01-16583 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||
• | Options to purchase 200,000 shares of Company stock that will vest ratably over a three-year period and expire after ten years. |
• | Options to purchase 200,000 shares of Company stock with an exercise price equivalent to the greater of (x) 108% of the market value of a share of the Company’s common stock on the date of grant and (y) a value equal to the market value of a share of the Company’s common stock on the date of grant plus $10. These options will vest ratably over a three-year period and expire after ten years. |
• | Options to purchase 100,000 shares of Company stock with two independent conditions to exercisability: (1) four-year ratable vesting and (2) the closing price of the Company’s stock price reaching $225 and remaining at or above $225 for 10 consecutive trading days at any time following the grant date. These options expire after ten years. |
• | Options to purchase 225,000 shares of Company stock with two independent conditions to exercisability: (1) four-year ratable vesting and (2) the closing price of the Company’s stock price reaching $275 and remaining at or above $275 for 10 consecutive trading days. These options expire after ten years. |
• | Options to purchase an additional number of shares of the Company’s stock calculated such that cumulatively all five tranches of option grants would give Mr. Ashe a carried interest of approximately 2% in the value created for the Company’s stockholders if the Company’s stock price increased from the closing price of Company stock on the Initial Grant Date to an amount above $275 (provided that the number of shares subject to this last tranche of stock options would be capped at 175,000). These options will have two independent conditions to exercisability: (1) four-year ratable vesting and (2) the closing price of the Company’s stock price reaching $225 and remaining at or above $225 for 10 consecutive trading days. These options expire after ten years. |
(d) | Exhibits |
Exhibit No. | Description | |
10.1 | Employment Letter between Acuity Brands, Inc. and Neil M. Ashe, dated January 9, 2020 | |
10.2 | Form of Nonqualified Stock Option Award Agreement (options subject only to time-based conditions) | |
10.3 | Form of Nonqualified Stock Option Award Agreement (options subject to time-based and share price performance conditions) | |
10.4 | Form of Severance Agreement | |
10.5 | Form of Change in Control Agreement | |
10.6 | Form of Indemnification Agreement (Incorporated by reference to Exhibit 10.1 to the registrant’s Form 8-K filed with the Securities and Exchange Commission on February 9, 2010) | |
99.1 | Press release dated January 8, 2020 | |
104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |
ACUITY BRANDS, INC. | ||
By: | /s/ Karen J. Holcom | |
Karen J. Holcom | ||
Senior Vice President and Chief Financial Officer |
EXHIBIT INDEX | ||
10.1 | (Filed with the Commission as part of this Form 8-K). | |
10.2 | (Filed with the Commission as part of this Form 8-K). | |
10.3 | (Filed with the Commission as part of this Form 8-K). | |
10.4 | (Filed with the Commission as part of this Form 8-K). | |
10.5 | (Filed with the Commission as part of this Form 8-K). | |
10.6 | (Incorporated by reference to Exhibit 10.1 to the registrant’s Form 8-K filed with the Securities and Exchange Commission on February 9, 2010) | |
99.1 | (Filed with the Commission as part of this Form 8-K). | |
104 | Cover Page Interactive Data File (embedded within the inline XBRL document) | (Filed with the Commission as part of this Form 8-K). |
Vernon J. Nagel Chairman & Chief Executive Officer | Acuity Brands, Inc. 1170 Peachtree Street, N.E. Suite 2300 Atlanta, GA 30309-7676 | |
Vern.Nagel@acuitybrands.com www.AcuityBrands.com |
/s/ Neil M. Ashe Neil M. Ashe | 1/8/2020 Date |
Optionee: Grant Type: Grant ID: Grant Date: Award Amount: Option Price: Vest Schedule: Grantee Level: Accept by Date: | /$ParticipantName$/ /$GrantType$/ /$GrantID$/ /$GrantDate$/ /$AwardsGranted$/ /$GrantPrice$/ /$VestingDescription$/ /$UserCode2$/ (See Exhibit A for Share Ownership Requirement) /$AcceptByDate$/ |
1. | Incorporation of the Plan. |
2. | Grant of Option. |
3. | Acceptance of Nonqualified Stock Option. |
4. | Option Price. |
5. | Duration of Option. |
6. | Vesting and Exercisability of Option. |
7. | Manner of Exercise and Payment. |
8. | Termination of Employment. |
9. | Effect of Change in Control. |
10. | Transferability. |
11. | Recoupment. |
12. | No Right to Continued Employment or Additional Grants. |
13. | Adjustments. |
14. | Responsibility for Taxes. |
15. | No Advice Regarding Grant. |
16. | Insider Trading/Market Abuse Restrictions. |
17. | Electronic Delivery and Acceptance. |
18. | Imposition of Other Requirements. |
19. | Governing Law and Venue. |
20. | Severability. |
21. | Waiver. |
22. | Pronouns; Including. |
23. | Successors in Interest. |
24. | Modification of Agreement. |
25. | Integration. |
26. | Interpretation. |
Grantee Level | Ownership Multiple of Annual Base Salary | Retention Requirement Percentage |
0 | 4 | 50% |
1 | 3 | 40% |
2 | 2 | 35% |
3 | 1 | 30% |
4 or 5 | 0.5 | 20% |
6 or 7 | 0 | 0% |
1. | Definitions. |
A. | “Confidential Information” “Confidential Information” means the following: |
i. | data and information relating to the Company’s Business (as defined herein); which is disclosed to Optionee or of which Optionee became aware of as a consequence of Optionee’s relationship with the Company; has value to the Company; is not generally known to the competitors of the Company; and which includes trade secrets, methods of operation, names of customers, price lists, financial information and projections, personnel data, and similar information. For purposes of the Confidentiality, Inventions, Non-Solicitation and Non-Competition Provisions (the “Confidentiality Provisions”), subject to the foregoing, and according to terminology commonly used by the Company, the Company’s Confidential Information shall include, but not be limited to, information pertaining to: (1) business opportunities; (2) data and compilations of data relating to the Company’s Business; (3) compilations of information about, and communications and agreements with, customers and potential customers of the Company; (4) computer software, hardware, network and internet technology utilized, modified or enhanced by the Company or by Optionee in furtherance of Optionee’s duties with the Company; (5) compilations of data concerning Company products, services, customers, and end users including but not limited to compilations concerning projected sales, new project timelines, inventory reports, sales, and cost and expense reports; (6) compilations of information about the Company’s employees and independent contracting consultants; (7) the Company’s financial information, including, without limitation, amounts charged to customers and amounts charged to the Company by its vendors, suppliers, and service providers; (8) proposals submitted to the Company’s customers, potential customers, wholesalers, distributors, vendors, suppliers and service providers; (9) the Company’s marketing strategies and compilations of marketing data; (10) compilations of data or information concerning, and communications and agreements with, vendors, suppliers and licensors to the Company and other sources of technology, products, services or components used in the Company’s Business; (11) any information concerning services requested and services performed on behalf of customers of the Company, including planned products or services; and (12) the Company’s research and development records and data. Confidential Information also includes any summary, extract or analysis of such information together with information that has been received or disclosed to the Company by any third party as to which the Company has an obligation to treat as confidential. |
ii. | Confidential Information shall not include: |
a) | Information generally available to the public other than as a result of improper disclosure by Optionee; |
b) | Information that becomes available to Optionee from a source other than the Company (provided Optionee has no knowledge that such information was obtained from a source in breach of a duty to the Company); |
c) | Information disclosed pursuant to law, regulations or pursuant to a subpoena, court order or legal process; and/or |
d) | Information obtained in filings with the Securities and Exchange Commission. |
B. | “Trade Secrets” has the meaning set forth under Georgia law, O.C.G.A. §§ 10-1-760, et seq. |
C. | “Customers” means those entities and/or individuals which are customers of the Company and/or its affiliates with respect to which, within the two-year period preceding the Date of Termination |
D. | “Company” means Acuity Brands, Inc., along with its Subsidiaries or other Affiliates. |
E. | “Company’s Business” means the design, manufacture, installation, servicing, and/or sale of one or more of the following and any related products and/or services: lighting fixtures and systems; lighting control components and systems (including but not limited to dimmers, switches, relays, programmable lighting controllers, sensors, timers, and range extenders for lighting and energy management and other purposes); building management and/or control systems; commercial building lighting controls; intelligent building automation and energy management products, software and solutions; motorized shading and blind controls; building security and access control and monitoring for fire and life safety; emergency lighting fixtures and systems (including but not limited to exit signs, emergency light units, inverters, back-up power battery packs, and combinations thereof); battery powered and/or photovoltaic lighting fixtures; electric lighting track units; hardware for mounting and hanging electrical lighting fixtures; aluminum, steel and fiberglass fixture poles for electric lighting; light fixture lenses; sound and electromagnetic wave receivers and transmitters; flexible and modular wiring systems and components (namely, flexible branch circuits, attachment plugs, receptacles, connectors and fittings); LED drivers and other power supplies; daylighting systems including but not limited to prismatic skylighting and related controls; organic LED products and technology; medical and patient care lighting devices and systems; indoor positioning products and technology; software and hardware solutions that collect data about building and business operations and occupant activities via sensors and use that data to provide software services or data analytics; sensor based information networks; and any wired or wireless communications and monitoring hardware or software related to any of the above. This shall not include any product or service of the Company if the Company is no longer in the business of providing such product or service to its customers at the relevant time of enforcement. |
F. | “Employee Services” shall mean the duties and services of the type conducted, authorized, offered, or provided by Optionee in his/her capacity as an Employee on behalf of the Company within twelve (12) months prior to the Date of Termination. |
G. | “Territory” means the United States, Canada and Mexico. Executive acknowledges that the Company is licensed to do business and in fact does business in all fifty states in the United States. Executive further acknowledges that the services he has performed and may continue to perform on behalf of the Company or its affiliates, including executive services, are at a senior managerial level and are not limited in their territorial scope to any particular city, state, or region, but instead affect the Company's activity within the entire United States. Specifically, Executive provides executive services on the Company's behalf, travels throughout the United States to attend Company meetings, visit Company factories and distribution centers, meet with Company agents and distributors, and attend trade shows. Accordingly, Executive agrees that these restrictions are reasonable and necessary to protect the Confidential Information, trade secrets, business relationships, and goodwill of the Company. |
H. | “Material Contact” shall have the meaning set forth in O.C.G.A. § 13-8-51(10), which includes contact between an employee and each Customer or potential Customer: with whom or which Optionee dealt on behalf of the Company; whose dealings with the Company were coordinated or supervised by Optionee; about whom Optionee obtained confidential information in the ordinary course of business as a result of such employee’s association with the Company; and/or who receives products or services authorized by the Company, the sale or provision of which results or resulted in compensation, commissions, or earnings for Optionee within two years prior to the Date of Termination. |
I. | “Termination for Cause” or “Terminated for Cause” shall mean the involuntary termination of Optionee by the Company for the following reasons: |
i. | If termination shall have been the result of an act or acts by Optionee which constitute an indictable offense, a felony or any crime involving dishonesty, theft, fraud or moral turpitude; |
ii. | If termination shall have been the result of an act or acts by Optionee which are determined, in the good faith judgment of the Company, to be in violation of written policies of the Company; |
iii. | If termination shall have been the result of an act or acts of dishonesty by Optionee resulting or intended to result directly or indirectly in gain or personal enrichment to Optionee at the expense of the Company; |
iv. | Upon the willful and continued failure by Optionee to substantially perform the duties assigned to Optionee (other than any such failure resulting from incapacity due to mental or physical illness constituting a Disability), after a demand in writing for substantial performance of such duties is delivered by the Company, which demand specifically identifies the manner in which the Company believes that Optionee has not substantially performed his or her duties; or |
v. | If termination shall have been the result of the unauthorized disclosure by Optionee of the Company’s Confidential Information or violation of any other provision of the Confidentiality Provisions. |
J. | “Inventions” and “Works For Hire.” The term “Invention” means contributions, discoveries, improvements and ideas and works of authorship, whether or not patentable or copyrightable, and: (i) which relate directly to the Company’s Business, or (ii) which result from any work performed by Optionee or by Optionee’s fellow employees for the Company, or (iii) for which equipment, supplies, facilities, Confidential Information or Trade Secrets of the Company are used, or (iv) which is developed on the Company’s time. The term “Works For Hire” (“Works”) means all documents, programs, software, creative works and other expressions and information in any tangible medium created, in whole or in part, by Optionee during the period of and relating to his/her employment with the Company, whether copyrightable or otherwise protectable, other than Inventions. |
2. | Confidentiality, Inventions, Non-Solicitation and Non-Competition. |
A. | Purpose and Reasonableness of Provisions. Optionee acknowledges that, during the term of his/her employment with the Company and after the Date of Termination, the Company has furnished and may continue to furnish to Optionee Trade Secrets and Confidential Information, which, if used by Optionee on behalf of, or disclosed to, a competitor of the Company or other person, could cause substantial detriment to the Company. Moreover, the parties recognize that Optionee, during the term of his/her employment with the Company, has developed important relationships with customers, agents, and others having valuable business relationships with the Company, and that these relationships may continue to develop after the Date of Termination. In view of the foregoing, Optionee acknowledges and agrees that the restrictive covenants contained in this Section 2 are reasonably necessary to protect the Company’s legitimate business interests, Confidential Information, and good will. |
B. | Trade Secrets and Confidential Information. Optionee agrees that he/she shall protect the Company’s Trade Secrets (as defined in Section 1(b) above) and Confidential Information (as defined in Section 1(a) above) and shall not disclose to any person or entity, or otherwise use or disseminate, except in connection with the performance of his/her duties for the Company, any Trade Secrets or Confidential Information. However, Optionee may make disclosures required by a valid order or subpoena issued by a court or administrative agency of competent jurisdiction, in which event Optionee will promptly notify the Company of such order or subpoena to provide it an opportunity to protect its interests. Optionee’s obligations under this Section 2(b) have applied throughout his/her active employment, shall continue after the Date of Termination, and shall |
C. | Return of Property. On the Date of Termination (or earlier, upon request of the Company), Optionee agrees to deliver promptly to the Company all files, customer lists, management reports, memoranda, research, Company forms, financial data and reports and other documents (including all such data and documents in electronic form) of the Company, supplied to or created by him/her in connection with his/her employment hereunder (including all copies of the foregoing) in his/her possession or control, and all of the Company’s equipment and other materials in his/her possession or control. Optionee further agrees and covenants not to retain any such property and to permanently delete such information residing in electronic format to the best of his/her ability and not to attempt to retrieve it. Optionee’s obligations under this Section 2(c) shall survive any expiration or termination of the Confidentiality Provisions. |
D. | Inventions. Optionee does hereby assign to the Company the entire right, title and interest in any Invention which is or was made or conceived, either solely or jointly with others, during his/her employment with the Company, including after the Date of Termination. Optionee attests that he/she has disclosed (or promptly will disclose, if after the Date of Termination) to the Company all such Inventions. Optionee will, if requested, promptly execute and deliver to the Company a specific assignment of title for any such Invention and will at the expense of the Company, take all reasonably required action by the Company to patent, copyright or otherwise protect the Invention. |
E. | Non-Competition. Optionee acknowledges and agrees that during his/her employment, and for twelve (12) months after the Date of Termination, he/she has not and will not, directly or indirectly, engage in, provide, or perform any Employee Services on behalf of any person or entity (or, if organized into divisions or units, any distinct division or operating unit) in the Territory that derives revenue from providing goods or services substantially similar to those which comprise the Company’s Business. Notwithstanding the foregoing, if the Company terminates Optionee’s employment for any reason other than a Termination for Cause (including, for example, as a result of a position elimination), and Optionee signs a Confidential Severance Agreement and Release offered by the Company, the period covered by this non-competition covenant will be reduced to either: (i) the time within which severance payments are scheduled to be paid to |
F. | Non-Solicitation of Customers. Optionee acknowledges and agrees that during his/her employment, and for twenty-four (24) months after the Date of Termination, Optionee has not and will not directly or indirectly solicit Customers (as defined in Section 1(c) above) with whom he/she had Material Contact (as defined in 1(g) above) for the purpose of providing goods and/or services competitive with the Company’s Business. Notwithstanding the foregoing, this Section shall not prevent Optionee, during the course of the restricted period referenced above, from soliciting a person or entity that has since discontinued all business communications with the Company. |
G. | Non-Solicitation of Employees and Agents. Optionee acknowledges and agrees that during his/her employment, and for a period of twenty-four (24) months after the Date of Termination, Optionee has not and will not, directly or indirectly, whether on behalf of Optionee or others, solicit, lure or attempt to hire away any of the Company’s employees or agents. |
H. | Non-Solicitation of Sales Agents. Optionee acknowledges and agrees that during his/her employment, and for a period of twenty-four (24) months after the Date of Termination, Optionee has not and will not, directly or indirectly, whether on behalf of Optionee or others, solicit any of the Company’s Sales Agents for the purpose of disrupting their relationship with the Company and/or selling and/or facilitating the sale of products competitive with the Company’s Business. For purposes of this Section 2, a “Sales Agent” is any third-party agency, and/or its representatives, with which or whom the Company has contracted for the purpose of facilitating the sale of the Company’s products during the last twenty-four (24) months of Optionee’s employment with the Company. |
I. | Injunctive Relief. Optionee acknowledges that if he/she breaches or threatens to breach any of the provisions of this Section 2, his/her actions may cause irreparable harm and damage to the Company which could not be compensated in damages. Accordingly, if Optionee breaches or threatens to breach any of the provisions of this Section 2, the Company shall be entitled to seek injunctive relief, in addition to any other rights or remedies the Company may have. The existence of any claim or cause of action by Optionee against the Company, whether predicated on the Confidentiality Provisions or otherwise, shall not constitute a defense to the enforcement by the Company of Optionee’s agreements under this Section 2. |
3. | Non-Assignable by Optionee. The parties acknowledge that the Confidentiality Provisions have been entered into due to, among other things, the special skills and knowledge of Optionee, and agree that the Confidentiality Provisions may not be assigned or transferred by Optionee. |
4. | Notices. All notices, requests, demands and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given when delivered or seven days after mailing if mailed first class, certified mail, postage prepaid, addressed as follows: |
5. | Provisions Severable. If any provision or covenant, or any part thereof, contained in the Confidentiality Provisions is held by any court to be invalid, illegal, or unenforceable, either in whole or in part, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of the remaining provisions or covenants, or any part thereof, in the Confidentiality Provisions, all of which shall remain in full force and effect. Each and every provision, paragraph and subparagraph of Section 2 above is severable from the other provisions, paragraphs and subparagraphs and constitutes a separate and distinct covenant. |
6. | Waiver. Failure of either party to insist, in one or more instances, on performance by the other in strict accordance with the terms and conditions of the Confidentiality Provisions shall not be deemed a waiver or relinquishment of any right granted in the Confidentiality Provisions or the future performance of any such term or condition or of any other term or condition of the Confidentiality Provisions, unless such waiver is contained in a writing signed by the party making the waiver. |
7. | Amendments and Modifications. The Confidentiality Provisions and any Exhibit hereto may be amended or modified only by a writing signed by both parties hereto, which makes specific reference to the Confidentiality Provisions. However, this Section does not affect a court of competent jurisdiction or arbitrator`s ability to modify the Confidentiality Provisions, pursuant to O.C.G.A. §§ 13-8-51(11); 53(d); or 54 in the event that either party initiates legal proceedings that relate in any way to this Confidentiality Provisions, including any action brought by either party seeking to enforce any provision set forth herein. |
8. | Governing Law and Venue. The validity and effect of the Confidentiality Provisions shall be governed by and construed and enforced in accordance with the laws of the State of Georgia, United States of America, without regard to its conflict of law provisions. Any and all disputes relating to, concerning or arising from the Confidentiality Provisions, or relating to, concerning or arising from the relationship between the parties evidenced by the Confidentiality Provisions, shall be brought and heard exclusively in the U.S. District Court for the District of Delaware or the Delaware Superior Court, New Castle County. Each of the parties hereby represents and agrees that such party is subject to the personal jurisdiction of said courts; hereby irrevocably consents to the jurisdiction of such courts in any legal or equitable proceedings related to, concerning or arising from such dispute, and waives, to the fullest extent permitted by law, any objection which such party may now or hereafter have that the laying of the venue of any legal or equitable proceedings related to, concerning or arising from such dispute which is brought in such courts is improper or that such proceedings have been brought in an inconvenient forum. |
9. | Legal Fees. Each party shall pay its own legal fees and other expenses associated with any dispute under the Confidentiality Provisions or any Exhibit hereto. |
10. | Forfeiture/Clawback. Notwithstanding anything contained in this Agreement to the contrary, if Optionee violates any restriction in Section 2 of the Confidentiality Provisions (i) Optionee shall pay to the Company in cash any financial gain realized from exercising all or a portion of this Option within the 12-month period immediately preceding such wrongful conduct and (ii) all remaining outstanding vested and unvested Options shall immediately be forfeited. For purposes of this Paragraph 10, financial gain shall equal, on each date of exercise during the 12-month period immediately preceding such wrongful conduct, the difference between the fair market value of the Common Stock on the date of exercise and |
11. | Tolling Period. If Optionee is found by a court to have violated any restriction in Section 2 of the Confidentiality Provisions, he/she agrees that the time period for such restriction shall be extended by one day for each day that he/she is found to have violated the restriction, up to a maximum of 18 months. |
Optionee: Grant Type: Grant ID: Grant Date: Award Amount: Option Price: Vest Schedule: Grantee Level: Accept by Date: | /$ParticipantName$/ /$GrantType$/ /$GrantID$/ /$GrantDate$/ /$AwardsGranted$/ /$GrantPrice$/ /$VestingDescription$/ (See Exhibit A Vesting Schedule) /$UserCode2$/ (See Exhibit B for Share Ownership Requirement) /$AcceptByDate$/ |
1. | Incorporation of the Plan. |
2. | Grant of Option. |
3. | Acceptance of Nonqualified Stock Option. |
4. | Option Price. |
5. | Duration of Option. |
6. | Vesting and Exercisability of Option. |
7. | Manner of Exercise and Payment. |
8. | Termination of Employment. |
9. | Effect of Change in Control. |
10. | Transferability. |
11. | Recoupment. |
12. | No Right to Continued Employment or Additional Grants. |
13. | Adjustments. |
14. | Responsibility for Taxes. |
15. | No Advice Regarding Grant. |
16. | Insider Trading/Market Abuse Restrictions. |
17. | Electronic Delivery and Acceptance. |
18. | Imposition of Other Requirements. |
19. | Governing Law and Venue. |
20. | Severability. |
21. | Waiver. |
22. | Pronouns; Including. |
23. | Successors in Interest. |
24. | Modification of Agreement. |
25. | Integration. |
26. | Interpretation. |
1. | 4-year ratable vesting from the Grant Date as follows, subject to the Share Price Vesting Condition: options to purchase ____ shares vest on the first anniversary of grant date; options to purchase ____ shares vest on the second anniversary of grant date; options to purchase ____ shares vest on the third anniversary of grant date; and options to purchase ____ shares vest on the fourth anniversary of grant date. |
2. | The closing share price of the Company’s Shares reaching $225 and remaining at or above $225 for 10 consecutive trading days at any time following the Grant Date (the “Share Price Vesting Condition”). |
Grantee Level | Ownership Multiple of Annual Base Salary | Retention Requirement Percentage |
0 | 4 | 50% |
1 | 3 | 40% |
2 | 2 | 35% |
3 | 1 | 30% |
4 or 5 | 0.5 | 20% |
6 or 7 | 0 | 0% |
1. | Definitions. |
A. | “Confidential Information” “Confidential Information” means the following: |
i. | data and information relating to the Company’s Business (as defined herein); which is disclosed to Optionee or of which Optionee became aware of as a consequence of Optionee’s relationship with the Company; has value to the Company; is not generally known to the competitors of the Company; and which includes trade secrets, methods of operation, names of customers, price lists, financial information and projections, personnel data, and similar information. For purposes of the Confidentiality, Inventions, Non-Solicitation and Non-Competition Provisions (the “Confidentiality Provisions”), subject to the foregoing, and according to terminology commonly used by the Company, the Company’s Confidential Information shall include, but not be limited to, information pertaining to: (1) business opportunities; (2) data and compilations of data relating to the Company’s Business; (3) compilations of information about, and communications and agreements with, customers and potential customers of the Company; (4) computer software, hardware, network and internet technology utilized, modified or enhanced by the Company or by Optionee in furtherance of Optionee’s duties with the Company; (5) compilations of data concerning Company products, services, customers, and end users including but not limited to compilations concerning projected sales, new project timelines, inventory reports, sales, and cost and expense reports; (6) compilations of information about the Company’s employees and independent contracting consultants; (7) the Company’s financial information, including, without limitation, amounts charged to customers and amounts charged to the Company by its vendors, suppliers, and service providers; (8) proposals submitted to the Company’s customers, potential customers, wholesalers, distributors, vendors, suppliers and service providers; (9) the Company’s marketing strategies and compilations of marketing data; (10) compilations of data or information concerning, and communications and agreements with, vendors, suppliers and licensors to the Company and other sources of technology, products, services or components used in the Company’s Business; (11) any information concerning services requested and services performed on behalf of customers of the Company, including planned products or services; and (12) the Company’s research and development records and data. Confidential Information also includes any summary, extract or analysis of such information together with information that has been received or disclosed to the Company by any third party as to which the Company has an obligation to treat as confidential. |
ii. | Confidential Information shall not include: |
a) | Information generally available to the public other than as a result of improper disclosure by Optionee; |
b) | Information that becomes available to Optionee from a source other than the Company (provided Optionee has no knowledge that such information was obtained from a source in breach of a duty to the Company); |
c) | Information disclosed pursuant to law, regulations or pursuant to a subpoena, court order or legal process; and/or |
d) | Information obtained in filings with the Securities and Exchange Commission. |
B. | “Trade Secrets” has the meaning set forth under Georgia law, O.C.G.A. §§ 10-1-760, et seq. |
C. | “Customers” means those entities and/or individuals which are customers of the Company and/or its affiliates with respect to which, within the two-year period preceding the Date of Termination (as that term is defined this Agreement): (i) Optionee had material contact on behalf of the Company; (ii) about whom Optionee acquired, directly or indirectly, Confidential Information or Trade Secrets as a result of his/her employment with the Company; and/or (iii) Optionee exercised oversight or responsibility of subordinates who engaged in Material Contact on behalf of the Company. |
D. | “Company” means Acuity Brands, Inc., along with its Subsidiaries or other Affiliates. |
E. | “Company’s Business” means the design, manufacture, installation, servicing, and/or sale of one or more of the following and any related products and/or services: lighting fixtures and systems; lighting control components and systems (including but not limited to dimmers, switches, relays, programmable lighting controllers, sensors, timers, and range extenders for lighting and energy management and other purposes); building management and/or control systems; commercial building lighting controls; intelligent building automation and energy management products, software and solutions; motorized shading and blind controls; building security and access control and monitoring for fire and life safety; emergency lighting fixtures and systems (including but not limited to exit signs, emergency light units, inverters, back-up power battery packs, and combinations thereof); battery powered and/or photovoltaic lighting fixtures; electric lighting track units; hardware for mounting and hanging electrical lighting fixtures; aluminum, steel and fiberglass fixture poles for electric lighting; light fixture lenses; sound and electromagnetic wave receivers and transmitters; flexible and modular wiring systems and components (namely, flexible branch circuits, attachment plugs, receptacles, connectors and fittings); LED drivers and other power supplies; daylighting systems including but not limited to prismatic skylighting and related controls; organic LED products and technology; medical and patient care lighting devices and systems; indoor positioning products and technology; software and hardware solutions that collect data about building and business operations and occupant activities via sensors and use that data to provide software services or data analytics; sensor based information networks; and any wired or wireless communications and monitoring hardware or software related to any of the above. This shall not include any product or service of the Company if the Company is no longer in the business of providing such product or service to its customers at the relevant time of enforcement. |
F. | “Employee Services” shall mean the duties and services of the type conducted, authorized, offered, or provided by Optionee in his/her capacity as an Employee on behalf of the Company within twelve (12) months prior to the Date of Termination. |
G. | “Territory” means the United States, Canada and Mexico. Executive acknowledges that the Company is licensed to do business and in fact does business in all fifty states in the United States. Executive further acknowledges that the services he has performed and may continue to perform on behalf of the Company or its affiliates, including executive services, are at a senior managerial level and are not limited in their territorial scope to any particular city, state, or region, but instead affect the Company's activity within the entire United States. Specifically, Executive provides executive services on the Company's behalf, travels throughout the United States to attend Company meetings, visit Company factories and distribution centers, meet with Company agents and distributors, and attend trade shows. Accordingly, Executive agrees that these restrictions are reasonable and necessary to protect the Confidential Information, trade secrets, business relationships, and goodwill of the Company. |
H. | “Material Contact” shall have the meaning set forth in O.C.G.A. § 13-8-51(10), which includes contact between an employee and each Customer or potential Customer: with whom or which Optionee dealt on behalf of the Company; whose dealings with the Company were coordinated or supervised by Optionee; about whom Optionee obtained confidential information in the ordinary course of business as a result of such employee’s association with the Company; and/or who receives products or services authorized by the Company, the sale or provision of which results or |
I. | “Termination for Cause” or “Terminated for Cause” shall mean the involuntary termination of Optionee by the Company for the following reasons: |
i. | If termination shall have been the result of an act or acts by Optionee which constitute an indictable offense, a felony or any crime involving dishonesty, theft, fraud or moral turpitude; |
ii. | If termination shall have been the result of an act or acts by Optionee which are determined, in the good faith judgment of the Company, to be in violation of written policies of the Company; |
iii. | If termination shall have been the result of an act or acts of dishonesty by Optionee resulting or intended to result directly or indirectly in gain or personal enrichment to Optionee at the expense of the Company; |
iv. | Upon the willful and continued failure by Optionee to substantially perform the duties assigned to Optionee (other than any such failure resulting from incapacity due to mental or physical illness constituting a Disability), after a demand in writing for substantial performance of such duties is delivered by the Company, which demand specifically identifies the manner in which the Company believes that Optionee has not substantially performed his or her duties; or |
v. | If termination shall have been the result of the unauthorized disclosure by Optionee of the Company’s Confidential Information or violation of any other provision of the Confidentiality Provisions. |
J. | “Inventions” and “Works For Hire.” The term “Invention” means contributions, discoveries, improvements and ideas and works of authorship, whether or not patentable or copyrightable, and: (i) which relate directly to the Company’s Business, or (ii) which result from any work performed by Optionee or by Optionee’s fellow employees for the Company, or (iii) for which equipment, supplies, facilities, Confidential Information or Trade Secrets of the Company are used, or (iv) which is developed on the Company’s time. The term “Works For Hire” (“Works”) means all documents, programs, software, creative works and other expressions and information in any tangible medium created, in whole or in part, by Optionee during the period of and relating to his/her employment with the Company, whether copyrightable or otherwise protectable, other than Inventions. |
2. | Confidentiality, Inventions, Non-Solicitation and Non-Competition. |
A. | Purpose and Reasonableness of Provisions. Optionee acknowledges that, during the term of his/her employment with the Company and after the Date of Termination, the Company has furnished and may continue to furnish to Optionee Trade Secrets and Confidential Information, which, if used by Optionee on behalf of, or disclosed to, a competitor of the Company or other person, could cause substantial detriment to the Company. Moreover, the parties recognize that Optionee, during the term of his/her employment with the Company, has developed important relationships with customers, agents, and others having valuable business relationships with the Company, and that these relationships may continue to develop after the Date of Termination. In view of the foregoing, Optionee acknowledges and agrees that the restrictive covenants contained in this Section 2 are reasonably necessary to protect the Company’s legitimate business interests, Confidential Information, and good will. |
B. | Trade Secrets and Confidential Information. Optionee agrees that he/she shall protect the Company’s Trade Secrets (as defined in Section 1(b) above) and Confidential Information (as defined in Section 1(a) above) and shall not disclose to any person or entity, or otherwise use or disseminate, except in connection with the performance of his/her duties for the Company, any Trade Secrets or Confidential Information. However, Optionee may make disclosures required by a valid order or subpoena issued by a court or administrative agency of competent jurisdiction, in which event Optionee will promptly notify the Company of such order or subpoena to provide it an |
C. | Return of Property. On the Date of Termination (or earlier, upon request of the Company), Optionee agrees to deliver promptly to the Company all files, customer lists, management reports, memoranda, research, Company forms, financial data and reports and other documents (including all such data and documents in electronic form) of the Company, supplied to or created by him/her in connection with his/her employment hereunder (including all copies of the foregoing) in his/her possession or control, and all of the Company’s equipment and other materials in his/her possession or control. Optionee further agrees and covenants not to retain any such property and to permanently delete such information residing in electronic format to the best of his/her ability and not to attempt to retrieve it. Optionee’s obligations under this Section 2(c) shall survive any expiration or termination of the Confidentiality Provisions. |
D. | Inventions. Optionee does hereby assign to the Company the entire right, title and interest in any Invention which is or was made or conceived, either solely or jointly with others, during his/her employment with the Company, including after the Date of Termination. Optionee attests that he/she has disclosed (or promptly will disclose, if after the Date of Termination) to the Company all such Inventions. Optionee will, if requested, promptly execute and deliver to the Company a specific assignment of title for any such Invention and will at the expense of the Company, take all reasonably required action by the Company to patent, copyright or otherwise protect the Invention. |
E. | Non-Competition. Optionee acknowledges and agrees that during his/her employment, and for twelve (12) months after the Date of Termination, he/she has not and will not, directly or indirectly, engage in, provide, or perform any Employee Services on behalf of any person or entity (or, if organized into divisions or units, any distinct division or operating unit) in the Territory that derives revenue from providing goods or services substantially similar to those which comprise the Company’s Business. Notwithstanding the foregoing, if the Company terminates Optionee’s employment for any reason other than a Termination for Cause (including, for example, as a result of a position elimination), and Optionee signs a Confidential Severance Agreement and |
F. | Non-Solicitation of Customers. Optionee acknowledges and agrees that during his/her employment, and for twenty-four (24) months after the Date of Termination, Optionee has not and will not directly or indirectly solicit Customers (as defined in Section 1(c) above) with whom he/she had Material Contact (as defined in 1(g) above) for the purpose of providing goods and/or services competitive with the Company’s Business. Notwithstanding the foregoing, this Section shall not prevent Optionee, during the course of the restricted period referenced above, from soliciting a person or entity that has since discontinued all business communications with the Company. |
G. | Non-Solicitation of Employees and Agents. Optionee acknowledges and agrees that during his/her employment, and for a period of twenty-four (24) months after the Date of Termination, Optionee has not and will not, directly or indirectly, whether on behalf of Optionee or others, solicit, lure or attempt to hire away any of the Company’s employees or agents. |
H. | Non-Solicitation of Sales Agents. Optionee acknowledges and agrees that during his/her employment, and for a period of twenty-four (24) months after the Date of Termination, Optionee has not and will not, directly or indirectly, whether on behalf of Optionee or others, solicit any of the Company’s Sales Agents for the purpose of disrupting their relationship with the Company and/or selling and/or facilitating the sale of products competitive with the Company’s Business. For purposes of this Section 2, a “Sales Agent” is any third-party agency, and/or its representatives, with which or whom the Company has contracted for the purpose of facilitating the sale of the Company’s products during the last twenty-four (24) months of Optionee’s employment with the Company. |
I. | Injunctive Relief. Optionee acknowledges that if he/she breaches or threatens to breach any of the provisions of this Section 2, his/her actions may cause irreparable harm and damage to the Company which could not be compensated in damages. Accordingly, if Optionee breaches or threatens to breach any of the provisions of this Section 2, the Company shall be entitled to seek injunctive relief, in addition to any other rights or remedies the Company may have. The existence of any claim or cause of action by Optionee against the Company, whether predicated on the Confidentiality Provisions or otherwise, shall not constitute a defense to the enforcement by the Company of Optionee’s agreements under this Section 2. |
3. | Non-Assignable by Optionee. The parties acknowledge that the Confidentiality Provisions have been entered into due to, among other things, the special skills and knowledge of Optionee, and agree that the Confidentiality Provisions may not be assigned or transferred by Optionee. |
4. | Notices. All notices, requests, demands and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given when delivered or seven days after mailing if mailed first class, certified mail, postage prepaid, addressed as follows: |
5. | Provisions Severable. If any provision or covenant, or any part thereof, contained in the Confidentiality Provisions is held by any court to be invalid, illegal, or unenforceable, either in whole or in part, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of the remaining provisions or covenants, or any part thereof, in the Confidentiality Provisions, all of which shall remain in full force and effect. Each and every provision, paragraph and subparagraph of Section 2 above is severable from the other provisions, paragraphs and subparagraphs and constitutes a separate and distinct covenant. |
6. | Waiver. Failure of either party to insist, in one or more instances, on performance by the other in strict accordance with the terms and conditions of the Confidentiality Provisions shall not be deemed a waiver or relinquishment of any right granted in the Confidentiality Provisions or the future performance of any such term or condition or of any other term or condition of the Confidentiality Provisions, unless such waiver is contained in a writing signed by the party making the waiver. |
7. | Amendments and Modifications. The Confidentiality Provisions and any Exhibit hereto may be amended or modified only by a writing signed by both parties hereto, which makes specific reference to the Confidentiality Provisions. However, this Section does not affect a court of competent jurisdiction or arbitrator`s ability to modify the Confidentiality Provisions, pursuant to O.C.G.A. §§ 13-8-51(11); 53(d); or 54 in the event that either party initiates legal proceedings that relate in any way to this Confidentiality Provisions, including any action brought by either party seeking to enforce any provision set forth herein. |
8. | Governing Law and Venue. The validity and effect of the Confidentiality Provisions shall be governed by and construed and enforced in accordance with the laws of the State of Georgia, United States of America, without regard to its conflict of law provisions. Any and all disputes relating to, concerning or arising from the Confidentiality Provisions, or relating to, concerning or arising from the relationship between the parties evidenced by the Confidentiality Provisions, shall be brought and heard exclusively in the U.S. District Court for the District of Delaware or the Delaware Superior Court, New Castle County. Each of the parties hereby represents and agrees that such party is subject to the personal jurisdiction of said courts; hereby irrevocably consents to the jurisdiction of such courts in any legal or equitable proceedings related to, concerning or arising from such dispute, and waives, to the fullest extent permitted by law, any objection which such party may now or hereafter have that the laying of the venue of any legal or equitable proceedings related to, concerning or arising from such dispute which is brought in such courts is improper or that such proceedings have been brought in an inconvenient forum. |
9. | Legal Fees. Each party shall pay its own legal fees and other expenses associated with any dispute under the Confidentiality Provisions or any Exhibit hereto. |
10. | Forfeiture/ Clawback. Notwithstanding anything contained in this Agreement to the contrary, if Optionee violates any restriction in Section 2 of the Confidentiality Provisions (i) Optionee shall pay to the Company in cash any financial gain realized from exercising all or a portion of this Option within the 12-month period immediately preceding such wrongful conduct and (ii) all remaining outstanding vested and |
11. | Tolling Period. If Optionee is found by a court to have violated any restriction in Section 2 of the Confidentiality Provisions, he/she agrees that the time period for such restriction shall be extended by one day for each day that he/she is found to have violated the restriction, up to a maximum of 18 months. |
1. | TERM OF AGREEMENT. |
2. | DEFINITIONS. |
3. | SCOPE OF AGREEMENT. |
If to the Company: | Acuity Brands, Inc. Attention: General Counsel 1170 Peachtree Street, NE, Suite 2300 Atlanta, GA 30309 |
If to the Executive: | To his last known address on file with the Company |
ACUITY BRANDS, INC. | |
By: | /s/ Vernon J. Nagel |
Vernon J. Nagel | |
Chairman, President & Chief Executive Officer | |
EXECUTIVE | |
/s/ Neil M. Ashe | |
Neil M. Ashe |
(a) | Payment and Consideration to Employee: |
(i) | Benefits to Employee: |
(ii) | Section 409A: The Company will have the authority to delay the commencement of payments under this Section 1 to “key employees” of the Company (as determined by the Company in accordance with procedures established by the Company that are consistent with Section 409A) to a date which is six months after the Separation Date (and on such date, the payments that would otherwise have been made during such six-month period shall be made) to the extent such delay is required under the provisions of Section 409A, provided that the Company and Employee may agree to take into account any transitional rule available under Section 409A. |
1. | Term of Agreement. |
2. | Definitions |
3. | Termination of Employment. |
ACUITY BRANDS, INC. | |
By: | /s/ Vernon J. Nagel |
Vernon J. Nagel | |
Chairman, President & Chief Executive Officer | |
EXECUTIVE | |
• | Management Cash Incentive Plan |
• | Omnibus Stock Incentive Compensation Plan (or similar equity plan) |
• | 401(k) Plan (or similar ERISA-based deferred compensation plan covering the Executive) |
• | 2002 Supplemental Executive Retirement Plan (or similar supplemental retirement plan covering the Executive) |
Press Release Exhibit 99.1 |
Press Release Exhibit 99.1 |
Press Release Exhibit 99.1 |
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M\=@3&.H,N(]@0N[CR2
Cover Page |
Jan. 09, 2020 |
---|---|
Cover page. | |
Document Type | 8-K |
Document Period End Date | Jan. 09, 2020 |
Entity File Number | 001-16583 |
Entity Registrant Name | ACUITY BRANDS, INC. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 58-2632672 |
Entity Address, Address Line One | 1170 Peachtree Street, N.E. |
Entity Address, Address Line Two | Suite 2300 |
Entity Address, City or Town | Atlanta |
Entity Address, State or Province | GA |
Entity Address, Postal Zip Code | 30309 |
City Area Code | 404 |
Local Phone Number | 853-1400 |
Title of 12(b) Security | Common stock, $0.01 par value per share |
Trading Symbol | AYI |
Security Exchange Name | NYSE |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001144215 |
Amendment Flag | false |
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