one vote for each share on all matters submitted to a vote of shareholders, including the election of directors. There are no cumulative voting rights. Subject to the voting rights expressly conferred to the holders of our preferred stock, the holders of our common stock possess exclusive full voting power for the election of directors and for all other purposes. Our Bylaws provide that director nominees are elected by the vote of a majority of the votes cast with respect to the director by shareholders entitled to vote at the meeting in an uncontested election. An election is contested if, at a specified time before we file our definitive proxy statement with the SEC, the number of nominees exceeds the number of directors to be elected, in which case directors will be elected by the vote of a plurality of the votes cast by shareholders entitled to vote at the meeting. 
Dividends. Subject to preferences that may be applicable to any of our outstanding preferred stock, the holders of our common stock are entitled to dividends when, as and if declared by the board of directors out of funds legally available for that purpose. 
Liquidation Rights. If we are liquidated, terminated or wound up, the holders of our common stock will be entitled to a pro rata share in any distribution to shareholders, but only after satisfaction of all of our liabilities and of the prior rights of any outstanding class of our preferred stock, which may include the right to participate further with the holders of our common stock in the distribution of any of our remaining assets. 
 
Preemptive Rights. Holders of our common stock are not entitled to any preemptive or conversion rights or other subscription rights. 
Transfer Agent and Registrar. Broadridge Corporate Issuer Solutions, Inc. serves as transfer agent and registrar for our common stock. 
Other Provisions. There are no redemption or sinking fund provisions applicable to our common stock. No personal liability will attach to holders of such shares under the laws of the State of Texas. Subject to the provisions of our Articles of Incorporation and Bylaws imposing certain supermajority voting provisions, the rights of the 

holders of shares of our common stock may not be modified except by a vote of at least a majority of the shares outstanding, voting together as a single class. 
Preferred Stock
Our board of directors may cause us to issue preferred stock from time to time in one or more series and may fix the number of shares and the terms of each series without the approval of our shareholders. Our board of directors may determine the terms of each series, including:
 
												
		•		the designation of the series,

 
												
		•		dividend rates and payment dates,

 
												
		•		whether dividends will be cumulative, non-cumulative or partially cumulative, and related terms,

 
												
		•		redemption rights,

 
												
		•		liquidation rights,

 
												
		•		sinking fund provisions,

 
												
		•		conversion rights,

 
												
		•		voting rights, and

 
												
		•		any other terms.

The prospectus supplement relating to any series of preferred stock will include specific terms relating to the offering. We will file the form of the preferred stock with the SEC before we issue any of it. The prospectus supplement for any offering of preferred stock will include some or all of the following terms:
 
												
		•		the title of the preferred stock,

 
												
		•		the maximum number of shares of the series,

 
												
		•		the dividend rate or the method of calculating the dividend, the date from which dividends will accrue and whether dividends will be cumulative,

 
												
		•		any liquidation preference,

 
												
		•		any optional redemption provisions,

 
												
		•		any sinking fund or other provisions that would obligate us to redeem or purchase the preferred stock,

 
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		•		any terms for the conversion or exchange of the preferred stock for other securities of us or any other entity,

 
												
		•		any voting rights, and

 
												
		•		any other preferences and relative, participating, optional or other special rights or any qualifications, limitations or restrictions on the rights of the shares.

 
The issuance of preferred stock, while providing desired flexibility in connection with possible acquisitions and other corporate purposes, could adversely affect the voting power of holders of our common stock. It could also affect the likelihood that holders of our common stock will receive dividend payments and payments upon liquidation. The issuance of shares of preferred stock, or the issuance of rights to purchase shares of preferred stock, could be used to discourage an attempt to obtain control of us. For example, if, in the exercise of its fiduciary obligations, our board were to determine that a takeover proposal was not in our best interest, the board could authorize the issuance of a series of preferred stock containing class voting rights that would enable the holder or holders of the series to prevent or make the change of control transaction more difficult. Alternatively, a change of control transaction deemed by the board to be in our best interest could be facilitated by issuing a series of preferred stock having sufficient voting rights to provide a required percentage vote of the shareholders.
Anti-Takeover Effects of Texas Laws and Our Charter and Bylaw Provisions
Some provisions of Texas law and our Articles of Incorporation and Bylaws could make the following actions more difficult:
 
												
		•		acquisition of us by means of a tender offer,

 
												
		•		acquisition of control of us by means of a proxy contest or otherwise, or

 
												
		•		removal of our incumbent officers and directors.

These provisions are designed to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of this increased protection gives us the potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us, and that the benefits of this increased protection outweigh the disadvantages of discouraging those proposals, because negotiation of those proposals could result in an improvement of their terms.
Charter and Bylaw Provisions
Election and Removal of Directors. The number of members of our board of directors will be fixed from time to time by resolution of the board of directors. Except for voting rights as may be provided to holders of preferred stock, at each annual meeting of shareholders, all directors are elected to hold office for a term expiring at the next succeeding annual meeting of shareholders and until their successors have been elected and qualified.
No director may be removed except for cause, and, subject to the voting rights expressly conferred to the holders of our preferred stock, directors may be removed for cause only by the holders of at least a majority of the shares of capital stock entitled to vote at an election of directors. Subject to the voting rights expressly conferred to the holders of our preferred stock, any vacancy occurring on the board of directors and any newly created directorship may be filled by a majority of the remaining directors in office or by election by the shareholders.
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Shareholder Meetings. Our Articles of Incorporation and Bylaws provide that special meetings of holders of common stock may be called only by the chairman of our board of directors, our chief executive officer, the president, the secretary, a majority of our board of directors or the holders of at least 50% of the shares of our capital stock outstanding and entitled to vote.
Modification of Articles of Incorporation. In general, amendments to our Articles of Incorporation that are recommended by the board of directors require the affirmative vote of holders of at least a majority of the voting power of all outstanding shares of capital stock entitled to vote in the election of directors. The provisions described above under “— Election and Removal of Directors” and “— Shareholder Meetings” may be amended only by the affirmative vote of holders of at least 66 2/3% of the voting power of all outstanding shares of capital stock entitled to vote in the election of directors. The provisions described below under “— Modification of Bylaws” may be amended only by the affirmative vote of holders of at least 80% of the voting power of all outstanding shares of capital stock entitled to vote in the election of directors.
Modification of Bylaws. Our board of directors has the power to alter, amend or repeal the Bylaws or adopt new Bylaws by the affirmative vote of at least 80% of all directors then in office at any regular or special meeting of the board of directors called for that purpose. The shareholders also have the power to alter, amend or repeal the Bylaws or adopt new Bylaws by the affirmative vote of holders of at least 80% of the voting power of all outstanding shares of capital stock entitled to vote in the election of directors, voting together as a single class.
Other Limitations on Shareholder Actions. Our Bylaws also impose some procedural requirements on shareholders who wish to:
 
												
		•		make nominations in the election of directors,

 
												
		•		propose that a director be removed,

 
												
		•		propose any repeal or change in the Bylaws, or

 
												
		•		propose any other business to be brought before an annual or special meeting of shareholders.

Under these procedural requirements, a shareholder must deliver timely notice in proper written form to our secretary of the nomination or proposal along with evidence of:
 
												
		•		the shareholder’s status as a shareholder,

 
												
		•		the number of shares beneficially owned by the shareholder,

 
												
		•		a list of the persons with whom the shareholder is acting in concert, and

 
												
		•		the number of shares such persons beneficially own.

To be timely, a shareholder must deliver the notice:
 
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		•		in connection with an annual meeting of shareholders, not less than 90 days nor more than 180 days prior to the first anniversary of the date on which the immediately preceding year’s annual meeting of shareholders was held; provided that if the date of the annual meeting is advanced by more than 30 days prior to or delayed by more than 60 days after the first anniversary of the preceding year’s annual meeting of shareholders, not earlier than 180 days prior to the annual meeting and not later than the last to occur of (i) the 90th day prior to the annual meeting or (ii) the 10th day following the day on which we first make public announcement of the date of the annual meeting, or

 
												
		•		in connection with the nomination of director candidates at a special meeting of shareholders, generally not less than 40 days nor more than 60 days prior to the date of the special meeting.

To submit a nomination for the board of directors, a shareholder must also submit information with respect to the nominee that we would be required to include in a proxy statement, as well as some other information. If a shareholder fails to follow the required procedures, the shareholder’s nominee or proposal will be ineligible and will not be voted on by our shareholders.
In addition to the director nomination provisions described above, our Bylaws contain a “proxy access” provision that provides that any shareholder or group of up to twenty shareholders who have owned 3% or more of our outstanding common stock continuously for at least three years to nominate and include in our proxy materials for an annual meeting of shareholders, director candidates constituting up to 20% of our board of directors or two directors, whichever is greater, provided that the shareholder (or group) and each nominee satisfy the eligibility requirements specified in our Bylaws. An eligible shareholder (or group) proposing to nominate a person for election to our board of directors through the proxy access provision must provide us with a notice requesting the inclusion of the director nominee in our proxy materials and other required information not less than 120 days nor more than 150 days prior to the first anniversary of the date on which the immediately preceding year’s annual meeting of shareholders was held. In addition, an eligible shareholder (or group) may include a written statement of not more than 500 words supporting the candidacy of such shareholder nominee. The complete proxy access provision for director nominations are set forth in our Bylaws.
In connection with a special meeting of shareholders, the only business that will be conducted is that stated in the notice of special meeting, or otherwise properly brought and made in proper written form before the meeting by or at the direction of the Chairman of the Meeting or the board of directors. Shareholders requesting a special meeting are permitted to make proposals for matters to be brought before the meeting in their request.
Limitation on Liability of Directors. Our Articles of Incorporation provide that no director will be personally liable to us or our shareholders for monetary damages for breach of fiduciary duty as a director, except as required by law as in effect from time to time. Currently, Texas law requires that liability be imposed for the following actions:
 
												
		•		any breach of the director’s duty of loyalty to us or our shareholders,

 
												
		•		any act or omission not in good faith that constitutes a breach of duty of the director to the corporation or that involves intentional misconduct or a knowing violation of law,

 
												
		•		a transaction from which the director received an improper benefit, regardless of whether or not the benefit resulted from an action taken within the scope of a director’s duties, and

 
												
		•		an act or omission for which the liability of a director is expressly provided for by statute.

Our Bylaws provide that we will indemnify our officers and directors and advance expenses to them in connection with proceedings and claims, to the fullest extent permitted by the TBOC. The Bylaws authorize our 
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board of directors to indemnify and advance expenses to people other than our officers and directors in certain circumstances.
Texas Anti-Takeover Law
We are subject to Section 21.606 of the TBOC. That section prohibits Texas public corporations from engaging in a wide range of specified transactions with any affiliated shareholder during the three-year period immediately following the affiliated shareholder’s acquisition of shares in the absence of certain board of director or shareholder approvals. An affiliated shareholder of a corporation is any person, other than the corporation and any of its wholly owned subsidiaries, that is or was within the preceding three-year period the beneficial owner of 20% or more of the outstanding shares of stock entitled to vote generally in the election of directors. Section 21.606 may deter any potential unfriendly offers or other efforts to obtain control of us that are not approved by our board of directors. This may deprive our shareholders of opportunities to sell shares of our common stock at a premium to the prevailing market price.
 
Listing. Our common stock is traded on the New York Stock Exchange and the Chicago Stock Exchange under the trading symbol “CNP.”

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