Document:

EXHIBIT 10.4

 

FORM OF

NON-QUALIFIED STOCK OPTION

Granted by

HERITAGE NOLA BANCORP, INC.

under the

HERITAGE NOLA BANCORP, INC.

2018 EQUITY INCENTIVE PLAN

This non-qualified stock option agreement ("Option" or "Agreement") is and will be subject in every respect to the provisions of the 2018 Equity Incentive Plan (the "Plan") of Heritage NOLA Bancorp, Inc. (the "Company") which are incorporated herein by reference and made a part hereof, subject to the provisions of this Agreement.  A copy of the Plan has been provided or made available to each person granted a stock option pursuant to the Plan.  The holder of this Option (the "Participant") hereby accepts this Option, subject to all the terms and provisions of the Plan and this Agreement, and agrees that all decisions under and interpretations of the Plan and this Agreement by the committee responsible for administering the Plan (the "Committee") will be final, binding and conclusive upon the Participant and the Participant's heirs, legal representatives, successors and permitted assigns.  Except where the context otherwise requires, the term "Company" will include the parent and all present and future subsidiaries of the Company as defined in Section 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended from time to time (the "Code").  Capitalized terms used herein but not defined will have the same meaning as in the Plan.  Any reference to the "Bank" herein shall refer to Heritage Bank of St. Tammany and any reference to "Employer" shall mean either or both the Company and the Bank.

1.    Name of Participant:___________________________________  

2.    Date of Grant:______________________________ 

3.    Total number of shares of Company common stock, $0.01 par value per share, that may be acquired pursuant to this Option:_________________________

      (subject to adjustment pursuant to Section 10 hereof).

·  This is a Non-Qualified Option.

4.    Exercise price per share:____________________

(subject to adjustment pursuant to Section 10 below)

5.    Expiration Date of Option:_____________________

	6.	
Vesting Schedule.  Except as otherwise provided in this Agreement, this Option first becomes exercisable, subject to the Option's expiration date, in accordance with the vesting schedule specified herein.

	
Date

	
Vested Portion of Award

	 	 
	 	 
	 	 
	 	 
	 	 

This Option may not be exercised at any time on or after the Option's expiration date. Vesting will automatically accelerate pursuant to Section 2.9 and 4.1 of the Plan (in the event of death or Disability or an Involuntary Termination at or following a Change in Control).

7.   Exercise Procedure.

		7.1	
Delivery of Notice of Exercise of Option.  This Option will be exercised in whole or in part by the Participant's delivery to the Company of written notice (the "Notice of Exercise of Option" attached hereto as Exhibit A or a similar form provided by the Company) setting forth the number of shares with respect to which this Option is to be exercised, together with payment by cash or other means acceptable to the Committee, including:

· Cash or personal, certified or cashier's check in full/partial payment of the purchase price.

· Stock of the Company in full/partial payment of the purchase price.

·  By a net settlement of the Option, using a portion of the shares obtained on exercise in payment of the exercise price of the Option (and, if applicable, any tax

            withholding).

·  By selling shares from my Option shares through a broker in full/partial payment of the purchase price.

In order to exercise the Option, please deliver the Notice of Exercise and payment (if applicable) to the Company at the following address:

Heritage NOLA Bancorp, Inc.

205 North Columbia Street

Covington, Louisiana 70433

            Attention:______________ 

		7.2	
"Fair Market Value" shall have the meaning set forth in Section 8.1(p) of the Plan.

2

8.   Delivery of Shares.

		8.1	
Delivery of Shares.  Delivery of shares of Stock upon the exercise of this Option will comply with all applicable laws (including the requirements of the Securities Act) and the applicable requirements of any securities exchange or similar entity.

9.   Change in Control.

		9.1	
In the event of an Involuntary Termination at or following a Change in Control, all Options held by the Participant, whether or not exercisable at such time, will become fully exercisable, subject to the expiration provisions otherwise applicable to the Option.

		9.2	
A "Change in Control" will be deemed to have occurred as provided in Section 4.2 of the Plan.

10.   Adjustment Provisions.

This Option, including the number of shares subject to the Option and the exercise price, will be adjusted upon the occurrence of the events specified in, and in accordance with the provisions of Section 3.4 of the Plan.

11.   Termination of Option and Accelerated Vesting.

This Option will terminate upon the expiration date, except as set forth in the following  provisions:

	
(i)

	
Death.  This Option will become exercisable as to all shares subject to an outstanding Award, whether or not then exercisable, in the event of the Participant's Termination of Service by reason of the Participant's death.  This Option may thereafter be exercised by the Participant's legal representative or beneficiaries for a period of one (1) year from the date of death, subject to termination on the expiration date of this Option, if earlier.

	
(ii)

	
Disability.  This Option will become exercisable as to all shares subject to an outstanding Award, whether or not then exercisable, in the event of the Participant's Termination of Service by reason of the Participant's Disability. This Option may thereafter be exercised for a period of one (1) year from the date of such Termination of Service by reason of Disability, subject to termination on the Option's expiration date, if earlier.

	
(iii)

	
Retirement.  Vested Options may be exercised for a period of one (1) year from the date of Termination of Service by reason of Retirement, subject to termination on the Option's expiration date, if earlier (and, for purposes of clarity, non-vested Options will be forfeited on the date of Termination of Service by reason of Retirement).  The term "Retirement" shall have the meaning set forth in Section 8.1(aa) of the Plan.

 

3

	
(iv)

	
Termination for Cause.  If the Participant's Service has been terminated for Cause, all Options that have not been exercised will expire and be forfeited.

	
(v)

	
Other Termination.  If the Participant's Service terminates for any reason other than due to death, Disability, Retirement, Involuntary Termination following a Change in Control or Cause, all unvested Options will be forfeited and vested Options may thereafter be exercised, to the extent it was exercisable at the time of such termination, for a period of three months following termination, subject to termination on the Option's expiration date, if earlier.

12.   Miscellaneous.

		12.1	
No Option will confer upon the Participant any rights as a stockholder of the Company prior to the date on which the individual fulfills all conditions for receipt of such rights.

		12.2	
This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.

		12.3	
At the discretion of the Committee, a non-qualified Option granted under the Plan may be transferable by the Participant, provided, however, that such  transfers will be limited to Immediate Family Members of Participants, trusts and partnerships established for the primary benefit of such family members or to charitable organizations, and provided, further, that such transfers are not made for consideration to the Participant.

		12.4	
This Agreement will be governed by and construed in accordance with the laws of the State of Louisiana.

		12.5	
This Agreement is subject to all laws, regulations and orders of any governmental authority which may be applicable thereto and, notwithstanding any of the provisions hereof, the Participant agrees that he will not exercise the Option granted hereby nor will the Company be obligated to issue any shares of stock hereunder if the exercise thereof or the issuance of such shares, as the case may be, would constitute a violation by the Participant or the Company of any such law, regulation or order or any provision thereof.

12.6         The granting of this Option does not confer upon the Participant any right to be retained in the service of the Company or any subsidiary.

4

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in its name and on its behalf as of the date of grant of this Option set forth above.

HERITAGE NOLA BANCORP, INC.

By:__________________________ 

Its:__________________________ 

 

  

PARTICIPANT'S ACCEPTANCE

The undersigned hereby accepts the foregoing Option and agrees to the terms and conditions hereof, including the terms and provisions of the 2018 Equity Incentive Plan.  The undersigned hereby acknowledges receipt of a copy of the Company's 2018 Equity Incentive Plan.

PARTICIPANT

 

 

_____________________________

5

EXHIBIT A

NOTICE OF EXERCISE OF OPTION

I hereby exercise the stock option (the "Option") granted to me by Heritage NOLA Bancorp, Inc. (the "Company") or its affiliate, subject to all the terms and provisions set forth in the Stock Option Agreement (the "Agreement") and the Heritage NOLA Bancorp, Inc. 2018 Equity Incentive Plan (the "Plan") referred to therein, and notify you of my desire to purchase __________________ shares of common stock of the Company ("Common Stock") for a purchase price of $______ per share.

I elect to pay the exercise price by:

		___	
Cash or personal, certified or cashier's check in the sum of $_______, in full/partial payment of the purchase price.

		___	
Stock of the Company with a fair market value of $______ in full/partial payment of the purchase price.*

		___	
A net settlement of the Option, using a portion of the shares obtained on exercise in payment of the exercise price of the Option (and, if applicable, any tax withholding).

		___	
Selling  ______ shares from my Option shares through a broker in full/partial payment of the purchase price.

I understand that after this exercise, ____________ shares of Common Stock remain subject to the Option, subject to all terms and provisions set forth in the Agreement and the Plan.

I hereby represent that it is my intention to acquire these shares for the following purpose:

___ investment

___ resale or distribution

Please note: if your intention is to resell (or distribute within the meaning of Section 2(11) of the Securities Act of 1933) the shares you acquire through this Option exercise, the Company or transfer agent may require an opinion of counsel that such resale or distribution would not violate the Securities Act of 1933 prior to your exercise of such Option.

Date: ____________, _____.                                           _________________________________________

Participant's signature

* If I elect to exercise by exchanging shares I already own, I will constructively return shares that I already own to purchase the new option shares.  If my shares are in certificate form, I must attach a separate statement indicating the certificate number of the shares I am treating as having exchanged.  If the shares are held in "street name" by a registered broker, I must provide the Company with a notarized statement attesting to the number of shares owned that will be treated as having been exchanged.  I will keep the shares that I already own and treat them as if they are shares acquired by the option exercise.  In addition, I will receive additional shares equal to the difference between the shares I constructively exchange and the total new option shares that I acquire.Exhibit

Exhibit 10.1

CONSENT AND WAIVER
THIS CONSENT AND WAIVER (this “Consent”), is entered into as of August 15, 2018 by and among LUBY’S, INC. (the “Borrower”), each other Credit Party party hereto, the Lenders party hereto and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”).  
W I T N E S S E T H:
WHEREAS, the Borrower is party to that certain Credit Agreement, dated as of November 8, 2016 (as amended, restated, supplemented or otherwise modified, the “Credit Agreement”) among, inter alia, the Borrower, the other Credit Parties from time to time party thereto, the Administrative Agent and the Lenders from time to time party thereto, pursuant to which the Lenders have made certain loans and financial accommodations available to the Borrower; and
WHEREAS, the Borrower, Administrative Agent and Required Lenders entered into that certain Consent and Waiver dated July 12, 2018 (the “July Consent”) pursuant to which the Administrative Agent and Lenders waived the requirement that the Credit Parties comply with the financial covenants set forth in Section 9.15 of the Credit Agreement that are tested for any period or time ending or occurring during the Compliance Waiver Period; and
WHEREAS, the Borrower, Administrative Agent and Required Lenders entered into that certain Consent and Waiver dated August 10, 2018 (the “First August Consent” and together with the July Consent and this Consent, the “Consents”) pursuant to which the Administrative Agent and Lenders extended the Compliance Test Date and certain other deadlines set forth in the July Consent, and waived the requirement that the Credit Parties comply with the limits on Maintenance Capital Expenditures set forth in Section 9.3(c) of the Credit Agreement during the Compliance Waiver Period; and
WHEREAS, the Borrower has requested that the Administrative Agent and Lenders further extend the Compliance Test Date and certain deadlines set forth in the July Consent and the First August Consent; and
WHEREAS, the Administrative Agent and Lenders have agreed to the Borrower’s requests subject to the terms and conditions set forth in this Consent.
NOW, THEREFORE, in consideration of the foregoing and for other good and valid consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
1.Defined Terms. Capitalized terms used but not defined herein shall have the respective meanings ascribed to such terms in the Credit Agreement. The terms “Compliance Test Date” and “Compliance Waiver Period” shall have the meaning set forth in the July Consent, as amended by the First August Consent. 

2.Compliance Test Date. The Borrower, Administrative Agent and Lenders hereby agree that, as used in the July Consent and the First August Consent, “Compliance Test Date” means the earlier to occur of (i) 5:00 p.m. Eastern Time on August 27, 2018, (ii) the failure of the Borrower or any other Credit Party to perform, observe or comply with any covenant, agreement or term contained in the Consents, or (iii) the occurrence or existence of any Default or Event of Default during the Compliance Waiver Period.

3.Conditions and Effectiveness.  This Consent shall become effective with retroactive effect as of August 15, 2018 as soon as the Administrative Agent shall have received counterpart signatures to this Consent from the Lenders and each other party hereto (the date on which such condition has been satisfied, the “Consent Effective Date”).

4.Representations and Warranties.   The Borrower hereby represents and warrants to the Administrative Agent and each Lender as follows:

a.    the execution, delivery and performance by the Borrower of this Consent has been duly authorized by all necessary corporate action;
b.    after giving effect to the consents and waivers set forth herein, no Default or Event of Default has occurred and is continuing or would result herefrom; and
c.    after giving effect to the consents and waivers set forth herein, all representations and warranties contained in the Credit Agreement are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any portion of any representation and warranty that is already qualified or modified by materiality in the text thereof); provided that any such representations and warranties that by their express terms are made as of a specific date are true and correct in all material respects as of such specific date.
d.    the Subsidiary Guarantors party hereto constitute all of the Subsidiaries of the Borrower required to be a Subsidiary Guarantor pursuant to the terms of the Credit Agreement.

5.Agreement in Full Force and Effect; Borrower Ratification of other Loan Documents.  Except as specifically amended hereby, the Credit Agreement shall remain in full force and effect and is hereby ratified and confirmed.  Except as expressly set forth herein, this Consent shall not be deemed to be a waiver, amendment or modification of any provisions of the Credit Agreement or any Loan Document or any right, power or remedy of the Administrative Agent or the Lenders, or of any Default or Event of Default under any of the foregoing, in each case, whether arising before or after the date hereof or as a result of performance hereunder or thereunder.  Each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby, and each reference herein or in any Loan Document to the “Credit Agreement” shall mean and be a reference to the Credit Agreement as amended hereby.  For the avoidance of doubt, this Consent shall constitute a Loan Document for all purposes under the Credit Agreement.  All other Loan Documents to which the Borrower is a party remain in full force and effect, and the Borrower hereby ratifies all of its obligations thereunder.

6.Ratification of Guaranty.  Each of the undersigned Subsidiary Guarantors hereby acknowledges and consents to this Consent, and agrees that its Guaranty Agreement in favor of the Administrative Agent for the benefit of the Secured Parties, and all other Loan Documents to which it is a party, remain in full force and effect, and each of the Subsidiary Guarantors hereby ratifies all of its respective obligations thereunder.

7.Release of Claims.  In order to induce the Administrative Agent and the Lenders to enter into this Consent, each Credit Party, on behalf of itself and its respective Related Parties (collectively, the “Releasing Parties”), acknowledges and agrees that: (a) none of the Releasing Parties presently has any claim or cause of action against any of the Administrative Agent, any Lender or any of their respective Related Parties (collectively, the “Released Parties”) relating to or arising out of any Loan Document or any agreement entered into in connection therewith; (b) to the actual (and not constructive or imputed) knowledge of any officer of any Credit Party, none of the Releasing Parties presently has any offset right, counterclaim or defense of any kind against any of their respective Obligations, debt or liabilities to the Administrative Agent or any Lender; and (c) each of the Released Parties has heretofore properly performed and satisfied in a timely manner all of its obligations to the Credit Parties and their Subsidiaries under the Loan Documents to which it is a party.  Each of the Credit Parties wishes to eliminate any possibility that any past conditions, acts, omissions, events, circumstances or matters would impair or otherwise adversely affect any of the Administrative Agent or any Lenders’ rights, interests, contracts, or remedies under the Loan Documents, whether known or unknown, as applicable.  Therefore, each of the Credit Parties, on behalf of the Releasing Parties, unconditionally releases, waives and forever discharges (x) any and all liabilities, obligations, duties, promises or debt of any kind of the Administrative Agent and each Lender to the Releasing Parties, in each case, occurring, existing or arising on or prior to the date of this Consent, and (y) all claims, offsets, causes of action, suits or defenses of any kind whatsoever (if any), whether arising at law or in equity, whether known or unknown, which the Releasing Parties might otherwise have against any of the Released Parties for actions taken or not taken on or prior to the date of this Consent, in each case under clause (x) or clause (y), (A) whether known or unknown, on account of any past or presently existing condition, act, omission, event, contract, liability, obligation, debt, claim, cause of action, defense, circumstance or matter of any kind, (B) other than any such liabilities, obligations, claims, causes of action or suits resulting from the gross negligence or willful misconduct of the Administrative Agent or any Lender, as determined by a court of competent jurisdiction in a final non-appealable judgment and (C) relating to or arising out of the Loan Documents or any agreement entered into in connection therewith.  The Released Parties shall not be liable with respect to, and each of the Credit Parties hereby waives, releases and agrees not to sue for, any special, indirect or consequential damages relating to the Loan Documents or arising out of activities in connection herewith or therewith (whether before, on or after the date hereof).  

8.Counterparts.  This Consent may be executed by one or more of the parties to this Consent and any number of separate counterparts, each of which when so executed, shall be deemed an original and all said counterparts when taken together shall be deemed to constitute but one and the same instrument.

9.Successors and Assigns.  This Consent shall be binding upon and inure to the benefit of the Borrower and its successors and assigns and the Administrative Agent and Lenders and their respective successors and assigns.

10.GOVERNING LAW.  THIS CONSENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

11.Severability.  Wherever possible, each provision of this Consent shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Consent shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Consent.

12.ENTIRE AGREEMENT.  THE CREDIT AGREEMENT, AS AMENDED BY THIS CONSENT, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[Remainder of Page Intentionally Left Blank; Signature Pages Follow]

IN WITNESS WHEREOF, each of the undersigned has executed this Consent as of the date set forth above.

BORROWER:

LUBY’S, INC.

By:    /s/ Christopher J. Pappas                            
Christopher J. Pappas
President and Chief Executive Officer

SUBSIDIARY GUARANTORS:

LUBY'S FUDDRUCKERS RESTAURANTS, LLC

By:    /s/ Peter Tropoli                                
Peter Tropoli
President and Chief Operating Officer

LUBY’S BEV I, LLC
LUBY’S BEV II, LLC

Each by: /s/ Peter Tropoli                            
 Peter Tropoli
 Manager

LUBY’S BEVCO, INC.

By:    /s/ Christopher J. Pappas                            
Christopher J. Pappas 
President and CEO

Luby’s, Inc. - Signature Page to Consent 

FUDDRUCKERS OF ANNAPOLIS, LLC
FUDDRUCKERS OF HOWARD COUNTY, LLC
FUDDRUCKERS OF BRANDYWINE, LLC

Each by Luby’s Bev II, LLC, as its Managing Member  

By:    /s/ Peter Tropoli                                
Peter Tropoli
Manager

PARADISE CHEESEBURGERS, LLC

By: Luby’s Fuddruckers Restaurants, LLC, as its Manager

By:    /s/ Peter Tropoli                                
Peter Tropoli
President and Chief Operating Officer

Luby’s, Inc. - Signature Page to Consent 

PARADISE RESTAURANT GROUP, LLC
CHEESEBURGER OF NEWARK, LLC
CHEESEBURGER OF FT. MYERS, LLC
CHEESEBURGER OF SANDESTIN, L.L.C.
CHEESEBURGER OF DOWNERS GROVE, LLC
CHEESEBURGER OF ALGONQUIN, LLC
CHEESEBURGER OF EVANSVILLE, LLC
CHEESEBURGER OF FISHERS, LLC
CHEESEBURGER OF SOUTHPORT, LLC
CHEESEBURGER OF TERRE HAUTE, LLC
CHEESEBURGER OF KANSAS CITY, LLC
CHEESEBURGER OF PASADENA, LLC
CHEESEBURGER OF CALIFORNIA, LLC
CHEESEBURGER IN PARADISE OF ST. MARY’S COUNTY, LLC
CHEESEBURGER OF STERLING HEIGHTS, LLC
HIGH TIDES OF OMAHA, LLC
CHEESEBURGER OF SECAUCUS, LLC
CHEESEBURGER OF WALLKILL, LLC
CHEESEBURGER OF MYRTLE BEACH, LLC
CHEESEBURGER OF FREDERICKSBURG, LLC
CHEESEBURGER OF NEWPORT NEWS, LLC
CHEESEBURGER OF VIRGINIA BEACH, LLC
CHEESEBURGER OF WOODBRIDGE, LLC
CHEESEBURGER OF MIDDLETON, LLC

Each by:    /s/ Peter Tropoli                            
Peter Tropoli
President 

CHEESEBURGER IN PARADISE OF ANNE ARUNDEL COUNTY, INC.

By:    /s/ Peter Tropoli                                
Peter Tropoli
Authorized Representative

Luby’s, Inc. - Signature Page to Consent 

WELLS FARGO BANK, NATIONAL ASSOCIATION
as Lender and as Administrative Agent

By:     /s/ Reginald T. Dawson
Name: Reginald T. Dawson
Title:   Senior Vice President

Luby’s, Inc. - Signature Page to Consent 

CADENCE BANK, N.A.
as Lender

By:     /s/ Josh Taylor    
Name: Josh Taylor
Title:   Senior Vice President

Luby’s, Inc. - Signature Page to Consent 

TEXAS CAPITAL BANK, N.A.
as Lender

By:           /s/ Joel Landis    
Name: Joel Landis
Title:   Executive Vice President

Luby’s, Inc. - Signature Page to Consent

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