Document:

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                                                            Exhibit 10(iii)A(61)

                              EMPLOYMENT AGREEMENT

      This Employment Agreement entered into as of the 27th day of November,
2001, by and between NATIONAL SERVICE INDUSTRIES, INC., a Delaware corporation
(the "Company"), and Brock A. Hattox, an individual resident of the State of
Georgia (the "Executive"), the terms and conditions of which are as follows:

SECTION 1.  TERM OF EMPLOYMENT

      (a)   The Company shall employ Executive as Chairman, President and Chief
Executive Officer during the term of his employment, subject to the terms and
conditions set forth in this Employment Agreement, and Executive hereby accepts
such employment. Executive shall perform the responsibilities of a Chairman,
President and Chief Executive Officer and such additional executive duties and
responsibilities commensurate with his position, as shall be assigned to him in
accordance with the terms of this Agreement.

      (b)   The Company and Executive acknowledge that it is currently the
intention of the Company to spin-off ACUITY BRANDS, INC., a Delaware corporation
("Acuity") and a wholly-owned subsidiary of the Company, by means of a
distribution of all of Acuity's issued and outstanding common stock in a
tax-free dividend to the Company's stockholders (the "Spin-off"). Such date as
the Spin-off is effective shall be termed the "Effective Date."

      (c)   Subject to the terms and conditions set forth in this Employment
Agreement, the Company agrees to employ Executive and Executive agrees to be
employed by the Company for an initial term ("Initial Term") of three years,
commencing on the Effective Date, and ending on the third anniversary of the
Effective Date; provided, however, the Initial Term automatically shall extend
for one additional year on the first anniversary of the Effective Date and on
each subsequent anniversary of the Effective Date, unless the Company or
Executive notifies the other pursuant to Section 6(a) that no such extension
will be effected at least ninety (90) days before the first anniversary date or
any subsequent anniversary date. The Initial Term described in this Section 1
and any extensions of such Initial Term, shall be referred to in this Employment
Agreement as the "Term".

SECTION 2.  POSITION AND DUTIES AND RESPONSIBILITIES

      (a)   Position. Executive shall be the Chairman, President and Chief
Executive Officer of the Company.

      (b)   Duties and Responsibilities. Executive's duties and responsibilities
shall be those normally associated with Executive's position as a Chairman,
President and Chief Executive Officer plus any additional duties and
responsibilities that the Company's Board of Directors from time to time may
assign orally or in writing to Executive. Executive shall report to the
Company's Board of Directors and shall have such powers as may be delegated to
him by such Board. Executive shall undertake to perform all Executive's duties
and responsibilities for the
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Company in good faith and on a full-time basis and shall at all times act in the
course of Executive's employment under this Employment Agreement in the best
interest of the Company.

SECTION 3.  COMPENSATION AND BENEFITS

      (a)   Base Salary. Executive's initial base salary shall be Six Hundred
Thousand Dollars ($600,000) per year (the "Base Salary"), which Base Salary
shall be payable in accordance with the Company's standard payroll practices and
policies for executive officers and shall be subject to such withholdings as
required by law or as otherwise permissible under such practices or policies.
The Base Salary shall be subject to periodic adjustments as determined by the
Compensation Committee of the Company's Board of Directors (the "Compensation
Committee").

      (b)   Conversion of NSI Options. The Executive currently has 353,813
options to acquire shares of Common Stock of the Company. Of these options,
122,313 were granted in lieu of aspiration award payments of $988,934.31 and
231,500 were granted under the Company's option plans. As soon as practicable
after execution of this Agreement and before the Effective Date, the Company
will pay the Executive $988,934.31 in cash (subject to applicable withholding
taxes) upon the surrender of the 122,313 options. With respect to the remaining
231,500 options, these options will be addressed in connection with the Spin-Off
and Executive will be treated in a manner consistent with other executive
officers of the Company.

      (c)   Annual Bonus and Other Incentive Compensation. Executive during the
Term shall be eligible to receive an annual bonus of 60% of Base Salary based
upon achieving targeted financial objectives, provided the Executive may, in
accordance with the annual bonus plan established by the Compensation Committee,
receive a greater or lesser annual bonus if such targeted financial objectives
are exceeded or only partially met. Executive shall also be eligible to
participate in such other annual bonus and incentive compensation programs as
the Compensation Committee shall make available to executive officers.

      (d)   Employee Benefit Plans. Executive shall be eligible to participate
in the employee benefit plans, programs and policies (including any executive
life insurance program) maintained by the Company that cover executive officers
in accordance with the terms and conditions of such plans, programs and policies
as in effect from time to time.

      (e)   Stock Option and Stock Grants. On and after the Effective Date,
Executive will be eligible to receive annual grants of stock options, restricted
stock and other long-term incentive awards equal in value to 260% of his Base
Salary. The nature and structure of such grants shall be determined by the Board
of Directors.

      (f)   Vacation. Executive shall be entitled to four weeks of vacation (or
such larger amount as Executive may be entitled to under Company policy) during
each successive one year period in the Term, which vacation time shall be taken
at such time or times in each such one year period so as not to materially and
adversely interfere with the business of the Company.

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Executive shall have the right to carryover unused vacation from any such one
year period to any other such one year period, in accordance with Company policy
for executives.

      (g)   Business Expenses. Executive shall have a right to be promptly
reimbursed for Executive's reasonable and appropriate business expenses which
Executive actually incurs in connection with the performance of Executive's
duties and responsibilities under this Employment Agreement in accordance with
the Company's expense reimbursement policies and procedures for its senior
executive officers.

      (h)   Directors' and Officers' Insurance. Effective as of the Effective
Date, the Company shall take all reasonable steps to ensure that Executive has
been provided coverage under directors' and officers' liability insurance, the
terms of which insurance shall be substantially similar to the terms contained
in such directors' and officers' liability insurance which is in place for the
Company's directors and executive officers on the Effective Date.

      (i)   SERP. Upon his employment in September 1996, Executive became an
eligible executive under the Supplemental Retirement Plan for Executives of
National Service Industries, Inc. (the "SERP") and certain special provisions
for Executive's SERP benefit are set forth in Appendix E of the SERP. Appendix E
to the SERP has previously been amended to provide that, upon termination on or
after age 55, Executive will be (1) credited with five additional years of
service, thereby becoming eligible for Early Retirement upon attainment of age
55 and increasing his benefit (e.g., 12/20 of the full benefit rather than 7/20)
and (2) treated as being five years older so that if he commenced benefits at
age 55, he would be treated as commencing at age 60, with five years of
reduction for early commencement rather than ten. As of the Effective Date,
Appendix E shall be further amended to provide that Executive will be allowed to
make an election at retirement to be paid his benefit in an immediate lump sum
payment calculated by discounting the future payment stream at an interest rate
equal to the lesser of the GATT interest rate or the PBGC immediate annuity rate
with an assumed life span to age 85, or in annual installments over a period of
up to five years, or in accordance with the usual SERP payout rules.

      (j)   Pension Plan. Executive will continue to participate in a pension
plan of the Company.

      (k)   Severance Protection Agreement. Executive will continue to be
covered by a Severance Protection Agreement comparable to the agreement in
effect on the Effective Date, amended to the extent necessary to reflect the
terms of this Agreement.

SECTION 4.  TERMINATION OF EMPLOYMENT

      (a)   Termination By The Company Other Than For Cause Or Disability Or By
Executive For Good Reason.

            (1)   The Company shall have the right to terminate Executive's
      employment at any time, and Executive shall have the right to resign at
      any time. However, a proper notice under Section 1 that no extension of
      Executive's Term will be effected shall not constitute a termination of
      Executive's employment by the Company or a resignation by

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      Executive. If either the Company or Executive elects to give such notice,
      the Company's only obligation to Executive under this Employment Agreement
      after the expiration of the Term shall be to pay Executive's earned but
      unpaid Base Salary until the date the Term expired and any earned, but
      unpaid bonus.

            (2)   If the Company terminates Executive's employment other than
      for Cause, death or Disability or if Executive resigns for Good Reason,
      the Company shall (in lieu of any other severance benefits under any of
      the Company's employee benefit plans, programs or policies except for his
      rights under the Severance Protection Agreement as provided in (4) below)
      pay or provide to Executive the following:

                  (i) Executive will continue to receive his Base Salary as then
      in effect for the remaining Term of this Agreement or if his termination
      occurs after the first anniversary of the Effective Date, for a period of
      twenty-four (24) months (such period is hereinafter referred to as the
      "Severance Period"), payable in the same manner as it was being paid on
      his date of termination;

                  (ii) Executive will be paid monthly an amount equal to $30,000
      (his target bonus of $360,000 divided by 12), subject to withholding of
      applicable taxes, for the Severance Period;

                  (iii) Executive will continue to receive the healthcare and
      life insurance coverages in effect on his date of termination for the
      Severance Period just as if he had remained an active employee, subject to
      Executive paying the customary employee portion of such coverages,
      provided that if the Company cannot continue to cover Executive under its
      plans, the Company will separately provide Executive with comparable
      coverages or pay Executive in a lump sum the costs of such coverages; and

                  (iv) If Executive's employment is terminated prior to his
      attaining age 55, he will be treated for all purposes under the SERP as if
      he had continued to remain actively employed until he reached age 55.

            (3)   If the Company terminates Executive's employment other than
      for Cause, death or Disability or if Executive resigns for Good Reason,
      Executive shall become immediately fully vested in (i) all restricted
      stock previously granted to Executive, including any restricted shares of
      Common Stock granted pursuant to Section 3 (e), and (ii) all stock options
      previously granted to Executive, in which event all such options shall be
      fully exercisable by Executive and shall remain exercisable for 12 months
      after Executive's date of termination (unless the option provides for a
      longer exercise period).

            (4)   If Executive's employment is terminated under circumstances
      qualifying Executive for compensation and benefits under this Section 4(a)
      and he also qualifies for compensation and benefits under the Severance
      Protection Agreement, Executive shall be entitled to receive whichever
      compensation and benefits are greater and there shall be no duplication of
      compensation or benefits.

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      (b)   Termination By the Company For Cause or By Executive Other Than
For Good Reason.

            (1)   The Company shall have the right to terminate Executive's
      employment at any time for Cause, and Executive shall have the right to
      resign at any time other than for Good Reason.

            (2)   If the Company terminates Executive's employment for Cause or
      Executive resigns other than for Good Reason, the Company's only
      obligation to Executive under this Employment Agreement shall be to pay
      Executive's earned but unpaid Base Salary then in effect under Section
      3(a), if any, up to the date Executive's employment terminates. If
      Executive is terminated for Cause, further vesting of Executive's stock
      options, shall cease. Furthermore, if terminated for Cause, further
      vesting of Executive's restricted stock grants shall cease and Executive
      shall forfeit all further vesting of any restricted stock grants.

      (c)   Cause.  The term "Cause" as used in this Employment Agreement
means,

            (1)   Executive has engaged in conduct which in the reasonable
      judgment of the Company's Board of Directors constitutes gross negligence,
      gross misconduct or gross neglect in the performance of Executive's duties
      and responsibilities under this Employment Agreement, including conduct
      resulting or intending to result directly or indirectly in gain or
      personal enrichment for Executive at the Company's expense; or

            (2)   Executive has been convicted of a felony or of any crime
      involving fraud, embezzlement or theft.

      With respect to clause (1) above, Executive shall not be deemed to have
      been terminated for "Cause" until there shall have been delivered to him
      written notice, not less than 30 days prior to the proposed termination
      date, specifying the basis for such termination.

      (d)   Good Reason.  The term "Good Reason" means,

            (1)   Any material reduction in Executive's Base Salary;

            (2)   A material reduction in Executive's job functions, duties or
      responsibilities, or a similar change in Executive's reporting
      relationships;

            (3)   The failure by the Company to continue in effect any material
      compensation plan in which Executive participates on the Effective Date
      (unless such plan is replaced by a comparable plan) or to continue to
      provide Executive with benefits substantially comparable to those in
      effect on the Effective Date;

            (4)   The relocation of the Company's principal executive offices to
      a location more than fifty (50) miles from Atlanta, Georgia, unless the
      Executive consents to such relocation; or

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            (5)   Any material breach of any of the terms of this Employment
      Agreement by the Company.

      (e)   Termination for Disability or Death.

            (1)   The Company shall have the right to terminate Executive's
      employment on or after the date Executive has a Disability, and
      Executive's employment shall terminate at Executive's death.

            (2)   If Executive's employment terminates under this Section 4(e),
      the Company's only obligation under this Employment Agreement shall be to
      pay Executive or, if Executive dies, Executive's estate, any earned but
      unpaid Base Salary then in effect under Section 3(a) through the date
      Executive's employment terminates, provided that Executive shall have such
      rights under the Company's benefit plans as are provided in such plans.

      The term "Disability" as used in this Employment Agreement shall have the
same meaning as under the Company's long-term disability plan and if no such
plan is in effect, then Disability shall mean the suffering by Executive for at
least a 180 consecutive day period of a physical or mental condition resulting
from bodily injury, disease, or mental disorder which renders Executive
incapable of continuing even with reasonable accommodation to perform the
essential functions of Executive's job. The Company's Board of Directors shall
determine whether Executive has a Disability. If Executive disputes such
determination, the issue shall be submitted to a panel consisting of three
physicians who specialize in the physical or mental condition from which
Executive suffers, one appointed and paid by the Company, one appointed and paid
by Executive and the third appointed by these two physicians and paid one-half
by the Company and one-half by Executive. The determination as to whether
Executive has a Disability shall be made by such panel and shall be binding on
the Company and on Executive.

      (f)   Benefits at Termination of Employment. Upon Executive's termination
of employment, Executive shall have the right to receive any benefits payable
under the Company's employee benefit plans, programs and policies which
Executive otherwise has a nonforfeitable right to receive under the terms of
such plans, programs and policies (other than severance benefits) independent of
Executive's rights under this Employment Agreement, without regard to the reason
for such termination of employment.

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SECTION 5.  COVENANTS BY EXECUTIVE

      (a)   The Company's Property.

            (1)   Upon the termination of Executive's employment for any reason
      or, if earlier, upon the Company's request, Executive shall promptly
      return all "Property" which had been entrusted or made available to
      Executive by the Company.

            (2)   The term "Property" means all records, files, memoranda,
      reports, price lists, customer lists, drawings, plans, sketches, keys,
      codes, computer hardware and software and other property of any kind or
      description prepared, used or possessed by Executive during Executive's
      employment by the Company and, if applicable, any of its affiliates (and
      any duplicates of any such property) together with any and all
      information, ideas, concepts, discoveries, and inventions and the like
      conceived, made, developed or acquired at any time by Executive
      individually or, with others during Executive's employment which relate to
      the Company business, products or services.

      (b)   Trade Secrets.

            (1)   Executive agrees that Executive will hold in a fiduciary
      capacity for the benefit of the Company, and any of its affiliates, and
      will not directly or indirectly use or disclose, any "Trade Secret" that
      Executive may have acquired during the term of Executive's employment by
      the Company or any of its affiliates for so long as such information
      remains a Trade Secret.

            (2)   The term "Trade Secret" means information, including, but not
      limited to, technical or nontechnical data, a formula, a pattern, a
      compilation, a program, a device, a method, a technique, a drawing, a
      process, financial data, financial plans, product plans, or a list of
      actual or potential customers or suppliers that (a) derives economic
      value, actual or potential, from not being generally known to, and not
      being generally readily ascertainable by proper means by, other persons
      who can obtain economic value from its disclosure or use and (b) is the
      subject of reasonable efforts by the Company and any of its affiliates to
      maintain its secrecy.

            (3)   This Section 5(b) and Section 5(c) are intended to provide
      rights to the Company which are in addition to, not in lieu of, those
      rights the Company has under the common law or applicable statutes for the
      protection of trade secrets.

      (c)   Confidential Information.

            (1)   Executive, while employed under this Employment Agreement and
      thereafter during the "Restricted Period", shall hold in a fiduciary
      capacity for the benefit of the Company and any of its affiliates, and
      shall not directly or indirectly use or disclose, any "Confidential
      Information" that Executive may have acquired (whether or not developed or
      compiled by Executive and whether or not Executive is authorized to

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      have access to such information) during the term of, and in the course of,
      or as a result of Executive's employment by the Company or any of its
      affiliates.

            (2)   The term "Confidential Information" means any secret,
      confidential or proprietary information possessed by the Company or any of
      its affiliates relating to their businesses, including, without
      limitation, trade secrets, customer lists, details of client or consultant
      contracts, current and anticipated customer requirements, pricing
      policies, price lists, market studies, business plans, operational
      methods, marketing plans or strategies, legal advice and communications
      with the Company's counsel, product development techniques or flaws,
      computer software programs (including object code and source code), data
      and documentation data, base technologies, systems, structures and
      architectures, inventions and ideas, past current and planned research and
      development, compilations, devices, methods, techniques, processes,
      financial information and data, business acquisition plans and new
      personnel acquisition plans (not otherwise included in the definition of a
      Trade Secret under this Employment Agreement) that has not become
      generally available to the public by the act of one who has the right to
      disclose such information without violating any right of the Company or
      any of its affiliates. Confidential Information may include, but not be
      limited to, future business plans, licensing strategies, advertising
      campaigns, information regarding customers, executives and independent
      contractors and the terms and conditions of this Employment Agreement.

      (d)   Restricted Period. The term "Restricted Period" as used in the
Employment Agreement shall mean the two-year period which starts on the date
Executive's employment terminates with the Company without regard to whether
such termination comes before or after the end of the Term.

      (e)   Nonsolicitation of Customers or Employees.

            (1)   Executive (i) while employed under this Employment Agreement
      shall not, on Executive's own behalf or on behalf of any person, firm,
      partnership, association, corporation or business organization, entity or
      enterprise (other than the Company or one of its affiliates), solicit
      Competing Business of customers of the Company or any of its affiliates
      and (ii) during the Restricted Period shall not, on Executive's own behalf
      or on behalf of any person, firm, partnership, association, corporation or
      business organization, entity or enterprise, solicit Competing Business of
      customers of the Company or any of its affiliates with whom Executive
      within the twenty-four month period immediately preceding the beginning of
      the Restricted Period had or made contact with in the course of
      Executive's employment by the Company.

            (2)   Executive (i) while employed under this Employment Agreement
      shall not, either directly or indirectly, call on, solicit or attempt to
      induce any other officer, employee or independent contractor of the
      Company or any of its affiliates to terminate his or her employment with
      the Company or any of its affiliates and shall not assist any other person
      or entity in such a solicitation (regardless of whether any such officer,

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      employee or independent contractor would commit a breach of contract by
      terminating his employment), and (ii) during the Restricted Period, shall
      not, either directly or indirectly, call on, solicit or attempt to induce
      any other officer, employee or independent contractor of the Company or
      any of its affiliates with whom Executive had contact, knowledge of, or
      association in the course of Executive's employment with the Company or
      any of its affiliates as the case may be, during the twelve month period
      immediately preceding the beginning of the Restricted Period, to terminate
      his employment with the Company or any of its affiliates and shall not
      assist any other person or entity in such a solicitation (regardless of
      whether any such officer, employee or independent contractor would commit
      a breach of contract by terminating his employment).

            (3)   The term "Competing Business" as used in this Employment
      Agreement means (i) the business of selling, renting, leasing or otherwise
      distributing, directly or indirectly, textiles, including, without
      limitation, napkins, table and bed linens, bath towels, pillow cases, bar
      towels, scrubs and surgical drapery, mats, mops, and restroom supplies and
      (ii) the business of manufacturing, producing and distributing, directly
      or indirectly, envelopes, including, without limitation, custom business
      and courier envelopes, as well as specialty filing products.

      (f)   Noncompetition Obligation. Executive, while employed under this
Employment Agreement and thereafter during the Restricted Period and within the
United States of America and her territories and commonwealths, shall not
organize or form any other business that will conduct Competing Business and
shall not engage in the executive management of, or provide consulting
concerning the executive management of, Competing Business on behalf of any
business other than the Company or its affiliates. Executive acknowledges and
agrees that the geographic areas identified in this Section 5(f) are areas in
which Executive performs services for the Company by being actively engaged as a
member of the Company's executive management team in the Company's operations in
these areas.

      (g)   Reasonable and Continuing Obligations. Executive agrees that
Executive's obligations under this Section 5 are obligations which will continue
beyond the date Executive's employment terminates and that such obligations are
reasonable and necessary to protect the Company's legitimate business interests.
The Company in addition shall have the right to take such other action as the
Company deems necessary or appropriate to compel compliance with the provisions
of this Section 5.

      (h)   Remedy for Breach. Executive agrees that the remedies at law of the
Company for any actual or threatened breach by Executive of the covenants in
this Section 5 would be inadequate and that the Company shall be entitled to
specific performance of the covenants in this Section 5, including entry of an
ex parte, temporary restraining order in state or federal court, preliminary and
permanent injunctive relief against activities in violation of this Section 5,
or both, or other appropriate judicial remedy, writ or order, in addition to any
damages and legal expenses which the Company may be legally entitled to recover.
Executive acknowledges and agrees that the covenants in this Section 5 shall be
construed as agreements independent of any other provision of this or any other
agreement between the Company and Executive, and that the

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existence of any claim or cause of action by Executive against the Company,
whether predicated upon this Employment Agreement or any other agreement, shall
not constitute a defense to the enforcement by the Company of such covenants.

SECTION 6.  MISCELLANEOUS

      (a)   Notices. Notices and all other communications shall be in writing
and shall be deemed to have been duly given when personally delivered or when
mailed by United States registered or certified mail. Notices to the Company
shall be sent to National Service Industries, Inc., 1420 Peachtree Street, N.E.,
Atlanta, Georgia, 30309, Attention: Corporate Secretary. Notices and
communications to Executive shall be sent to the address Executive most recently
provided to the Company.

      (b)   No Waiver. Except for the notice described in Section 6(a), no
failure by either the Company or Executive at any time to give notice of any
breach by the other of, or to require compliance with, any condition or
provision of this Employment Agreement shall be deemed a waiver of any
provisions or conditions of this Employment Agreement.

      (c)   Delaware Law. This Employment Agreement shall be governed by
Delaware law without reference to the choice of law principles thereof.

      (d)   Assignment. This Employment Agreement shall be binding upon and
inure to the benefit of the Company and any successor to all or substantially
all of the business or assets of the Company, other than Acuity. The Company may
assign this Employment Agreement to any affiliate or successor, and no such
assignment shall be treated as a termination of Executive's employment under
this Employment Agreement. Executive's rights and obligations under this
Employment Agreement are personal and shall not be assigned or transferred.

      (e)   Other Agreements. This Employment Agreement replaces and merges any
and all previous agreements and understandings regarding all the terms and
conditions of Executive's employment relationship with the Company, and this
Employment Agreement constitutes the entire agreement between the Company and
Executive with respect to such terms and conditions, except for rights under
other agreements referred to in this Agreement.

      (f)   Amendment. No amendment to this Employment Agreement shall be
effective unless it is in writing and signed by the Company and by Executive.

      (g)   Invalidity. If any part of this Employment Agreement is held by a
court of competent jurisdiction to be invalid or otherwise unenforceable, the
remaining part shall be unaffected and shall continue in full force and effect,
and the invalid or otherwise unenforceable part shall be deemed not to be part
of this Employment Agreement.

      (h)   Attorney's Fees. In the event Executive incurs legal fees and
expenses in seeking to enforce any rights to compensation and benefits under
this Agreement and is successful, in whole or in part, in obtaining or enforcing
any material rights to compensation or benefits through negotiation, settlement,
litigation, arbitration or otherwise, the Company shall promptly

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pay Executive's reasonable legal fees and expenses incurred in enforcing
Executive's rights under this Agreement.

      IN WITNESS WHEREOF, the Company and Executive have executed this
Employment Agreement as of the date first above written to be effective on the
Effective Date.

NATIONAL SERVICE INDUSTRIES, INC.           EXECUTIVE

By: /s/ James S. Balloun                    /s/ Brock A. Hattox
   ------------------------------------     -----------------------------------
   Name: James S. Balloun                   Brock A. Hattox
   Title: Chairman, President and
          Chief Executive Officer

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                                                         Exhibit 10(iii)A(62)(a)

                ASPIRATION ACHIEVEMENT INCENTIVE AWARD AGREEMENT
                      FOR KEY EMPLOYEES OF OPERATING UNITS

        THIS AGREEMENT, made as of the 22nd day of September, 1998 (the "Grant
Date"), between National Service Industries, Inc., a Delaware corporation
("NSI"), and NATIONAL SERVICE INDUSTRIES, INC. (GA), a Subsidiary of NSI
(together, the "Company"), and ((Grantee)) (the "Grantee").

        WHEREAS, NSI has adopted the National Service Industries, Inc. Long-Term
Achievement Incentive Plan (the "Plan") in order to provide additional
incentives to certain officers and key employees of NSI and its Subsidiaries;
and

        WHEREAS, the Grantee, as a key employee of the above-referenced
Subsidiary, performs services with respect to the ((DIVISION)) operations of the
Company (the "Operations"); and

        WHEREAS, the Committee responsible for administration of the Plan has
determined to grant to the Grantee an Aspiration Achievement Incentive Award as
provided herein.

        NOW, THEREFORE, the parties hereto agree as follows:

        1. Grant of Aspiration Award.

               1.1 The Company hereby grants to the Grantee an Aspiration
Achievement Incentive Award (the "Award"), which has a value determined as
provided in Section 2 below based upon the performance of the Operations during
the Performance Cycle from September 1, 1998 to August 31, 2001. As provided in
the Plan, Grantee's right to payment of this Award is dependent upon Grantee's
continued employment in Grantee's current position with the Company, or in a
position with responsibilities of substantially similar value to the Company
during the Performance Cycle. Under certain circumstances as described below,
Grantee may be entitled to receive payment for some portion of the Award if
Grantee's employment terminates prior to the end of the Performance Cycle.

               1.2 The Grantee hereby acknowledges receipt of a copy of the Plan
and agrees to be bound by all the terms and provisions thereof. This Agreement
shall be construed in accordance with, and subject to, the provisions of the
Plan (the provisions of which are hereby incorporated by reference) and, except
as otherwise expressly set forth herein, the capitalized terms used in this
Agreement shall have the same definitions as set forth in the Plan.
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        2. Performance Measure and Performance Levels.

               The Committee has established the performance measure (the
"Performance Measure"), and award and performance levels set forth in Appendix A
attached hereto. The chart in Appendix A specifies a Commitment performance
level, at which the Commitment Level Award will be paid, an Aspiration
performance level, at or above which an Aspiration Level Award will be paid, and
a threshold performance level, at which a minimum incentive award will be paid
and below which no award will be paid. For each level of performance at or above
the threshold performance level through the Aspiration performance level,
Grantee will receive an award determined in accordance with the chart and
formulae set forth in Appendix A. The terms used in determining the Performance
Measure are defined in Appendix B.

        3. Determination of Aspiration Award.

               3.1 Determination Notice. As soon as practical following the last
day of the Performance Cycle, the Committee will determine, in accordance with
Section 7(c) of the Plan, the performance level of the Operations with respect
to the Performance Measure for the Performance Cycle. The Committee may in
determining the performance level with respect to the Performance Measure adjust
the Operations' financial results for the Performance Cycle to exclude the
effect of unusual charges or income items or other events, including
acquisitions or dispositions of businesses or assets, gains and losses resulting
from divestitures, currency fluctuations, changes in tax laws, or changes in
accounting treatment, which are distortive of financial results for the
Performance Cycle. The Committee may also increase or decrease the amount of the
Award otherwise payable to Grantee if, in the Committee's view, the financial
performance of the Operations during the Performance Cycle justifies such
adjustment, regardless of the extent to which the Performance Measure has been
achieved.

                      The Company will notify the Grantee (or the executors or
administrators of the Grantee's estate, if applicable) of the Committee's
determination (the "Determination Notice"). The Determination Notice shall
specify the performance level of the Operations with respect to the Performance
Measure for the Performance Cycle and the amount of Award (if any) Grantee will
be entitled to receive. The amount Grantee is entitled to receive will be paid
one-half in cash and one-half in Shares, with the Shares being valued at their
Fair Market Value as of the last day of the Performance Cycle.

               3.2 Revision of Performance Levels. At any time prior to the end
of a Performance Cycle, the Committee may revise the performance levels for the
Performance Measure and the Award amounts if unforeseen events (including,
without limitation, a Change in Capitalization, an equity restructuring, an
acquisition, or a divestiture) occur which have a substantial effect on the
performance of the Operations and which in the judgment of the Committee make
the application of the performance levels unfair unless a revision is made.

                                      -2-
<PAGE>
        4. Termination of Employment.

               4.1 In General. Except as provided in Sections 4.2, 4.3, and 4.4
below, in the event that the Grantee's employment terminates during a
Performance Cycle, all unearned Aspiration Awards shall be immediately forfeited
by the Grantee.

               4.2 Termination of Employment Due to Death, Disability, or
Retirement. In the event the employment of the Grantee is terminated by reason
of death, Disability, or Retirement (on or after age 65) during a Performance
Cycle, the Grantee shall be entitled to a prorated payout with respect to the
unearned Award. The prorated payout shall be determined by the Committee based
upon the length of time that the Grantee was actively employed during the
Performance Cycle relative to the full length of the Performance Cycle;
provided, that payment shall only be made to the extent at the end of the
Performance Cycle the Award would have been earned based upon the performance
level achieved for the Performance Cycle; and provided, further, that the
performance level used to determine the prorated award cannot exceed 200% of the
Commitment performance level.

                      Payment of earned Awards to Grantee in the event of
termination due to death, Disability, or Retirement shall be made at the same
time payments would be made to Grantee if Grantee did not
terminate employment during the Performance Cycle.

               4.3 Change In Control. Notwithstanding anything in this Agreement
to the contrary, if a Change in Control occurs during the Performance Cycle,
then the Grantee's Award shall be determined for the Performance Cycle then in
progress as though the Performance Cycle had ended as of the date of the Change
in Control and the outstanding Award will be paid at the Commitment Level Award
or the actual performance level to such date (using, for such purpose, prorated
performance levels of the Performance Measure to reflect the portion of the
Performance Cycle that has elapsed as of the date of the Change in Control),
whichever provides the greater payment. The Award determined in accordance with
the preceding sentence shall be fully vested and payable immediately to the
Grantee. The Committee shall determine the amount of the Award under this
Section 4.3, subject to the terms of this section, and no downward adjustment of
the Award shall be permitted. The Award will be paid in full in cash, unless the
Grantee elects to receive one-half of the Award in Shares. For purposes of
determining the number of Shares to be paid to the Grantee under this Section
4.3, the Fair Market Value of a Share shall be determined by taking the average
closing price per share for the last twenty (20) trading days prior to the
commencement of the offer, transaction, or other event which resulted in a
Change in Control.

               4.4 Termination Without Cause. In the event Grantee's employment
is terminated by the Company without Cause more than one (1) year after the
commencement of the Performance Cycle and prior to the end of the Performance
Cycle, the Grantee shall be entitled to a prorated payout of the Award based
upon the length of time that the Grantee was actively employed during the
Performance Cycle relative to the

                                      -3-
<PAGE>
full length of the Performance Cycle; provided, that payment shall be made only
to the extent at the end of the Performance Cycle the Award would have been
earned based upon the performance level achieved during the Performance Cycle;
and provided, further, that the performance level used to determine the prorated
award cannot exceed 200% of the Commitment performance level. Payment shall be
made to Grantee at the same time as if Grantee had not terminated employment
during the Performance Cycle.

        5. No Right to Continued Employment.

               Nothing in this Agreement or the Plan shall be interpreted to
confer upon the Grantee any rights with respect to continuance of employment by
the Company, nor shall this Agreement or the Plan interfere in any way with the
right of the Company to terminate the Grantee's employment at any time.

        6. Nonassignment.

               The Grantee shall not have the right to assign, alienate, pledge,
transfer, or encumber any amounts due Grantee hereunder, and any attempt to
assign, alienate, pledge, transfer, or encumber Grantee's rights or benefits
shall be null and void and not recognized by the Plan or the Company.

        7. Modification of Agreement.

               This Agreement may be modified, amended, suspended, or
terminated, and any terms or conditions may be waived, but only by a written
instrument executed by the parties hereto.

        8. Severability; Governing Law.

               Should any provision of this Agreement be held by a court of
competent jurisdiction to be unenforceable or invalid for any reason, the
remaining provisions of this Agreement shall not be affected by such holding and
shall continue in full force in accordance with their terms.

               The validity, interpretation, construction, and performance of
this Agreement shall be governed by the laws of the State of Delaware without
giving effect to the conflicts of laws principles thereof.

        9. Successors in Interest.

               This Agreement shall inure to the benefit of and be binding upon
any successor to the Company. All obligations imposed upon the Grantee and all
rights granted to the Company under this Agreement shall be binding upon the
Grantee's heirs, executors, and administrators.

                                      -4-
<PAGE>
        10. Resolution of Disputes.

               Any dispute or disagreement which may arise under, or as a result
of, or in any way relate to, the interpretation, construction, or application of
this Agreement shall be determined by the Committee. Any determination made
hereunder shall be final, binding, and conclusive on the Grantee and the Company
for all purposes.

        11. Withholding of Taxes.

               The Company shall have the right to deduct from any amount
payable under this Agreement, an amount equal to the federal, state, and local
income taxes and other amounts as may be required by law to be withheld (the
"Withholding Taxes") with respect to any such amount. In satisfaction of all or
part of the Withholding Taxes, the Grantee may make a written election (the "Tax
Election"), which may be accepted or rejected in the discretion of the Company,
to have withheld a portion of the Shares issuable to him or her pursuant to an
Award, having an aggregate Fair Market Value equal to the Withholding Taxes.

        12. Shareholder Approval.

               The effectiveness of this Agreement and of the grant of the Award
pursuant hereto is subject to the approval of the Plan by the stockholders of
NSI in accordance with the terms of the Plan.

                            NATIONAL SERVICE INDUSTRIES, INC.

                            By:________________________________________________
                                 JAMES S. BALLOUN
                                 Chairman, President and Chief Executive Officer

                            NATIONAL SERVICE INDUSTRIES, INC. (GA), Subsidiary

                            By:________________________________________________
                                 JAMES S. BALLOUN
                                 Chairman, President and Chief Executive Officer

                            ____________________________________________________
                            Name of Grantee: ((Grantee))

                                      -5-
<PAGE>
        Aspiration Achievement Incentive Award Appendix A - Key Employees

<TABLE>
<CAPTION>
Name                   Richard W. LeBer                Kenneth W. Honeycutt          John K. Morgan
--------------------   ---------------------------     -----------------------       -----------------------
<S>                    <C>                             <C>                           <C>
Position               SVP, Bus. Development           VP, HiTek Group               VP, Sales & Marketing
Salary                 $198,485                        $225,000                      $205,000
Division               National Linen Service          Lithonia                      Lithonia
Total LTI Multiple     80%                             80%                           50%
AAI  % of LTI          70%                             70%                           70%

<CAPTION>

                                    FY 99-01
<S>                    <C>                             <C>                           <C>
Threshold              (1)                             72                            72
Commitment             16                              88                            88
Aspiration             28                              165                           165

<CAPTION>
                           Individual AAI Opportunity

<S>                    <C>                             <C>                           <C>
Threshold              $27,788                         $31,500                       $28,700
Commitment             $111,152                        $126,000                      $114,800
Aspiration             $555,758                        $630,000                      $574,000
</TABLE>

<PAGE>
                ASPIRATION ACHIEVEMENT INCENTIVE AWARD AGREEMENT
                          FOR OPERATING UNIT PRESIDENTS

        THIS AGREEMENT, made as of the 22nd day of September, 1998 (the "Grant
Date"), between National Service Industries, Inc., a Delaware corporation
("NSI"), and NATIONAL SERVICE INDUSTRIES, INC. (GA), a Subsidiary of NSI
(together, the "Company"), and ((GRANTEE)) (the "Grantee").

        WHEREAS, NSI has adopted the National Service Industries, Inc. Long-Term
Achievement Incentive Plan (the "Plan") in order to provide additional
incentives to certain officers and key employees of NSI and its Subsidiaries;
and

        WHEREAS, the Grantee, as an executive of the above-referenced
Subsidiary, performs services with respect to the ((DIVISION)) operations of the
Company (the "Operations"); and

        WHEREAS, the Committee responsible for administration of the Plan has
determined to grant to the Grantee an Aspiration Achievement Incentive Award as
provided herein.

        NOW, THEREFORE, the parties hereto agree as follows:

        1. Grant of Aspiration Award.

               1.1 The Company hereby grants to the Grantee an Aspiration
Achievement Incentive Award (the "Award"), which has a value determined as
provided in Section 2 below based upon the performance of the Operations during
the Performance Cycle from September 1, 1998 to August 31, 2001. As provided in
the Plan, Grantee's right to payment of this Award is dependent upon Grantee's
continued employment in Grantee's current position with the Company, or in a
position with responsibilities of substantially similar value to the Company
during the Performance Cycle. Under certain circumstances as described below,
Grantee may be entitled to receive payment for some portion of the Award if
Grantee's employment terminates prior to the end of the Performance Cycle.

               1.2 The Grantee hereby acknowledges receipt of a copy of the Plan
and agrees to be bound by all the terms and provisions thereof. This Agreement
shall be construed in accordance with, and subject to, the provisions of the
Plan (the provisions of which are hereby incorporated by reference) and, except
as otherwise expressly set forth herein, the capitalized terms used in this
Agreement shall have the same definitions as set forth in the Plan.

        2. Performance Measure and Performance Levels.

               The Committee has established the performance measure (the
<PAGE>
"Performance Measure"), and award and performance levels set forth in Appendix A
attached hereto. The chart in Appendix A specifies a Commitment performance
level, at which the Commitment Level Award will be paid, an Aspiration
performance level, at or above which an Aspiration Level Award will be paid, and
a threshold performance level, at which a minimum incentive award will be paid
and below which no award will be paid. For each level of performance at or above
the threshold performance level through the Aspiration performance level,
Grantee will receive an award determined in accordance with the chart and
formulae set forth in Appendix A. The terms used in determining the Performance
Measure are defined in Appendix B.

        3. Determination of Aspiration Award.

               3.1 Determination Notice. As soon as practical following the last
day of the Performance Cycle, the Committee will determine, in accordance with
Section 7(c) of the Plan, the performance level of the Operations with respect
to the Performance Measure for the Performance Cycle. The Committee may in
determining the performance level with respect to the Performance Measure adjust
the Operations' financial results for the Performance Cycle to exclude the
effect of unusual charges or income items or other events, including
acquisitions or dispositions of businesses or assets, gains and losses resulting
from divestitures, currency fluctuations, changes in tax laws, or changes in
accounting treatment, which are distortive of financial results for the
Performance Cycle. The Committee may also increase or decrease the amount of the
Award otherwise payable to Grantee if, in the Committee's view, the financial
performance of the Operations during the Performance Cycle justifies such
adjustment, regardless of the extent to which the Performance Measure has been
achieved.

                      The Company will notify the Grantee (or the executors or
administrators of the Grantee's estate, if applicable) of the Committee's
determination (the "Determination Notice"). The Determination Notice shall
specify the performance level of the Operations with respect to the Performance
Measure for the Performance Cycle and the amount of Award (if any) Grantee will
be entitled to receive. The amount Grantee is entitled to receive will be paid
one-half in cash and one-half in Shares, with the Shares being valued at their
Fair Market Value as of the last day of the Performance Cycle.

               3.2 Revision of Performance Levels. At any time prior to the end
of a Performance Cycle, the Committee may revise the performance levels for the
Performance Measure and the Award amounts if unforeseen events (including,
without limitation, a Change in Capitalization, an equity restructuring, an
acquisition, or a divestiture) occur which have a substantial effect on the
performance of the Operations and which in the judgment of the Committee make
the application of the performance levels unfair unless a revision is made.

        4. Termination of Employment.

               4.1 In General. Except as provided in Sections 4.2, 4.3, and 4.4
below,

                                      -2-
<PAGE>
in the event that the Grantee's employment terminates during a Performance
Cycle, all unearned Aspiration Awards shall be immediately forfeited by the
Grantee.

               4.2 Termination of Employment Due to Death, Disability, or
Retirement. In the event the employment of the Grantee is terminated by reason
of death or Disability during a Performance Cycle, the Grantee shall be entitled
to a prorated payout with respect to the unearned Award. The prorated payout
shall be determined by the Committee based upon the length of time that the
Grantee was actively employed during the Performance Cycle relative to the full
length of the Performance Cycle; provided, that payment shall only be made to
the extent at the end of the Performance Cycle the Award would have been earned
based upon the performance level achieved for the Performance Cycle; and
provided, further, that the performance level used to determine the prorated
award cannot exceed 200% of the Commitment performance level.

                      In the event of Grantee's Retirement (on or after age 65),
the full Award shall continue to be eligible for payout at the end of the
Performance Cycle, just as if Grantee had remained employed
for the remainder of the Performance Cycle (including if the Grantee dies after
Retirement but before the end of the Performance Cycle). At the end of the
Performance Cycle, the Committee shall make its determination in the same manner
as provided in Section 3.

                      Payment of earned Awards to Grantee in the event of
termination due to death, Disability, or Retirement shall be made at the same
time payments would be made to Grantee if Grantee did not
terminate employment during the Performance Cycle.

               4.3 Change In Control. Notwithstanding anything in this Agreement
to the contrary, if a Change in Control occurs during the Performance Cycle,
then the Grantee's Award shall be determined for the Performance Cycle then in
progress as though the Performance Cycle had ended as of the date of the Change
in Control and the outstanding Award will be paid at the Commitment Level Award
or the actual performance level to such date (using, for such purpose, prorated
performance levels of the Performance Measure to reflect the portion of the
Performance Cycle that has elapsed as of the date of the Change in Control),
whichever provides the greater payment. The Award determined in accordance with
the preceding sentence shall be fully vested and payable immediately to the
Grantee. The Committee shall determine the amount of the Award under this
Section 4.3, subject to the terms of this section, and no downward adjustment of
the Award shall be permitted. The Award will be paid in full in cash, unless the
Grantee elects to receive one-half of the Award in Shares. For purposes of
determining the number of Shares to be paid to the Grantee under this Section
4.3, the Fair Market Value of a Share shall be determined by taking the average
closing price per share for the last twenty (20) trading days prior to the
commencement of the offer, transaction, or other event which resulted in a
Change in Control.

               4.4 Termination Without Cause. In the event Grantee's employment
is terminated by the Company without Cause more than one (1) year after the

                                      -3-
<PAGE>
commencement of the Performance Cycle and prior to the end of the Performance
Cycle, the Grantee shall be entitled to a prorated payout of the Award based
upon the length of time that the Grantee was actively employed during the
Performance Cycle relative to the full length of the Performance Cycle;
provided, that payment shall be made only to the extent at the end of the
Performance Cycle the Award would have been earned based upon the performance
level achieved during the Performance Cycle; and provided, further, that the
performance level used to determine the prorated award cannot exceed 200% of the
Commitment performance level. Payment shall be made to Grantee at the same time
as if Grantee had not terminated employment during the Performance Cycle.

        5. No Right to Continued Employment.

               Nothing in this Agreement or the Plan shall be interpreted to
confer upon the Grantee any rights with respect to continuance of employment by
the Company, nor shall this Agreement or the Plan interfere in any way with the
right of the Company to terminate the Grantee's employment at any time.

        6. Nonassignment.

               The Grantee shall not have the right to assign, alienate, pledge,
transfer, or encumber any amounts due Grantee hereunder, and any attempt to
assign, alienate, pledge, transfer, or encumber Grantee's rights or benefits
shall be null and void and not recognized by the Plan or the Company.

        7. Modification of Agreement.

               This Agreement may be modified, amended, suspended, or
terminated, and any terms or conditions may be waived, but only by a written
instrument executed by the parties hereto.

        8. Severability; Governing Law.

               Should any provision of this Agreement be held by a court of
competent jurisdiction to be unenforceable or invalid for any reason, the
remaining provisions of this Agreement shall not be affected by such holding and
shall continue in full force in accordance with their terms.

               The validity, interpretation, construction, and performance of
this Agreement shall be governed by the laws of the State of Delaware without
giving effect to the conflicts of laws principles thereof.

        9. Successors in Interest.

               This Agreement shall inure to the benefit of and be binding upon
any successor to the Company. All obligations imposed upon the Grantee and all
rights granted to the Company under this Agreement shall be binding upon the
Grantee's heirs, executors, and administrators.

                                      -4-
<PAGE>
        10. Resolution of Disputes.

               Any dispute or disagreement which may arise under, or as a result
of, or in any way relate to, the interpretation, construction, or application of
this Agreement shall be determined by the Committee. Any determination made
hereunder shall be final, binding, and conclusive on the Grantee and the Company
for all purposes.

        11. Withholding of Taxes.

               The Company shall have the right to deduct from any amount
payable under this Agreement, an amount equal to the federal, state, and local
income taxes and other amounts as may be required by law to be withheld (the
"Withholding Taxes") with respect to any such amount. In satisfaction of all or
part of the Withholding Taxes, the Grantee may make a written election (the "Tax
Election"), which may be accepted or rejected in the discretion of the Company,
to have withheld a portion of the Shares issuable to him or her pursuant to an
Award, having an aggregate Fair Market Value equal to the Withholding Taxes.

        12. Shareholder Approval.

               The effectiveness of this Agreement and of the grant of the Award
pursuant hereto is subject to the approval of the Plan by the stockholders of
NSI in accordance with the terms of the Plan.

                           NATIONAL SERVICE INDUSTRIES, INC.

                           By:________________________________________________
                                JAMES S. BALLOUN
                                Chairman, President and Chief Executive Officer

                           NATIONAL SERVICE INDUSTRIES, INC. (GA), Subsidiary

                           By:________________________________________________
                                JAMES S. BALLOUN
                                Chairman, President and Chief Executive Officer

                           ___________________________________________________
                           Name of Grantee: ((Grantee))

                                       -5-
<PAGE>
     Aspiration Achievement Incentive Award Appendix A - Division Presidents

<TABLE>
<CAPTION>
Name                                     Richard W. LeBer                       J. Randolph Zook
-----------------------                  -------------------------              ----------------------
<S>                                      <C>                                    <C>
Position                                 President, NLS                         President, AECO
Salary                                   $250,000                               $250,000
Division                                 National Linen Service                 AECO Products
Total LTI Multiple                       100%                                   160%
AAI % of LTI                              70%                                    70%

<CAPTION>
                                    FY 99-01

<S>                                      <C>                                    <C>
Threshold                                (1)                                     8
Commitment                               16                                     11
Aspiration                               28                                     13

<CAPTION>
                           Individual AAI Opportunity

<S>                                      <C>                                    <C>
Threshold                                $ 43,750                               $   70,000
Commitment                               $175,000                               $  280,000
Aspiration                               $874,998                               $1,400,000
</TABLE>

<PAGE>
                ASPIRATION ACHIEVEMENT INCENTIVE AWARD AGREEMENT
                             FOR EXECUTIVE OFFICERS

        THIS AGREEMENT, made as of the 22nd day of September, 1998 (the "Grant
Date"), between NATIONAL SERVICE INDUSTRIES, INC., a Delaware corporation
("NSI"), and ((Orgstr)), a Subsidiary of NSI (together, the "Company"), and
((Grantee)) (the "Grantee").

        WHEREAS, NSI has adopted the National Service Industries, Inc. Long-Term
Achievement Incentive Plan (the "Plan") in order to provide additional
incentives to certain officers and key employees of NSI and its Subsidiaries;
and

        WHEREAS, the Committee responsible for administration of the Plan has
determined to grant to the Grantee an Aspiration Achievement Incentive Award as
provided herein.

        NOW, THEREFORE, the parties hereto agree as follows:

        1. Grant of Aspiration Award.

               1.1 The Company hereby grants to the Grantee an Aspiration
Achievement Incentive Award (the "Award"), which has a value determined as
provided in Section 2 below based upon the performance of NSI during the
Performance Cycle from September 1, 1998 to August 31, 2001. As provided in the
Plan, Grantee's right to payment of this Award is dependent upon Grantee's
continued employment in Grantee's current position with the Company, or in a
position with responsibilities of substantially similar value to the Company
during the Performance Cycle. Under certain circumstances as described below,
Grantee may be entitled to receive payment for some portion of the Award if
Grantee's employment terminates prior to the end of the Performance Cycle.

               1.2 The Grantee hereby acknowledges receipt of a copy of the Plan
and agrees to be bound by all the terms and provisions thereof. This Agreement
shall be construed in accordance with, and subject to, the provisions of the
Plan (the provisions of which are hereby incorporated by reference) and, except
as otherwise expressly set forth herein, the capitalized terms used in this
Agreement shall have the same definitions as set forth in the Plan.

        2. Performance Measure and Performance Levels.

               The Committee has established the performance measure (the
"Performance Measure"), and award and performance levels set forth in Appendix A
attached hereto. The chart in Appendix A specifies a Commitment performance
level, at
<PAGE>
which the Commitment Level Award will be paid, an Aspiration performance level,
at or above which an Aspiration Level Award will be paid, and a threshold
performance level, at which a minimum incentive award will be paid and below
which no award will be paid. For each level of performance at or above the
threshold performance level through the Aspiration performance level, Grantee
will receive an award determined in accordance with the chart and formulae set
forth in Appendix A. The terms used in determining the Performance Measure are
defined in Appendix B.

        3. Determination of Aspiration Award.

               3.1 Determination Notice. Subject to Section 3.2, as soon as
practical following the last day of the Performance Cycle, the Committee will
determine, in accordance with Section 7(c) of the Plan, the performance level of
NSI with respect to the Performance Measure for the Performance Cycle. The
Committee may in determining the performance level with respect to the
Performance Measure adjust NSI's financial results for the Performance Cycle to
exclude the effect of unusual charges or income items which are distortive of
financial results for the Performance Cycle; provided, that, in determining
financial results, items whose exclusion from consideration will increase the
performance level of NSI shall only have their effects excluded if they
constitute "extraordinary items" under generally accepted accounting principles
and all such items shall be excluded. The Committee shall also adjust the
performance calculations to exclude the unanticipated effect on financial
results of changes in the Code, or other tax laws, and the regulations
thereunder. The Committee shall also exclude from consideration the effect on
financial performance of each of the following events or items where the result
of excluding the particular event or item is to increase the performance level
of NSI: (i) an acquisition or a divestiture involving more than $10 million in
net worth or $25 million in business revenues; (ii) an equity restructuring
involving more than $1 million; (iii) asset impairment charges involving more
than $1 million and restructuring costs involving more than $1 million
associated with facility closings or reduction in employment levels; (iv)
changes in accounting treatment or rules involving more than $1 million. The
Committee may decrease the amount of the Award otherwise payable to Grantee if,
in the Committee's view, such adjustment is necessary or desirable, regardless
of the extent to which the Performance Measure has been achieved. The Committee
may establish such guidelines and procedures for reducing the amount of an Award
as it deems appropriate.

                      The Company will notify the Grantee (or the executors or
administrators of the Grantee's estate, if applicable) of the Committee's
determination (the "Determination Notice"). The Determination Notice shall
specify the performance level of NSI with respect to the Performance Measure for
the Performance Cycle and the amount of Award (if any) Grantee will be entitled
to receive. Unless the Committee determines otherwise at the time the Award is
paid and except as otherwise provided in the event of a Change in Control, the
amount Grantee is entitled to receive will be paid one-half in cash and one-half
in Shares. The Shares will be valued at their Fair Market

                                      -2-
<PAGE>
Value as of the last day of the Performance Cycle. Except in the case of a
Change in Control, the Committee may, in its discretion, attach restrictions,
terms, and conditions to the Shares issued as part of the Award.

               3.2 Significant Corporate Events. If, during a Performance Cycle,
NSI consummates an acquisition or disposition that (i) involves assets whose
value equals or exceeds 20% of the total value of NSI's assets, (ii) represents
a part of the business whose revenues equal or exceed 20% of the total of NSI's
revenues, or (iii) causes a material restructuring of NSI, the following rules
shall apply:

                      (a) If the transaction is consummated during the first
year of the Performance Cycle, the Performance Cycle and the Grantee's
outstanding Award will be terminated with no payout and a new Performance Cycle
containing a new Award will be started.

                      (b) If the transaction is consummated after the first year
of the Performance Cycle, the Performance Cycle will end and the outstanding
Award will be determined and paid at NSI's actual performance level to such
date, taking into account the adjustments provided for in Section 3.1 above and
using prorated performance levels of the Performance Measure to reflect the
portion of the Performance Cycle that had elapsed as of the date of consummation
of the acquisition or disposition. Payment of the Award will be made as soon as
practical after it is determined. A new Performance Cycle will be started to
cover the period remaining in the initial Performance Cycle or, if that result
is not practical, the Committee will make an appropriate adjustment to reflect
the premature termination of the initial Performance Cycle.

                      If, during a Performance Cycle, NSI consummates an
acquisition or disposition that is not covered by the special provisions of this
Section 3.2, the financial effects of such acquisition or disposition shall be
handled as provided in Section 3.1.

                      Any actions under this Section 3.2 shall be taken in
accordance with the requirements of Code Section 162(m) and the regulations
thereunder.

        4. Termination of Employment.

               4.1 In General. Except as provided in Sections 4.2, 4.3, and 4.4
below, in the event that the Grantee's employment terminates during a
Performance Cycle, all unearned Aspiration Awards shall be immediately forfeited
by the Grantee.

               4.2 Termination of Employment Due to Death, Disability, or
Retirement. In the event the employment of the Grantee is terminated by reason
of death or Disability during a Performance Cycle, the Grantee shall be entitled
to a prorated payout with respect to the unearned Award. The prorated payout
shall be determined by the Committee based upon the length of time that the
Grantee was actively employed

                                      -3-
<PAGE>
during the Performance Cycle relative to the full length of the Performance
Cycle; provided, that payment shall only be made to the extent at the end of the
Performance Cycle the Award would have been earned based upon the performance
level achieved for the Performance Cycle (taking into account the adjustment
provisions and other rules in Section 3 above); and provided, further, that the
performance level used to determine the prorated award cannot exceed 200% of the
Commitment performance level.

                      In the event of Grantee's Retirement (on or after age 65),
the full Award shall continue to be eligible for payout at the end of the
Performance Cycle, just as if Grantee had remained employed for the remainder of
the Performance Cycle (including if the Grantee dies after Retirement but before
the end of the Performance Cycle). At the end of the Performance Cycle, the
Committee shall make its determination in the same manner as provided in Section
3.

                      Payment of earned Awards to Grantee in the event of
termination due to death, Disability, or Retirement shall be made at the same
time payments would be made to Grantee if Grantee did not terminate employment
during the Performance Cycle.

               4.3 Change In Control. Notwithstanding anything in this Agreement
to the contrary, if a Change in Control occurs during the Performance Cycle,
then the Grantee's Award shall be determined for the Performance Cycle then in
progress as though the Performance Cycle had ended as of the date of the Change
in Control and the outstanding Award will be paid at the Commitment Level Award
or the actual performance level to such date (using, for such purpose, prorated
performance levels of the Performance Measure to reflect the portion of the
Performance Cycle that has elapsed as of the date of the Change in Control),
whichever provides the greater payment. The Award determined in accordance with
the preceding sentence shall be fully vested and payable immediately to the
Grantee. The Committee shall determine the amount of the Award under this
Section 4.3, subject to the terms of this section, and no downward adjustment of
the Award which would result in reduction of the Award by more than 50% shall be
permitted. The Award will be paid in full in cash, unless the Grantee elects to
receive one-half of the Award in Shares. For purposes of determining the number
of Shares to be paid to the Grantee under this Section 4.3, the Fair Market
Value of a Share shall be determined by taking the average closing price per
share for the last twenty (20) trading days prior to the commencement of the
offer, transaction, or other event which resulted in a Change in Control.

               4.4 Termination Without Cause. In the event Grantee's employment
is terminated by the Company without Cause more than one (1) year after the
commencement of the Performance Cycle and prior to the end of the Performance
Cycle, the Grantee shall be entitled to a prorated payout of the Award based
upon the length of time that the Grantee was actively employed during the
Performance Cycle relative to the full length of the Performance Cycle;
provided, that payment shall be made only to the extent at the end of the
Performance Cycle the Award would have been earned based

                                      -4-
<PAGE>
upon the performance level achieved during the Performance Cycle (taking into
account the adjustment provisions and other rules in Section 3 above); and
provided, further, that the performance level used to determine the prorated
award cannot exceed 200% of the Commitment performance level. Payment shall be
made to Grantee at the same time as if Grantee had not terminated employment
during the Performance Cycle.

        5. No Right to Continued Employment.

               Nothing in this Agreement or the Plan shall be interpreted to
confer upon the Grantee any rights with respect to continuance of employment by
the Company, nor shall this Agreement or the Plan interfere in any way with the
right of the Company to terminate the Grantee's employment at any time.

        6. Nonassignment.

               The Grantee shall not have the right to assign, alienate, pledge,
transfer, or encumber any amounts due Grantee hereunder, and any attempt to
assign, alienate, pledge, transfer, or encumber Grantee's rights or benefits
shall be null and void and not recognized by the Plan or the Company.

        7. Modification of Agreement.

               This Agreement may be modified, amended, suspended, or
terminated, and any terms or conditions may be waived, but only by a written
instrument executed by the parties hereto.

        8. Severability; Governing Law.

               Should any provision of this Agreement be held by a court of
competent jurisdiction to be unenforceable or invalid for any reason, the
remaining provisions of this Agreement shall not be affected by such holding and
shall continue in full force in accordance with their terms.

               The validity, interpretation, construction, and performance of
this Agreement shall be governed by the laws of the State of Delaware without
giving effect to the conflicts of laws principles thereof.

        9. Successors in Interest.

               This Agreement shall inure to the benefit of and be binding upon
any successor to the Company. All obligations imposed upon the Grantee and all
rights granted to the Company under this Agreement shall be binding upon the
Grantee's heirs, executors, and administrators.

                                      -5-
<PAGE>

        10. Resolution of Disputes.

               Any dispute or disagreement which may arise under, or as a result
of, or in any way relate to, the interpretation, construction, or application of
this Agreement shall be determined by the Committee. Any determination made
hereunder shall be final, binding, and conclusive on the Grantee and the Company
for all purposes.

        11. Withholding of Taxes.

               The Company shall have the right to deduct from any amount
payable under this Agreement, an amount equal to the federal, state, and local
income taxes and other amounts as may be required by law to be withheld (the
"Withholding Taxes") with respect to any such amount. In satisfaction of all or
part of the Withholding Taxes, the Grantee may make a written election (the "Tax
Election"), which may be accepted or rejected in the discretion of the Company,
to have withheld a portion of the Shares issuable to him or her pursuant to an
Award, having an aggregate Fair Market Value equal to the Withholding Taxes.

        12. Shareholder Approval.

               The effectiveness of this Agreement and of the grant of the Award
pursuant hereto is subject to the approval of the Plan by the stockholders of
NSI in accordance with the terms of the Plan.

                           NATIONAL SERVICE INDUSTRIES, INC.

                           By:________________________________________________
                                JAMES S. BALLOUN
                                Chairman, President and Chief Executive Officer

                           NATIONAL SERVICE INDUSTRIES, INC. (GA), Subsidiary

                           By:________________________________________________
                                JAMES S. BALLOUN
                                Chairman, President and Chief Executive Officer

                           ___________________________________________________
                           Name of Grantee: ((Grantee))

                                      -6-
<PAGE>
     Aspiration Achievement Incentive Award Appendix A - Executive Officers

<TABLE>
<CAPTION>
Name                                     James S. Balloun                       Brock A. Hattox
-----------------------                  -------------------------              -------------------------------
Position                                 Chairman & CEO                         EVP, Chief Financial Officer
Salary                                   $800,000                               $380,000
Division                                 NSI Total                              NSI Total
Total LTI Multiple                       160%                                   160%
AAI % of LTI                              30%                                    30%

<CAPTION>
                                    FY 99-01

<S>                                      <C>                                    <C>
Threshold                                 38.5                                   38.5
Commitment                                60.5                                   60.5
Aspiration                               114.0                                  114.0

<CAPTION>
                           Individual AAI Opportunity

<S>                                      <C>                                    <C>
Threshold                                $  100,000                             $ 45,600
Commitment                               $  400,000                             $182,400
Aspiration                               $2,000,000                             $912,000
</TABLE>

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