Document:

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                                                                   EXHIBIT 10.18

                               L & C SPINCO, INC.
                       EXECUTIVE BENEFITS TRUST AGREEMENT

                                TABLE OF CONTENTS

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ARTICLE  1:  Definitions....................................................  3

ARTICLE  2:  Creation of Trust..............................................  6

ARTICLE  3:  Trustee Expense Account........................................  8

ARTICLE  4:  Benefit Account................................................  9

ARTICLE  5:  Payments from the Trust........................................ 12

ARTICLE  6:  Management of Trust Assets..................................... 14

ARTICLE  7:  Administrative Powers.......................................... 17

ARTICLE  8:  Insurance and Annuity Contracts................................ 19

ARTICLE  9:  Trustee's Powers After a Change in Control:.................... 21

ARTICLE  10: Taxes. Expenses and Compensation of Trustee.................... 23

ARTICLE  11: General Duties of Trustee...................................... 23

ARTICLE  12: Indemnification................................................ 24

ARTICLE  13: No Duty to Advance Funds....................................... 25

ARTICLE  14: Accounts....................................................... 25

ARTICLE  15: Administration of the Transferred Plans; Communications........ 27

ARTICLE  16: Resignation or Removal of Trustee.............................. 29

ARTICLE  17: Amendment of Agreement; Termination of Trust................... 31

ARTICLE  18: Prohibition of Diversion....................................... 32

ARTICLE  19: Prohibition of Assignment of Interest.......................... 32

ARTICLE  20: Miscellaneous.................................................. 33
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                               L & C SPINCO, INC.
                            EXECUTIVE BENEFITS TRUST

                (Formerly, the National Service Industries, Inc.
                            Executive Benefits Trust)

                        Effective As Of ___________, 2001

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                               L & C SPINCO, INC.
                       EXECUTIVE BENEFITS TRUST AGREEMENT

         THIS ASSUMPTION AND AMENDMENT AGREEMENT, made as of the _____ day of
______, 2001, by and between L & C Spinco, Inc., a corporation organized and
existing under the laws of the State of Delaware (the "Company"), and Wachovia
Bank, N.A., a national banking association organized and existing under the laws
of the United States of America (hereinafter referred to as the "Trustee").

                                   WITNESSETH:

         WHEREAS, effective as of July 5, 1990, National Service Industries,
Inc. ("NSI") and the Trustee established the National Service Industries, Inc.
Executive Benefits Trust ("Prior Trust") to ensure that upon a change in control
of NSI eligible participants and their beneficiaries would receive the benefits
that NSI and its affiliates were obligated to provide them pursuant to certain
designated employee benefit plans; and

         WHEREAS, in connection with the spin-off of the Company from NSI,
effective ________, 2001 and pursuant to an Employee Benefits Agreement, dated
as of ____________, 2001, between the Company and NSI, the Prior Trust is being
transferred to, and assumed by, the Company in the form of this Executive
Benefits Trust (hereinafter referred to as this "Trust"); and

         WHEREAS, the Company has also established the L & C Spinco, Inc.
Benefits Protection Trust (hereinafter referred to as the "Benefits Protection
Trust") in order to ensure that "Participants" (as hereinafter defined) and
their beneficiaries will receive the benefits which the Company and its
"Affiliates" (as hereinafter defined) are obligated to provide for

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them or which they reasonably anticipate receiving pursuant to the "Plans" (as
hereinafter defined);

         WHEREAS, the Company has adopted and, in some instances, its Affiliates
may, prior to a "Change in Control" (as hereinafter defined) adopt, the Plans
and, prior to a Change in Control, the Company and its Affiliates may adopt or
enter into other plans or agreements, amend, modify or terminate any Plan in
accordance with its terms or to comply with any changes in the law and increase
the number of Participants in any such Plan;

         WHEREAS, this Trust is not intended to be nor should it be construed as
a grantor trust;

         WHEREAS, upon a Change in Control, the Plans (the "Transferred Plans")
and assets attributable to the Plans held in the Benefit Account of the Benefits
Protection Trust will be irrevocably transferred to this Trust (the "Transfer")
to be held for the benefit of Participants and their beneficiaries;

         WHEREAS, the Trustee is not a party to the Transferred Plans;

         WHEREAS, prior to the Transfer the aforesaid obligations of the Company
are not funded;

         WHEREAS, the Company has agreed to take steps to assure that the future
payment of amounts under the Transferred Plans will not be improperly withheld
or otherwise not paid following a Change in Control; and

         WHEREAS, for purposes of assuring that such payments will not be
improperly withheld or otherwise not paid, the Company desires: (a) by means of
the Transfer to deposit with the Trustee amounts of cash, marketable securities
or other security for the payment of benefits to Participants and their
beneficiaries which are or may become payable under the

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Transferred Plans and (b) to retain the right to deposit with the Trustee
further amounts of cash, marketable securities or other security for the payment
of amounts under such Transferred Plans as they may become due and payable.

         NOW, THEREFORE, in consideration of the respective agreements of the
Company and the Trustee contained herein, it is agreed as follows:

                            ARTICLE 1: DEFINITIONS.

         1.1      "Affiliate" shall mean any corporation, partnership or other
entity, the majority interest in which is held by the Company directly or
through one or more intermediaries, which has been designated by the Company as
participating in the Trust. The Affiliates are listed on Schedule 2.

         1.2      The "Board" shall mean the Board of Directors of the Company.

         1.3      "Change in Control" shall mean any of the following events:

                  (a)      The acquisition (other than from the Company) by any
"Person" (as the term person is used for purposes of Sections 13(d) or 14 (d) of
the Securities Exchange Act of 1934, as amended (the "1934 Act")) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of
twenty percent (20%) or more of the combined voting power of the Company's then
outstanding voting securities; or

                  (b)      The individuals who, as of _____________, 2001, are
members of the Board (the "Incumbent Board") cease for any reason to constitute
at least two-thirds of the Board; provided, however, that if the election, or
nomination for election by the Company's stockholders, of any new director was
approved by a vote of at least two-thirds of the Incumbent Board, such new
director shall, for purposes of this Agreement, be considered as a member of the
Incumbent Board; or

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                  (c)      A merger or consolidation involving the Company if
the stockholders of the Company, immediately before such merger or consolidation
do not, as a result of such merger or consolidation, own, directly or
indirectly, more than seventy percent (70%) of the combined voting power of the
then outstanding voting securities of the corporation resulting from such merger
or consolidation in substantially the same proportion as their ownership of the
combined voting power of the voting securities of the Company outstanding
immediately before such merger or consolidation; or

                  (d)      A complete liquidation or dissolution of the Company
or an agreement for the sale or other disposition of all or substantially all of
the assets of the Company.

         Notwithstanding the foregoing, a change in Control shall not be deemed
to occur pursuant to Section 1.3(a) of this Article 1, solely because twenty
percent (20%) or more of the combined voting power of the Company's then
outstanding securities is acquired by (i) a trustee or other fiduciary holding
securities under one or more employee benefit plans maintained by the Company or
any of its subsidiaries or (ii) any corporation which, immediately prior to such
acquisition, is owned directly or indirectly by the stockholders of the Company
in the same proportion as their ownership of stock in the Company immediately
prior to such acquisition (hereinafter referred to individually as a "Related
Person" and collectively as "Related Persons").

         1.4      "Company" shall mean L & C Spinco, Inc., its successors and
assigns.

         1.5      "Participants" shall mean active and former employees of the
Company and/or of its Affiliates who are participants in, or who have a claim to
receive benefits under, any of the Plans.

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         1.6      "Plans" shall mean the Executives' Deferred Compensation Plan,
Supplemental Deferred Savings Plan, Supplemental Retirement Plan for Executives,
Senior Management Benefit Plan, Severance Protection Agreements with senior
corporate officers and division presidents, and any other plans or agreements
that are adopted by the Company or its Affiliates prior to a Change in Control,
in all cases as listed on Schedule 1 as may be amended from time to time prior
to a Change in Control.

         1.7      "Related Person" shall have the meaning set forth in the last
paragraph of Section 1.3.

         1.8      "Threatened Change in Control" shall mean the occurrence of
any of the following events:

                  (a)      when the Company is aware of or is contemplating, a
proposal (a "Proposal") for any Person other than a Related Person (1) to
acquire five percent (5%) or more of the voting power of the Company's
outstanding securities, or (2) to merge or consolidate with another entity,
transfer or sell assets of the Company, or liquidate or dissolve the Company, in
each case described in this clause (2) in a transaction that would constitute a
Change in Control; or

                  (b)      any Person other than a Related Person,

                           (1)      acquires five percent (5%) or more of the
voting power of the Company's outstanding securities, other than as a holder
whose investment in the Company is eligible to be reported on Schedule 13G
pursuant to Rule 13d-1(b)(1) promulgated under the 1934 Act, or

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                           (2)      initiates a tender or exchange offer to
acquire such number of securities as would result in such person holding twenty
percent (20%) or more of the voting power of the Company's outstanding
securities, or

                           (3)      solicits proxies for votes to elect members
of the Board at a. shareholders' meeting of the Company.

         1.9      "Threatened Change in Control Period" shall mean the period
commencing on the date that a Threatened Change in Control has occurred and
ending upon:

                  (a)      the date the Proposal referred to in Section 1.8(a)
of this Article 1 is abandoned;

                  (b)      the acquisition of five percent (5%) of the voting
power of the Company's outstanding securities by the Person referred to in
Section 1.8(a)(1) if such acquisition does not constitute a Threatened Change in
Control under Section 1.8(b)(1);

                  (c)      the date when any person described in Section 1.8(b)
of this Article, (1) shall own less than five percent (5%) of the voting power
of the Company's outstanding securities, (2) shall have abandoned the tender or
exchange offer, or (3) shall not have elected a member of the Board as the case
may be; or

                  (d)      the date a Change in Control occurs.

                         ARTICLE 2: CREATION OF TRUST.

         2.1      The Company hereby adopts and assumes the Prior Trust and
agrees to continue such trust as amended by this Agreement. The Trustee hereby
agrees to continue as Trustee of the Trust. The Trust shall consist of two
accounts, established by the Trustee, for purposes of accounting for funds
delivered to the Trustee by the Company. One such account shall be known as the
"Trustee Expense Account," and shall be used exclusively to pay the fees,
expenses and indemnities due or incurred by the Trustee in accordance with the
terms of this Agreement. The

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other such account shall be known as the "Benefit Account," which is to be
funded by the Company in accordance with Article 4, and shall be used to make
payments under the Transferred Plans. Unless the Company directs otherwise, a
separate Trustee Expense Account and Benefit Account shall be established for
each Affiliate. The Benefit Account shall be divided into (i) separate
sub-accounts for each Participant and beneficiary (the "Sub-Accounts") and (ii)
a suspense account (the "Suspense Account"). The Sub-Accounts established
hereunder are intended to comply with the separate accounts requirement of
Section 404(a)(5) of the Internal Revenue Code of 1986, as amended (the "Code"),
and Treasury Regulations promulgated thereunder. Funds in the Benefit Account
will be allocated to the Suspense Account when they are not, or cannot be,
credited to any Sub-Account, as the Trustee, in its discretion, determines. The
Trustee, in its discretion, may at any time allocate or reallocate any funds
held in the Benefit Account among any or all of the Sub-Accounts and the
Suspense Account to the extent consistent with Section 404 (a) (5) of the Code.

         The Trustee, for investment purposes only, may commingle all Trust
assets and treat them as a single fund, but the records of the Trustee at all
times shall show the percentages or assets of this Trust allocable to the
Trustee Expense Account and the Benefit Account, including the percentages or
assets allocable to the Sub-Accounts and Suspense Account.

         2.2      The Company and the Trustee agree that this Trust created
herein shall be revocable by the Company at any time prior to or subsequent to a
Threatened Change in Control Period and prior to a Change in Control. This Trust
shall not be revocable by the Company during a Threatened Change in Control
Period or after the occurrence of a Change in Control. None of the assets and/or
income of this Trust shall be subject to any claims by creditors of the

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Company or any of its Affiliates. This Trust is not intended to be nor should it
be construed as a grantor trust within the meaning of Section 671 of the Code.

         2.3      Prior to a Change in Control, the Company and its Affiliates
may add Transferred Plans to, and Participants in the Transferred Plans under
which benefits are payable from, this Trust by amending Schedule 1 to the
Benefits Trust and notifying the Trustee in writing. If the Company or its
Affiliates amends any of the Transferred Plans, it shall send to the Trustee a
copy of any such amendments and no consent of the Trustee to such amendments is
required.

         2.4      Notwithstanding anything contained in this Agreement to the
contrary, upon a Change in Control cash and/or marketable securities, and all
rights under any Letters of Credit, from the Benefits Protection Trust with
respect to all Participants and their beneficiaries under the Transferred Plans
shall promptly and irrevocably be transferred from the Benefits Protection Trust
and delivered to this Trust. Upon the Transfer, the Trustee will have possession
and control of the assets so transferred (together with any other assets) of
this Trust and all of the income therefrom to hold, administer and dispose of
the same on the terms and conditions set forth herein on behalf of Participants
and their beneficiaries.

                      ARTICLE 3: TRUSTEE EXPENSE ACCOUNT.

         3.1      Upon a Change in Control, the Company will deliver to the
Trustee, to be held in trust hereunder and credited to the Trustee Expense
Account, the sum of _________________ dollars ($____________) in cash or
marketable securities, to be administered and disposed of by the Trustee as
provided herein.

         3.2      At any time after a Change in Control, the Trustee may require
the company to deliver additional amounts in cash or marketable securities to
this Trust, to be credited to the Trustee Expense Account. The Trustee shall
make written demand for any such additional amount, and the Company will comply
with such demand within fifteen (15) days of its receipt

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thereof. If the Company fails to deposit the amount in the Trust required by
this Section 3.2 within fifteen (15) days of the Trustee's written demand, the
Trustee shall commence legal action as provided in Section 9.4.

         3.3      At any time, the Company shall have the unlimited right to
deliver cash and/or marketable securities reasonably acceptable to the Trustee
to be credited to the Trustee Expense Account. Any amount (together with the
income attributable thereto) which is over and above the amount described in
Section 3.1 may be withdrawn by the Company at any time prior to or subsequent
to a Threatened Change in Control Period and prior to a Change in Control.
Notwithstanding anything contained in this Agreement to the contrary, the
Company shall not have the right to make any withdrawal from this Trust during a
Threatened Change in Control Period or after the occurrence of a Change in
Control.

                          ARTICLE 4: BENEFIT ACCOUNT.

         4.1      Immediately upon the occurrence of a Change in Control, the
Company shall contribute sufficient cash or marketable securities to the Benefit
Account in an amount equal to the difference between the assets transferred to
this Trust pursuant to the Transfer and the amount necessary (i) to pay all
payments and benefits to which Participants would be entitled (whether payable
currently or on a deferred basis) pursuant to the terms of the Transferred Plans
as of the date of the Change in Control and (ii) to pay the additional payments
and benefits that would be due Participants under the Transferred Plans assuming
the Participants' employment were terminated involuntarily by the Company
without cause immediately following the date on which the Change in Control
occurred. The amount the Company shall contribute to the Trust pursuant to this
Section 4.1 shall be determined by the Trustee in its discretion. If the Company
fails to contribute the amount to the Trust required by this Section 4.1 within
five (5) days of the occurrence of the Change in Control, the Trustee shall
commence legal action as provided in

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Section 9.4. Upon a Change in Control, the Trustee will have possession and
control of the assets transferred (together with any other assets) of this Trust
and all of the income therefrom to hold, administer and dispose of the same on
the terms and conditions set forth herein on behalf of the Participants and
their beneficiaries.

         4.2      At any time, the Company and any Affiliate shall have the
unlimited right to deliver cash and/or marketable securities reasonably
acceptable to the Trustee to be credited to the Benefit Account to be allocated
to any or all of the Sub-Accounts and/or the Suspense Account as the Trustee, in
its, discretion, determines. Any such delivery shall be accepted by the Trustee
and shall be accompanied by a designation of (i) the Transferred Plan or
Transferred Plans under the provisions of which such funds are to be disbursed
and if more than one Transferred Plan is being funded, the amount being
allocated in respect of each Transferred Plan and (ii) to which Participant or
Participants or beneficiary or beneficiaries the funds are being allocated and
if more than one Participant or beneficiary is designated, the amount being
allocated to each Participant or beneficiary. Such delivery shall be credited to
a separate Sub-Account for each Participant or beneficiary in respect of which
funds are being provided and any amount not credited to a Sub-Account shall be
credited to the Suspense Account. If no such designation is made by the Company
and any Affiliate, the Trustee has discretion to determine how the funds are to
be allocated. Any amount (together with the income attributable thereto)
contributed by the Company and any Affiliate to the Benefit Account may be
withdrawn by the Company and any Affiliate at any time prior or subsequent to a
Threatened Change in Control Period and prior to a Change in Control.

         4.3      After the occurrence of a Change in Control, if the Trustee
determines that the funds in the Benefit Account (including any Sub-Account) are
insufficient to fully pay all

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benefits under the Transferred Plans as described in Section 4.1 and any taxes
imposed or levied with respect to the assets and/or income of this Trust, as
provided under Section 10.1 of Article 10, the Trustee with respect to the
Benefit Account shall, and with respect to any Sub-Account may, make a written
demand on the Company to provide funds in an amount determined at least
quarterly by the Trustee in its discretion. The Company shall transfer such
funds within fifteen (15) days from the time the written demand is mailed. If
the Trustee fails to deposit the amounts in the Trust required by this Section
4.3 within fifteen (15) days of the Trustee's written demand, the Trustee shall
commence legal action as provided in Section 9.4.

         4.4      (a)      In addition to the cash and/or other property
delivered to, and deposited with, the Trustee pursuant to Article 3 and Sections
4.1, 4.2 and 4.3, the Company may deliver to the Trustee one or more letters of
credit (referred to hereinafter as the "Letter(s) of Credit") which shall (i) be
irrevocable for a period of at least 364 days, (ii) be renewable by the Company
on substantially the same terms and conditions at the end of such period unless
the issuer provides to the Company and the Trustee not less than 90 calendar
days' written notice prior to the expiration date that any Letter(s) of Credit
will not be renewed, and (iii) name the Trustee as beneficiary. A Letter of
Credit shall enable the Trustee to draw directly from the issuer of such Letter
of Credit, immediately upon notice and without any other requirement, an amount
equal to the excess of 100% of the amount the Trustee has demanded the Company
contribute to the Trust pursuant to Article 3 and Sections 4.1, 4.2 and 4.3, as
determined by the Trustee, over the value of all other assets of the Trust,
subject, however, to the maximum amount of the Letters of Credit.

                  (b)      The Trustee shall draw on each Letter of Credit held
by it to the full extent thereof no later than three (3) business days following
the failure by the Company to contribute

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to the Trust the amounts demanded by the Trustee pursuant to Article 3 and
Sections 4.1, 4.2 and 4.3.

                  (c)      If the Trustee receives written notice from an issuer
referencing a Letter of Credit by number which is signed by an officer of the
issuer of such Letter of Credit, that such Letter of Credit will not be renewed
on substantially the same terms and conditions, then the Trustee shall notify
the Company in writing that it has received such notice.

                  (d)      Notwithstanding (a) above, the Trustee shall not draw
on any Letter of Credit pursuant to subparagraph (a), to the extent that the
Company has deposited in the Trust 100% of the amount the Trustee has demanded
the Company to contribute to the Trust pursuant to Article 3 and Sections 4.1,
4.2 and 4.3, as determined by the Trustee.

                      ARTICLE 5: PAYMENTS FROM THE TRUST.

         5.1      The Company shall, from time to time, furnish the Trustee with
such written information regarding the Participants and beneficiaries under the
Transferred Plans and the amount and/or method of determination of benefits
under the Transferred Plans (hereinafter referred to as "Participant Data") as
the Company deems relevant or as the Trustee shall request in writing. The
Company shall, after a Change in Control, furnish the Trustee with such
Participant Data and other information as the Trustee may from time to time
request within thirty (30) days of such request. The Company shall, from time to
time, but not less frequently than annually, update Participant Data with
respect to all Transferred Plans.

         After a Change in Control and notwithstanding anything contained in
this Agreement to the contrary, the Trustee shall, without direction from the
Company make payments to Participants and beneficiaries in such manner and in
such amounts as the Trustee shall determine they are entitled to be paid under
the Transferred Plans based on the most recent

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Participant Data furnished to the Trustee by the Company and any supplemental
information furnished to the Trustee by a Participant or beneficiary upon which
the Trustee may reasonably rely in making such determination. The Trustee shall
have the power to interpret the provisions of the Transferred Plans and this
Agreement in making its determination Payments to a Participant or beneficiary
shall be made from the Participant's Sub-Account. To the extent that the Trustee
determines that the funds available in a Participant's Sub-Account is not
sufficient to provide for the payment of all amounts otherwise payable to him or
her as provided under this Section 5.1, the Trustee shall use the funds credited
to the Suspense Account, to the extent available, for the payments due. To the
extent that the Trustee determines that there still remains an insufficiency in
funds available for the Participant's or beneficiary's payment, the Trustee
shall make a written demand on the Company to provide the necessary funds, as
provided under Article 4. In the event that the Company refuses to transfer such
funds within fifteen (15) days from the time the written demand is mailed, the
amount otherwise payable to each such Participant or beneficiary during every
month of the insufficiency of funds shall be multiplied by a fraction, the
numerator of which is the amount of funds then available in the Benefit Account
for the payment of benefits under the Transferred Plans and the denominator of
which is the total of the benefits payable prior to such reduction during such
month to all Participants and beneficiaries under the Transferred Plans.

         5.2      Within a reasonable time following presentment to the Trustee
by a Participant or beneficiary of reasonable written evidence satisfactory to
the Trustee that such Participant or beneficiary will or has taxable income as a
result of his or her interest in this Trust with respect to any Transferred
Plan, then the Trustee shall make a payment (the "Tax Payment") to such

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Participant or beneficiary or to the appropriate taxing authority if applicable
from the Benefit Account equal to the product of (i) the amount of such taxable
income and (ii) the maximum individual tax rates for the taxable year in respect
of which such taxable income will be, or has been, recognized for federal, state
and local income taxes, as the case may be, taking into account the
deductibility from federal income taxes of any applicable state and local taxes.
The payment or payments that a Participant or beneficiary receives from the
Benefit Account in respect of any Transferred Plan (other than Tax Payments)
shall be reduced, in the manner determined by the Trustee, so that the present
value of such payment or payments in respect of the Transferred Plan equal the
present value of the total payment or payments the Participant or beneficiary
would have been entitled to receive in respect of the Transferred Plan had this
Trust not been established, reduced by the amount of the Tax Payments previously
made in respect of the Transferred Plan. For this purpose, present value shall
be determined as of the date (the "Determination Date") of the payments or the
payment of the first in a series of installment payments, in respect of the
Transferred Plan, using an interest rate assumption equal to the Pension Benefit
Guaranty Corporation's immediate annuity rate in effect for single employer
plans terminating on the Determination Date and any other assumptions the
Trustee deems reasonable and appropriate.

         5.3      If the Trustee, in its discretion, determines that a
Participant or beneficiary no longer has any interest or entitlement (contingent
or otherwise) under this Trust because he or she has been fully paid all amounts
due under all Transferred Plans or otherwise, any amount that remains credited
to the Participant's Sub-Account shall be reallocated to any or all of the
Sub-Accounts or Suspense Account as the Trustee, in its discretion, determines
but consistent with complying with the "separate account" requirements referred
to in Section 2.1.

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                     ARTICLE 6: MANAGEMENT OF TRUST ASSETS.

         6.1      Prior to a Change in Control, this Trust's assets shall be
held, invested and reinvested by the Trustee as designated by the written
direction of the Company from time to time. The Trustee shall not be under any
duty, or have any right, to question any such directions of the Company or to
review any securities or other property held pursuant to such direction, or to
make any suggestions to the Company in connection therewith; and the Trustee
shall as promptly as practicable comply with any directions given by the Company
hereunder. The Trustee shall not be liable for following the directions from the
Company prior to a Change in Control if there is a loss due to investments
directed by the Company. In exercising the powers of the Company under this
Section 6.1, the Company shall act by its Corporate Treasurer or his written
designees, each of whom is fully authorized to exercise such powers. The Trustee
may, and shall, follow the written directions signed by said Corporate Treasurer
or such designees.

         6.2      In the absence of written direction of the Company, the
Trustee shall invest the assets as if a change in Control had occurred as
provided in Section 6.3 and Article 9.

         6.3      After the occurrence of a Change in Control, the Trustee shall
have exclusive authority and discretion to manage and control this Trust's
assets and may employ investment managers, including affiliates of the Trustee
to manage the investment of this Trust's assets. Pursuant to such authority and
discretion, the Trustee may exercise, from time to time and at any time, the
power:

                  (a)      to invest and reinvest this Trust, without
distinction between principal and income, in shares of stock (whether common or
preferred) or other evidences of ownership, bonds, debentures, notes or other
evidences of indebtedness, unsecured or secured by mortgages on real or personal
property wherever situated (including any part interest in a bond and mortgage
or note and mortgage whether insured or uninsured) and other property, or part
interest

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in property, real or personal, interests in common or collective funds
maintained by the Trustee or an affiliate of the Trustee, foreign or domestic,
and in order to reduce the rate of interest rate fluctuations, contracts, as
either buyer or seller, for the future delivery of United States Treasury
securities and comparable federal-government-backed securities;

                  (b)      to sell, convey, redeem, exchange, grant options for
the purchase or exchange of, or otherwise dispose of, any real or personal
property, at public or private sale, for cash or upon credit, with or without
security, without obligation on the part of any person dealing with the Trustee
to see to the application of the proceeds of or to inquire into the validity,
expediency or propriety of any such disposition;

                  (c)      to exercise, personally or by general or limited
proxy, the right to vote any shares of stock, bonds or other securities held in
this Trust, to delegate discretionary voting power to trustees of a voting trust
for any period of time, and to exercise, personally or by power of attorney, any
other right appurtenant to any securities or other property of this Trust;

                  (d)      to join in or oppose any reorganization,
recapitalization, consolidation, merger or liquidation, or any plan therefor, or
any lease, mortgage or sale of the property of any organization the securities
of which are held in this Trust; to pay from this Trust any assessments, charges
or compensation specified in any plan of reorganization, recapitalization,
consolidation, merger or liquidation; to deposit any property with any committee
or depositary; and to retain any property allotted to this Trust in any
reorganization, recapitalization, consolidation, merger, or liquidation;

                  (e)      to exercise or sell any conversion or subscription or
other rights appurtenant to any stock, security or other property held in this
Trust;

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                  (f)      to borrow from any lender (including the Trustee in
its individual capacity) money, in any amount and upon any reasonable terms and
conditions, for purposes of this Agreement, and to pledge or mortgage any
property held in this Trust to secure the repayment of any such loan;

                  (g)      to compromise, settle or arbitrate any claim, debt,
or obligation of or against this Trust; to enforce or abstain from enforcing any
right, claim, debt or obligation and to abandon any property determined by it to
be worthless;

                  (h)      to make loans of securities held in this Trust to
registered brokers and dealers upon such terms and conditions as are permitted
by applicable law and regulations, and in each instance to permit the securities
so lent to be registered in the name of the borrower or a nominee of the
borrower, provided that in each instance the loan is adequately secured and
neither the borrower nor any affiliate of the borrower has discretionary
authority or control with respect to the assets of this Trust involved in the
transaction or renders investment advice with respect to those assets; and

                  (i)      to invest and reinvest any property in this Trust in
any other form or type of investment not specifically mentioned in this Section.

                       ARTICLE 7: ADMINISTRATIVE POWERS.

         The Trustee shall have and in its sole and absolute discretion may
exercise from time to time and at any time the following administrative powers
and authority with respect to this Trust:

         7.1      To hold property of this Trust in its own name or in the name
of a nominee or nominees, without disclosure of this Trust, or in bearer form so
that it will pass by delivery, but no such holding shall relieve the Trustee of
its responsibility for the safe custody and disposition

                                       17
<PAGE>   20

of this Trust in accordance with the provisions of this Agreement; the Trustee's
books and records shall at all times show that such property is part of this
Trust; and the Trustee shall be absolutely liable for any loss occasioned by the
acts of its nominee or nominees with respect to securities registered in the
name of the nominee or nominees.

         7.2      To organize and incorporate under the laws of any state it may
deem advisable one or more corporations (and to acquire an interest in any such
corporation that it may have organized and incorporated) for the purpose of
acquiring and holding title to any property, interests or rights that the
Trustee is authorized to acquire under Article 6 hereof.

         7.3      To employ in the management of this Trust suitable agents,
without liability for any loss occasioned by any such agents selected by the
Trustee with the care, skill, prudence and diligence under the circumstances
then prevailing that a prudent person acting in a like capacity and familiar
with such matters would use in the conduct of an enterprise of a like character
and with like aims.

         7.4      To make, execute and deliver, as Trustee, any deeds,
conveyances, leases, mortgages, contracts, waivers or other instruments in
writing that the Trustee may deem necessary or desirable in the exercise of its
powers under this Agreement.

         7.5      To administer this Trust, including the establishment and
maintenance of the Sub-Accounts and Suspense Account, to ensure that payments
made to this Trust by the Company are deductible by the Company under Section
404(a)(5) of the Code; provided, that such administration shall not adversely
effect the interests of the Participants and beneficiaries.

         7.6      To reallocate at any time excess funds from any and all of the
Sub-Accounts among the Sub-Accounts or Suspense Account, as provided under
Article 5, and from the Suspense Account to any and all of the Sub-Accounts, as
provided under Article 2.

                                       18
<PAGE>   21

         7.7      To pay any federal, state, local or other taxes imposed or
levied with respect to the assets and/or income of this Trust out of the Benefit
Account and to file all federal, state and local tax or information returns
relating to this Trust.

         7.8      To draw upon any Letter of Credit provided pursuant to Section
4.4 and to make demand upon the issuer of any Letter of Credit to pay amounts
directly to the Trust.

         7.9      To do all other acts that the Trustee may deem necessary or
proper to carry out any of the powers set forth in this Agreement or otherwise
in the best interests of this Trust.

                  ARTICLE 8: INSURANCE AND ANNUITY CONTRACTS.

         8.1      The Trustee, upon written direction of the Company prior to a
Change in Control, shall pay from the Benefit Account such sums to such
insurance company or companies as the Company may direct for the purpose of
procuring participating or nonparticipating insurance and/or annuity contracts
for the Transferred Plans (hereinafter referred to as "Contracts"). The Company
shall prepare, or cause to be prepared in such form as it shall prescribe, the
application for any Contract to be applied for. The Trustee shall receive and
hold in this Trust, subject to the provisions hereinafter set forth in this
Article 8, all Contracts so obtained.

         8.2      The Trustee shall be the complete and absolute owner of
Contracts held in this Trust and, upon written direction of the Company prior to
a Change in Control, shall have power, without the consent of any other person,
to exercise any and all of the rights, options or privileges that belong to the
absolute owner of any Contract held in this Trust or that are granted by the
terms of any such Contract or by the terms of this Agreement. Prior to a Change
in Control, the Trustee shall have no discretion with respect to the exercise of
any of the foregoing powers or the taking of any other action permitted by any
Contract held in this Trust, but shall exercise such powers or take such action
only upon the written direction of the Company and the Trustee shall have no
duty to exercise any of such powers or to take any such action unless and

                                       19
<PAGE>   22

until it shall have received such direction. After a Change in Control, the
Trustee shall exercise, without directions from the Company, any and all of the
rights, options or privileges that belong to the absolute owner of any Contract
held in this Trust or that are granted by the terms of any such Contract or by
the terms of this Agreement. The Trustee, upon the written direction of the
company prior to a Change in Control, shall deliver any Contract held in this
Trust to such person or persons as may be specified in the direction.

         8.3      The Trustee shall hold in this Trust the proceeds of any sale,
assignment or surrender of any Contract held in this Trust and any and all
dividends and other payments (including death benefits) of any kind received in
respect of any Contract held in this Trust.

         8.4      Upon the written direction of the Company prior to a Change in
Control, the Trustee shall pay from the Benefit Account, premiums, assessments,
dues, charges and interest, if any, upon any Contract held in this Trust. The
Trustee shall have no duty to make any such payment unless and until it shall
have received such direction. After a Change in Control, the Trustee shall pay
from the Benefit Account premiums, assessments, dues, charges and interest, if
any, upon any Contract held in this Trust, without direction from the Company.

         8.5      No insurance company that may issue any Contract or Contracts
held in this Trust shall be deemed to be a party to this Agreement for any
purpose, or to be responsible in any way for the validity of this Agreement or
to have any liability under this Agreement other than as stated in each Contract
that it may issue. Any insurance company may deal with the Trustee as sole owner
of any Contract issued by it and held in this Trust without inquiry as to the
authority of the Trustee to act, and may accept and rely upon any written
notice, instruction, direction, certificate or other communication from the
Trustee believed by it to be genuine and to be signed by an officer of the
Trustee and shall incur no liability or responsibility for so doing. Any sums

                                       20
<PAGE>   23

paid out by any insurance company under any of the terms of a Contract issued by
it and held in this Trust either to the Trustee, or, in accordance with the
direction of the Trustee, to any other person or persons designated as payees in
such Contract shall be a full and complete discharge of the liability to pay
such sums, and the insurance company shall have no obligation to look to the
disposition of any sums so paid. No insurance company shall be required to
review the terms of this Agreement, to question any action of the Trustee or to
ensure that any action of the Trustee is authorized by the terms of this
Agreement.

         8.6      Notwithstanding anything contained herein to the contrary,
neither the Company nor the Trustee shall be liable for the refusal of any
insurance company to issue or change any Contract or Contracts or to take any
other action requested by the Trustee; nor for the form, genuineness, validity,
sufficiency or effect of any Contract or Contracts held in this Trust; nor for
the act of any person or persons that may render any such Contract or Contracts
null and void; nor for the failure of any insurance company to pay the proceeds
and avails of any such Contract or Contracts as and when the same shall become
due and payable; nor for any delay in payment resulting from any provision
contained in any such Contract or Contracts; nor for the fact that for any
reason whatsoever (other than their own negligence or willful misconduct) any
Contract or Contracts shall lapse or otherwise become uncollectable.

             ARTICLE 9: TRUSTEE'S POWERS AFTER A CHANGE IN CONTROL:

         9.1      After a Change in Control, the Trustee shall exercise for the
sole benefit of Participants and their beneficiaries any of the powers set forth
in Section 6.3 and Sections 8.2 through 8.6 without direction from the Company,
including the power to negotiate for and purchase Contracts whose rates of
return and maturity dates may reasonably be expected to permit the Trust to
discharge any or all of the obligations of the Company and its Affiliates under
the Transferred Plans.

                                       21
<PAGE>   24

         9.2      As soon as practicable following a Change in Control, the
Trustee shall notify in writing each Participant and beneficiary of the amount
of his or her benefit (accrued or contingent) under the Transferred Plans.
Thereafter, the Trustee shall provide each Participant or his or her beneficiary
by March 1 of each year, with an account statement (the "Account Statement") as
of December 31 of the prior calendar year. The Account Statement shall contain a
statement of the amount of benefit payments to which the Participant is or may
be entitled, a summary of the assets of the Trust, the amount credited to the
Participant's Sub-Account, and a statement notifying the Participant or
beneficiary that he or she has the right to receive or examine a copy of this
Agreement and examine the Trustees account filed with the Company pursuant to
Section 14.1. In addition, the Trustee shall notify each Participant or
beneficiary of any failure by the Company to provide the Participant Data
referred to in Section 5.1 or to make contributions pursuant to Articles 3 and
4.

         9.3      After a Change in Control, the Trustee shall bill the Company
directly, on a monthly basis, for all fees and expenses described in Section
10.2. If the Company fails to pay such amounts within thirty (30) days, the
Trustee shall commence legal action as provided in Section 9.4

         9.4      After a Change in Control, if the Company fails to transfer
to, and deposit in, the Trust the amounts required by Articles 3 and 4, and
Sections 9.3 and 10.1, within the time period demanded by the Trustee, the
Trustee shall commence legal action to compel the Company to pay such amounts to
the Trust, and (ii) the Company shall be required by contribute within 10 days
of commencement of such action an additional amount to the Trust to pay for the
costs and expenses, including legal fees, of such action. The Trustee shall have
the power and authority to

                                       22
<PAGE>   25

hire legal counsel of its choice to pursue such legal action against the Company
and the costs of such legal counsel shall be paid from the Trust.

            ARTICLE 10: TAXES. EXPENSES AND COMPENSATION OF TRUSTEE.

         10.1     The Company shall pay any federal, state, local or other taxes
imposed or levied with respect to the assets and/or income of this Trust or any
part thereof unless paid by the Trustee out of the Benefit Account.

         10.2     The Trustee shall be reimbursed by the company on a monthly
basis, or on such other basis as the Trustee deems reasonable, for the fees and
expenses set forth in Schedule 3 to the Benefits Trust and its reasonable
expenses, including but not limited to the retention of legal counsel,
accountants and actuaries and such other professionals as the Trustee determines
are necessary or appropriate to enable it to perform its services as Trustee.

                     ARTICLE 11: GENERAL DUTIES OF TRUSTEE.

         11.1     The Trustee shall discharge its duties under this Agreement
solely in the interest of the Participants and their beneficiaries and (a) for
the exclusive purpose of providing benefits to such Participants and their
beneficiaries and defraying reasonable expenses of administering this Trust; and
(b) with the care, skill, prudence and diligence under the circumstances then
prevailing that a prudent person acting in a like capacity and familiar with
such matters would use in the conduct of an enterprise of a like character and
with like aims.

         11.2     (a)      The Company shall notify the Trustee of any facts of
which its officers have knowledge which have caused the occurrence of a Change
in Control.

                  (b)      The Trustee is responsible for ascertaining whether a
Change in Control has occurred.

         11.3     The Trustee may consult with counsel, who may be counsel for
the Company prior to a Change in Control or for the Trustee in its individual
capacity, and shall not be deemed

                                       23
<PAGE>   26

imprudent by reason of its taking or refraining from taking any action in
accordance with the opinion of counsel.

                          ARTICLE 12: INDEMNIFICATION.

         12.1     The Company agrees, to the extent permitted by law, to
indemnify and hold the Trustee harmless from and against any liability that the
Trustee may incur in the administration of this Trust (including attorneys' fees
and expenses), unless arising from the Trustee's own gross negligence, willful
misconduct, or willful breach of the provisions of its obligations under this
Agreement. The Trustee shall not be required to give any bond or any other
security for the faithful performance of its duties under this Agreement, except
as required by law.

         12.2     Any amount payable to the Trustee under this Article 12 and
not previously paid by the Company shall be paid by the Company promptly upon
written demand therefor by the Trustee or, if the Company fails to make payment
within fifteen (15) days after receipt of such written demand, from the Trustee
Expense Account, and, if the Trustee Expense Account is insufficient, then from
the Benefit Account.

         In the event that payment is made hereunder to the Trustee from the
Trustee Expense Account or Suspense Account, the Trustee shall promptly notify
the Company in writing of the amount of such payment. The Company agrees that,
upon receipt of such notice, it will deliver to the Trustee to be held in this
Trust an amount in cash (or in marketable securities or in some combination
thereof) equal to any payments made from this Trust to the Trustee pursuant to
this Article 12. The failure of the Company to transfer any such amount shall
not in any way impair the Trustee's right to indemnification, reimbursement and
payment pursuant to this Article 12. The provisions of this Article 12 shall
survive the termination of this Agreement.

                                       24
<PAGE>   27

         12.3     Nothing in this Article 12 shall require the Company to
indemnify the Trustee with respect to any Letter of Credit (as described in
Section 4.4) which the Trustee or any affiliate may issue in its commercial
capacity, nor may any assets of the Trust be used to repay the Trustee or any
affiliate for amounts the Trustee or any affiliate may pay pursuant to any
Letter of Credit.

                     ARTICLE 13: NO DUTY TO ADVANCE FUNDS.

         Nothing contained in this Agreement shall require the Trustee to risk
or expend its own funds in the performance of the duties of the Trustee
hereunder. In the acceptance and performance of its duties hereunder, the
Trustee acts solely as trustee and not in its individual capacity, and all
persons, other than the Company, having any claim against the Trustee related to
this Agreement or the actions or agreements of the. Trustee contemplated hereby
shall look solely to this Trust for the payment or satisfaction thereof unless
the Trustee has failed to act with the care, skill, prudence and diligence under
the circumstances then prevailing that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of an
enterprise of like character and with like aims. The provisions of this Article
13 shall not limit in any way the obligations and responsibilities of the
Trustee or any affiliate pursuant to a Letter of Credit (as described in Section
4.4) and the rights of the Trustee to draw upon any Letter of Credit issued by
the Trustee or any affiliate shall be as provided in such Letter of Credit.

                             ARTICLE 14: ACCOUNTS.

         14.1     (a)      The Trustee shall keep accurate and detailed accounts
of all its receipts, investments and disbursements under this Agreement on a
fiscal year basis ending on each August 31 and for purposes of the Account
Statement pursuant to Section 9.2. Such person or

                                       25
<PAGE>   28

persons as the Company shall designate shall be allowed to inspect the books of
account relating to this Trust upon request at any reasonable time during the
business hours of the Trustee.

                  (b)      Within sixty (60) days after the close of each fiscal
year, the Trustee shall transmit to the Company, and certify the accuracy of, a
written statement of the assets and liabilities of this Trust, showing the
current value of each asset at that date, and a written account of all the
Trustee's transactions relating to this Trust during the period from the last
previous accounting to the close of that year. For the purposes of this
subsection, the date of the Trustee's resignation or removal as provided in
Article 16 or the date of termination of this Trust as provided in Article 17
shall be deemed to be the close of a year.

                  (c)      Unless the Company shall have filed with the Trustee
written exceptions or objections to any such statement and account within
one-hundred and twenty (120) days after receipt thereof, the Company shall be
deemed to have approved such statement and account, and in such case or upon the
written approval by the Company of any such statement and account, the Trustee
shall, to the extent permitted by law, be forever released and discharged with
respect to all matters and things contained in such statement and account as
though it had been settled by decree of a court of competent jurisdiction in an
action or proceeding to which the company and all persons having any beneficial
interest in this Trust were parties.

         14.2     The Trustee shall determine the fair market value of this
Trust on a quarterly basis. If there is a diminution in value of the Trustee
Expense Account below the required amount set forth in Section 3.1 after the
occurrence of a Change in Control, the Company shall provide the Trustee with
sufficient funds to make up for any such diminution in value within fifteen (15)
days after written demand by the Trustee for such payment. No resignation
pursuant

                                       26
<PAGE>   29

to the foregoing provisions of this Section 14.2 may take effect after the
occurrence of a Change in Control.

         14.3     Nothing contained in this Agreement or in the Transferred
Plans shall deprive the Trustee of the right to have a judicial settlement of
its accounts. In any proceeding for a judicial settlement of the Trustee's
accounts or for instructions in connection with this Trust, the only other
necessary party thereto in addition to the Trustee shall be the Company. If the
Trustee so elects, it may bring in as a party or parties defendant any other
person or persons. No person interested in this Trust, other than the Company or
at least twenty-five percent (25%) of the Participants and beneficiaries, shall
have a right to compel an accounting, judicial or otherwise, by the Trustee, and
each such person shall be bound by all accountings by the Trustee to the
Company, as herein provided, as if the account had been settled by decree of a
court of competent jurisdiction in an action or proceeding to which such person
was a party.

      ARTICLE 15: ADMINISTRATION OF THE TRANSFERRED PLANS; COMMUNICATIONS.

         15.1     Prior to a Change in Control, the Company shall administer the
Transferred Plans as provided therein and subject to Article 5, Article 6, and
Article 9, or subject to any other delegation, by the Company and assumption by
the Trustee of the duties of administering the Transferred Plans, the Trustee
shall not be responsible in any respect for administering the Transferred Plans
nor shall the Trustee be responsible for the adequacy of this Trust to meet and
discharge all payments and liabilities under the Transferred Plans. The Trustee
shall be fully protected in relying upon any written notice, instruction,
direction or other communication consistent with the terms of this Agreement
signed by an officer of the Company designated pursuant to this Agreement. The
Company, from time to time, shall furnish the Trustee with the names and
specimen signatures of the designated officers of the

                                       27
<PAGE>   30

Company and shall promptly notify the Trustee of the termination of office of
any designated officer of the Company and the appointment of a successor
thereto. Until notified to the contrary, the Trustee shall be fully protected in
relying upon the most recent list of the designated officers of the Company
furnished to it by the Company.

         15.2     Any action required by any provision of this Agreement to be
taken by the Board shall be evidenced by a resolution of such Board certified to
the Trustee by the Secretary or an Assistant Secretary of the Company under its
corporate seal, and the Trustee shall be fully protected in relying upon any
resolution so certified to it. Unless other evidence with respect thereto has
been specifically prescribed in this Agreement, any other action of the Company
under any provision of this Agreement, including any approval of or exceptions
to the Trustee's accounts, shall be evidenced by a certificate signed by an
officer of the Company, and the Trustee shall be fully protected in relying upon
such certificate. The Trustee may accept a certificate signed by an officer of
the Company as proof of any fact or matter that it deems necessary or desirable
to have established in the administration of this Trust (unless other evidence
of such fact or matter is expressly prescribed herein), and the Trustee shall be
fully protected in relying upon the statements in the certificate.

         15.3     The Trustee shall be entitled conclusively to rely upon any
written notice, instruction, direction, certificate or other communication
consistent with the terms of this Agreement believed by it to be genuine and to
be signed by the proper person or persons.

         15.4     Until written notice is given to the contrary, communications
to the Trustee shall be sent to it at its office at
______________________________, Winston-Salem, North Carolina, Attention:
__________________, facsimile _____________, copy to _____________________ (or
such other individuals as may be designated in writing by the Trustee);
communications to the Company shall be sent to it at its office at 1420
Peachtree

                                       28
<PAGE>   31

Street, N.E., Atlanta, Georgia, Attention: Ken Murphy, facsimile 404-853-1015,
with a copy to William J. Vesely, Jr., Kilpatrick Stockton LLP, facsimile
404-815-6555 (or to such other individuals or addresses as may be designated by
the Company).

                 ARTICLE 16: RESIGNATION OR REMOVAL OF TRUSTEE.

         16.1     The Trustee may resign at any time, other than during a
Threatened Change in Control Period or following the occurrence of a Change in
Control, upon six (6) months' written notice to the Company or such shorter
period as is acceptable to the Company (hereinafter referred to as the
"Resignation Period") and immediately after the Resignation Period shall have no
further duties hereunder. The Trustee will have no duty to find or secure the
appointment of a successor upon its resignation pursuant to this Section nor
shall its resignation or its termination of any further duties be contingent
upon the appointment and qualification of a successor. Promptly after receipt of
such notice, the Company shall appoint a successor trustee, such trustee to
become Trustee upon its acceptance of this Trust.

         16.2     During a Threatened Change in Control Period or after the
occurrence of a Change in Control, the Trustee may resign only if a final
decision of a court of competent jurisdiction removes the Trustee by reason of
such court's determination of the existence of a conflict of interest which
prevents the Trustee from properly performing its duties hereunder. The Trustee
agrees to use its best efforts to avoid any such conflict. For the purpose of
this Agreement, the decision of a court shall not be deemed to be final unless
the decision is not appealable, or no appeal has been taken from the decision
and the time for an appeal has expired. Notwithstanding the foregoing provisions
of this Section 16.2, such resignation shall not be effective unless the Trustee
has obtained the agreement of a bank to act as successor trustee which bank (1)
is among the 100 largest banks in the United States, as measured by assets, and
(2) served or then currently serves as the trustee for similar trusts and
understands its obligations

                                       29
<PAGE>   32

under such similar trusts. In any event, the Trustee shall continue to be
custodian of this Trust until the new trustee is in place, and the Trustee shall
be entitled to expenses and fees through the later of the effective date of its
resignation as Trustee or the end of its custodianship of this Trust's assets.

         16.3     Other than during a Threatened Change in Control Period or
after the occurrence of a Change in Control, the Company may remove the Trustee
upon thirty (30) days' written notice to the Trustee, or upon shorter notice if
acceptable to the Trustee. Such removal shall become effective, however, only
upon the occurrence of all of the following events:

                  (a)      The appointment by the Company of a successor
trustee;

                  (b)      The acceptance of the Trust by the successor trustee;
and

                  (c)      The delivery of this Trust's assets to the successor
trustee.

         16.4     Each successor trustee shall have the powers and duties
conferred upon the Trustee in this Agreement, and the term "Trustee" as used in
this Agreement shall be deemed to include any successor trustee. Upon
designation or appointment of a successor trustee, the Trustee shall transfer
and deliver this Trust to the successor trustee, reserving such reasonable sums
as the Trustee shall deem necessary to defray its expenses in settling its
accounts, to pay any of its compensation due and unpaid and to discharge any
obligation of this Trust for which the Trustee may be liable. If the sums so
reserved are not sufficient for these purposes, the Trustee shall be entitled to
recover the amount of any deficiency from either the Company or the successor
trustee, or both. When this Trust shall have been transferred and delivered to
the successor trustee and the accounts of the Trustee have been settled as
provided in Article 14, the Trustee shall be released and discharged from all
further accountability or liability for this Trust

                                       30
<PAGE>   33

and shall not be responsible in any way for the further disposition of this
Trust or any part thereof.

         16.5     Notwithstanding anything to the contrary, in the event it
resigns or is removed, the Trustee shall have a right to have its accounts
settled as provided in Article 14.

           ARTICLE 17: AMENDMENT OF AGREEMENT; TERMINATION OF TRUST.

         17.1     Subject to Section 17.2 of this Article 17, the Company
expressly reserves the right at any time, other than during a Threatened Change
in Control Period or after the occurrence of a Change in Control, to amend in
writing or terminate this Agreement and this Trust created thereby to any extent
that it may deem advisable. No amendment shall be made without the Trustee's
consent thereto in writing (whose consent shall not be unreasonably withheld)
if, and to the extent that, the effect of such amendment is to materially
increase the Trustee's responsibilities hereunder. Such proposed amendment shall
be delivered to the Trustee as a written instrument of amendment, duly executed
and acknowledged by the Company. The Company also shall deliver to the Trustee a
copy of any modifications or amendments to the Transferred Plans. The Trustee's
consent shall not be required for the termination of this Trust pursuant to this
Section 17.1, its removal as Trustee, the amendment of any of the Plans, or the
increase in the number of Participants.

         17.2     Notwithstanding anything contained herein to the contrary,
other than as provided in Section 17.4, the provisions of this Agreement and
this Trust created thereby shall not be amended or terminated by the Company or
the Trustee during a Threatened Change in Control Period or after the occurrence
of a Change in Control.

         17.3     In the event the Company terminates this Trust other than
during a Threatened Change in Control Period or after the occurrence of a.
Change in Control, the Trustee shall reserve such sums it deems necessary to pay
its fees and expenses, and shall distribute all

                                       31
<PAGE>   34

remaining assets of this Trust in accordance with the written directions of the
Company, and the Trustee shall provide the Company with a final written
accounting to the Company in accordance with Article 14 hereof.

         17.4     After the occurrence of a Change in Control, this Trust shall
only be terminated on the first to occur of either (a) the date on which the
last Participant or beneficiary has received his or her benefits under the
Transferred Plans or (b) the twenty-first anniversary of the death of the last
survivor of the Participants or their beneficiaries who are in being on the date
of this Agreement. Upon termination of this Trust, the Trustee shall have a
right to have its account settled as provided in Article 14 hereof. Only upon
termination of this Trust, and after payment of all fees, expenses and
indemnities due to or incurred by the Trustee hereunder, any remaining portion
of this Trust shall be promptly paid to the Company.

                     ARTICLE 18: PROHIBITION OF DIVERSION.

         Except as provided in Sections 3.3, 4.2 and 17.4, at no time prior to
the satisfaction of all liabilities with respect to Participants and their
beneficiaries under this Trust shall any part of the corpus and/or income of
this Trust be used for, or diverted to, purposes other than for the exclusive
benefit of such Participants and their beneficiaries, and the assets of this
Trust shall never inure to the benefit of the Company or its creditors (except
the Participants and beneficiaries) and shall be held for the exclusive purposes
of providing benefits to Participants in the Transferred Plans and their
beneficiaries and defraying reasonable expenses of administering the Transferred
Plans or performing any of the Trustee's duties under this Agreement.

                                       32
<PAGE>   35

               ARTICLE 19: PROHIBITION OF ASSIGNMENT OF INTEREST.

         No interest, right or claim in or to any part of this Trust or any
payment therefrom shall be assignable, transferable or subject to sale,
mortgage, pledge, hypothecation, commutation, anticipation, garnishment,
attachment, execution or levy of any kind, and the Trustee shall not recognize
any attempt to assign, transfer, sell, mortgage, pledge, hypothecate, commute or
anticipate the same, except to the extent required by law.

                           ARTICLE 20: MISCELLANEOUS.

         20.1     This Agreement shall be interpreted, construed and enforced,
and this Trust hereby created shall be administered, in accordance with the laws
of the United States and of the State of Georgia without regard to the conflicts
of laws principles thereof.

         20.2     The Company shall, at any time and from time to time, upon the
reasonable request of the Trustee, execute and deliver such further instruments
and do such further acts as may be necessary or proper to effectuate the purpose
of this Agreement.

         20.3     The titles to Articles of this Agreement are placed herein for
convenience of reference only, and this Agreement is not to be construed by
reference thereto.

         20.4     This Agreement shall bind and inure to the benefit of the
successors and assigns of the Company and the Trustee, respectively and the
Transferred Plans.

         20.5     This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original but all of which together shall
constitute but one instrument, which may be sufficiently evidenced by any
counterpart.

         20.6     If any provision of this Agreement is determined to be invalid
or unenforceable the remaining provisions shall not for that reason alone also
be determined to be invalid or unenforceable.

         20.7     Each Participant and his beneficiaries is an intended
beneficiary under this Trust, and shall be entitled to enforce all terms and
provisions hereof with the same force and effect as if such person had been a
party hereto.

                                       33
<PAGE>   36

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in their respective names by their duly authorized officers under their
corporate seals as of the day and year first above written.

                                        L & C SPINCO, INC.

ATTEST:                                 By:
                                           -----------------------------------

---------------------------------
Secretary

                                        WACHOVIA BANK, N.A.

ATTEST:                                 By:
                                           -----------------------------------

---------------------------------
Secretary

         The undersigned, National Service Industries, Inc., hereby consents to
the transfer and assumption of the Prior Trust by L & C Spinco, Inc., as of this
____ day of ________, 2001.

                                        NATIONAL SERVICE INDUSTRIES, INC.

                                        By:
                                           -----------------------------------

                                       34
<PAGE>   37

STATE OF

                                    ss.:
COUNTY OF

         On this day of ____________, 1990, before me personally came
________________, to me known, who, being by me duly sworn, did depose and say
that he is _______________ of Wachovia Bank, N.A., one of the entities describes
in and which executed the foregoing instrument; that he knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by order of the Board of Directors of said corporation;
and that he signed his name thereto by like order.

                                    ------------------------------------------
                                    Notary Public, State of Georgia

                                    My Commission Expires
                                                          --------------------

STATE OF GEORGIA
                                    ss.:
COUNTY OF FULTON

         On this day of ____________, 1990, before me personally came
____________, to me known, who, being by me duly sworn, did depose and say that
he is _________ of L & C Spinco, Inc., one of the entities described in and
which executed the foregoing instrument; that he knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by order of the Board of Directors of said corporation;
and that he signed his name thereto by like order.

                                    ------------------------------------------
                                    Notary Public, State of Georgia

                                    My Commission Expires
                                                          --------------------

<PAGE>   38

                                   Schedule 1

                                    THE PLANS

         The following Company plans and agreements (collectively referred to as
the "Plans") are subject to this Trust:

         1.       Executives' Deferred Compensation Plan

         2.       Supplemental Retirement Plan for Executives

         3.       Senior Management Benefit Plan

         4.       Supplemental Deferred Savings Plan

         5.       Long Term Incentive Plan

         6.       Severance Protection Agreements with:

                  (i)      Balloun

                  (ii)     Hattox

                  (iii)    Murphy

                  (iv)     Parham

                  (v)      Heagle

                  (vi)     Searle

                  (vii)    Honeycutt

                  (viii)   Morgan

<PAGE>   39

                                   Schedule 2

                            PARTICIPATING AFFILIATES

                           L & C Lighting Group, Inc.

                               The Zep Group, Inc.

<PAGE>   40

                                   Schedule 3

                                  Fee Schedule<PAGE>   1

                                                                   EXHIBIT 10.19

                               L & C SPINCO, INC.
                   SUPPLEMENTAL RETIREMENT PLAN FOR EXECUTIVES
                 (Formerly, The Supplemental Retirement Plan For
                Executives of National Service Industries, Inc.)

                    (Effective As of _________________, 2001)

<PAGE>   2

                               L & C SPINCO, INC.
                   SUPPLEMENTAL RETIREMENT PLAN FOR EXECUTIVES

                                    PREAMBLE

         The L & C Spinco, Inc. Supplemental Retirement Plan For Executives
("Plan") is designed to be a supplemental retirement plan covering a select
group of management and highly compensated employees of L & C Spinco, Inc. (the
"Company") and its Subsidiaries. The benefits under the Plan are unfunded and
all amounts payable under the Plan shall be paid from the general assets of the
Employer which employs the Participant.

         The effective date of the Plan as set forth herein is ___________, 2001
("Effective Date"). The Plan was originally established by National Service
Industries, Inc. ("NSI"), effective July 1, 1983, and was formerly known as the
Supplemental Retirement Plan For Executives of National Service Industries, Inc.
("Prior Plan"). In connection with the spin-off of the Company from NSI,
effective ____________, 2001 and pursuant to an Employee Benefits Agreement,
dated as of _____, 2001, between the Company and NSI, the Plan is being
transferred to, and being assumed by, the Company. The liability for benefits to
the employees and former employees of NSI and its subsidiaries who were
participants in the Prior Plan as of the Effective Date, shall be transferred to
the Plan. As provided for herein, the benefit payment elections and designation
of beneficiaries made under the Prior Plan prior to the Effective Date shall be
carried over and apply for purposes of the Plan after the Effective Date
(subject to any changes made after the Effective Date under the Plan).

<PAGE>   3

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                             <C>
PREAMBLE

ARTICLE I        DEFINITIONS AND CONSTRUCTION...................................................1
         1.1     Definitions....................................................................1
                 (a)      Accrued Pension.......................................................1
                         (1)      Normal Retirement Accrued Pension.............................1
                         (2)      Early Retirement Accrued Pension..............................1
                         (3)      Vested Termination or Disability Accrued Pension..............1
                         (4)      Late Retirement Accrued Pension...............................2
                 (b)      Act...................................................................2
                 (c)      Actuarial (or Actuarially) Equivalent.................................2
                 (d)      Actuary...............................................................2
                 (e)      Administrator.........................................................2
                 (f)      Anniversary Date......................................................2
                 (g)      Authorized Leave of Absence...........................................2
                 (h)      Annual Bonus..........................................................3
                 (i)      Average Monthly Compensation..........................................3
                         (1)      For Benefit Accruals Prior To January 1, 1994.................3
                         (2)      For Benefit Accruals On Or After January 1, 1994..............3
                 (j)      Board.................................................................3
                 (k)      Bonus.................................................................3
                 (l)      Break in Service......................................................3
                 (m)      Break Year............................................................3
                 (n)      Committee.............................................................3
                 (o)      Company...............................................................3
                 (p)      Compensation..........................................................4
                 (q)      Credited Service......................................................4
                 (r)      Disability............................................................4
                 (s)      Disability Retirement Date............................................4
                 (t)      Early Retirement Date.................................................4
                 (u)      Effective Date........................................................4
                 (v)      Eligible Service......................................................4
                 (w)      Executive.............................................................5
                 (x)      Fiduciaries...........................................................5
                 (y)      Late Retirement Date..................................................5
                 (z)      Normal Retirement Date................................................5
                 (aa)     NSI...................................................................5
                 (bb)     Participant...........................................................5
                 (cc)     Pension...............................................................5
                 (dd)     Pension Commencement Date.............................................5
                 (ee)     Pension Plan C........................................................5
</TABLE>

                                      I-1
<PAGE>   4

<TABLE>
<S>                                                                                             <C>
                 (ff)     Plan..................................................................5
                 (gg)     Plan Year.............................................................5
                 (hh)     Predecessor Retirement Plan(s)........................................6
                 (ii)     Primary Social Security Benefit.......................................6
                 (jj)     Prior Plan............................................................6
                 (kk)     Retirement............................................................6
                 (ll)     Service Date..........................................................6
                 (mm)     Service Hours.........................................................7
                 (nn)     Termination Date......................................................7
                 (oo)     Vested Terminee.......................................................7
                 (pp)     401(k) Plan...........................................................7
         1.2     Construction...................................................................7

ARTICLE II       PARTICIPATION, CREDITED SERVICE, ELIGIBLE SERVICE AND BREAK IN SERVICE.........1
         2.1     Eligibility for Participation:.................................................1
         2.2     Eligible Service...............................................................1
         2.3     Credited Service...............................................................1
                 (a)      Credited Service Prior to February 15, 1976...........................2
                 (b)      Credited Service From and After February 15, 1976.....................2
         2.4     Break in Service...............................................................2
         2.5     Method of Becoming a Participant...............................................3
         2.6     Participants Bound.............................................................3
         2.7     Military Service...............................................................3
         2.8     Executive Not Actively At Work on Date of Eligibility..........................3
         2.9     An Executive Ceases Active Participation.......................................3
         2.10    Transfers......................................................................3
                 (a)      When Employee Becomes Executive.......................................3
                 (b)      Accrued Pension Under Transfer To A Non-Eligible Status...............4

ARTICLE III      RETIREMENT AND TERMINATION DATES AND PENSIONS..................................1
         3.1     Normal Retirement and Pension..................................................1
         3.2     Late Retirement and Pension....................................................1
         3.3     Early Retirement and Pension...................................................1
         3.4     Disability Retirement and Pension..............................................1
         3.5     Vested Terminee and Pension....................................................2
         3.6     Termination Prior to Completion of 10 Years of Credited Service................2
         3.7     Normal Form of Payment of Pension..............................................2
         3.8     Optional Forms of Benefit Payment Optional Forms of Benefit Payment Optional
                 Forms of Benefit Payment.......................................................2
                 (a)      Period-Certain and Life Option........................................2
                 (b)      Contingent Annuitant Option...........................................3
                 (c)      Single Option.........................................................3
                 (d)      Social Security Level Income Option...................................3

ARTICLE IV       PRE-RETIREMENT DEATH BENEFITS..................................................1
                 (a)      Death Prior to Eligibility for Early or Normal Retirement.............1
</TABLE>

                                      I-2
<PAGE>   5

<TABLE>
<S>                                                                                             <C>
                 (b)      Death After Attaining Eligibility for Early or Normal Retirement......1

ARTICLE V        PLAN FINANCING.................................................................1
         5.1     Payment of Costs and Expenses..................................................1

ARTICLE VI       FIDUCIARY RESPONSIBILITIES.....................................................1
         6.1     Allocation of Responsibility Among Fiduciaries.................................1
         6.2     Fiduciary Duties...............................................................1
         6.3     Company Filing Responsibility..................................................1

ARTICLE VII      COMMITTEE AND ADMINISTRATION...................................................1
         7.1     Appointment and Term of Committee..............................................1
         7.2     Selection of Secretary and Duties of Secretary.................................1
         7.3     Majority Vote Required, Exceptions.............................................1
         7.4     Payment of Expenses............................................................1
         7.5     Limitation of Liability........................................................1
         7.6     Right to Consult...............................................................1
         7.7     General Duties.................................................................1
         7.8     Application and Forms For Pension..............................................2
         7.9     Facility of Payment............................................................2
         7.10    Rules and Decisions............................................................3
         7.11    Company to Furnish Information.................................................3
         7.12    Administrator to Furnish Other Information.....................................3
         7.13    Beneficiary Designations.......................................................3

ARTICLE VIII     SUCCESSOR COMPANY..............................................................1
         8.1     Successor Company..............................................................1

ARTICLE IX       PLAN TERMINATION...............................................................1
         9.1     Right to Terminate.............................................................1

ARTICLE X        TRUST..........................................................................1

ARTICLE XI       AMENDMENTS AND ACTION BY COMPANY...............................................1
         11.1    Amendments.....................................................................1
         11.2    Notices of Amendment, Modification or Revision.................................1

ARTICLE XII      MISCELLANEOUS..................................................................1
         12.1    Nonguarantee of Employment.....................................................1
         12.2    Rights Under Plan..............................................................1
         12.3    Nonalienation of Benefits......................................................1
         12.4    Entering Military Service......................................................1
         12.5    Headings for Convenience Only..................................................1
         12.6    Multiple Copies................................................................1
         12.7    Governing Law..................................................................1
</TABLE>

                                       I-3
<PAGE>   6

<TABLE>
<S>                                                                                             <C>
         12.8    Guarantee of Performance.......................................................1

ARTICLE XIII     CHANGE IN CONTROL..............................................................1
         13.1    Cause..........................................................................1
         13.2    Change in Control..............................................................1
         13.3    Termination of Employment......................................................2
         13.4    Amendment or Termination.......................................................2

APPENDICES
</TABLE>

                                      I-4
<PAGE>   7

                                   ARTICLE I

                          DEFINITIONS AND CONSTRUCTION

1.1      Definitions: Where the following words and phrases appear in this Plan,
they shall have the meanings set forth below, unless the context clearly
indicates to the contrary:

         (a)      Accrued Pension: A Participant as of any given date shall have
an Accrued Pension, which in each case shall be reduced by (i) the Accrued
Pension, or the Actuarial Equivalent of the Accrued Pension, where appropriate,
which the Participant is entitled to receive from Pension Plan C (and in the
event of death covered by Article IV(b), the Actuarial Equivalent of any Group
Term Life Insurance), increased for purposes of this offset for any Participant
who would not have been eligible for Early Retirement under Pension Plan C as in
effect prior to February 15, 1989, but who elects Early Retirement hereunder, by
recalculating his February 14, 1989 accrued benefit as if he were eligible for
an Early Retirement benefit, and (ii) the Actuarial Equivalent value of the
Participant's hypothetical Account in the 401(k) Plan, assuming the Participant
had contributed to the 401(k) Plan during the period he was eligible to
participate in such plan an amount annually equal to 4% of his "Annual
Compensation" (as that term is defined in the 401(k) Plan and subject to the
limitation of Section 401(a)(17) of the Internal Revenue Code of 1986, as
amended (the "Code")) over $15,000 and received related Matching Contributions,
and that his Account had earned 8% per annum to such date. The determination of
the reduction under this paragraph shall be made by the Committee and its
decisions on such matters shall be final and binding on all parties. The
appropriate Accrued Pension shall be classified as follows:

                  (1)      Normal Retirement Accrued Pension: An amount equal to
         the Participant's Average Monthly Compensation multiplied by 45%, minus
         50% of his Primary Social Security Benefit. The amount determined in
         the preceding sentence is then multiplied by a fraction having a
         numerator equal to his Credited Service at his Normal Retirement Date
         and a denominator equal to the greater of (a) twenty (20) or (b) his
         Eligible Service on such date;

                  (2)      Early Retirement Accrued Pension: A Participant's
         Accrued Pension as of any given date that is after the date he has
         attained both at least age 55 and completed at least 10 years of
         service from his Service Date to his Early Retirement Date, and before
         his Normal Retirement Date, shall be an amount equal to 45% of his
         Average Monthly Compensation, minus 50% of his Primary Social Security
         Benefit. The amount determined in the preceding sentence is then
         multiplied by a fraction having a numerator equal to his Credited
         Service at his Early Retirement Date and a denominator equal to the
         greater of (a) twenty (20) or (b) his Eligible Service on such date;

                  (3)      Vested Termination or Disability Accrued Pension: A
         Participant's Accrued Pension as of any given date when his Accrued
         Pension is not determined

                                      I-1
<PAGE>   8

         under subparagraphs (1) or (2) above, or (4) below, shall be an amount
         equal to 45% of the Participant's Average Monthly Compensation minus
         50% of his Primary Social Security Benefit. The amount determined in
         the preceding sentence is then multiplied by a fraction having a
         numerator equal to the Participant's Credited Service on his
         Termination Date, and a denominator equal to the greater of (i) twenty
         (20), or (ii) the sum of (A) the Participant's Eligible Service on his
         Termination Date plus (B) the number of years of Eligible Service the
         Participant would have earned if he had continued his employment with
         the Company from his Termination Date until his Normal Retirement Date,
         with any fractional year expressed as a decimal equivalent, to two
         decimal places.

Notwithstanding the foregoing, when a Participant who received a distribution or
distributions following his Termination Date or Retirement is re-employed and
again becomes an active Participant, such Participant's Accrued Pension, as
computed pursuant to the appropriate subparagraph of this Section, shall be
reduced by the monthly Accrued Pension amount that is the Actuarial Equivalent
of the distribution(s) made to the Participant.

                  (4)      Late Retirement Accrued Pension: A Participant's
         Accrued Pension as of any given date that is after the date he has
         attained his Normal Retirement Date shall be an amount equal to an
         increased Pension which is the Actuarial Equivalent of an amount
         otherwise payable at his Normal Retirement Date, equal to 45% of the
         Participant's Average Monthly Compensation minus 50% of his Primary
         Social Security Benefit. The amount determined in the preceding
         sentence is then multiplied by a fraction having a numerator equal to
         his Credited Service at his Normal Retirement Date and a denominator
         equal to the greater of (a) twenty (20) or (b) his Eligible Service on
         such date.

         (b)      Act: Public Law No. 93-406, the Employee Retirement Income
Security Act of 1974, as amended from time to time.

         (c)      Actuarial (or Actuarially) Equivalent: Equality in value of
the aggregate amounts expected to be received under different forms of payment,
using the same basis as defined for such term in Pension Plan C.

         (d)      Actuary: The individual actuary, or firm of actuaries,
selected by the Administrator to provide actuarial services in connection with
the administration of the Plan.

         (e)      Administrator: L & C Spinco, Inc.

         (f)      Anniversary Date: January 1; prior to January 1, 1994, the
Anniversary Date was February 15.

         (g)      Authorized Leave of Absence: Any absence authorized by the
Company under the Company's standard personnel practices, provided that all
persons under similar circumstances shall be treated alike in the granting of
such Authorized Leaves of Absence,

                                      I-2
<PAGE>   9

and provided further that the Participant returns within the period specified in
the Authorized Leave of Absence.

         (h)      Annual Bonus: The amount awarded an Executive under the
Company's annual bonus program, subject to the provisions and limitations
contained in Section 1.1(p) of the Plan.

         (i)      Average Monthly Compensation: For Executives, the following
definitions shall apply:

                  (1)      For Benefit Accruals Prior To January 1, 1994: The
         applicable monthly amount shall be the average of his basic monthly
         salary determined as of the three (3) consecutive November 15ths of the
         last ten (10) November 15ths (excluding amounts earned after age
         sixty-five (65)) immediately preceding the Participant's date of
         Retirement, termination of employment or death, during which it was
         highest and 1/12 of the average of the three (3) highest, consecutive
         Annual Bonuses awarded to the Participant during the ten (10) years
         immediately preceding the Participant's date of Retirement or death, or
         Termination Date.

                  (2)      For Benefit Accruals On Or After January 1, 1994: The
         applicable monthly amount shall be the average of his Compensation for
         the three highest, consecutive calendar years during the ten years
         (excluding Compensation after age 65) immediately preceding the
         Participant's date of Retirement, death or other termination of
         employment.

         (j)      Board: The Board of Directors of L & C Spinco, Inc. or its
Executive Committee.

         (k)      Bonus: An annual bonus awarded to a Participant for the
Company's Fiscal Year ending in the Plan year.

         (l)      Break in Service: An event which results in the cancellation
of a Participant's previous Credited Service and Eligible Service as provided in
Section 2.4.

         (m)      Break Year: A Plan Year in which an Executive failed to accrue
at least 500 Service Hours.

         (n)      Committee: The persons appointed under the provisions of
Article VII.

         (o)      Company: Company shall mean L & C Spinco, Inc. (or its
successor or successors). Affiliated or related employers are permitted to adopt
the Plan and shall be known as "Adopting Employers." To the extent required by
certain provisions (e.g., determining Average Monthly Compensation, Credited
Service and Service Date), references to the Company shall include the Adopting
Employer of the Participant. Adopting Employers are listed on Schedule 1.

                                      I-3
<PAGE>   10

         (p)      Compensation: Subject to adjustment as provided in the next
sentence, (1) for benefit accruals prior to January 1, 1994, an Executive's
"Compensation" shall be determined under Section 1.1(i)(1), and (2) for benefit
accruals on or after January 1, 1994, "Compensation" shall be the Executive's
salary and wages for the calendar year, and any Annual Bonuses awarded during
the year (such amount shall generally equal the amount shown in Box 10 of Form
W-2 for the year or a similar Box on any future Form W-2 or replacement form).
In either case, Compensation and Annual Bonuses shall include any amounts which
shall be voluntarily deferred by the Executive under any salary or bonus
deferral or reduction program (whether qualified or non-qualified) which may be
instituted by the Company, but shall not include any earnings or Company match
on these deferred amounts, or payments from such programs or any similar salary
deferral or bonus deferral programs.

         (q)      Credited Service: The period of a Participant's employment
with the Company considered in determining his eligibility for benefits from the
Plan and the amount of his Accrued Pension, in accordance with Section 2.3, or
credited pursuant to Section 2.10, plus, for the sole purpose of determining his
eligibility for a Vested Pension, any period of employment completed prior to
eligibility for Participation in Pension Plan C and Predecessor Pension Plans.

         (r)      Disability: Disability which is likely to be total and
permanent shall be established in the following manner: If the Company or the
Participant believes that the Participant is incapable by reason of his
disability to perform his customary work for the Company, and if the Committee,
the Company and the Participant unanimously agree that the Participant is so
disabled, such unanimous findings shall be conclusive proof of the Participant's
Disability. If the Committee, the Company, and the Participant are not
unanimous, then the Committee, acting as a unit, by one vote, the Company by one
vote, and the Participant by one vote, and by a majority of said three votes,
shall select a physician whose duty it shall be to find and so certify to the
Committee if the Participant is physically incapable of further employment by
the Company to perform his customary work. Such certification shall be final and
conclusive on all parties. The reasonable expenses of such determination shall
be considered as an administrative expense of the Company.

         (s)      Disability Retirement Date: The Date of Retirement due to
Disability as specified in Section 3.4.

         (t)      Early Retirement Date: The date of Early Retirement as
specified in Section 3.3.

         (u)      Effective Date: This Plan is effective _________, 2001. The
date on which the Prior Plan initially became effective was July 1, 1983.

         (v)      Eligible Service: The period of a Participant's employment
with the Company considered in determining the amount of his Accrued Pension, in
accordance with Section 2.2.

                                      I-4
<PAGE>   11

         (w)      Executive: Any person who, on or after the Effective Date, is
classified as an executive officer of the Company covered by a bonus arrangement
and who is receiving remuneration for personal services rendered to the Company
(or would be receiving such remuneration except for an Authorized Leave of
Absence), and any other officer of the Company (or an Adopting Employer)
designated by the Chief Executive Officer of the Company as eligible to
participate in the Plan and who is listed on an Appendix attached hereto.

         (x)      Fiduciaries: The Company, the Plan Administrator and the
Committee, but only with respect to the specific responsibilities of each for
Plan administration, all as described in Article VI.

         (y)      Late Retirement Date: The date of Retirement subsequent to
Normal Retirement Date as specified in Section 3.2.

         (z)      Normal Retirement Date: The date of Retirement as specified in
Section 3.1.

         (aa)     NSI: National Service Industries, Inc., a Delaware
corporation, and the corporation from which the Company was spunoff on the
Effective Date.

         (bb)     Participant: An Executive participating in the Plan in
accordance with the provisions of Section 2.1.

         (cc)     Pension: A series of monthly amounts which are payable to a
person who is entitled to receive benefits under the Plan.

         (dd)     Pension Commencement Date: The date as of which the initial
payment of a Participant's Pension is due to commence, as provided in Article
III, provided that such date shall, in no event, be later than the first of the
month following or coincident with the last to occur of the following: (a) ten
years after the commencement date of the Participant's participation in the
Predecessor Pension Plan and Pension Plan C or (b) the Participant's Normal or
Late Retirement Date or (c) the Termination Date of the Participant.

         (ee)     Pension Plan C: L & C Spinco, Inc. Pension Plan C, the pension
plan provided for employees of the Corporate Office of L & C Spinco, Inc., as it
may be amended from time to time. Pension Plan C was previously maintained by
NSI and was adopted and assumed by the Company on the Effective Date.

         (ff)     Plan: The L & C Spinco, Inc. Supplemental Retirement Plan for
Executives, the Plan set forth herein, as amended from time to time.

         (gg)     Plan Year: A twelve (12) month period beginning on January 1
and ending on December 31. The Plan had a short Plan Year from February 15, 1993
through December 31, 1993; prior to January 1, 1994, the Plan Year was February
15 through the next following February 14.

                                      I-5
<PAGE>   12

         (hh)     Predecessor Retirement Plan(s): The Pension Plan and Trust
Agreement between the Company and The Trust Company of Georgia dated November
11, 1942, the Revised Plan and Trust Agreement of November 15, 1961, the
National Linen Pension Plan for Salaried Employees and Route Salesmen Not
Covered Under Any Other Retirement Plan dated November 15, 1964, GA 1008,
National Linen Pension Plan for Branch Managers, etc., GA 1014, or any one of
them as the context may require.

         (ii)     Primary Social Security Benefit: The monthly amount available
to the Participant at age sixty-five (65) under the provisions of Title II of
the Social Security Act (or its equivalent in the event of amendment,
modification or replacement) in effect at the earliest to occur of (i)
Retirement, but not later than Normal Retirement Date, or (ii) termination of
employment, without regard to any increases in the wage base or benefit levels
that take effect after the date of Disability Retirement, Early Retirement, or
termination of employment; provided that

                  (1)      For the purposes of Section 1.1, if the exact Primary
         Social Security Benefit is not known upon termination of employment, it
         shall be estimated in accordance with uniform rules adopted by the
         Committee;

                  (2)      For the purposes of Section 1.1(a)(2) and 1.1(a)(3),
         if an Executive terminates employment prior to age sixty-five (65), his
         Primary Social Security Benefit shall be calculated by assuming that he
         had no Compensation or other earnings after his date of termination of
         employment; and

                  (3)      The fact than an Executive does not actually receive
         such amount because of failure to apply or continuance of work, or for
         any other reason, shall be disregarded.

         (jj)     Prior Plan: The Supplemental Retirement Plan for Executives of
National Service Industries, Inc. as in effect immediately prior to the
Effective Date. A Participant's Compensation, Bonus, Credited Service, Eligible
Service and other service arising out of the Participant's employment with NSI
prior to the Effective Date shall be counted for purposes of this Plan in
accordance with the provisions of the Plan.

         (kk)     Retirement: Termination of employment for reason other than
death after a Participant has fulfilled all requirements for a Normal Retirement
Pension, or a Late Retirement Pension, or an Early Retirement Pension, or a
Disability Retirement Pension. Retirement shall be considered as commencing on
the day immediately following a Participant's last day of employment (or
Authorized Leave of Absence, if later).

         (ll)     Service Date: The date as of which an Executive's most recent
period of continuous employment with the Company commenced. Such date shall
coincide with the Executive's first date of hire with the Company unless he
suffered a subsequent Break in Service, in which event the Executive's Service
Date shall be the earliest date of re-employment with the Company as of which he
commenced accruing Eligible Service without any cancellation thereof because of
a subsequent Break in Service.

                                      I-6
<PAGE>   13

         (mm)     Service Hours: Subject to the Break in Service provisions of
Section 2.4, all hours for which an Executive is compensated by the Company
prior to the Executive's Normal Retirement Date shall be credited as Service
Hours.

         (nn)     Termination Date: The date of termination of an Executive's
employment with the Company for reasons other than death or Retirement.

         (oo)     Vested Terminee: A Participant whose Termination Date occurs
after the completion of at least ten (10) years of Credited Service (but
exclusive of that period he was eligible to participate and did not participate)
but prior to achieving eligibility for Retirement.

         (pp)     401(k) Plan: The L & C Spinco, Inc. 401(k) Plan for Corporate
Office Employees, as it may be amended from time to time. The 401(k) Plan was
previously maintained by NSI and was adopted and assumed by the Company on the
Effective Date.

1.2      Construction: The masculine gender, where appearing in the Plan, shall
be deemed to include the feminine gender, and the singular may include the
plural, unless the context clearly indicates to the contrary. The words
"hereof," "herein," "hereunder" and other similar compounds of the word "here"
shall mean and refer to the entire Plan, not to any particular provision or
Section.

                                      I-7
<PAGE>   14

                                   ARTICLE II

                        PARTICIPATION, CREDITED SERVICE,
                      ELIGIBLE SERVICE AND BREAK IN SERVICE

2.1      Eligibility for Participation:

         (a)      In General - An Executive who is a Participant in the Prior
Plan and Pension Plan C as of the Effective Date shall participate in this Plan
on the Effective Date, subject to the conditions and limitations provided for
herein. Any other Executive shall be eligible to participate on the Anniversary
Date following the fulfillment of the following:

                  (i)      The Executive has attained at least the age of
         twenty-four (24) years and six (6) months, provided his employment did
         not commence on or after his sixtieth (60th) birthday;

                  (ii)     The Executive is a participant in Pension Plan C, but
         is not covered under any other tax-qualified non-governmental
         retirement plan (other than the 401(k) Plan) to which the Company
         contributes, whether the plan is a Company plan or otherwise;

                  (iii)    The Executive has completed six (6) months of
         employment.

After a Break in Service, a former Participant who is rehired may again become a
Participant upon again fulfilling the above requirements.

         (b)      Special Eligibility - Any Executive (or group of Executives)
designated on an Appendix attached hereto shall be eligible to participate in
the Plan on the date specified in the Appendix and in accordance with the
conditions and limitations provided in such Appendix.

2.2      Eligible Service: Subject to the Break in Service provisions of Section
2.4, the period of employment of an Executive from the date he first became
eligible to participate under the provisions of the Predecessor Pension Plans or
Pension Plan C to the date of Retirement, or death, or Termination Date, or the
Participant's 65th birthday, whichever is the first to occur, excluding from
such period any periods during which the Executive could not make a Participant
Contribution to a Pension Plan of the Company due to having no earnings from the
Company as the result of a period of Authorized Leave of Absence (to the extent
such Participant contributions would have been required to participate).
Eligible Service shall be expressed in terms of years and a fraction, with a
fractional year expressed as a decimal equivalent, to two decimal places.

2.3      Credited Service: Subject to the Break in Service provisions of Section
2.4, and the provisions of Section 2.10, the period of employment during which
an Executive is a Participant in a Predecessor Pension Plan and Pension Plan C,
determined as of any given date as the sum of (a), if any, and (b) as follows:

                                      II-1
<PAGE>   15

         (a)      Credited Service Prior to February 15, 1976: The period of
employment during which the Executive is a Participant in a Predecessor Pension
Plan through February 14, 1976. Such Credited Service shall be expressed in
terms of years and a fraction, with a fractional year expressed as a decimal
equivalent, to two decimal places. Any cancellation of service under the
provisions of the Predecessor Pension Plans prior to February 15, 1976 is not
restored by the provisions hereof.

         (b)      Credited Service From and After February 15, 1976: A
Participant shall accrue one (1) year of Credited Service for each Plan Year
from and after February 15, 1976 during which he is an active Participant in
Pension Plan C and in which he has 1,000 or more Service Hours, except that no
Credited Service shall be credited after the Participant's Normal Retirement
Date. No Credited Service shall be granted for any Plan Year in which less than
1,000 Service Hours are completed except for the Plan Year of the Participant's
Retirement or Termination Date or death and except for the short Plan Year
February 15, 1993 through December 31, 1993, which shall require only 875
Service Hours to receive a year of Credited Service. The final Plan Year shall
be credited as the decimal equivalent, expressed to two decimal places, of a
fraction having a numerator equal to the Participant's Service Hours accrued
during such final year, if less than 1,000 in such year, and a denominator with
respect to such year equal to 1,000 Service Hours.

No Credited Service shall accrue for any period of employment for which an
Executive did not make required Participant Contributions under Pension Plan C,
but only to the extent such Participant Contributions were required to be made
for such period.

2.4      Break in Service: After the Effective Date, a Plan Year during which a
Participant completes less than 500 Service Hours as the result of the
occurrence of a Termination Date or Retirement shall constitute a Break in
Service. Upon incurring a Break in Service, an Executive's rights and benefits
under the Plan shall be determined in accordance with his Credited Service and
Eligible Service, and other applicable Plan provisions at the time of the Break
in Service.

No Pension payments shall be made during a period of employment with the
Company; and if a re-employed Participant had received any Pension payments
under the Plan, the Pension payable starting on the first day of the calendar
month coinciding with or next following the date of his subsequent Retirement
shall be reduced by the Actuarial Equivalent of any Pension payments he received
prior to his Normal Retirement Date.

An Authorized Leave of Absence due to service in the Armed Forces of the United
States shall not constitute a Break in Service, provided that the absence is
caused by war or other emergency, or provided that the Executive is required to
serve under the laws of conscription in time of peace, and further provided that
the Executive returns to employment with the Company within the period provided
by law. An Authorized Leave of Absence for other reasons shall not constitute a
Break in Service if the Executive returns to active employment with the Company
upon expiration of the period of such Authorized Leave of Absence.

                                      II-2
<PAGE>   16

2.5      Method of Becoming a Participant: Each Executive who has heretofore
been a Participant in Pension Plan C shall continue to be a Participant in this
Plan without making written application. All other Executives shall become
Participants in this Plan at the time they become Participants in Pension Plan
C, except as may otherwise be provided in the Appendix applicable to such
Participant.

2.6      Participants Bound: Each Executive becoming a Participant hereunder
shall be conclusively presumed for all purposes to have consented to this Plan
and any amendments, modifications or revisions hereto, and to all the terms and
conditions thereof, and shall be bound thereby with the same force and effect as
if he had entered into a contract to such effect and any amendments,
modifications or revisions hereto.

2.7      Military Service: A leave of absence due to service in the Armed Forces
to the United States shall not constitute a Break in Service, and shall not be
considered as Credited Service or Eligible Service under the Plan, provided that
the absence is caused by war or other emergency, or provided that the Executive
is required to serve under the laws of conscription in time of peace, and
further provided that the Executive returns to employment with the Company
within the period provided by law.

2.8      Executive Not Actively At Work on Date of Eligibility: An Executive who
is not actively at work on his date of eligibility for any reason other than a
Break in Service, shall become eligible to participate on his return to active
employment, provided he becomes a Participant as otherwise provided herein.

2.9      An Executive Ceases Active Participation: Except as provided in Section
2.10, if an Executive ceases to be an active Participant in Pension Plan C, he
shall be treated as if his employment terminated at such time and any benefit to
which he would be entitled will be computed as if there had been a termination
of employment; however, any distribution of such benefit shall not commence
until such time as he would otherwise become entitled (had he continued as a
Participant) to a benefit because of a Retirement date, actual termination of
employment or death; provided, if such Executive withdraws within ninety (90)
days after first becoming a Participant in Pension Plan C, then such Executive
shall cease to be a Participant in Pension Plan C and in this Plan as of the
first day of the immediately succeeding pay period and unless the Executive
shall otherwise again become a Participant under this Plan, he shall have no
further rights or benefits as a Participant in this Plan.

2.10     Transfers: The following rules shall apply when an Executive transfers
to or from an Executive position in the Company:

         (a)      When Employee Becomes Executive: An Employee of the Company
who becomes an Executive of the Company, may become a Participant under this
Plan on the Anniversary Date as of which he has met the eligibility requirements
for participation; however, the Executive's Service Date for the purpose of this
Plan shall be the date of his employment with the Company, not the date he
becomes an Executive.

                                      II-3
<PAGE>   17

         (b)      Accrued Pension Under Transfer To A Non-Eligible Status: If a
Participant is transferred to a non-eligible status of employment within the
Company, his Accrued Pension under this Plan will be determined as though his
transfer were a termination of employment, however if the transfer occurs prior
to the completion of ten (10) years of Credited Service, such Participant shall
continue to accrue Service for vesting purposes only until his employment with
the Company shall terminate. The date of such termination of employment will be
deemed to be the date of his transfer.

                                      II-4
<PAGE>   18

                                  ARTICLE III

                  RETIREMENT AND TERMINATION DATES AND PENSIONS

3.1      Normal Retirement and Pension: A Participant may retire on his 65th
birthday, which is his Normal Retirement Date, and he shall be fully vested, and
his Pension shall commence as of the first day of the calendar month coinciding
with or next following his 65th birthday. The Participant's Pension shall be his
Accrued Pension and shall be payable in the normal form described in Section
3.7., unless the Participant elects an optional form of benefit in accordance
with Section 3.8.

3.2      Late Retirement and Pension: When permitted by Company policy, a
Participant may continue his employment beyond his Normal Retirement Date and in
such event his Late Retirement Accrued Pension shall commence as of the first
day of the calendar month coinciding with or next following the date of his
actual Retirement, which shall be his Late Retirement Date. The Participant's
Late Retirement Accrued Pension shall be payable in the normal form described in
Section 3.7, unless the Participant elects an optional form of benefit in
accordance with Section 3.8.

3.3      Early Retirement and Pension: A Participant may retire after his 55th
birthday and the date of completion of at least 10 years of service from his
Service Date to his Early Retirement Date and be entitled to an Early Retirement
Accrued Pension. If he retires, the Participant's Pension shall be equal to his
Accrued Pension, payable in the normal form described in Section 3.7 and payment
shall commence as of the first day of the calendar month coinciding with or next
following the Participant's 65th birthday. A Participant may elect to commence
his Early Retirement Pension as of the first day of the calendar month
coinciding with or next following his Retirement, or as of the first day of any
subsequent calendar month which precedes his Normal Retirement Date. In such
event, the Participant's Pension, payable in the normal form, shall be reduced
five-twelfths of one percent (5/12ths of 1%) for each full month or portion
thereof by which the commencement of the Early Retirement Pension precedes the
Participant's Normal Retirement Date. In lieu of the normal form of benefit
payment, a Participant may elect to receive his Accrued Pension in one of the
optional forms of benefit payment set forth in Section 3.8, which shall be the
Actuarial Equivalent of the normal form.

3.4      Disability Retirement and Pension: A Participant shall be eligible for
a Disability Retirement Pension if he retires by reason of Disability and his
Disability Retirement Date shall be the day next following the day on which the
Participant is deemed to have a Disability as defined in Section 1.1(r). A
Disability Retirement Pension shall commence as of the first day of the calendar
month coinciding with or next following his Retirement, shall be payable in the
normal form described in Section 3.7 (unless the Participant elects an optional
form of benefit in accordance with Section 3.8) and shall be equal to the
Participant's Accrued Pension.

                                     III-1
<PAGE>   19

3.5      Vested Terminee and Pension: A Vested Terminee as defined in Section
1.1(oo) shall be entitled to the benefits pursuant to (a) or (b), as applicable:

         (a)      A Pension equal to his Accrued Pension, payable in the normal
form described in Section 3.7, or at the election of the Participant, in an
optional form described in Section 3.8. Payment of such Pension shall commence
on the first day of the calendar month coinciding with or next following the
Vested Terminee's 65th birthday.

         (b)      A Participant with at least twenty (20) years of Credited
Service may request the Committee to commence the payment of his Accrued Pension
as of the first day of any calendar month that is after his 55th birthday but
prior to his 65th birthday. Such Pension shall be payable in the normal form
described in Section 3.7 and shall commence as of the beginning of the month so
requested but the amount thereof shall be reduced by 5/12ths of 1% for each full
month by which the actual Pension commencement date precedes the Participant's
Normal Retirement Date. In lieu of the normal form, the Participant may elect
one of the optional forms of payment described in Section 3.8. Any such optional
form of benefit shall be the Actuarial Equivalent of the reduced normal form
described above.

3.6      Termination Prior to Completion of 10 Years of Credited Service:
Subject to Article XIII, a Participant whose Termination Date occurs prior to
the completion of 10 years of Credited Service shall be entitled to no benefits
under this Plan.

3.7      Normal Form of Payment of Pension: The normal form of pension payment
shall be a single-life annuity with 120 payments certain. If a Participant
receiving Pension payments dies before 120 monthly Pension payments have been
made, Pension payments shall be continued to the Participant's beneficiary until
the sum of monthly payments to both the Participant and his beneficiary is 120.
The normal form of benefit provided herein shall be applicable to any Accrued
Benefit paid with respect to the Annual Bonus based benefit, effective as of
July 1, 1990.

3.8      Optional Forms of Benefit Payment Optional Forms of Benefit Payment
Optional Forms of Benefit Payment: A Participant entitled to a Pension in the
normal form may elect to receive a Pension payable under one of the options
described below.

An option shall be exercised in writing on a form approved by the Committee
before the Participant's Pension payments commence and the aggregate of the
pension payments expected to be made shall be the Actuarial Equivalent of the
normal form of Pension to which the Participant is entitled. The optional forms
are:

         (a)      Period-Certain and Life Option: A Participant may elect to
receive an adjusted Pension payable until death; and if the Participant's death
occurs within a period of 60 or 180 months (as elected by the Participant) after
his Pension commencement date, payment of the Pension will be continued in the
same amount to the person or persons designated by the Participant for the
balance of the 60 or 180 month period.

                                     III-2
<PAGE>   20

         (b)      Contingent Annuitant Option: A Participant may elect to
receive an adjusted Pension payable during the joint lives of the Participant
and a person designated by the Participant as his contingent annuitant; so that,
following the death of the Participant, payment of the Pension in the same
amount or in an amount equal to 75% or 50% of the Participant's Pension (as
elected by the Participant) shall continue to the contingent annuitant, if
surviving, with the last payment to be made as of the first day of the month in
which the death of the contingent annuitant occurs.

Notwithstanding any provision herein to the contrary, if the contingent
annuitant (or beneficiary) is other than the Participant's spouse and if the
value of the Participant's benefit under the above options will be less than 51%
of the value of his life income with 120 months certain Pension, the optional
benefit shall be adjusted so that the value of the Participant's benefit under
the option will be equal to 51% of the value of the Participant's life income
with 120 months certain Pension.

A Participant electing a Contingent Annuitant Option must designate a joint
pensioner at the time of such election but may change such designation at any
time prior to the date on which his Pension is to commence. If a joint pensioner
dies before the date on which the Participant's Pension is to commence, the
election shall be of no effect, and the Participant shall be treated as though
he had not elected such option; but if the joint pensioner dies on or after the
date on which the Participant's Pension is to commence, the election shall
continue in force, and the amount of the Participant's Pension shall not be
increased thereby.

         (c)      Single Option: A Participant may elect to receive an adjusted
Pension payable for his lifetime only, with no survivorship Pension payable
following his death.

         (d)      Social Security Level Income Option: A Participant whose
Pension payments commence prior to the earliest date on which Social Security
payments may be commenced may elect to receive a higher monthly Pension from the
Plan before his Social Security payments are to commence and a lower payment for
life thereafter so that his total monthly retirement income, before and after
the commencement of his Social Security payments, is approximately the same. For
the purpose of this option, such Social Security payment will be determined, as
nearly as may be estimated under the provisions of the Federal Social Security
Act as in force on the Participant's Retirement, assuming that the Participant
(1) is no longer in employment and (2) makes proper application for such benefit
on the earliest possible date. This option is available only to a Participant
who retires early and elects to have his Pension commence prior to his Normal
Retirement Date under the provisions of Section 3.3.

The "Option Effective Date" hereunder shall be (a) the Participant's 65th
birthday in the case of Normal Retirement, but only if the Participant's spouse
is the beneficial or contingent annuitant, or (b) the date the Participant's
Pension commences, in any other case. Evidence of a Participant's good health
shall be required by the Committee before election of an optional form of
benefit will be permitted, unless the option is elected at least one year prior

                                     III-3
<PAGE>   21

to the Option Effective Date. Under no circumstances may an option be elected,
changed or revoked after the Option Effective Date.

An election made pursuant to this Section 3.8 shall become inoperative if the
Participant's employment terminated before he is eligible for either a Normal or
Early Retirement Pension, or if the Participant or his beneficiary or contingent
annuitant dies before the Option Effective Date. If an option under this Section
becomes effective, it will be in place of any benefit otherwise payable under
this Plan, and the form made available by the Committee for election of the
option shall so specify.

                                     III-4
<PAGE>   22

                                   ARTICLE IV

                          PRE-RETIREMENT DEATH BENEFITS

The Pre-Retirement Death Benefits payable following the death of a Participant
shall be determined as follows:

         (a)      Death Prior to Eligibility for Early or Normal Retirement: No
death benefit is provided under this Plan for Participants who die prior to
completing the eligibility requirements for Early or Normal Retirement.

         (b)      Death After Attaining Eligibility for Early or Normal
Retirement: If a Participant dies while employed by the Company or an Adopting
Employer after completing the eligibility requirements for Early Retirement or
Normal Retirement, the Participant's designated beneficiary shall be paid the
amount which would have been payable to the Participant under this Plan had the
Participant retired immediately prior to the moment of his death, with such
payments commencing on the first day of the month following the date of death of
the Participant. The Participant's beneficiary shall receive the 120 monthly
payments under the normal form of pension payment (as described in Section 3.7)
and the payments shall cease after such 120 monthly payments have been made. In
computing the amount payable under this Plan, the Actuarial Equivalent of any
Group Term Life Insurance benefits (Policy No. 8800-1(52) or its replacement)
payable as a result of the Participant's death while covered under Pension Plan
C shall be deemed to have been paid as a death benefit from Pension Plan C. If
the Participant terminates employment after satisfying the requirements for
Early Retirement but delays commencement of his Pension, he shall be covered by
the death benefit provisions of this subsection (b) until his Pension payments
commence.

                                      IV-1
<PAGE>   23

                                   ARTICLE V

                                 PLAN FINANCING

5.1      Payment of Costs and Expenses: All costs of providing the benefits
under the Plan and the expenses thereof, including the cost of the Committee and
the Administrator and any Actuary, shall be paid from the general assets of the
Company (or with respect to Participants employed by an Adopting Employer, from
the general assets of such Adopting Employer).

                                      V-1
<PAGE>   24

                                   ARTICLE VI

                           FIDUCIARY RESPONSIBILITIES

6.1      Allocation of Responsibility Among Fiduciaries: The Fiduciaries shall
have only those specific powers, duties, responsibilities and obligations as are
specifically given them under this Plan. In general, the Company shall have the
responsibility for providing the benefits payable under this Plan; to perform
the responsibilities of the Plan Administrator; shall have the sole authority to
appoint and remove the members of the Committee; and to amend or terminate, in
whole or in part, this Plan. The Committee shall have the responsibility for the
duties set forth in Article VII. Each Fiduciary warrants that any directions
given, information furnished, or action taken by it shall be in accordance with
the provisions of the Plan authorizing or providing for such direction,
information or action. Furthermore, each Fiduciary may rely upon any such
direction, information or action of another Fiduciary as being proper under this
Plan, and is not required under this Plan to inquire into the propriety of any
such direction, information or action. It is intended under this Plan that each
Fiduciary shall be responsible for the proper exercise of its own powers,
duties, responsibilities and obligations under this Plan and shall not be
responsible for any act or failure to act of another Fiduciary. No Fiduciary
guarantees the payment of benefits under this Plan in any manner.

6.2      Fiduciary Duties: All Fiduciaries hereunder shall discharge their
duties with respect to the Plan solely in the interest of the Participants and
Beneficiaries and

         (a)      for the exclusive purpose of providing benefits to
Participants and their Beneficiaries and defraying reasonable expenses of
administering the Plan;

         (b)      with the care, skill, prudence and diligence under the
circumstances then prevailing that a prudent man acting in a like capacity and
familiar with such matters would use in the conduct of an enterprise of a like
character and with like aims; and

         (c)      in accordance with the documents and instruments governing the
Plan insofar as such documents and instruments are consistent with the
provisions of Title I of the Act.

6.3      Company Filing Responsibility: To the extent not otherwise specifically
provided in the Plan, the Company shall be responsible for filing with the
Internal Revenue Service and Department of Labor all returns, reports and other
documentation required under the Act.

                                      VI-1
<PAGE>   25

                                  ARTICLE VII

                          COMMITTEE AND ADMINISTRATION

7.1      Appointment and Term of Committee: The Committee shall be the
Compensation Committee of the Board of Directors of the Company or such other
Committee as the Board may choose to appoint. Any member may resign by notice in
writing filed with the Company. The Board may remove any member, with or without
cause, at any time by notice in writing to the member and the other members of
the Committee. Until vacancies have been filled by the Board, the remaining
members of the Committee shall have full authority to act.

7.2      Selection of Secretary and Duties of Secretary: The Committee may
choose from its members a Secretary. The Secretary shall keep minutes of the
Committee proceedings and all records and documents pertaining to the
Committee's administration of the Plan. The Committee may employ and suitably
compensate such attorneys, advisory, clerical and other employees as it may deem
necessary in the performance of its duties.

7.3      Majority Vote Required, Exceptions: The action of the Committee shall
be determined by the vote or other affirmative expression of a majority of its
members, except that the Committee may assign any or all administrative duties
to one or more members or to any person designated by the Committee. Except as
otherwise expressly provided in this Section, a meeting need not be called or
held to make any decision, but such decision may be made by a written document
signed by a majority of the then members. Either the Chairman or the Secretary
may execute any certificate or other written direction on behalf of the
Committee.

7.4      Payment of Expenses: It is intended that all expenses of the Committee
shall be paid by the Company.

7.5      Limitation of Liability: No member of the Committee shall be liable for
any act or omission of any other member of the Committee, nor for any act or
omission on his own part, excepting his own willful misconduct or unless such
liability is imposed by law. The Company shall indemnify and save harmless each
member of the Committee against any and all expenses and liabilities arising out
of his membership on the Committee, excepting only expenses and liabilities
arising out of his own willful misconduct or unless such indemnification is not
permitted by law.

7.6      Right to Consult: Eligible Participants and Beneficiaries may consult
with the Committee on any matters relating to the Plan.

7.7      General Duties: The Committee, on behalf of the Participants and their
Beneficiaries, shall enforce the Plan, and shall have all powers necessary to
accomplish that purpose, including, but not by way of limitation, the following:

                                      VII-1
<PAGE>   26

         (a)      to construe and interpret the Plan, decide all questions of
eligibility and determine the amount, manner and time of payment of any benefits
hereunder and to notify the Participant and the Company, where appropriate;

         (b)      to adopt By-Laws and rules as it deems necessary, desirable or
appropriate;

         (c)      to prescribe procedures to be followed by Participants or
beneficiaries filing applications for benefits;

         (d)      to prepare and distribute, in such manner as the Committee
determines to be appropriate, information explaining the Plan;

         (e)      to receive from the Company and from Participants such
information as shall be necessary for the Committee to perform its duties
hereunder;

         (f)      to furnish the Company, upon request, such annual reports as
are reasonable and appropriate with respect to the Committee's duties hereunder;

         (g)      to receive, review and keep on file (as it deems convenient or
proper) reports of the receipts and disbursements of the Plan;

         (h)      to appoint or employ individuals to assist in the
administration of its duties under the Plan and any other agents as it deems
advisable, including legal or actuarial counsel.

The Committee shall have no power to add to, subtract from, or modify any of the
terms of the Plan, or to change or add to any benefits provided by the Plan, or
to waive or fail to apply any requirements of eligibility for any benefits under
the Plan. The Committee shall have the exclusive discretionary authority to
construe and to interpret the Plan, to decide all questions of eligibility for
benefits and to determine the amount of such benefits, and its decisions on such
matters are final and conclusive.

7.8      Application and Forms For Pension: The Committee may require a
Participant to complete and file with the Committee an application for Pension
and all other forms approved by the Committee, and to furnish all pertinent
information requested by the Committee. The Committee may rely upon all such
information so furnished it, including the Participant's current mailing
address.

7.9      Facility of Payment: Whenever, in the Committee's opinion a person
entitled to receive any payment of a benefit or installment thereof hereunder is
under a legal disability or is incapacitated in any way so as to be unable to
manage his financial affairs, the Committee may direct the Company to make
payments to such person or to his legal representative or to a relative or
friend of such person for his benefit, or the Committee may direct the Company
to apply the payment for the benefit of such person in such manner as the
Committee considers advisable. Any payment of a benefit or installment thereof
in accordance with the provisions of this Section shall be a complete discharge
of the

                                     VII-2
<PAGE>   27

Committee of any liability for the selection of Such payee or the making of such
payment under the provisions of the Plan.

7.10     Rules and Decisions: When making any determination, the Committee shall
be entitled to rely upon information furnished by the Company, legal counsel for
the Company, or the Actuary.

7.11     Company to Furnish Information: To enable the Committee to perform its
functions, the Administrator shall supply full and timely information to the
Committee of all matters relating to the pay of all Participants, their
retirement, death or other cause for termination of employment, and such other
pertinent facts as the Committee may require.

7.12     Administrator to Furnish Other Information: To the extent not otherwise
provided in the Plan, the Administrator shall be responsible for providing all
notices and information required under the Act to all Participants.

7.13 Beneficiary Designations: Each Participant who may be eligible for the
payment of preretirement death benefits on his behalf pursuant to Article IV(b)
or who will receive his Accrued Pension under the normal form of payment
described in Section 3.7, shall have the right at any time to designate, and
rescind or change any designation of, a primary and contingent beneficiary or
beneficiaries to receive benefits in the event of his death. If there is no
designated beneficiary alive when a death benefit becomes payable under the
Plan, the benefit shall be paid to the estate of the Participant. If a primary
beneficiary dies before receiving all death benefits to which he is entitled,
the balance of such payments shall be paid to the contingent beneficiary, if
any. If there is no contingent beneficiary, or if the contingent beneficiary
dies before receiving all death benefit payments to which he is entitled, the
commuted value of the balance of such payments shall be paid to the estate of
the last to die of such beneficiaries. Neither the Company (in its capacity as
such) nor the Administrator shall be named as beneficiary. A designation or
change of beneficiary shall be made in writing on such form or forms as the
Committee may require.

After such notice is so filed, the designation or change will relate back and
take effect as of the date the Participant signed such written notice, whether
or not the Participant is living on the date such notice is received by the
Committee, but without prejudice to the Committee or the Company on account of
any payment made before receipt of such notice. If at the death of a
Participant, there is more than one beneficiary designated and in such
designation, the Participant has failed to specify their respective interests,
the beneficiaries shall share equally.

Anything in this Plan to the contrary notwithstanding, if an amount becomes
payable hereunder to the executors or the administrators of any person and
evidence satisfactory to the Committee is given to it that no petition for the
appointment of such executors or administrators has been or will be filed, the
Committee may, at its option, pay the amount otherwise payable, or the commuted
value thereof, to the wife or husband of such person, if living; if not living,
in equal shares to the then living children of such person; if not, to either

                                     VII-3
<PAGE>   28

the father or mother of such person, or to both equally if both are living; if
neither parent is living, in equal shares to the then living brothers and
sisters of such person.

                                     VII-4
<PAGE>   29

                                  ARTICLE VIII

                                SUCCESSOR COMPANY

8.1      Successor Company: In the event of the dissolution, merger,
consolidation or reorganization of the Company, provision may be made by which
the Plan will be continued by the successor; and, in that event, such successor
shall be substituted for the Company under the Plan. The substitution of the
successor shall constitute an assumption of Plan liabilities by the successor
and the successor shall have all of the powers, duties and responsibilities of
the Company under the Plan.

                                     VIII-1
<PAGE>   30

                                   ARTICLE IX

                                PLAN TERMINATION

9.1      Right to Terminate: The Company may terminate the Plan at any time by
resolution of the Board. In the event of the termination or partial termination
of the Plan, the rights of all affected Participants to benefits accrued to the
date of such termination or partial termination shall be fully vested and
nonforfeitable. Notwithstanding anything contained herein to the contrary, for a
period of two (2) years following a Change in Control, this Plan shall not be
terminated.

                                      IX-1
<PAGE>   31

                                   ARTICLE X

                                      TRUST

The benefits provided by this Plan shall be unfunded. All amounts payable under
this Plan to a Participant shall be paid from the general assets of the employer
which principally employs the Participant (the "Obligated Employer"), and
nothing contained in this Plan shall require the Obligated Employer to set aside
or hold in trust any amounts or assets for the purpose of paying benefits to
Participants. This Plan shall create only a contractual obligation on the part
of the Obligated Employer and Participants shall have the status of general
unsecured creditors of the Obligated Employer under the Plan with respect to
amounts of Compensation they defer hereunder or any other obligation of the
Obligated Employer to pay benefits pursuant hereto. Any funds of the Obligated
Employer available to pay benefits pursuant to the Plan shall be subject to the
claims of general creditors of the Obligated Employer, and may be used for any
purpose by the Obligated Employer.

Notwithstanding the preceding paragraph, the Obligated Employer may at any time
transfer assets to a trust for purposes of paying all or any part of its
obligations under this Plan. However, to the extent provided in the trust only,
such transferred amounts shall remain subject to the claims of general creditors
of the Obligated Employer. To the extent that assets are held in a trust when a
Participant's benefits under the Plan become payable, the Plan Administrator
shall direct the trustee to pay such benefits to the Participant from the assets
of the trust.

                                      X-1
<PAGE>   32

                                   ARTICLE XI

                        AMENDMENTS AND ACTION BY COMPANY

11.1     Amendments: The Company reserves the right to make from time to time
any amendment or amendments to this Plan. Notwithstanding anything contained in
this Plan to the contrary, no amendment shall have the effect of reducing the
Accrued Pension of any Participant and for a period of two (2) years following a
Change in Control, this Plan shall not be amended in any way to directly or
indirectly reduce the benefit levels provided under this Plan or the benefit of
any Participant or his designated beneficiary.

11.2     Notices of Amendment, Modification or Revision: Any amendment to the
provisions of this Plan shall be evidenced by the substitution of the page (or
adding new pages for additional provisions with a new date) of this Plan setting
forth the amendment.

                                      XI-1
<PAGE>   33

                                  ARTICLE XII

                                 MISCELLANEOUS

12.1     Nonguarantee of Employment: Nothing contained in this Plan shall be
construed as a contract of employment between the Company and any Participant,
or as a right of any Participant to be continued in the employment of the
Company, or as a limitation of the right of the Company or an Adopting Employer
to discharge any of its Employees, with or without cause.

12.2     Rights Under Plan: No Participant shall have any right to or interest
in, the Plan upon termination of his employment or otherwise, except as provided
from time to time under this Plan, and then only to the extent of the benefits
payable under the Plan to such Participant.

12.3     Nonalienation of Benefits: Benefits payable under this Plan shall not
be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution or levy of any
kind, either voluntary or involuntary, including any such liability which is for
alimony or other payments for the support of a spouse or former spouse, or for
any other relative of the Participant, prior to actually being received by the
person entitled to the benefit under the terms of the Plan; and any attempt to
anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or
otherwise dispose of any right to benefits payable hereunder, shall be void. The
Plan shall not in any manner be liable for, or subject to, the debts, contracts,
liabilities, engagements or torts of any person entitled to benefits hereunder.

12.4     Entering Military Service: If a Participant enters the service of the
Armed Forces to the United States, then during the period of such service he
shall be entitled only to the vested benefits he might otherwise be entitled to
upon death or disability.

12.5     Headings for Convenience Only: The headings and subheadings in this
Plan are inserted for convenience of reference only and are not to be considered
in construction of the provisions hereof.

12.6     Multiple Copies: This Plan may be executed in any number of
counterparts, each of which shall be deemed an original, and the counterparts
shall constitute one and the same instrument, which shall be sufficiently
evidenced by any one thereof.

12.7     Governing Law: This Plan shall be construed and enforced in accordance
with the provisions of the Act. In the event the Act is not applicable or does
not preempt state law, the laws of the State of Georgia shall govern.

12.8     Guarantee of Performance: In consideration of each Participant's
performance of valuable services that inure to the financial benefit of the
Company, the Company does hereby agree to perform all of the obligations and
responsibilities and pay any benefits due and owing to a Participant under the
Plan if the Obligated Employer (as defined in Article X)

                                      XII-1
<PAGE>   34

designated to perform such obligations and responsibilities or pay such benefits
fails or is unable to do so.

                                     XII-2
<PAGE>   35

                                  ARTICLE XIII

                                CHANGE IN CONTROL

13.1     Cause: For purposes of this Plan, a termination for `Cause' is a
termination evidenced by a resolution adopted in good faith by two-thirds of the
Board that the Participant (i) intentionally and continually failed to
substantially perform his duties with the Company (other than a failure
resulting from the Participant's incapacity due to physical or mental illness)
which failure continued for a period of at least thirty (30) days after a
written notice of demand for substantial performance has been delivered to the
Participant specifying the manner in which the Participant has failed to
substantially perform, or (ii) intentionally engaged in conduct which is
demonstrably and materially injurious to the Company, monetarily or otherwise;
provided, however, that no termination of the Participant's employment shall be
for Cause as set forth in clause (ii) above until (x) there shall have been
delivered to the Participant a copy of a written notice setting forth that the
Participant was guilty of the conduct set forth in clause (ii) and specifying
the particulars thereof in detail, and (y) the Participant shall have been
provided an opportunity to be heard by the Board (with the assistance of the
Participant's counsel if the Participant so desires). No act, or failure to act,
on the Participant's part, shall be considered "intentional" unless he has acted
or failed to act, with an absence of good faith and without a reasonable belief
that his action or failure to act was in the best interest of the Company.
Notwithstanding anything contained in this Plan to the contrary, in the case of
any Participant who is a party to a Severance Protection Agreement, no failure
to perform by the Participant after a Notice of Termination (as defined in the
Participant's Severance Protection Agreement) is given by the Participant shall
constitute Cause for purposes of this Plan.

13.2     Change in Control: For purposes of this Plan, a Change in Control shall
mean any of the following events:

         (a)      The acquisition (other than from the Company by any "Person"
(as the term person is used for purposes of Sections 13(d) or 14(d) of the
Securities Exchange Act of 1934, as amended (the "1934 Act")) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of
twenty percent (20%) or more of the combined voting power of the Company's then
outstanding voting securities; or

         (b)      The individuals who, as of September 21, 1989, are members of
the Board (the "Incumbent Board"), cease for any reason to constitute at least
two-thirds of the Board; provided, however, that if the election, or nomination
for election by the Company's stockholders, of any new director was approved by
a vote of at least two-thirds of the Incumbent Board, such new director shall,
for purposes of this Plan, be considered as a member of the Incumbent Board; or

         (c)      Merger or consolidation involving the Company if the
stockholders of the Company, immediately before such merger or consolidation do
not, as a result of such merger or consolidation, own, directly or indirectly,
more than seventy percent (70%) of the

                                     XIII-1
<PAGE>   36
combined voting securities of the corporation resulting from such merger or
consolidation in substantially the same proportion as their ownership of the
combined voting power of the voting securities of the Company outstanding
immediately before such merger or consolidation; or

         (d)      A complete liquidation or dissolution of the Company or an
agreement for the sale or other disposition of all or substantially all of the
assets of the Company.

         Notwithstanding the foregoing, a Change in Control shall not be deemed
to occur pursuant to Section (a), solely because twenty percent (20%) or more of
the combined voting power of the Company's then outstanding securities is
acquired by (i) a trustee or other fiduciary holding securities under one or
more employee benefit plans maintained by the Company or any of its subsidiaries
or (ii) any corporation which, immediately prior to such acquisition, is owned
directly or indirectly by the stockholders of the Company in the same proportion
as their ownership of stock in the Company immediately prior to such
acquisition.

13.3     Termination of Employment: If a Participant's employment is terminated
by the Company (other than for Cause) or by the Participant for any reason
within two (2) years following a Change in Control, the Company shall, within
five (5) days, pay to the Participant a lump sum cash payment equal to the lump
sum Actuarial Equivalent of his Accrued Pension as of the date of his
termination of employment whether or not the Participant is otherwise vested in
his Accrued Pension; provided, however, that for this purpose, the term
Actuarial Equivalent shall have the same meaning as such term is used in Pension
Plan C.

13.4     Amendment or Termination: Any amendment or termination of this Plan
which a Participant reasonably demonstrates (i) was at the request of a third
party who has indicated an intention or taken steps reasonably calculated to
effect a Change in Control or (ii) otherwise arose in connection with or in
anticipation of a Change in Control, and which was not consented to in writing
by the Participant shall be null and void, and shall have no effect whatsoever,
with respect to the Participant.

         IN WITNESS WHEREOF, the Plan has been executed by the Company to be
effective on the Effective Date.

                                             L & C Spinco, Inc.

                                             By:
                                                --------------------------------

                                             Title:
                                                   -----------------------------

                                     XIII-2
<PAGE>   37

                                   SCHEDULE 1
                               ADOPTING EMPLOYERS

The Zep Group, Inc.
L & C Lighting Group, Inc.

<PAGE>   38

                                   APPENDIX A

A.1.     Eligible Individual(s):  John A. Bostater and Howard Kaplan.

A.2.     Effective Date of Participation in Prior Plan: For John A. Bostater,
July 1, 1983 and for Howard Kaplan, February 15, 1993

A.3.     Special Provisions: The following special provisions shall apply to the
Eligible Individuals' participation in the Plan:

         (a)      The Eligible Individuals' Average Monthly Compensation,
Compensation, Credited Service, Eligible Service, Service Date and Service Hours
shall be determined as if they were Executives and had become eligible to
participate in the Plan in the same manner as if they were Executives.

         (b)      The Committee shall have the discretionary authority to
determine the benefits payable to the Eligible Individuals under the Plan and
its determinations on such matters shall be final and binding on all parties.

                                    Appendix
<PAGE>   39

                                   APPENDIX B

B.1.     Eligible Individual(s): James Balloun

B.2.     Effective Date of Participation in Prior Plan: Pursuant to Section
2.1(b), Mr. Balloun's date of participation in the Prior Plan shall be February
1, 1996.

B.3.     Special Provisions: The following special provisions shall apply to
James Balloun's participation in the Plan:

         (a)      Except for purposes of determining whether Mr. Balloun is a
Vested Terminee and entitled to a Vested Pension under the Plan, Mr. Balloun
will be credited with 2 years of Credited Service under Sections 1.1(q) and 2.3
for each year of Credited Service he would otherwise receive under the Plan.

         (b)      Mr. Balloun will qualify as a Vested Terminee if he completes
5 years of employment from his Service Date to his Termination Date.

Except as otherwise specifically provided in this Appendix B, Mr. Balloun's
benefits under the Plan shall be determined in the same manner as for other
Participants.

                                    Appendix
<PAGE>   40

                                   APPENDIX C

C.1.     Eligible Individual(s): J. Robert Hipps

C.2.     Effective Date: May 31, 1996

C.3.     Special Provisions: The following special provisions shall apply to the
Eligible Individual's participation in the Prior Plan.

         (a)      As of the Effective Date, the Eligible Individual shall have
his benefits determined as if he had ten (10) years of Credited Service for
benefit accrual and vesting purposes under the Prior Plan.

         (b)      As of the Effective Date, the Eligible Individual shall be
treated as if he had fifteen (15) years of service for purposes of qualifying
for an Early Retirement Accrual Pension under Section 3.3 of the Prior Plan, but
only for purposes of qualifying for such benefit.

                                    Appendix
<PAGE>   41

                                   APPENDIX D

D.1.     Eligible Individual(s): Don W. Hubble

D.2.     Effective Date: October 18, 1996

D.3.     Special Provisions: The following special provision shall apply to the
Eligible Individual's participation in the Prior Plan.

         (a)      As of the Effective Date, the Eligible Individual shall have
his benefits determined as if he had twenty (20) years of Credited Service for
benefit accrual and vesting purposes under the Prior Plan.

                                    Appendix
<PAGE>   42

                                   APPENDIX E

E.1.     Eligible Individual(s): Brock A. Hattox

E.2.     Effective Date: Pursuant to Section 2.1(B), the Eligible Individual's
date of participation in the Prior Plan shall be September 18, 1996.

E.3.     Special Provisions: The following special provisions shall apply to the
Eligible Individual's participation in the Plan.

         (a)      The Eligible Individual will qualify as a Vested Terminee if
he completes 5 years of employment from September 9, 1996 to his Termination
Date.

         (b)      The Eligible Individual terminates employment after attaining
age 55, the Eligible Individual shall be eligible for Early Retirement under
Sections 1.1(a)(2) and 3.3, and his benefit will be determined as if he had
completed an additional five (5) years of service (including Credited Service
and Eligible Service, but not to exceed a total of 20 years) and was five (5)
years older (but not to exceed age 65).

Except as otherwise specifically provided in this Appendix E, the Eligible
Individual's benefits under the Plan shall be determined in the same manner as
for other participants.

                                    Appendix
<PAGE>   43

                                   APPENDIX F

F.1.     Eligible Individual(s): George H. Gilmore

F.2.     Effective Date: Pursuant to Section 2.1(B), the Eligible Individual's
date of participation in the Prior Plan shall be June 1, 1999.

F.3.     Special Provisions: The following special provisions shall apply to the
Eligible Individual's participation in the Plan.

         (a)      The Eligible Individual will qualify as a Vested Terminee if
he completes 5 years of employment from June 1, 1999 to his Termination Date.

         (b)      The Eligible Individual will receive a year of Credited
Service under Section 2.3 of the Plan for each 12-month period he is employed by
the Company or an Adopting Employer for the period from June 1, 1999 to his
Termination Date. If the Eligible Individual's final year of Credited Service is
not a full year, he shall receive partial credit for such year based upon the
number of complete months worked during such partial year.

Except as otherwise specifically provided in this Appendix F, the Eligible
Individual's benefits under the Plan shall be determined under the standard
provisions of the Plan.

                                    Appendix
<PAGE>   44

                                   APPENDIX G

G.1      Eligible Individual        Joseph G. Parham, Jr.

G.2      Effective Date    Pursuant to the Eligible Individual's employment
agreement letter, dated May 3, 2000 ("Employment Letter") and Section 2.1(b) of
the Plan, for purposes of the Prior Plan the Eligible Individual's date of
participation shall be May 15, 2000.

G.3      Special Provisions The following special provision shall apply to the
Eligible Individual's participation in the Plan.

         (a)      The Eligible Individual will qualify as a Vested Terminee if
he completes 5 years of employment from May 15, 2000 to his Termination Date.

         (b)      The Eligible Individual will be eligible for Early Retirement
under Sections 1.1(a)(2) and 3.3 upon attainment of age 60 while actively
employed by the Company (at which time he will have more than 9 years of
service), provided that his Early Retirement Accrued Pension shall be calculated
based upon his Credited Service and Eligible Service at his date of Early
Retirement.

         (C)      In the event prior to the Eligible Individual's completion of
5 years of employment, James S. Balloun retires or terminates employment as
Chairman, President and Chief Executive Officer of NSI, and thereafter the
Eligible Individual's employment is terminated for any reason other than
voluntary termination, termination upon death or Disability (as defined in the
Employment Letter) or termination by NSI for Cause (as defined in the Employment
Letter), the Eligible Individual will be eligible to receive Early Retirement
Benefits commencing at the time of termination, calculated by treating the
Eligible Individual as if he were age 55 at the date of termination and had
completed 5 years of Credited Service as of such date. Except as expressly
provided herein, the Eligible Individual's Early Retirement Pension shall be
calculated and payable in accordance with the usual provisions of the Plan.

Except as otherwise specifically provided in this Appendix G, the Eligible
Individual's benefits under the Plan shall be determined in the same manner as
for other participants.

H.1      Eligible Individual        James H. Heagle

H.2      Effective Date             Pursuant to the Eligible Individual's
employment agreement letter, dated March 28, 2000 and Section 2.1(b) of the
Plan, for purposes of the Plan the Eligible Individual's date of participation
shall be May 1, 2000.

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