EXECUTION COPY
364-DAY REVOLVING CREDIT AGREEMENT
DATED AS OF APRIL 8, 2002
AMONG
ACUITY BRANDS, INC.,
THE SUBSIDIARY BORROWERS
FROM TIME TO TIME PARTIES HERETO,
THE LENDERS FROM TIME TO TIME PARTIES HERETO,
BANK ONE, NA (MAIN OFFICE CHICAGO),
AS ADMINISTRATIVE AGENT
and
WACHOVIA BANK, N.A.
AS SYNDICATION AGENT
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BANC ONE CAPITAL MARKETS, INC.,
AS LEAD ARRANGER AND SOLE BOOK RUNNER
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SIDLEY AUSTIN BROWN & WOOD
Bank One Plaza
10 South Dearborn Street
Chicago, Illinois 60603
TABLE OF CONTENTS
PAGE
ARTICLE I DEFINITIONS............................................................................................1
1.1. Certain Defined Terms.......................................................................1
1.2. References.................................................................................19
1.3. Supplemental Disclosure....................................................................19
ARTICLE II THE CREDITS..........................................................................................19
2.1. Commitment.................................................................................19
2.2. [Reserved].................................................................................20
2.3. Required Payments; Termination.............................................................20
2.3.1. Required Payments.................................................................20
2.3.2. Termination.......................................................................20
2.4. Revolving Loans............................................................................20
2.5. Types of Advances..........................................................................20
2.6. Facility Fee; Utilization Fee; Reductions in Aggregate Commitment..........................20
2.6.1. Facility Fee......................................................................20
2.6.2. Utilization Fee...................................................................20
2.6.3. Reductions in Aggregate Commitment................................................21
2.7. Minimum Amount of Each Advance.............................................................21
2.8. Optional Principal Payments................................................................21
2.9. Method of Selecting Types and Interest Periods for New Advances............................21
2.9.1. Method of Selecting Types and Interest Periods for New Advances...................21
2.9.2. Method of Borrowing...............................................................21
2.10. Conversion and Continuation of Outstanding Advances; No Conversion or Continuation of
Eurodollar Advances After Default..........................................................22
2.11. Changes in Interest Rate, etc..............................................................23
2.12. Rates Applicable After Default.............................................................23
2.13. Method of Payment..........................................................................23
2.14. Noteless Agreement; Evidence of Indebtedness...............................................23
2.15. Telephonic Notices.........................................................................24
2.16. Interest Payment Dates; Interest and Fee Basis.............................................24
2.17. Notification of Advances, Interest Rates, Prepayments and Commitment Reductions............25
2.18. Lending Installations......................................................................25
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2.19. Non-Receipt of Funds by the Administrative Agent...........................................25
2.20. Replacement of Lender......................................................................26
2.21. [Reserved].................................................................................26
2.22. Subsidiary Borrowers.......................................................................26
2.23. Extension of Revolving Loan Termination Date...............................................27
2.24. Increase of Commitments....................................................................27
2.25. Interest...................................................................................30
ARTICLE III YIELD PROTECTION; TAXES.............................................................................30
3.1. Yield Protection...........................................................................30
3.2. Changes in Capital Adequacy Regulations....................................................31
3.3. Availability of Types of Advances..........................................................32
3.4. Funding Indemnification....................................................................32
3.5. Taxes......................................................................................32
3.6. Lender Statements; Survival of Indemnity...................................................35
3.7. Mitigation of Obligations..................................................................35
ARTICLE IV CONDITIONS PRECEDENT.................................................................................35
4.1. Initial Credit Extension...................................................................35
4.2. Each Credit Extension......................................................................37
4.3. Initial Advance to Each New Subsidiary Borrower............................................37
ARTICLE V REPRESENTATIONS AND WARRANTIES........................................................................38
5.1. Existence and Standing.....................................................................38
5.2. Authorization and Validity.................................................................38
5.3. No Conflict; Government Consent............................................................39
5.4. Financial Statements.......................................................................39
5.5. Material Adverse Change....................................................................39
5.6. Taxes......................................................................................39
5.7. Litigation and Contingent Obligations......................................................40
5.8. Subsidiaries...............................................................................40
5.9. Accuracy of Information....................................................................40
5.10. Regulation U...............................................................................40
5.11. Material Agreements........................................................................40
5.12. Compliance With Laws.......................................................................40
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5.13. Ownership of Properties....................................................................40
5.14. ERISA; Foreign Pension Matters.............................................................41
5.15. Plan Assets; Prohibited Transactions.......................................................41
5.16. Environmental Matters......................................................................41
5.17. Investment Company Act.....................................................................42
5.18. Public Utility Holding Company Act.........................................................42
5.19. Insurance..................................................................................42
5.20. Solvency...................................................................................42
ARTICLE VI COVENANTS............................................................................................42
6.1. Reporting..................................................................................42
6.2. Use of Proceeds............................................................................44
6.3. Notice of Default..........................................................................44
6.4. Conduct of Business........................................................................44
6.5. Taxes......................................................................................45
6.6. Insurance..................................................................................45
6.7. Compliance with Laws; Maintenance of Plans.................................................45
6.8. Maintenance of Properties..................................................................45
6.9. Inspection; Keeping of Books and Records...................................................45
6.10. Addition of Guarantors.....................................................................46
6.11. Subsidiary Indebtedness....................................................................46
6.12. Consolidations and Mergers; Permitted Acquisitions.........................................47
6.12.1. Consolidations and Mergers........................................................47
6.12.2. Permitted Acquisitions............................................................47
6.13. Liens......................................................................................49
6.14. Transactions with Affiliates...............................................................50
6.15. Financial Contracts........................................................................50
6.16. ERISA......................................................................................50
6.17. Environmental Compliance...................................................................51
6.18. Financial Covenants........................................................................51
6.18.1. Maximum Leverage Ratio............................................................51
6.18.2. Minimum Interest Expense Coverage Ratio...........................................51
ARTICLE VII DEFAULTS............................................................................................52
7.1. Breach of Representations or Warranties....................................................52
iii SIDLEY AUSTIN BROWN & WOOD
7.2. Failure to Make Payments When Due..........................................................52
7.3. Breach of Covenants........................................................................52
7.4. Other Breaches.............................................................................52
7.5. Default as to Other Indebtedness...........................................................53
7.6. Voluntary Bankruptcy; Appointment of Receiver; Etc.........................................53
7.7. Involuntary Bankruptcy; Appointment of Receiver; Etc.......................................53
7.8. Judgments..................................................................................53
7.9. Unfunded Liabilities.......................................................................54
7.10. Other ERISA Liabilities....................................................................54
7.11. Environmental Matters......................................................................54
7.12. Change in Control..........................................................................54
7.13. Receivables Purchase Document Events.......................................................54
7.14. Guarantor Revocation.......................................................................55
ARTICLE VIII ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES.....................................................55
8.1. Acceleration...............................................................................55
8.2. Amendments.................................................................................55
8.3. Preservation of Rights.....................................................................56
ARTICLE IX JOINT AND SEVERAL OBLIGATIONS........................................................................56
9.1. Joint and Several Liability................................................................56
9.2. Primary Obligation; Waiver of Marshalling..................................................57
9.3. Financial Condition of Borrowers...........................................................57
9.4. Continuing Liability.......................................................................57
9.5. Additional Waivers.........................................................................57
9.6. Settlements or Releases....................................................................58
9.7. No Election................................................................................58
9.8. Joint Loan Account.........................................................................58
9.9. Apportionment of Proceeds of Loans.........................................................58
9.10. The Administrative Agent and Lenders Held Harmless.........................................59
9.11. Borrowers' Integrated Operations...........................................................59
ARTICLE X GENERAL PROVISIONS....................................................................................59
10.1. Survival of Representations................................................................59
10.2. Governmental Regulation....................................................................59
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10.3. Headings...................................................................................59
10.4. Entire Agreement...........................................................................59
10.5. Several Obligations; Benefits of this Agreement............................................59
10.6. Expenses; Indemnification..................................................................60
10.7. Numbers of Documents.......................................................................61
10.8. Accounting.................................................................................61
10.9. Severability of Provisions.................................................................61
10.10. Nonliability of Lenders....................................................................61
10.11. Confidentiality............................................................................62
10.12. Lenders Not Utilizing Plan Assets..........................................................62
10.13. Nonreliance................................................................................62
10.14. Disclosure.................................................................................62
10.15. Subordination of Intercompany Indebtedness.................................................62
ARTICLE XI THE AGENTS...........................................................................................63
11.1. Appointment; Nature of Relationship........................................................63
11.2. Powers.....................................................................................64
11.3. General Immunity...........................................................................64
11.4. No Responsibility for Loans, Recitals, etc.................................................64
11.5. Action on Instructions of Lenders..........................................................65
11.6. Employment of Agents and Counsel...........................................................65
11.7. Reliance on Documents; Counsel.............................................................65
11.8. Agents' Reimbursement and Indemnification..................................................65
11.9. Notice of Default..........................................................................66
11.10. Rights as a Lender.........................................................................66
11.11. Lender Credit Decision.....................................................................66
11.12. Successor Agents...........................................................................66
11.13. Agent and Arranger Fees....................................................................67
11.14. Delegation to Affiliates...................................................................67
11.15. Release of Guarantors......................................................................67
ARTICLE XII SETOFF; RATABLE PAYMENTS............................................................................68
12.1. Setoff.....................................................................................68
12.2. Ratable Payments...........................................................................68
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ARTICLE XIII BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS..................................................68
13.1. Successors and Assigns; Designated Lenders.................................................68
13.1.1. Successors and Assigns............................................................68
13.1.2. Designated Lenders................................................................69
13.2. Participations.............................................................................70
13.2.1. Permitted Participants; Effect....................................................70
13.2.2. Voting Rights.....................................................................70
13.2.3. Benefit of Setoff.................................................................70
13.3. Assignments................................................................................71
13.3.1. Permitted Assignments.............................................................71
13.3.2. Effect; Effective Date............................................................71
13.3.3. The Register......................................................................72
13.4. Dissemination of Information...............................................................72
13.5. Tax Treatment..............................................................................72
ARTICLE XIV NOTICES.............................................................................................72
14.1. Notices....................................................................................72
14.2. Change of Address..........................................................................73
ARTICLE XV COUNTERPARTS.........................................................................................73
ARTICLE XVI CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL........................................73
16.1. CHOICE OF LAW..............................................................................73
16.2. CONSENT TO JURISDICTION....................................................................73
16.3. WAIVER OF JURY TRIAL.......................................................................74
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EXHIBITS
Exhibit A - Forms of Opinions
Exhibit B - Form of Compliance Certificate
Exhibit C - Form of Assignment Agreement
Exhibit D - Form of Loan/Credit Related Money Transfer Instruction
Exhibit E - Form of Promissory Note (if requested)
Exhibit F - List of Closing Documents
Exhibit G - Form of Designation Agreement
Exhibit H - Form of Guaranty
Exhibit I - Form of Assumption Letter
Exhibit J - Form of Commitment and Acceptance
SCHEDULES
Pricing Schedule
Commitment Schedule
Schedule 1.1 - Subsidiary Borrowers
Schedule 5.5 - Certain Disclosures
Schedule 5.8 - Subsidiaries
Schedule 5.16 - Environmental Matters
Schedule 6.11 - Existing Indebtedness
Schedule 6.13 - Existing Liens
vii SIDLEY AUSTIN BROWN & WOOD
364-DAY REVOLVING CREDIT AGREEMENT
This 364-Day Revolving Credit Agreement, dated as of April 8, 2002, is among ACUITY BRANDS, INC., a Delaware corporation, ACUITY LIGHTING GROUP, INC., a Delaware corporation, ACUITY SPECIALTY PRODUCTS GROUP, INC., a Delaware corporation, and one or more other Subsidiary Borrowers from time to time parties hereto (whether now existing or hereafter formed), the institutions from time to time parties hereto as Lenders (whether by execution of this Agreement or an assignment pursuant to Section 13.3), BANK ONE, NA, a national banking association having its principal office in Chicago, Illinois, as Administrative Agent and WACHOVIA BANK, N.A., as Syndication Agent. The parties hereto agree as follows:
ARTICLE I
DEFINITIONS
1.1. CERTAIN DEFINED TERMS. As used in this Agreement:
"ACCOUNTING CHANGES" is defined in Section 10.8 hereof.
"ACQUISITION" means any transaction, or any series of related transactions, consummated on or after the Closing Date, by which the Company or any of its Subsidiaries (i) acquires any going business or all or substantially all of the assets of any firm, corporation or limited liability company, or division thereof, whether through purchase of assets, merger or otherwise or (ii) directly or indirectly acquires (in one transaction or as the most recent transaction in a series of transactions) at least a majority (in number of votes) of the securities of a corporation which have ordinary voting power for the election of directors (other than securities having such power only by reason of the happening of a contingency) or a majority (by percentage of voting power) of the outstanding ownership interests of a partnership, limited liability company or any Person.
"ADMINISTRATIVE AGENT" means Bank One in its capacity as contractual representative of the Lenders pursuant to Article XI, and not in its individual capacity as a Lender, and any successor Administrative Agent appointed pursuant to Article XI.
"ADVANCE" means a borrowing hereu ...
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