Document:

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                                  EXHIBIT 10.1

                        Mortgage Loan Purchase Agreement
                         dated as of December 30, 2002,
                        by and between FHHLC, as Seller,
                        and the Registrant, as Purchaser

<PAGE>

                        MORTGAGE LOAN PURCHASE AGREEMENT

         THIS MORTGAGE LOAN PURCHASE AGREEMENT dated as of December 30, 2002, by
and between FIRST HORIZON HOME LOAN CORPORATION, a Kansas corporation (the
"Seller"), and FIRST HORIZON ASSET SECURITIES INC. (the "Purchaser").

         WHEREAS, the Seller owns certain Mortgage Loans (as hereinafter
defined) which Mortgage Loans are more particularly listed and described in
Schedule A attached hereto and made a part hereof.

         WHEREAS, the Seller and the Purchaser wish to set forth the terms
pursuant to which the Mortgage Loans are to be sold by the Seller to the
Purchaser.

         WHEREAS, the Seller will simultaneously transfer the servicing rights
for the Mortgage Loans to First Tennessee Mortgage Services, Inc. pursuant to
the Servicing Rights Transfer and Subservicing Agreement (as hereinafter
defined).

         NOW, THEREFORE, in consideration of the foregoing, other good and
valuable consideration, and the mutual terms and covenants contained herein, the
parties hereto agree as follows:

                                    ARTICLE I
                                   Definitions

         Agreement: This Mortgage Loan Purchase Agreement, as the same may be
amended, supplemented or otherwise modified from time to time in accordance with
the terms hereof.

         Business Day: Any day other than (i) a Saturday or a Sunday, or (ii) a
day on which banking institutions in the City of Dallas, or the State of Texas
or New York City is located are authorized or obligated by law or executive
order to be closed.

         Closing Date: December 30, 2002.

         Code: The Internal Revenue Code of 1986, including any successor or
amendatory provisions.

         Cooperative Corporation: The entity that holds title (fee or an
acceptable leasehold estate) to the real property and improvements constituting
the Cooperative Property and which governs the Cooperative Property, which
Cooperative Corporation must qualify as a Cooperative Housing Corporation under
Section 216 of the Code.

         Coop Shares: Shares issued by a Cooperative Corporation.

         Cooperative Loan: Any Mortgage Loan secured by Coop Shares and a
Proprietary Lease.

         Cooperative Property: The real property and improvements owned by the
Cooperative Corporation, including the allocation of individual dwelling units
to the holders of the Coop Shares of the Cooperative Corporation.

<PAGE>

         Cooperative Unit: A single family dwelling located in a Cooperative
Property.

         Custodian: LaSalle Bank National Association, a national banking
association, and its successors and assigns, as custodian under the Custodial
Agreement dated as of December 30, 2002 by and among The Bank of New York, as
trustee, First Horizon Home Loan Corporation, as master servicer, and the
Custodian.

         Cut-Off Date: December 1, 2002.

         Cut-off Date Principal Balance: As to any Mortgage Loan, the Stated
Principal Balance thereof as of the close of business on the Cut-off Date.

         Debt Service Reduction: With respect to any Mortgage Loan, a reduction
by a court of competent jurisdiction in a proceeding under the Bankruptcy Code
in the Scheduled Payment for such Mortgage Loan which became final and
non-appealable, except such a reduction resulting from a Deficient Valuation or
any reduction that results in a permanent forgiveness of principal.

         Deficient Valuation: With respect to any Mortgage Loan, a valuation by
a court of competent jurisdiction of the Mortgaged Property in an amount less
than the then-outstanding indebtedness under the Mortgage Loan, or any reduction
in the amount of principal to be paid in connection with any Scheduled Payment
that results in a permanent forgiveness of principal, which valuation or
reduction results from an order of such court which is final and non-appealable
in a proceeding under the United States Bankruptcy Reform Act of 1978, as
amended.

         Delay Delivery Mortgage Loans: The Mortgage Loans for which all or a
portion of a related Mortgage File is not delivered to the Trustee or to the
Custodian on its behalf on the Closing Date. The number of Delay Delivery
Mortgage Loans shall not exceed 25% of the aggregate number of Mortgage Loans as
of the Closing Date.

         Deleted Mortgage Loan: As defined in Section 4.1(c) hereof.

         Determination Date: The earlier of (i) the third Business Day after the
15th day of each month, and (ii) the second Business Day prior to the 25/th/ day
of each month, or if such 25/th/ day is not a Business Day, the next succeeding
Business Day.

         Insurance Proceeds: Proceeds paid by an insurer pursuant to any
insurance policy, including all riders and endorsements thereto in effect,
including any replacement policy or policies, in each case other than any amount
included in such Insurance Proceeds in respect of expenses covered by such
insurance policy.

         Liquidation Proceeds: Amounts, including Insurance Proceeds, received
in connection with the partial or complete liquidation of defaulted Mortgage
Loans, whether through trustee's sale, foreclosure sale or otherwise or amounts
received in connection with any condemnation or partial release of a Mortgaged
Property.

         Mortgage: The mortgage, deed of trust or other instrument creating a
first lien on the property securing a Mortgage Note.

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         Mortgage File: The mortgage documents listed in Section 3.1 pertaining
to a particular Mortgage Loan and any additional documents required to be added
to the Mortgage File pursuant to this Agreement.

         Mortgage Loans: The mortgage loans transferred, sold and conveyed by
the Seller to the Purchaser, pursuant to this Agreement.

         Mortgage Loan Purchase Price: With respect to any Mortgage Loan
required to be purchased by the Seller pursuant to Section 4.1(c) hereof, an
amount equal to the sum of (i) 100% of the unpaid principal balance of the
Mortgage Loan on the date of such purchase, and (ii) accrued interest thereon at
the applicable Mortgage Rate from the date through which interest was last paid
by the Mortgagor to the first day in the month in which the Mortgage Loan
Purchase Price is to be distributed to the Purchaser or its designees.

         Mortgage Note: The original executed note or other evidence of
indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan.

         Mortgaged Property: The underlying property securing a Mortgage Loan,
which, with respect to a Cooperative Loan, is the related Coop Shares and
Proprietary Lease.

         Mortgagor: The obligor(s) on a Mortgage Note.

         Principal Prepayment: Any payment of principal by a Mortgagor on a
Mortgage Loan that is received in advance of its scheduled Due Date and is not
accompanied by an amount representing scheduled interest due on any date or
dates in any month or months subsequent to the month of prepayment.

         Proprietary Lease: With respect to any Cooperative Unit, a lease or
occupancy agreement between a Cooperative Corporation and a holder of related
Coop Shares.

         Purchase Price: $525,578,307.10.

         Purchaser: First Horizon Asset Securities Inc., a Delaware corporation,
in its capacity as purchaser of the Mortgage Loans from the Seller pursuant to
this Agreement.

         Recognition Agreement: With respect to any Cooperative Loan, an
agreement between the Cooperative Corporation and the originator of such
Mortgage Loan which establishes the rights of such originator in the Cooperative
Property.

         Scheduled Payment: The scheduled monthly payment on a Mortgage Loan due
on the first day of the month allocable to principal and/or interest on such
Mortgage Loan which, unless otherwise specified herein, shall give effect to any
related Debt Service Reduction and any Deficient Valuation that affects the
amount of the monthly payment due on such Mortgage Loan.

         Security Agreement: The security agreement with respect to a
Cooperative Loan.

         Seller: First Horizon Home Loan Corporation, a Kansas corporation, and
its successors and assigns, in its capacity as seller of the Mortgage Loans.

                                      -3-

<PAGE>

         Servicing Rights Transfer and Subservicing Agreement: The servicing
rights transfer and subservicing agreement, dated as of December 30, 2002 by and
between First Horizon Home Loan Corporation, as transferor and subservicer, and
First Tennessee Mortgage Services, Inc., as transferee and servicer.

         Stated Principal Balance: As to any Mortgage Loan, the unpaid principal
balance of such Mortgage Loan as specified in the amortization schedule at the
time relating thereto (before any adjustment to such amortization schedule by
reason of any moratorium or similar waiver or grace period) after giving effect
to any previous partial Principal Prepayments and Liquidation Proceeds allocable
to principal (other than with respect to any Liquidated Mortgage Loan) and to
the payment of principal due on such date and irrespective of any delinquency in
payment by the related Mortgagor.

         Substitute Mortgage Loan: A Mortgage Loan substituted by the Seller for
a Deleted Mortgage Loan which must, on the date of such substitution, (i) have a
Stated Principal Balance, after deduction of the principal portion of the
Scheduled Payment due in the month of substitution, not in excess of, and not
more than 10% less than the Stated Principal Balance of the Deleted Mortgage
Loan; (ii) have Mortgage Rate not lower than the Mortgage Rate of the Deleted
Mortgage Loan; (iii) have a maximum mortgage rate not more than 1% per annum
higher or lower than the maximum mortgage rate of the Deleted Mortgage Loan;
(iv) have a minimum mortgage rate specified in its related Mortgage Note not
more than 1% per annum higher or lower than the minimum mortgage rate of the
Deleted Mortgage Loan; (v) have the same mortgage index, reset period and
periodic rate as the Deleted Mortgage Loan and a gross margin not more than 1%
per annum higher or lower than that of the Deleted Mortgage Loan (vi) be
accruing interest at a rate no lower than and not more than 1% per annum higher
than, that of the Deleted Mortgage Loan; (iv) have a loan-to-value ratio no
higher than that of the Deleted Mortgage Loan; (vii) have a remaining term to
maturity no greater than (and not more than one year less than that of) the
Deleted Mortgage Loan; (viii) not be a Cooperative Loan unless the Deleted
Mortgage Loan was a Cooperative Loan and (ix) comply with each representation
and warranty set forth in Schedule B hereto.

         Trustee: The Bank of New York and its successors and, if a successor
trustee is appointed hereunder, such successor.

                                   ARTICLE II
                                Purchase and Sale

         Section 2.1    Purchase Price. In consideration for the payment to it
of the Purchase Price on the Closing Date, pursuant to written instructions
delivered by the Seller to the Purchaser on the Closing Date, the Seller does
hereby transfer, sell and convey to the Purchaser on the Closing Date, but with
effect from the Cut-off Date, (i) all right, title and interest of the Seller in
the Mortgage Loans, excluding the servicing rights for the Mortgage Loans, and
all property securing such Mortgage Loans, including all interest and principal
received or receivable by the Seller with respect to the Mortgage Loans on or
after the Cut-off Date and all interest and principal payments on the Mortgage
Loans received on or prior to the Cut-off Date in respect of installments of
interest and principal due thereafter, but not including payments of

                                      -4-

<PAGE>

principal and interest due and payable on the Mortgage Loans on or before the
Cut-off Date, and (ii) all proceeds from the foregoing. Items (i) and (ii) in
the preceding sentence are herein referred to collectively as "Mortgage Assets."

     Section 2.2 Timing. The sale of the Mortgage Assets hereunder shall take
place on the Closing Date.

                                  ARTICLE III
                             Conveyance and Delivery

     Section 3.1 Delivery of Mortgage Files. In connection with the transfer and
assignment set forth in Section 2.1 above, the Seller has delivered or caused to
be delivered to the Trustee or to the Custodian on its behalf (or, in the case
of the Delay Delivery Mortgage Loans, will deliver or cause to be delivered to
the Trustee or to the Custodian on its behalf within thirty (30) days following
the Closing Date) the following documents or instruments with respect to each
Mortgage Loan so assigned (collectively, the "Mortgage Files"):

     (a)         (1) the original Mortgage Note endorsed by manual or facsimile
          signature in blank in the following form: "Pay to the order of
          ________________, without recourse," with all intervening endorsements
          showing a complete chain of endorsement from the originator to the
          Person endorsing the Mortgage Note (each such endorsement being
          sufficient to transfer all right, title and interest of the party so
          endorsing, as noteholder or assignee thereof, in and to that Mortgage
          Note); or

                 (2) with respect to any Lost Mortgage Note, a lost note
          affidavit from the Seller stating that the original Mortgage Note was
          lost or destroyed, together with a copy of such Mortgage Note;

     (b)  except as provided below, the original recorded Mortgage or a copy of
          such Mortgage certified by the Seller as being a true and complete
          copy of the Mortgage;

     (c)  a duly executed assignment of the Mortgage in blank (which may be
          included in a blanket assignment or assignments), together with,
          except as provided below, all interim recorded assignments of such
          mortgage (each such assignment, when duly and validly completed, to be
          in recordable form and sufficient to effect the assignment of and
          transfer to the assignee thereof, under the Mortgage to which the
          assignment relates); provided that, if the related Mortgage has not
          been returned from the applicable public recording office, such
          assignment of the Mortgage may exclude the information to be provided
          by the recording office;

     (d)  the original or copies of each assumption, modification, written
          assurance or substitution agreement, if any;

     (e)  either the original or duplicate original title policy (including all
          riders thereto) with respect to the related Mortgaged Property, if
          available, provided that the title policy (including all riders
          thereto) will be delivered as soon as it becomes

                                      -5-

<PAGE>

          available, and if the title policy is not available, and to the extent
          required pursuant to the second paragraph below or otherwise in
          connection with the rating of the Certificates, a written commitment
          or interim binder or preliminary report of the title issued by the
          title insurance or escrow company with respect to the Mortgaged
          Property, and

     (f)  in the case of a Cooperative Loan, the originals of the following
          documents or instruments:

               (1) The Coop Shares, together with a stock power in blank;

               (2) The executed Security Agreement;

               (3) The executed Proprietary Lease;

               (4) The executed Recognition Agreement;

               (5) The executed UCC-1 financing statement with evidence of
          recording thereon which have been filed in all places required to
          perfect the Seller's interest in the Coop Shares and the Proprietary
          Lease; and

               (6) Executed UCC-3 financing statements or other appropriate UCC
          financing statements required by state law, evidencing a complete and
          unbroken line from the mortgagee to the Trustee with evidence of
          recording thereon (or in a form suitable for recordation).

     In the event that in connection with any Mortgage Loan the Seller cannot
deliver (i) the original recorded Mortgage or (ii) all interim recorded
assignments satisfying the requirements of clause (b) or (c) above,
respectively, concurrently with the execution and delivery hereof because such
document or documents have not been returned from the applicable public
recording office, the Seller shall promptly deliver or cause to be delivered to
the Trustee or the Custodian on its behalf such original Mortgage or such
interim assignment, as the case may be, with evidence of recording indicated
thereon upon receipt thereof from the public recording office, or a copy
thereof, certified, if appropriate, by the relevant recording office, but in no
event shall any such delivery of the original Mortgage and each such interim
assignment or a copy thereof, certified, if appropriate, by the relevant
recording office, be made later than one year following the Closing Date;
provided, however, in the event the Seller is unable to deliver or cause to be
delivered by such date each Mortgage and each such interim assignment by reason
of the fact that any such documents have not been returned by the appropriate
recording office, or, in the case of each such interim assignment, because the
related Mortgage has not been returned by the appropriate recording office, the
Seller shall deliver or cause to be delivered such documents to the Trustee or
the Custodian on its behalf as promptly as possible upon receipt thereof and, in
any event, within 720 days following the Closing Date. The Seller shall forward
or cause to be forwarded to the Trustee or the Custodian on its behalf (i) from
time to time additional original documents evidencing an assumption or
modification of a Mortgage Loan and (ii) any other documents required to be
delivered by the Seller to the Trustee. In the event that the original Mortgage
is not delivered and in connection with the payment in full of the related
Mortgage Loan and the public recording office requires the presentation of a
"lost instruments affidavit and

                                      -6-

<PAGE>

indemnity" or any equivalent document, because only a copy of the Mortgage can
be delivered with the instrument of satisfaction or reconveyance, the Seller
shall execute and deliver or cause to be executed and delivered such a document
to the public recording office. In the case where a public recording office
retains the original recorded Mortgage or in the case where a Mortgage is lost
after recordation in a public recording office, the Seller shall deliver or
cause to be delivered to the Trustee or the Custodian on its behalf a copy of
such Mortgage certified by such public recording office to be a true and
complete copy of the original recorded Mortgage.

     In addition, in the event that in connection with any Mortgage Loan the
Seller cannot deliver or cause to be delivered the original or duplicate
original lender's title policy (together with all riders thereto), satisfying
the requirements of clause (v) above, concurrently with the execution and
delivery hereof because the related Mortgage has not been returned from the
applicable public recording office, the Seller shall promptly deliver or cause
to be delivered to the Trustee or the Custodian on its behalf such original or
duplicate original lender's title policy (together with all riders thereto) upon
receipt thereof from the applicable title insurer, but in no event shall any
such delivery of the original or duplicate original lender's title policy be
made later than one year following the Closing Date; provided, however, in the
event the Seller is unable to deliver or cause to be delivered by such date the
original or duplicate original lender's title policy (together with all riders
thereto) because the related Mortgage has not been returned by the appropriate
recording office, the Seller shall deliver or cause to be delivered such
documents to the Trustee or the Custodian on its behalf as promptly as possible
upon receipt thereof and, in any event, within 720 days following the Closing
Date.

     Notwithstanding anything to the contrary in this Agreement, within thirty
days after the Closing Date, the Seller shall either (i) deliver or cause to be
delivered to the Trustee or the Custodian on its behalf the Mortgage File as
required pursuant to this Section 3.1 for each Delay Delivery Mortgage Loan or
(ii) (A) substitute or cause to be substituted a Substitute Mortgage Loan for
the Delay Delivery Mortgage Loan or (B) repurchase or cause to be repurchased
the Delay Delivery Mortgage Loan, which substitution or repurchase shall be
accomplished in the manner and subject to the conditions set forth in Section
4.1 (treating each Delay Delivery Mortgage Loan as a Deleted Mortgage Loan for
purposes of such Section 4.1), provided, however, that if the Seller fails to
deliver a Mortgage File for any Delay Delivery Mortgage Loan within the
thirty-day period provided in the prior sentence, the Seller shall use its best
reasonable efforts to effect or cause to be effected a substitution, rather than
a repurchase of, such Deleted Mortgage Loan and provided further that the cure
period provided for in Section 4.1 hereof shall not apply to the initial
delivery of the Mortgage File for such Delay Delivery Mortgage Loan, but rather
the Seller shall have five (5) Business Days to cure or cause to be cured such
failure to deliver.

                                   ARTICLE IV
                         Representations and Warranties

     Section 4.1 Representations and Warranties of the Seller. (a) The Seller
hereby represents and warrants to the Purchaser, as of the date of execution and
delivery hereof, that:

                 (1) The Seller is duly organized as a Kansas corporation and is
          validly existing and in good standing under the laws of the State of
          Kansas and is duly

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<PAGE>

          authorized and qualified to transact any and all business contemplated
          by this Agreement to be conducted by the Seller in any state in which
          a Mortgaged Property is located or is otherwise not required under
          applicable law to effect such qualification and, in any event, is in
          compliance with the doing business laws of any such state, to the
          extent necessary to ensure its ability to enforce each Mortgage Loan
          and to perform any of its other obligations under this Agreement in
          accordance with the terms thereof.

               (2) The Seller has the full corporate power and authority to sell
          each Mortgage Loan, and to execute, deliver and perform, and to enter
          into and consummate the transactions contemplated by this Agreement
          and has duly authorized by all necessary corporate action on the part
          of the Seller the execution, delivery and performance of this
          Agreement; and this Agreement, assuming the due authorization,
          execution and delivery thereof by the other parties thereto,
          constitutes a legal, valid and binding obligation of the Seller,
          enforceable against the Seller in accordance with its terms, except
          that (a) the enforceability thereof may be limited by bankruptcy,
          insolvency, moratorium, receivership and other similar laws relating
          to creditors' rights generally and (b) the remedy of specific
          performance and injunctive and other forms of equitable relief may be
          subject to equitable defenses and to the discretion of the court
          before which any proceeding therefor may be brought.

               (3) The execution and delivery of this Agreement by the Seller,
          the sale of the Mortgage Loans by the Seller under this Agreement, the
          consummation of any other of the transactions contemplated by this
          Agreement, and the fulfillment of or compliance with the terms thereof
          are in the ordinary course of business of the Seller and will not (a)
          result in a material breach of any term or provision of the charter or
          by-laws of the Seller or (b) materially conflict with, result in a
          material breach, violation or acceleration of, or result in a material
          default under, the terms of any other material agreement or instrument
          to which the Seller is a party or by which it may be bound, or (c)
          constitute a material violation of any statute, order or regulation
          applicable to the Seller of any court, regulatory body, administrative
          agency or governmental body having jurisdiction over the Seller; and
          the Seller is not in breach or violation of any material indenture or
          other material agreement or instrument, or in violation of any
          statute, order or regulation of any court, regulatory body,
          administrative agency or governmental body having jurisdiction over it
          which breach or violation may materially impair the Seller's ability
          to perform or meet any of its obligations under this Agreement.

               (4) No litigation is pending or, to the best of the Seller's
          knowledge, threatened against the Seller that would prohibit the
          execution or delivery of, or performance under, this Agreement by the
          Seller.

     (b)  The Seller hereby makes the representations and warranties set forth
          in Schedule B hereto to the Purchaser, as of the Closing Date, or if
          so specified therein, as of the Cut-off Date.

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<PAGE>

     (c)  Upon discovery by either of the parties hereto of a breach of a
          representation or warranty made pursuant to Schedule B hereto that
          materially and adversely affects the interests of the Purchaser in any
          Mortgage Loan, the party discovering such breach shall give prompt
          notice thereof to the other party. The Seller hereby covenants that
          within 90 days of the earlier of its discovery or its receipt of
          written notice from the Purchaser of a breach of any representation or
          warranty made pursuant to Schedule B hereto which materially and
          adversely affects the interests of the Purchaser in any Mortgage Loan,
          it shall cure such breach in all material respects, and if such breach
          is not so cured, shall, (i) if such 90-day period expires prior to the
          second anniversary of the Closing Date, remove such Mortgage Loan (a
          "Deleted Mortgage Loan") from the pool of mortgages listed on Schedule
          B hereto and substitute in its place a Substitute Mortgage Loan, in
          the manner and subject to the conditions set forth in this Section; or
          (ii) repurchase the affected Mortgage Loan or Mortgage Loans from the
          Purchaser at the Mortgage Loan Purchase Price in the manner set forth
          below. With respect to the representations and warranties described in
          this Section which are made to the best of the Seller's knowledge, if
          it is discovered by either the Seller or the Purchaser that the
          substance of such representation and warranty is inaccurate and such
          inaccuracy materially and adversely affects the value of the related
          Mortgage Loan or the interests of the Purchaser therein,
          notwithstanding the Seller's lack of knowledge with respect to the
          substance of such representation or warranty, such inaccuracy shall be
          deemed a breach of the applicable representation or warranty.

          With respect to any Substitute Mortgage Loan or Loans, the Seller
     shall deliver to the Trustee or to the Custodian on its behalf the Mortgage
     Note, the Mortgage, the related assignment of the Mortgage, and such other
     documents and agreements as are required by Section 3.1, with the Mortgage
     Note endorsed and the Mortgage assigned as required by Section 3.1. No
     substitution is permitted to be made in any calendar month after the
     Determination Date for such month. Scheduled Payments due with respect to
     Substitute Mortgage Loans in the month of substitution will be retained by
     the Seller. Upon such substitution, the Substitute Mortgage Loan or Loans
     shall be subject to the terms of this Agreement in all respects, and the
     Seller shall be deemed to have made with respect to such Substitute
     Mortgage Loan or Loans, as of the date of substitution, the representations
     and warranties made pursuant to Schedule B hereto with respect to such
     Mortgage Loan.

          It is understood and agreed that the obligation under this Agreement
     of the Seller to cure, repurchase or replace any Mortgage Loan as to which
     a breach has occurred and is continuing shall constitute the sole remedy
     against the Seller respecting such breach available to the Purchaser on its
     behalf.

     The representations and warranties contained in this Agreement shall not be
construed as a warranty or guaranty by the Seller as to the future payments by
any Mortgagor.

     It is understood and agreed that the representations and warranties set
forth in this Section 4.1 shall survive the sale of the Mortgage Loans to the
Purchaser hereunder.

                                      -9-

<PAGE>

                                   ARTICLE V
                                  Miscellaneous

         Section 5.1    Transfer Intended as Sale. It is the express intent of
the parties hereto that the conveyance of the Mortgage Loans by the Seller to
the Purchaser be, and be construed as, absolute sales thereof. It is, further,
not the intention of the parties that such conveyances be deemed a pledge
thereof by the Seller to the Purchaser. However, in the event that,
notwithstanding the intent of the parties, the Mortgage Loans are held to be the
property of the Seller or the Purchaser, respectively, or if for any other
reason this Agreement is held or deemed to create a security interest in such
assets, then (i) this Agreement shall be deemed to be a security agreement
within the meaning of the Uniform Commercial Code of the State of Texas and (ii)
the conveyance of the Mortgage Loans provided for in this Agreement shall be
deemed to be an assignment and a grant by the Seller to the Purchaser of a
security interest in all of the Mortgage Loans, whether now owned or hereafter
acquired.

         The Seller and the Purchaser shall, to the extent consistent with this
Agreement, take such actions as may be necessary to ensure that, if this
Agreement were deemed to create a security interest in the Mortgage Loans, such
security interest would be deemed to be a perfected security interest of first
priority under applicable law and will be maintained as such throughout the term
of the Agreement. The Seller and the Purchaser shall arrange for filing any
Uniform Commercial Code continuation statements in connection with any security
interest granted hereby.

         Section 5.2    Seller's Consent to Assignment. The Seller hereby
acknowledges the Purchaser's right to assign, transfer and convey all of the
Purchaser's rights under this Agreement to a third party and that the
representations and warranties made by the Seller to the Purchaser pursuant to
this Agreement will, in the case of such assignment, transfer and conveyance, be
for the benefit of such third party. The Seller hereby consents to such
assignment, transfer and conveyance.

         Section 5.3    Specific Performance. Either party or its assignees may
enforce specific performance of this Agreement.

         Section 5.4    Notices. All notices, demands and requests that may be
given or that are required to be given hereunder shall be sent by United States
certified mail, postage prepaid, return receipt requested, to the parties at
their respective addresses as follows:

                        If to
                        the Purchaser:        4000 Horizon Way
                                              Irving, Texas  75063
                                              Attn: Larry P. Cole

                        If to the Seller:     4000 Horizon Way
                                              Irving, Texas 75063
                                              Attn: Larry P. Cole

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<PAGE>

         Section 5.6    Choice of Law. This Agreement shall be construed in
accordance with and governed by the substantive laws of the State of Texas
applicable to agreements made and to be performed in the State of Texas and the
obligations, rights and remedies of the parties hereto shall be determined in
accordance with such laws.

                  [remainder of page intentionally left blank]

                                      -11-

<PAGE>

         IN WITNESS WHEREOF, the Purchaser and the Seller have caused their
names to be signed hereto by their respective officers thereunto duly authorized
as of the 30th day of December, 2002.

                             FIRST HORIZON HOME LOAN
                             CORPORATION, as Seller

                             By:_______________________________________________
                                   Wade Walker
                                   Senior Vice President - Asset Securitization

                             FIRST HORIZON ASSET SECURITIES INC.,
                             as Purchaser

                             By:_______________________________________________
                                   Wade Walker
                                   Senior Vice President - Asset Securitization

Mortgage Loan Purchase Agreement - Signature Page, 2002-9

<PAGE>

                                   SCHEDULE A

                              [BEGINS ON NEXT PAGE]

<PAGE>

                                   SCHEDULE B

             Representations and Warranties as to the Mortgage Loans

         First Horizon Home Loan Corporation (the "Seller") hereby makes the
representations and warranties set forth in this Schedule B on which First
Horizon Asset Securities Inc. (the "Purchaser") relies in accepting the Mortgage
Loans. Such representations and warranties speak as of the execution and
delivery of the Mortgage Loan Purchase Agreement dated as of December 30, 2002
(the "MLPA"), between First Horizon Home Loan Corporation, as seller, and the
Purchaser and as of the Closing Date, or if so specified herein, as of the
Cut-off Date or date of origination of the Mortgage Loans, but shall survive the
sale, transfer and assignment of the Mortgage Loans to the Purchaser and any
subsequent sale, transfer and assignment by the Purchaser to a third party.
Capitalized terms used but not otherwise defined in this Schedule B shall have
the meanings ascribed thereto in the MLPA.

         (1)     The information set forth on Schedule A to the MLPA, with
                 respect to each Mortgage Loan is true and correct in all
                 material respects as of the Closing Date.

         (2)     Each Mortgage is a valid and enforceable first lien on the
                 Mortgaged Property subject only to (a) the lien of
                 nondelinquent current real property taxes and assessments and
                 liens or interests arising under or as a result of any federal,
                 state or local law, regulation or ordinance relating to
                 hazardous wastes or hazardous substances and, if the related
                 Mortgaged Property is a unit in a condominium project or
                 Planned Unit Development, any lien for common charges permitted
                 by statute or homeowner association fees, (b) covenants,
                 conditions and restrictions, rights of way, easements and other
                 matters of public record as of the date of recording of such
                 Mortgage, such exceptions appearing of record being generally
                 acceptable to mortgage lending institutions in the area wherein
                 the related Mortgaged Property is located or specifically
                 reflected in the appraisal made in connection with the
                 origination of the related Mortgage Loan, and (c) other matters
                 to which like properties are commonly subject which do not
                 materially interfere with the benefits of the security intended
                 to be provided by such Mortgage.

         (3)     Immediately prior to the assignment of the Mortgage Loans to
                 the Purchaser, the Seller had good title to, and was the sole
                 owner of, each Mortgage Loan free and clear of any pledge,
                 lien, encumbrance or security interest and had full right and
                 authority, subject to no interest or participation of, or
                 agreement with, any other party, to sell and assign the same
                 pursuant to this Agreement.

         (4)     As of the date of origination of each Mortgage Loan, there was
                 no delinquent tax or assessment lien against the related
                 Mortgaged Property.

         (5)     There is no valid offset, defense or counterclaim to any
                 Mortgage Note or Mortgage, including the obligation of the
                 Mortgagor to pay the unpaid principal of or interest on such
                 Mortgage Note.

                                      B-1

<PAGE>

     (6)   There are no mechanics' liens or claims for work, labor or material
           affecting any Mortgaged Property which are or may be a lien prior to,
           or equal with, the lien of such Mortgage, except those which are
           insured against by the title insurance policy referred to in item
           (10) below.

     (7)   To the best of the Seller's knowledge, no Mortgaged Property has been
           materially damaged by water, fire, earthquake, windstorm, flood,
           tornado or similar casualty (excluding casualty from the presence of
           hazardous wastes or hazardous substances, as to which the Seller
           makes no representation) so as to affect adversely the value of the
           related Mortgaged Property as security for such Mortgage Loan.

     (8)   Each Mortgage Loan at origination complied in all material respects
           with applicable state and federal laws, including, without
           limitation, usury, equal credit opportunity, real estate settlement
           procedures, truth-in-lending and disclosure laws or any noncompliance
           does not have a material adverse effect on the value of the related
           Mortgage Loan.

     (9)   Except as reflected in a written document contained in the related
           Mortgage File, the Seller has not modified the Mortgage in any
           material respect; satisfied, cancelled or subordinated such Mortgage
           in whole or in part; released the related Mortgaged Property in whole
           or in part from the lien of such Mortgage; or executed any instrument
           of release, cancellation, modification or satisfaction with respect
           thereto.

     (10)  A lender's policy of title insurance together with a condominium
           endorsement and extended coverage endorsement, if applicable, in an
           amount at least equal to the Cut-off Date Principal Balance of each
           such Mortgage Loan or a commitment (binder) to issue the same was
           effective on the date of the origination of each Mortgage Loan, each
           such policy is valid and remains in full force and effect.

     (11)  To the best of the Seller's knowledge, all of the improvements which
           were included for the purpose of determining the appraised value of
           the Mortgaged Property lie wholly within the boundaries and building
           restriction lines of such property, and no improvements on adjoining
           properties encroach upon the Mortgaged Property, unless such failure
           to be wholly within such boundaries and restriction lines or such
           encroachment, as the case may be, does not have a material effect on
           the value of such Mortgaged Property.

     (12)  To the best of the Seller's knowledge, as of the date of origination
           of each Mortgage Loan, no improvement located on or being part of the
           Mortgaged Property is in violation of any applicable zoning law or
           regulation unless such violation would not have a material adverse
           effect on the value of the related Mortgaged Property. To the best of
           the Seller's knowledge, all inspections, licenses and certificates
           required to be made or issued with respect to all occupied portions
           of the Mortgaged Property and, with respect to the use and occupancy
           of the same, including but not limited to certificates of occupancy
           and fire

                                       B-2

<PAGE>

           underwriting certificates, have been made or obtained from the
           appropriate authorities, unless the lack thereof would not have a
           material adverse effect on the value of such Mortgaged Property.

     (13)  The Mortgage Note and the related Mortgage are genuine, and each is
           the legal, valid and binding obligation of the maker thereof,
           enforceable in accordance with its terms and under applicable law.

     (14)  The proceeds of the Mortgage Loan have been fully disbursed and there
           is no requirement for future advances thereunder.

     (15)  The related Mortgage contains customary and enforceable provisions
           which render the rights and remedies of the holder thereof adequate
           for the realization against the Mortgaged Property of the benefits of
           the security, including, (i) in the case of a Mortgage designated as
           a deed of trust, by trustee's sale, and (ii) otherwise by judicial
           foreclosure.

     (16)  With respect to each Mortgage constituting a deed of trust, a
           trustee, duly qualified under applicable law to serve as such, has
           been properly designated and currently so serves and is named in such
           Mortgage, and no fees or expenses are or will become payable by the
           holder of the Mortgage to the trustee under the deed of trust, except
           in connection with a trustee's sale after default by the Mortgagor.

     (17)  At the Cut-off Date, the improvements upon each Mortgaged Property
           are covered by a valid and existing hazard insurance policy with a
           generally acceptable carrier that provides for fire and extended
           coverage and coverage for such other hazards as are customarily
           required by institutional single family mortgage lenders in the area
           where the Mortgaged Property is located, and the Seller has received
           no notice that any premiums due and payable thereon have not been
           paid; the Mortgage obligates the Mortgagor thereunder to maintain all
           such insurance including flood insurance at the Mortgagor's cost and
           expense. Anything to the contrary in this item (17) notwithstanding,
           no breach of this item (17) shall be deemed to give rise to any
           obligation of the Seller to repurchase or substitute for such
           affected Mortgage Loan or Loans so long as the Seller maintains a
           blanket policy.

     (18)  If at the time of origination of each Mortgage Loan, related the
           Mortgaged Property was in an area then identified in the Federal
           Register by the Federal Emergency Management Agency as having special
           flood hazards, a flood insurance policy in a form meeting the
           then-current requirements of the Flood Insurance Administration is in
           effect with respect to such Mortgaged Property with a generally
           acceptable carrier.

     (19)  To the best of the Seller's knowledge, there is no proceeding pending
           or threatened for the total or partial condemnation of any Mortgaged
           Property, nor is such a proceeding currently occurring.

                                       B-3

<PAGE>

     (20)  To best of the Seller's knowledge, there is no material event which,
           with the passage of time or with notice and the expiration of any
           grace or cure period, would constitute a material non-monetary
           default, breach, violation or event of acceleration under the
           Mortgage or the related Mortgage Note; and the Seller has not waived
           any material non-monetary default, breach, violation or event of
           acceleration.

     (21)  Any leasehold estate securing a Mortgage Loan has a stated term at
           least as long as the term of the related Mortgage Loan.

     (22)  Each Mortgage Loan was selected from among the outstanding
           adjustable-rate one- to four-family mortgage loans in the Seller's
           portfolio at the Closing Date as to which the representations and
           warranties made with respect to the Mortgage Loans set forth in this
           Schedule B can be made. No such selection was made in a manner
           intended to adversely affect the interests of the Certificateholders.

     (23)  The Mortgage Loans provide for the full amortization of the amount
           financed over a series of monthly payments.

     (24)  At origination, substantially all of the Mortgage Loans in the
           Mortgage Pools had stated terms to maturity of 30 years.

     (25)  Scheduled monthly payments made by the Mortgagors on the Mortgage
           Loans either earlier or later than their Due Dates will not affect
           the amortization schedule or the relative application of the payments
           to principal and interest.

     (26)  The Mortgage Loans may be prepaid at any time by the related
           Mortgagors without penalty.

     (27)  Substantially all of the Mortgage Loans are jumbo mortgage loans that
           have Stated Principal Balances at origination that exceed the then
           applicable limitations for purchase by Fannie Mae and Freddie Mac.

     (28)  Each Mortgage Loan in Pool I was originated on or after August 13,
           2002. Each Mortgage Loan in Pool II was originated on or after August
           19, 2002.

     (29)  The latest stated maturity date of any Mortgage Loan in Pool I is
           January 1, 2033, and the earliest stated maturity date of any
           Mortgage Loan in Pool I is October 1, 2022. The latest stated
           maturity date of any Mortgage Loan in Pool II is January 1, 2018 and
           the earliest stated maturity date of any Mortgage Loan in Pool II is
           November 1, 2012.

     (30)  No Mortgage Loan was delinquent more than 30 days as of the Cut-off
           Date.

     (31)  No Mortgage Loan had a Loan-to-Value Ratio at origination of more
           than 95%. Generally, each Mortgage Loan with a Loan-to-Value Ratio at
           origination of greater than 80% is covered by a Primary Insurance
           Policy issued by a mortgage insurance company that is acceptable to
           Fannie Mae or Freddie Mac.

                                       B-4

<PAGE>

     (32)  Each Mortgage Loan constitutes a "qualified mortgage" within the
           meaning of Section 860G(a)(3) of the Code.

                                       B-5Amend 1, Supp Deferred Savings Plan

 EXHIBIT 10(iii)A(2) 
  
 AMENDMENT NO. 1 
 TO 
 ACUITY
BRANDS, INC. 
 SUPPLEMENTAL DEFERRED SAVINGS PLAN 
  
 THIS AMENDMENT made as of the 2nd day of October, 2002, by ACUITY BRANDS, INC. (the “Company”); 
  
 W I T N E S S E T H 
  
 WHEREAS, the Company maintains the
Acuity Brands, Inc. Supplemental Deferred Savings Plan (the “Plan”); and 
  
 WHEREAS, based upon a review
of the retirement programs the Company provides to its employees, the Company has decided effective December 31, 2002, to freeze the Acuity Brands, Inc. Pension Plan (“Pension Plan”) and to increase the Matching Contribution to the Acuity
Brands, Inc. 401(k) Plan for Corporate Employees; and 
  
 WHEREAS, the aggregate annual retirement benefits of
certain Plan Participants may be decreased as a result of the freeze of the Pension Plan and the Company desires to provide for supplemental contributions to the Plan to make-up for such potential loss of benefits for certain Participants;

  
 NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the Plan is hereby
amended as follows: 
  
 1. 
  
 Article IV is hereby amended by adding a new Section 4.1A after current Section 4.1, as follows: 
  
 “4.1A Make-Up Contribution Credit For Pension Plan Participants 
  

	 	(a)
	 
	In General—Commencing January 1, 2003, the Company shall for each Plan Year during the Make-Up Contribution Period (as defined in subsection (b)
below) for each Pension Plan Participant (as defined in subsection (d) below) make a Make-Up Contribution credit (determined in accordance with subsection (b) below) for the benefit of such Pension Plan Participant. The Make-Up Contribution for each
Plan Year shall be credited to the Pension Plan Participant’s Make-Up Contribution Subaccount. The Make-Up Contribution Subaccount shall become vested in accordance with the following schedule: 
 

 

  
 
	  	  	 Completed Years of Service
 
	  	 Vested Participants
 
	  	 Forfeited Percentage
 

	  	  	     Less than 5 years
 	  	 0
 	  	 100%
 
	  	  	     5 or more years
 	  	 100%
 	  	 0%
 

 
  
 The Make-Up Contribution Subaccount shall be credited with interest
at the Prime Rate on each Annual Valuation Date based upon the amount credited to such Subaccount as of the preceding Annual Valuation Date and at such other times, if any, as may be determined by the Plan Administrator. The vested Make-up
Contribution Subaccount shall be distributed in accordance with Section 4.3(a)(iii)(A) if the Pension Plan Participant terminates prior to age 55 and in accordance with Section 4.3(b) in the same manner as a Supplemental Subaccount if the Pension
Plan Participant terminates on or after attaining age 55. The Make-Up Contribution for each Plan Year shall be credited on the last day of the Plan Year, unless the Employer elects to make such credit on an earlier date. In order to be eligible to
receive the Make-Up Contribution credit for the Plan Year, the Pension Plan Participant must be actively employed on the last day of the Plan Year and complete a Year of Service for such year. Any forfeiture of the credits to a Pension Plan
Participant’s Make-Up Contribution Account shall be used to reduce future make-up contribution credits. 
  

	 	(b)
	 
	Amount of Make-Up Contribution Credit—The Make-Up Contribution credit for a Pension Plan Participant for the Plan Year shall be equal to the Present
Value determined as of January 1, 2003 of the Annual Benefit Loss of the Pension Plan Participant divided by the number of years in the Make-Up Contribution Period, adjusted by the Discount Percentage. The Annual Benefit Loss for a Pension Plan
Participant is the difference between (A) the aggregate annual retirement benefit (based upon the assumptions in subsection (b)(ii) below) the Pension Plan Participant was projected to receive at age 62 assuming that the Pension Plan and the 401(k)
Plan (as defined in subsection (d) below) continued in operation in accordance with their terms as in effect on December 31, 2002, and (B) the aggregate annual retirement benefit (based upon the assumptions in subsection (b)(ii) below) the Pension
Plan Participant is projected to receive at age 62 assuming that the Pension Plan is frozen at January 1, 2003 and the 401(k) Plan is amended effective January 1, 2003 to provide for a match of 60% on Elective Deferrals up to 6% of the
Participant’s Annual Compensation. The Pension Plan Participant’s Make-Up Contribution Period is the period commencing January 1, 2003 and ending on the last day of the Plan Year in which the Pension Plan Participant attains age 62. The

 

 

 Present Value of the Annual Benefit Loss shall be determined by taking the amount of the Annual Benefit Loss on the date
the Pension Plan Participant attains age 62 and discounting such amount to January 1, 2003 using an interest rate of 5.12% per year and the mortality table prescribed by the IRS in Rev.Rul. 95-6. 

	

  
 (ii)    The Annual Benefit Loss
shall be calculated using the following factors and assumptions: 
  

	 	•
	 
	A Pension Plan Participant’s service and compensation under the Pension Plan will be frozen as of December 31, 2002. 
 

 

	 	•
	 
	The rate of Matching Contributions under the 401(k) Plan will be increased effective January 1, 2003 to 60% on Elective Contributions up to 6% of a
Participant’s Annual Compensation and the Pension Plan Participant will make sufficient Elective Deferrals to receive the maximum Matching Contributions. 
 

  

	 	•
	 
	A Pension Plan Participant’s Annual Compensation will be his or her Annual Compensation for 2000, with an increase rate of 3% per year. 

  

	 	•
	 
	Pension Plan Participant’s Matching Contribution Account Balance in the 401(k) Plan as of December 31, 2001, will be projected to age 62 with earnings of
6% per year. 
 

  

	 	•
	 
	401(k) Plan compensation limit of $200,000 applies for 2002 and prior years and will increase by 3% per year. 
 

  

	 	•
	 
	Annuity and lump sum conversions are based upon a 5.12% annual interest rate and the mortality table prescribed by the IRS in Rev.Rul. 95-6. 

  

	 	•
	 
	The annual retirement benefit from the 401(k) Plan is based solely upon the Pension Plan Participant’s Matching Contribution Account (adjusted as provided
herein) and not the individual’s other accounts under Section 4.1 of the 401(k) Plan. 
 

  
 (iii)    The Make-Up Contribution to be credited to a Pension Plan Participant for a Plan Year shall be increased over the amount credited for the prior Plan Year by the Discount Percentage to account for the
passage of a year and the related foregone interest earnings potential. 
  

	 	(c)
	 
	Change of Eligible Status—If a Pension Plan Participant is treated as a Highly Compensated Employee under the 401(k) Plan for a Plan Year, the
Pension Plan Participant shall be eligible to receive a Make-Up 
 

 

 Contribution credit for such Plan Year. If the Pension Plan Participant who is a Highly Compensated Employee for a Plan
Year ceases to be a Highly Compensated Employee for a subsequent Plan Year, then the Pension Plan Participant shall be ineligible to receive a Make-Up Contribution credit for such later Plan Year. If a Pension Plan Participant ceases to be eligible
to participate in the 401(k) Plan for a Plan Year, the Pension Plan Participant shall not be eligible to receive a Make-Up Contribution for such Plan Year. 
  

	 	(d)
	 
	Definitions—The following definitions shall apply for purposes of this Section 4.1A: 
 

  
 (i)      Pension Plan—The Acuity Brands, Inc. Pension Plan, as amended through
December 31, 2002. 
  
 (ii)    Pension Plan Participant—A participant
in the Pension Plan on December 31, 2002 who (i) is an active Employee of an Employer on December 31, 2002, (ii) will be considered a Highly Compensated Employee of the Employer for 2003 or in a subsequent Plan Year for which he would be eligible
for a Make-Up Contribution, and (iii) is a Participant in the 401(k) Plan for the Plan Year commencing on January 1, 2003 and any subsequent Plan Year for which a Make-Up Contribution credit is to be made. 
  
 (iii)    Discount Percentage—A percentage rate equal to 5.12% per year. 

 
 (iv)    401(k) Plan—The Acuity Brands, Inc. 401(k) Plan for Corporate Employees
as amended through December 31, 2002. 
  

	 	(e)
	 
	Discretion of Company—The Company shall have the discretion to determine the amount of the Make-Up Contribution for Pension Plan Participants each
Plan Year and the Company’s determination of the Make-Up Contribution credit shall be final and binding upon all parties. 
 

  

	 	(f)
	 
	Amendment—This Section 4.1A may be amended by the Company in accordance with the usual rules for amendment of the Plan in Section 7.1.”

 

  
 2. 
  
 Article IV is hereby amended by a new Section 4.1B after new Section 4.1A, as follows: 
  
 “4.1B SERP Make-Up Contribution 

 

  

	 	(a)
	 
	In General—Commencing January 1, 2003, the Company shall for each Plan Year during the SERP Make-Up Contribution Period (as defined in subsection
(b) below) for each SERP Plan Participant (as defined in subsection (d) below) make a SERP Make-Up Contribution credit (determined in accordance with subsection (b) below) for the benefit of such SERP Plan Participant. The SERP Make-Up Contribution
for each Plan Year shall be credited to the SERP Plan Participant’s SERP Make-Up Contribution Subaccount. The SERP Make-Up Contribution Subaccount shall at all times be fully vested and nonforfeitable. The SERP Make-Up Contribution Subaccount
shall be credited with interest at the Prime Rate on each Annual Valuation Date based upon the amount credited to such Subaccount as of the preceding Annual Valuation Date and at such other times, if any, as may be determined by the Plan
Administrator. The SERP Make-up Contribution Subaccount shall be distributed in accordance with Section 4.3(a)(iii)(A) if the SERP Plan Participant terminates prior to age 55 and in accordance with Section 4.3(b) in the same manner as the
Participant’s Supplemental Subaccount if the SERP Plan Participant terminates on or after attaining age 55. The SERP Make-Up Contribution for each Plan Year shall be credited on the last day of the Plan Year, unless the Employer elects to make
such credit on an earlier date. In order to be eligible to receive the SERP Make-Up Contribution credit for the Plan Year, the SERP Plan Participant must be actively employed on the last day of the Plan Year and complete a Year of Service for such
year. 
 

  

	 	(b)
	 
	Amount of SERP Make-Up Contribution Credit—The SERP Make-Up Contribution credit for a SERP Plan Participant for the Plan Year shall be equal to the
Present Value determined as of January 1, 2003 of the Annual Benefit Loss of the SERP Plan Participant divided by the number of years in the SERP Make-Up Contribution Period, adjusted by the Discount Percentage. The Annual Benefit Loss for a SERP
Plan Participant is the difference between (A) the aggregate annual supplemental retirement benefit (based upon the assumptions in subsection (b)(ii) below) the SERP Plan Participant was projected to receive at age 60 assuming that the Pension Plan,
the Current SERP (as defined in subsection (d) below) and the EDCP (as defined in subsection (d) below) continued in operation in accordance with their terms as in effect on August 31, 2002, and (B) the aggregate supplemental annual retirement
benefit (based upon the assumptions in subsection (b)(ii) below) the SERP 
 

  

 

  
 Plan Participant is projected to receive at age 60 from the New SERP. The Pension
Plan Participant’s SERP Make-Up Contribution Period is the period commencing January 1, 2003 and ending on the last day of the Plan Year in which the SERP Plan Participant attains age 60. The Present Value of the Annual Benefit Loss shall be
determined by taking the amount of the Annual Benefit Loss on the date the SERP Plan Participant attains age 60 and discounting such amount to January 1, 2003 using an interest rate of 5.12% per year and the mortality table prescribed by the IRS in
Rev.Rul. 95-6. 
  
 (ii)    The Annual Benefit Loss shall be calculated using the following
factors and assumptions: 
  

	 	•
	 
	A SERP Plan Participant’s service and compensation under the Pension Plan will be frozen as of December 31, 2002. 
 

 

	 	•
	 
	A SERP Plan Participant’s Annual Compensation will be his or her Annual Compensation for 2002, with an increase rate of 3% per year. 

  
 (iii)    The SERP Make-Up Contribution to be credited to a SERP Plan Participant for a
Plan Year shall be increased over the amount credited for the prior Plan Year by the Discount Percentage to account for the passage of a year and the related foregone interest earnings potential. 
  

	 	(c)
	 
	Discretion of Company—The Company shall have the discretion to determine the amount of the SERP Make-Up Contribution for SERP Plan Participants each
Plan Year and the Company’s determination of the SERP Make-Up Contribution credit shall be final and binding upon all parties. 
 

  

	 	(d)
	 
	Definitions—The following definitions shall apply for purposes of this Section 4.1B: 
 

  

	 	(i)
	 
	Pension Plan—The Acuity Brands, Inc. Pension Plan, as amended through December 31, 2002. 
 

  

	 	(ii)
	 
	SERP Plan Participant—Kenyon Murphy and Vern Nagel. 
 

  

	 	(iii)
	 
	Discount Percentage—A percentage rate equal to 5.12% per year. 
 

  

	 	(iv)
	 
	Current SERP—The Acuity Brands, Inc. Supplemental Retirement Plan for Executives as amended through December 31, 2002. 

 

  

	 	(v)
	 
	New SERP—The Acuity Brands, Inc. 2002 Supplemental Executive Retirement Plan, which will be effective January 1, 2003. 

  

	 	(vi)
	 
	EDCP—The Acuity Brands, Inc. Executives’ Deferred Compensation Plan as amended through August 31, 2002. 
 

 

	 	(e)
	 
	Amendment—This Section 4.1B may be amended by the Company in accordance with the usual rules for amendment of the Plan in Section 7.1.”

 

  
 3. 
  
 The within and foregoing amendments to the Plan shall be effective as of the dates indicated in the provisions. Except as hereby modified, the Plan shall remain in full force and effect. 

 
 IN WITNESS WHEREOF, the Company has executed this Amendment No. 1 as of the date first written above. 
  
 
	 ACUITY BRANDS, INC.
 
	  	 	  
	  	 	  
	 
	 By:
 	 	 /s/     JAMES S.
BALLOUN

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