Document:

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                                                                    EXHIBIT 10.2

                          TRANSITION SERVICES AGREEMENT

         THIS TRANSITION SERVICES AGREEMENT, dated as of __________, 2001 (this
"Agreement"), is made by and between National Service Industries, Inc., a
Delaware corporation ("Parent"), and L & C Spinco, Inc., a Delaware corporation
("Spinco").

                                   WITNESSETH:

         WHEREAS, Parent and Spinco are parties to an Agreement and Plan of
Distribution, dated as of __________, 2001 (the "Distribution Agreement"),
pursuant to which Parent will transfer certain assets to Spinco and have Spinco
assume certain liabilities of Parent;

         WHEREAS, in connection with the transactions contemplated by the
Distribution Agreement, Parent and Spinco wish to enter into this Agreement for
purposes of continuity and transition; and

         WHEREAS, Spinco desires to cause Parent to provide the Services set
forth on Schedule A to Spinco, and Parent is willing to provide such Services,
and Parent desires to cause Spinco to provide the Services set forth on Schedule
B to Parent, and Spinco is willing to provide such Services, all on the terms
and conditions set forth below;

         NOW, THEREFORE, the parties hereto, in consideration of the premises
and the mutual covenants contained herein, agree as follows:

         SECTION 1.        SPECIFIC DEFINITIONS.

         In addition to the terms defined elsewhere in this Agreement, as used
in this Agreement, the following terms have the respective meanings set forth
below:

         "Applicable Rate" shall mean the rate of interest per annum announced
from time to time by ____________________________ as its prime lending rate plus
4% per annum.

         "Bankruptcy Event" with respect to a party shall mean the filing of an
involuntary petition in bankruptcy or similar proceeding against such party
seeking its reorganization, liquidation or the appointment of a receiver,
trustee or liquidator for it or for all or substantially all of its assets,
whereupon such petition shall not be dismissed within sixty (60) days after the
filing thereof, or if such party shall (i) apply for or consent in writing to
the appointment of a receiver, trustee or liquidator of all or substantially all
of its assets, (ii) file a voluntary petition or admit in writing its inability
to pay its debts as they become due, (iii) make a general assignment for the
benefit of creditors, (iv) file a petition or an answer seeking reorganization
or an arrangement with its creditors or take advantage of any insolvency law
with respect to itself as debtor, or (v) file an answer admitting the material
allegations of a petition filed against it in any bankruptcy, reorganization,
insolvency proceedings or any similar proceedings.

         "Change in Control" shall have the meaning given to that term in that
certain Severance Protection Agreement for Key Management entered into between
Parent and certain of its key management.

         "Loss" shall mean all losses, liabilities, damages, claims, demands,
judgments or settlements of any nature or kind, known or unknown, fixed,
accrued, absolute or contingent, liquidated or unliquidated, including all
reasonable costs and expenses (legal, accounting or otherwise as such costs are
incurred) relating thereto.

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         "Parent Services" shall mean those transitional services to be provided
by Parent to Spinco set forth on Schedule A hereto to assist Spinco in operating
Spinco's business.

         "Person" shall mean any natural person, corporation, business trust,
limited liability company, joint venture, association, company, partnership or
government, or any agency or political subdivision thereof.

         "Services" shall mean, collectively, the Parent Services and the Spinco
Services.

         "Spinco Services" shall mean those transitional services to be provided
by Spinco to Parent set forth on Schedule B hereto to assist Parent in operating
Parent's business.

         SECTION 2.      SERVICES.

         Section 2.1     Services. (a) Parent shall provide to Spinco each
Parent Service for the term set forth opposite the description of such Parent
Service in Schedule A. Additional services may be provided to Spinco by Parent
if such arrangement is agreed to in writing and executed by Parent and Spinco.

                  (b)    Spinco shall provide to Parent each Spinco Service
for the term set forth opposite the description of such Spinco Service in
Schedule B. Additional services may be provided by Spinco to Parent if such
arrangement is agreed in writing and executed by Parent and Spinco.

         Section 2.2     Standard of Service. In performing the Services, Parent
and Spinco shall provide substantially the same level of service and use
substantially the same degree of care as their respective personnel provided and
used in providing such Services prior to the date hereof, subject in each case
to any provisions set forth on Schedule A or Schedule B with respect to each
such Service.

         SECTION 3.      LICENSES AND PERMITS.

         Each party warrants and covenants that all duties and obligations
(including with respect to Parent, all Parent Services and with respect to
Spinco, all Spinco Services) to be performed hereunder shall be performed in
compliance with all material applicable federal, state, provincial and local
laws, rules and regulations. Each party shall obtain and maintain all material
permits, approvals and licenses necessary or appropriate to perform its duties
and obligations (including with respect to Parent, the Parent Services and with
respect to Spinco, the Spinco Services) hereunder and shall at all times comply
with the terms and conditions of such permits, approvals and licenses.

         SECTION 4.      PAYMENT.

         Section 4.1     Service Fees. (a) In consideration for the provision of
each of the Parent Services, Spinco shall pay to Parent the fee set forth for
such Parent Service on Schedule A.

                  (b)    In consideration for the provision of each of the
Spinco Services, Parent shall pay to Spinco the fee set forth for such Spinco
Service on Schedule B.

         Section 4.2     Costs and Expenses. (a) In addition to the fees payable
in accordance with Section 4.1(a), Spinco shall reimburse Parent for all
reasonable and necessary out-of-pocket costs and expenses (including postage and
other delivery costs, telephone, telecopy and similar expenses) incurred by
Parent with respect to third parties in connection with the provision of Parent
Services to Spinco pursuant to the terms of this Agreement or paid by Parent on
behalf of Spinco.

                  (b)    In addition to the fees payable in accordance with
Section 4.1(b), Parent shall reimburse Spinco for all reasonable and necessary
out-of-pocket costs and expenses (including postage and other delivery

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costs, telephone, telecopy and similar expenses) incurred by Spinco with respect
to third parties in connection with the provision of Spinco Services to Parent
pursuant to the terms of this Agreement or paid by Spinco on behalf of Parent.

         Section 4.3     Invoices. (a) Parent will invoice Spinco in U.S.
dollars: (i) as of the last day of each calendar month for any fees payable by
Spinco in accordance with Section 4.1(a) for Parent Services listed on Schedule
A provided pursuant to the terms of this Agreement during such month; (ii) as of
the last day of each calendar month for any amounts payable by Spinco in
accordance with Section 4.2(a) for any out-of-pocket costs and expenses incurred
during the immediately preceding month to the extent Parent has received an
invoice from such third party; and (iii) as of the last day of each calendar
month for any taxes (excluding income taxes) payable with respect to the
provision of Parent Services to Spinco during such month. Parent shall deliver
or cause to be delivered to Spinco each such invoice within thirty (30) days
following the last day of the calendar month to which such invoice relates.
Spinco shall pay each such invoice received by electronic funds transfer within
thirty (30) days of the date on which such invoice was received.

                  (b)    Spinco will invoice Parent in U.S. dollars: (i) as of
the last day of each calendar month for any fees payable by Parent in accordance
with Section 4.1(b) for Spinco Services listed on Schedule B provided pursuant
to the terms of this Agreement during such month; (ii) as of the last day of
each calendar month for any amounts payable by Parent in accordance with Section
4.2(b) for any out-of-pocket costs and expenses incurred during the immediately
preceding month to the extent Spinco has received an invoice from such third
party; and (iii) as of the last day of each calendar month for any taxes
(excluding income taxes) payable with respect to the provision of Spinco
Services to Parent during such month. Spinco shall deliver or cause to be
delivered to Parent each such invoice within thirty (30) days following the last
day of the calendar month to which such invoice relates. Parent shall pay each
such invoice received by electronic funds transfer within thirty (30) days of
the date on which such invoice was received.

         Section 4.4     Late Payment. Any amount not paid when due shall be
subject to a late payment fee computed daily at a rate equal to the Applicable
Rate. Notwithstanding the foregoing, in the event a party disputes the accuracy
of any invoice, a party shall pay the undisputed portion of such invoice a
provided herein, and the parties hereto will promptly meet and seek to resolve
the disputed amount of the invoice. Each party agrees to pay the other party's
reasonable attorneys' fees and other costs incurred in collection of any amounts
owed to such other party hereunder and not paid when due. Notwithstanding
anything to the contrary contained herein, in the event either party fails to
make a payment when due hereunder, and such failure continues for a period of
thirty (30) days following delivery of written notice to such non-paying party
of such failure, the other party shall have the right to cease provision of
Services to such non-paying party until such overdue payment (and any applicable
late payment fee accrued with respect thereto) is paid in full. Such right of
the party providing Services shall not in any manner limit or prejudice any of
such party's other rights or remedies in the event of the non-paying party's
failure to make payments when due hereunder, including any rights or remedies
pursuant to Section 7.

         Section 4.5     Fees, Etc. Upon Termination of Services. In the event
of a termination of Services pursuant to Section 7.1, with respect to the
calendar month in which such Services cease to be provided, the recipient of
such Services shall be obligated to pay a pro rata share of the fee for such
Service set forth on Schedule A or Schedule B, as applicable, equal to the
product of (x) the fee set forth on Schedule A or Schedule B, as applicable,
multiplied by (y) a fraction, the numerator of which is the number of days in
the calendar month in which such Services cease to be provided preceding and
including the last date on which such Services are provided, and the denominator
of which is 30.

         SECTION 5.      INDEMNIFICATION.

         Section 5.1     Indemnification by Principal. (a) Spinco agrees to
indemnify, defend and hold Parent harmless from and against any Loss to which
Parent may become subject arising out of, by reason of or otherwise in
connection with the provision hereunder by Parent of Parent Services, other than
Losses resulting from Parent's gross negligence, willful misconduct or material
breach of its obligations pursuant to this Agreement. Notwithstanding any
provision in this Agreement to the contrary, Spinco shall not be liable under
this Section 5.1 for any consequential, special or punitive damages (including
lost profits), except to the extent that such

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consequential, special or punitive damages relate to a Loss resulting from a
Third-Party Claim (as defined in the Distribution Agreement).

                          (b)      Parent agrees to indemnify, defend and hold
Spinco harmless from and against any Loss to which Spinco may become subject
arising out of, by reason of or otherwise in connection with the provision
hereunder by Spinco of Spinco Services, other than Losses resulting from
Spinco's gross negligence, willful misconduct or material breach of its
obligations pursuant to this Agreement. Notwithstanding any provision in this
Agreement to the contrary, Parent shall not be liable under this Section 5.1 for
any consequential, special or punitive damages (including lost profits), except
to the extent that such consequential, special or punitive damages relate to a
Loss resulting from a Third-Party Claim (as defined in the Distribution
Agreement).

         Section 5.2      Indemnification by Provider. (a) Parent agrees to
indemnify, defend and hold Spinco harmless from and against any Loss to which
Spinco may become subject arising out of, by reason of or otherwise in
connection with the provision hereunder by Parent of Parent Services to Spinco
where such Losses resulted from Parent's gross negligence, willful misconduct or
material breach of its obligations pursuant to this Agreement.

                          (b)      Spinco agrees to indemnify, defend and hold
Parent harmless from and against any Loss to which Parent may become subject
arising out of, by reason of or otherwise in connection with the provision
hereunder by Spinco of Spinco Services to Parent where such Losses resulted from
Spinco's gross negligence, willful misconduct or material breach of its
obligations pursuant to this Agreement.

         Section 5.3      Procedures for Indemnification. Any indemnification
claims made hereunder shall be made in accordance with Article III of the
Distribution Agreement.

         SECTION 6.       CONFIDENTIALITY.

         Each party shall keep confidential the Schedules to this Agreement and
all information received from the other party regarding the Services, including
any information received with respect to Parent or Spinco, and to use such
information only for the purposes set forth in this Agreement unless otherwise
agreed to in writing by the party from which such information was received. In
the event a party is required by any court or legislative or administrative body
(by oral questions, interrogatories, requests for information or documents,
subpoena, civil investigation demand or similar process) to disclose any
confidential information provided pursuant to this Agreement, the party shall
provide the other party with prompt notice of such requirement in order to
afford the other party an opportunity to seek an appropriate protective order or
other remedy. However, if the other party is unable to obtain or does not seek
such protective order and the party required to disclose the confidential
information is, in the opinion of its counsel, legally compelled to disclose
such confidential information, disclosure of such information may be made
without liability under this Agreement. The covenants in this Section 6 shall
survive any termination of this Agreement indefinitely with respect to
information qualifying as a trade secret under applicable law and for a period
of three (3) years from the date such termination becomes effective with respect
to all other information.

         SECTION 7.       TERM.

         Section 7.1      Duration. (a) Subject to Sections 6, 7.2, 7.3 and 7.4,
the term of this Agreement shall commence on the date hereof and shall continue
in full force and effect with respect to each Service until the earlier of (i)
the first anniversary of the Distribution Date (as defined in the Distribution
Agreement) or (ii) the termination of such Service in accordance with Section
7.1(b).

                          (b)      Each party acknowledges that the purpose of
this Agreement is for Parent to provide the Parent Services to Spinco on an
interim basis until Spinco can perform the Parent Services for itself, and for
Spinco to provide the Spinco Services to Parent on an interim basis until Parent
can perform the Spinco Services for itself. Accordingly, each of Parent and
Spinco shall use its commercially reasonable efforts to make or obtain such
approvals, permits and licenses and implement such systems, as shall be
necessary for it to provide the appropriate

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Services for itself as promptly as practicable. As Spinco becomes
self-sufficient or engages other sources to provide any Parent Service, Spinco
shall be entitled to release Parent from providing any or all of the Parent
Services hereunder by delivering a written notice thereof to Parent at least
thirty (30) days prior to the effective date of release of such Parent
Service(s). At the end of such thirty (30) day period (or such shorter period as
may be agreed by the parties), Parent shall discontinue the provision of the
Parent Services specified in such notice and any such Parent Services shall be
excluded from this Agreement, and Schedule A shall be deemed to be amended
accordingly. As Parent becomes self-sufficient or engages other sources to
provide any Spinco Service, Parent shall be entitled to release Spinco from
providing any or all of the Spinco Services hereunder by delivering a written
notice thereof to Spinco at least thirty (30) days. At the end of such thirty
(30) day period (or such shorter period as may be agreed by the parties), Spinco
shall discontinue the provision of the Spinco Services specified in such notice
and any such Spinco Services shall be excluded from this Agreement, and Schedule
B shall be deemed to be amended accordingly.

         Section 7.2      Early Termination by Parent. Parent may terminate this
Agreement by giving written notice to Spinco under the following circumstances:

                  (a)      if Spinco shall default in the performance of any of
its material obligations under, or breach any of its warranties set forth in,
this Agreement, and such default or breach shall continue and not be remedied
for a period of thirty (30) days after Parent has given written notice to Spinco
specifying such default or breach and requiring it to be remedied;

                  (b)      if a Bankruptcy Event has occurred with respect to
Spinco; or

                  (c)      upon the occurrence of a Change in Control of Spinco.

         Section 7.3      Early Termination by Spinco. Spinco may terminate this
Agreement by giving written notice to Parent under the following circumstances:

                  (a)      if Parent shall default in the performance of any of
its material obligations under, or breach any of its warranties set forth in,
this Agreement and such default or breach shall continue and not be remedied for
a period of thirty (30) days after Spinco has given written notice to Parent
specifying such default or breach and requiring it to be remedied;

                  (b)      if a Bankruptcy Event has occurred with respect to
Parent; or

                  (c)      upon the occurrence of a Change in Control of Parent.

         Section 7.4      Force Majeure. In the event the performance by Spinco
or Parent of their respective duties or obligations hereunder is interrupted or
interfered with by reason of any cause beyond its reasonable control, including
fire, storm, flood, earthquake, explosion, war, strike or labor disruption,
rebellion, insurrection, quarantine, act of God, boycott, embargo, shortage or
unavailability of supplies, riot, or governmental law, regulation or edict
(collectively, the "Force Majeure Events"), the party affected by such Force
Majeure Event shall not be deemed to be in default of this Agreement by reason
of its nonperformance due to such Force Majeure Event, but shall give prompt
written notice to the other party of the Force Majeure Event. The party affected
by the Force Majeure Event shall cooperate with the other party in obtaining, at
the other party's sole expense, an alternative source for the affected Services,
and the other party shall be released from any payment obligation to the party
affected by the Force Majeure Event with respect to such Services during the
period of such Force Majeure Event. Additionally, upon and during the occurrence
of a Force Majeure Event, at the sole option of the party receiving the Services
affected by the Force Majeure Event, the term of this Agreement shall be tolled
with respect to any Services that are not being provided by a third party.

         Section 7.5      Consequences on Termination. In the event this
Agreement expires or is terminated in accordance with this Section 7, then (a)
all Services to be provided will promptly cease, (b) each of Parent and Spinco
shall promptly return all confidential information received from the other party
in connection with this Agreement (including the return of all information
received with respect to the Services of Parent or Spinco, as the case may

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be), without retaining a copy thereof, and (c) each of Parent and Spinco shall
honor all credits and make any accrued and unpaid payment to the other party as
required pursuant to the terms of this Agreement, and no rights already accrued
hereunder shall be affected.

         SECTION 8.        RECORDS.

         Each of the parties shall create and, for a period of six (6) years
after the termination or expiration of this Agreement, maintain full and
accurate books in connection with the provision of the Services, and all other
records relevant to this Agreement, and upon reasonable notice from the other
party shall make available for inspection and copy by such other party's agents
such records during reasonable business hours.

         SECTION 9.        DISPUTE RESOLUTION.

         SECTION 9.1      Dispute Resolution under Distribution Agreement. Any
dispute arising out of or relating to the performance, breach or interpretation
of this Agreement shall be handled in accordance with Article V of the
Distribution Agreement.

         SECTION 9.2      Continuity of Service and Performance. Unless
otherwise agreed herein or in writing, the parties will continue to provide
Services and honor all other commitments under this Agreement and each Ancillary
Agreement (as defined in the Distribution Agreement) during the course of
dispute resolution pursuant to the provisions of this Section 9 with respect to
all matters not subject to such dispute, controversy or claim.

         SECTION 10.       NOTICES.

         All notices and other communications hereunder shall be in writing,
shall reference this Agreement and shall be hand delivered or mailed by
registered or certified mail (return receipt requested) or sent by any means of
electronic message transmission with delivery confirmed (by voice or otherwise)
to the parties at the following addresses (or at such other addresses for a
party as shall be specified by like notice) and will be deemed given on the date
on which such notice is received:

         To Parent:

                  National Service Industries, Inc.
                  -------------------------------------
                  -------------------------------------
                  Attention:  _____________________________
                  Telephone:  _____________________________
                  Facsimile:  _____________________________

         With a copy to:

                  National Service Industries, Inc.
                  -------------------------------------
                  -------------------------------------
                  Attention:  _____________________________
                  Telephone:  _____________________________
                  Facsimile:  _____________________________

         To Spinco:

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                  L & C Spinco, Inc.
                  -------------------------------------
                  -------------------------------------
                  Attention:  _____________________________
                  Telephone:  _____________________________
                  Facsimile:  _____________________________

         With a copy to:

                  L & C Spinco, Inc.
                  -------------------------------------
                  -------------------------------------
                  Attention:  _____________________________
                  Telephone:  _____________________________
                  Facsimile:  _____________________________

         SECTION 11.       MISCELLANEOUS.

         SECTION 11.1     Waivers, Modifications, Amendments. Any provision of
this Agreement may be amended or waived if, and only if, such amendment or
waiver is in writing and signed, in the case of an amendment, by Spinco, on the
one hand, and Parent, on the other hand, or in the case of a waiver, by the
party against whom the waiver is to be effective. No failure or delay by any
party in exercising any right, power or privilege hereunder shall operate as a
waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege. The rights and remedies herein provided shall be cumulative and in
addition to other or further remedies provided by law or equity.

         SECTION 11.2     GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF DELAWARE.

         SECTION 11.3     Severability. The provisions of this Agreement shall
be deemed severable and the invalidity or unenforceability of any provision
shall not affect the validity or enforceability of the other provisions hereof.
If any provision of this Agreement, or the application thereof to any person,
corporation, partnership or other entity or any circumstance, is invalid and
unenforceable, (a) a suitable and equitable provision shall be substituted
therefor in order to carry out, so far as may be valid and enforceable, the
intent and purpose of such invalid or unenforceable provision and (b) the
remainder of this Agreement and the application of such provision to other
persons, corporations, partnerships or other entities or circumstances shall not
be affected by such invalidity or unenforceability, nor shall such invalidity or
unenforceability affect the validity or enforceability of such provision, or the
application thereof, in any jurisdiction.

         SECTION 11.4     Reference; Interpretation. References in this
Agreement to any gender include references to all genders, and references to the
singular include references to the plural and vice versa. The words "include",
"includes" and "including" when used in this Agreement shall be deemed to be
followed by the phrase "without limitation." Unless the context otherwise
requires, references in this Agreement to Sections and Schedules shall be deemed
references to Sections of, and Schedules to, this Agreement. Unless the context
otherwise requires, the words "hereof", "hereby" and "herein" and words of
similar meaning when used in this Agreement refer to this Agreement in its
entirety and not to any particular Section or provision of this Agreement. This
Agreement shall not be construed against either party as the principal drafter
hereof.

         SECTION 11.5     Entire Agreement. This Agreement (including all
Schedules hereto) contains the entire agreement between the parties hereto with
respect to the subject matter hereof and supersedes all prior agreements and
understandings, oral or written, with respect to such matters.

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         SECTION 11.6     Assignment. Neither Parent nor Spinco may, directly or
indirectly, assign or subcontract, or attempt to assign or subcontract, any of
its rights or obligations hereunder, in whole or in part, by operation of law or
otherwise, except with the prior written consent of the other party; it being
understood that such consent shall not be unreasonably withheld if Parent or
Spinco assigns or subcontracts the Agreement to one of its Affiliates (as
defined in the Distribution Agreement) with the financial and other resources
and expertise to perform all of the obligations of such party hereunder. Any
attempted assignment or delegation not in compliance with the forgoing shall be
null and void and of no effect. Nothing contained herein shall prevent a party
from providing Services through or with the assistance of third parties whom
such party regularly used to provide such Services prior to the date hereof.

         SECTION 11.7     Binding Effect. This Agreement shall be binding upon
the parties hereto and their respective successors and permitted assigns, if
any, and except as provided herein, shall inure to the benefit of the parties
hereto and their respective successors and permitted assigns, if any.

         SECTION 11.8     Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, and all of which
shall constitute one and the same Agreement.

         SECTION 11.9     No Agency or Partnership. Nothing in this Agreement
will create, or will be deemed to create, a partnership or the relationship of
principal and agent or of employer and employee between the parties.

         SECTION 11.10    Provisions Unaffected. Nothing contained in this
Agreement shall affect the rights and obligations of Parent and Spinco pursuant
to the Distribution Agreement.

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         IN WITNESS WHEREOF, this Agreement has been duly executed and delivered
on behalf of the parties as of the date first herein above written.

                                    NATIONAL SERVICE INDUSTRIES, INC.

                                    By:
                                        ----------------------------------------
                                    Name:
                                    Title:

                                    L & C SPINCO, INC.

                                    By:
                                        ----------------------------------------
                                    Name:
                                    Title:

                                      -9-<PAGE>   1

                                                                    EXHIBIT 10.7

                            INDEMNIFICATION AGREEMENT

         This Agreement made as of ___________, 2001, between L & C Spinco,
Inc., a Delaware corporation (the "Company") and ____________________, a
director, officer, employee or agent of the Company (the "Indemnitee").

         WHEREAS, the Company and the Indemnitee are also aware of the exposure
to litigation of officers, directors, employees and agents of corporations as
such persons exercise their duties to the Company;

         WHEREAS, the Company desires to continue to benefit from the services
of highly qualified and experienced persons such as the Indemnitee; and

         WHEREAS, the Indemnitee desires to serve or to continue to serve the
Company as a director, officer, employee or agent, including service at the
request of the Company as a director, officer or trustee of another corporation,
joint venture, trust or other enterprise, for so long as the Company continues
to provide on an acceptable basis indemnification against certain liabilities
and expenses which may be incurred by the Indemnitee.

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants herein contained, the parties hereto agree as follows:

1.       INDEMNIFICATION. The Company shall indemnify the Indemnitee with
respect to his activities as a director, officer or employee of the Company or
as a person who is serving or has served at the request of the Company ("Agent")
as a director, officer or trustee of another corporation, joint venture, trust
or other enterprise against expenses (including attorneys' fees, judgments,
fines, and amounts paid in settlement) actually and reasonably incurred by him
("Expenses") in connection with any threatened, pending, or completed action,
suit, or proceeding, whether civil, criminal, administrative or investigative (a
"Proceeding"), to which he was, is, or is threatened to be made a party by
reason of facts which include his being or having been such a director, officer,
employee or agent to the extent of the highest and most advantageous to the
Indemnitee, as determined by the Indemnitee, of one or any combination of the
following:

         (a)      The benefits provided by the Company's Restated Certificate of
Incorporation (the "Certificate of Incorporation") or By-Laws of the Company
(the "By-Laws") in effect on the date hereof, a copy of the relevant portions of
which are attached hereto as Exhibit I;

         (b)      The benefits provided by the Certificate of Incorporation or
By-Laws or their equivalent in effect at the time Expenses are incurred by
Indemnitee;

         (c)      The benefits allowable under Delaware law in effect at the
date hereof;

<PAGE>   2

         (d)      The benefits allowable under the law of the jurisdiction under
which the Company exists at the time Expenses are incurred by the Indemnitee;

         (e)      The benefits available under liability insurance obtained by
the Company; and

         (f)      Such other benefits as may be otherwise available to
Indemnitee under then existing practices of the Company.

         A combination of two or more of the benefits provided by (a) through
(f) shall be available only to the extent that the Applicable Document, as
hereafter defined, does not require that the benefits provided therein must be
exclusive of other benefits. The document or law providing for the benefits
listed in items (a) through (f) above is called the "Applicable Document" in
this Agreement. The Company hereby undertakes to assist Indemnitee, in all
proper and legal ways, to obtain the benefits selected by Indemnitee under items
(a) through (f) above.

2.       INSURANCE. The Company shall maintain directors' and officers'
liability insurance for so long as Indemnitee's services are covered hereunder,
provided and to the extent that such insurance is available on a commercially
reasonable basis. In the event the Company maintains directors' and officers'
liability insurance, Indemnitee shall be named as an insured in such manner as
to provide Indemnitee the same rights and benefits as are accorded to the most
favorably insured of the Company's officers or directors. However, the Company
agrees that the provisions hereof shall remain in effect regardless of whether
liability or other insurance coverage is at any time obtained or retained by the
Company; except that any payments made to, or on behalf of, Indemnitee under an
insurance policy shall reduce the obligations of the Company hereunder.

3.       PAYMENT OF EXPENSES. At Indemnitee's request, the Company shall pay the
Expenses when incurred by Indemnitee upon receipt of an undertaking in the form
of Exhibit II attached hereto by or on behalf of Indemnitee to repay such
amounts so paid on his behalf if it shall ultimately be determined under the
Applicable Document that he is not entitled to be indemnified by the Company for
such Expenses. That portion of Expenses which represents attorneys' fees and
other costs incurred in defending any Proceeding shall be paid by the Company
within thirty (30) days of its receipt of such request, together with such
reasonable documentation evidencing the amount and nature of such Expenses as
the Company shall require, subject to its also receiving such undertaking.

4.       ADDITIONAL RIGHTS. The indemnification provided in this Agreement shall
not be deemed exclusive of any other indemnification or rights to which
Indemnitee may be entitled and shall continue after Indemnitee has ceased to
occupy a position as an officer, director, employee or agent as described in
Paragraph 1 above with respect to Proceedings relating to or arising out of
Indemnitee's acts or omissions during his service in such position.

5.       NOTICE TO COMPANY. Indemnitee shall provide to the Company prompt
written notice of any proceeding brought, threatened, asserted or commenced
against Indemnitee with respect to which Indemnitee may assert a right to
indemnification hereunder. Indemnitee shall not effect any settlement without
the Company's written consent,

                                      -2-
<PAGE>   3
unless Indemnitee shall have determined to undertake his own defense in such
matter and has waived the benefits of this Agreement as to amounts payable with
respect to such settlement. The Company shall not settle any Proceeding to which
Indemnitee is a party in any manner which would impose any penalty on Indemnitee
without his written consent. Neither Indemnitee nor the Company will
unreasonably withhold consent to any proposed settlement. Indemnitee shall
cooperate to the extent reasonably possible with the Company and/or its
insurers, in attempts to defend and/or settle such Proceeding.

6.       ASSUMPTION OF DEFENSE. Except as otherwise provided below, to the
extent that it may wish, the Company jointly with any other indemnifying party
similarly notified will be entitled to assume Indemnitee's defense in any
Proceeding, with counsel mutually satisfactory to Indemnitee and the Company.
After notice from the Company to Indemnitee of the Company's election so to
assume such defense, the Company will not be liable to Indemnitee under this
Agreement for Expenses subsequently incurred by Indemnitee in connection with
the defense thereof other than reasonable costs of investigation or as otherwise
provided below. Indemnitee shall have the right to employ counsel in such
Proceeding, but the fees and expenses of such counsel incurred after notice from
the Company of its assumption of the defense thereof shall be at Indemnitee's
expense unless:

         (a)      The employment of counsel by Indemnitee has been authorized by
the Company;

         (b)      Indemnitee shall have reasonably concluded that there may be a
conflict of interest between Indemnitee and the Company in the conduct of the
defense of such Proceeding; or

         (c)      The Company shall not in fact have employed counsel to assume
the defense of such Proceeding, in each of which cases the fees and expenses of
counsel shall be at the expense of the Company. The Company shall not be
entitled to assume the defense of Indemnitee in any Proceeding brought by or on
behalf of the Company or as to which Indemnitee shall have made the conclusion
provided for in clause (b) above.

7.       ARBITRATION AND ENFORCEMENT.

         (a)      In the event that any dispute or controversy shall arise
between Indemnitee and the Company with respect to whether the Indemnitee is
entitled to indemnification in connection with any Proceeding or with respect to
the amount of Expenses incurred, such dispute or controversy shall be submitted
by the parties to binding arbitration before a single arbitrator at Atlanta,
Georgia. If the parties cannot agree on a designated arbitrator fifteen (15)
days after arbitration is requested in writing by either of them, the
arbitration shall proceed before an arbitrator appointed by, and in accordance
with the rules then in effect of, one of the following bodies, which shall be
chosen by the initiator of such arbitration:

                  (i) the American Arbitration Association;
                  (ii) the CPR Institute for Dispute Resolution; or
                  (iii) Judicial Arbitration and Mediation Services, Inc.

                                      -3-
<PAGE>   4

         The award shall be rendered in such form that judgment may be entered
thereon in any court having jurisdiction thereof.

         (b)      Reasonable expenses incurred by Indemnitee in connection with
his request for indemnification hereunder shall be borne by the Company, unless
Indemnitee is determined according to the preceding paragraph of this Section 7
not to be entitled to indemnification for any liability or expense hereunder. In
the event that Indemnitee is a party to or intervenes in any proceeding in which
the validity of this Agreement is at issue or seeks an award in arbitration
pursuant to the preceding paragraph of this Section 7 to enforce his rights
under, or to recover damages for breach of, this Agreement, Indemnitee, if he
prevails in whole or in part in such action, shall be entitled to recover from
the Company and shall be indemnified by the Company against any expenses
actually and reasonably incurred by him.

         (c)      In any proceeding in which the validity or enforceability of
this Agreement is at issue, or in which Indemnitee seeks an award in arbitration
to enforce his rights hereunder, the Company shall have the burden of proving
that Indemnitee is not entitled to indemnification hereunder.

8.       EXCLUSIONS. No indemnification, reimbursement or payment shall be
required of the Company hereunder:

         (a)      With respect to any claim as to which Indemnitee shall have
been adjudged by a court of competent jurisdiction to have acted with bad faith,
willful misfeasance, or willful disregard of his duties, except to the extent
that such court shall determine upon application that, despite the adjudication
of liability, but in view of all the circumstances of the case, Indemnitee is
fairly and reasonably entitled to indemnify for such expenses as the court shall
deem proper; or

         (b)      With respect to any obligation of Indemnitee under Section
16(b) of the Exchange Act.

9.       EXTRAORDINARY TRANSACTIONS The Company covenants and agrees that, in
the event of any merger, consolidation or reorganization in which the Company is
not the surviving entity, any sale of all or substantially all of the assets of
the Company or any liquidation of the Company (each such event is hereinafter
referred to as an "extraordinary transaction"), the Company shall use its best
efforts to:

         (a)      Obtain insurance in Indemnitee's favor from a reputable
insurance carrier in reasonable amounts (if such insurance is available at
commercially reasonable rates) for a period of not less than one (1) year from
the date of such extraordinary transaction against any liability to which the
indemnification provided in this Agreement relates;

         (b)      Have the obligations of the Company under this Agreement
expressly assumed by the survivor, purchaser or successor, as the case may be,
in such extraordinary transaction; or

         (c)      Otherwise adequately provide for the satisfaction of the
Company's obligations under this Agreement, in a manner acceptable to
Indemnitee.

                                      -4-
<PAGE>   5

10.      NO PERSONAL LIABILITY. Indemnitee agrees that neither the Directors,
nor any officer, employee, representative or agent of the Company shall be
personally liable for the satisfaction of the Company's obligations under this
Agreement, and Indemnitee shall look solely to the assets of the Company for
satisfaction of any claims hereunder.

11.      SEVERABILITY. If any provision, phrase, or other portion of this
Agreement should be determined by any court of competent jurisdiction to be
invalid, illegal or unenforceable, in whole or in part, and such determination
should become final, such provision, phrase or other portion shall be deemed to
be severed or limited, but only to the extent required to render the remaining
provisions and portions of the Agreement enforceable, and the Agreement as thus
amended shall be enforced to give effect to the intention of the parties insofar
as that is possible.

12.      GOVERNING LAW. The parties hereto agree that this Agreement shall be
construed and enforced in accordance with and governed by the laws of the State
of Delaware.

13.      NOTICES. All notices, requests, demands and other communications
hereunder shall be in writing and shall be considered to have been duly given if
delivered by hand and receipted for by the party to whom the notice, request,
demand or other communication shall have been directed, or mailed by registered
mail with postage prepaid:

         (a)      If to the Company, to:
                  L & C Spinco, Inc.
                  1420 Peachtree Street, N.E.
                  Atlanta, Georgia 30309
                  Attention: Secretary

         (b)      If to Indemnitee, to:

                  ---------------------------
                  ---------------------------
                  ---------------------------

14.      TERMINATION. This Agreement may be terminated by either party upon not
less than sixty (60) days prior written notice delivered to the other party, but
such termination shall not in any way diminish the obligations of Company
hereunder with respect to Indemnitee's activities prior to the effective date of
termination. Indemnitee's right to indemnification and advancement of expenses
pursuant to this Agreement shall continue regardless of whether Indemnitee has
ceased for any reason to be a director of the Company and shall inure to the
benefit of the heirs of Indemnitee and the executors and administrators of
Indemnitee's estate.

                                      -5-
<PAGE>   6

         This Agreement is and shall be binding upon and shall inure to the
benefits of the parties hereto and their respective heirs, executors,
administrators, successors and assigns.

         IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first above written.

INDEMNITEE                                         [SPINCO]

-----------------------                            -----------------------------
Name:                                              Name:
                                                   Title:

                                      -6-
<PAGE>   7

                                    EXHIBIT I

                      RESTATED CERTIFICATE OF INCORPORATION

                                    ARTICLE X

         A director of the Corporation shall not be personally liable to the
Corporation or its stockholders for monetary damages for breach of fiduciary
duty as a director, except for liability (i) for any breach of the director's
duty of loyalty to the Corporation or its stockholders, (ii) for acts or
omissions not in good faith or which involve intentional misconduct or a knowing
violation of law, (iii) under Section 174 of the Delaware General Corporation
Law, or (iv) for any transaction from which the director derived an improper
personal benefit. If the Delaware General Corporation Law is amended to
authorize corporate action further eliminating or limiting the personal
liability of directors, then the liability of a director of the Corporation
shall be eliminated or limited to the fullest extent permitted by the Delaware
General Corporation Law, as so amended.

         Any repeal or modification of the foregoing paragraph by the
stockholders of the Corporation shall not adversely affect any right or
protection of a director of the Corporation existing at the time of such repeal
or modification.

                                     BYLAWS

             ARTICLE VII - INDEMNIFICATION OF DIRECTORS AND OFFICERS

                  Section 1.        Right to Indemnification.

                  Each person who was or is made a party or is threatened to be
made a party to or is otherwise involved in any action, suit or proceeding,
whether civil, criminal, administrative or investigative (hereinafter a
"proceeding"), by reason of the fact that he or she is or was a director or an
officer of the Corporation or is or was serving at the request of the
Corporation as a director, officer or trustee of another corporation or of a
partnership, joint venture, trust or other enterprise, including service with
respect to an employee benefit plan (hereinafter an "indemnitee"), whether the
basis of such proceeding is alleged action in an official capacity as a
director, officer or trustee or in any other capacity while serving as a
director, officer or trustee, shall be indemnified and held harmless by the
Corporation to the fullest extent authorized by the Delaware General Corporation
Law, as the same exists or may hereafter be amended (but, in the case of any
such amendment, only to the extent that such amendment permits the Corporation
to provide broader indemnification rights than such law permitted the
Corporation to provide prior to such amendment), against all expense, liability
and loss (including attorneys' fees, judgments, fines, ERISA excise taxes or
penalties and amounts paid in settlement) reasonably incurred or suffered by
such indemnitee in connection therewith; provided, however, that, except as
provided in Section 3 of this Article VII with respect to proceedings to enforce
rights to indemnification, the Corporation shall indemnify any such indemnitee
in connection with a proceeding (or part thereof) initiated by such indemnitee

<PAGE>   8

only if such proceeding (or part thereof) was authorized by the Board of
Directors of the Corporation.

                  Section 2.        Right to Advancement of Expenses.

                  In addition to the right to indemnification conferred in
Section 1 of this Article VII, an indemnitee shall also have the right to be
paid by the Corporation the expenses (including attorney's fees) incurred in
defending any such proceeding in advance of its final disposition (hereinafter
an "advancement of expenses"); provided, however, that, if the Delaware General
Corporation Law requires, an advancement of expenses incurred by an indemnitee
in his or her capacity as a director or officer (and not in any other capacity
in which service was or is rendered by such indemnitee, including, without
limitation, service to an employee benefit plan) shall be made only upon
delivery to the Corporation of an undertaking (hereinafter an "undertaking"), by
or on behalf of such indemnitee, to repay all amounts so advanced if it shall
ultimately be determined by final judicial decision from which there is no
further right to appeal (hereinafter a "final adjudication") that such
indemnitee is not entitled to be indemnified for such expenses under this
Section 2 or otherwise.

                  Section 3.        Right of Indemnitee to Bring Suit.

                  If a claim under Section 1 or 2 of this Article VII is not
paid in full by the Corporation within sixty (60) days after a written claim has
been received by the Corporation, except in the case of a claim for an
advancement of expenses, in which case the applicable period shall be twenty
(20) days, the indemnitee may at any time thereafter bring suit against the
Corporation to recover the unpaid amount of the claim. If successful in whole or
in part in any such suit, or in a suit brought by the Corporation to recover an
advancement of expenses pursuant to the terms of an undertaking, the indemnitee
shall be entitled to be paid also the expense of prosecuting or defending such
suit. In (i) any suit brought by the indemnitee to enforce a right to
indemnification hereunder (but not in a suit brought by the indemnitee to
enforce a right to an advancement of expenses) it shall be a defense that, and
(ii) in any suit brought by the Corporation to recover an advancement of
expenses pursuant to the terms of an undertaking, the Corporation shall be
entitled to recover such expenses upon a final adjudication that, the indemnitee
has not met any applicable standard for indemnification set forth in the
Delaware General Corporation Law. Neither the failure of the Corporation
(including its directors who are not parties to such action, a committee of such
directors, independent legal counsel, or its stockholders) to have made a
determination prior to the commencement of such suit that indemnification of the
indemnitee is proper in the circumstances because the indemnitee has met the
applicable standard of conduct set forth in the Delaware General Corporation
Law, nor an actual determination by the Corporation (including its directors who
are not parties to such action, a committee of such directors, independent legal
counsel, or its stockholders) that the indemnitee has not met such applicable
standard of conduct, shall create a presumption that the indemnitee has not met
the applicable standard of conduct or, in the case of such a suit brought by the
indemnitee, be a defense to such suit. In any suit brought by the indemnitee to
enforce a right to indemnification or to an advancement of expenses hereunder,
or brought by the Corporation to recover an advancement of expenses pursuant to
the terms of an undertaking, the burden of proving that the indemnitee is not
entitled to be indemnified, or to such advancement of expenses, under this
Article VII or otherwise shall be on the Corporation.

<PAGE>   9

                  Section 4.        Non-Exclusivity of Rights.

                  The rights to indemnification and to the advancement of
expenses conferred in this Article VII shall not be exclusive of any other right
which any person may have or hereafter acquire under any statute, the
Corporation's certificate of incorporation, By-laws, agreement, vote of
stockholders or directors or otherwise.

                  Section 5.        Insurance.

                  The Corporation may maintain insurance, at its expense, to
protect itself and any director, officer, employee or agent of the Corporation
or another corporation, partnership, joint venture, trust or other enterprise
against any expense, liability or loss, whether or not the Corporation would
have the power to indemnify such person against such expense, liability or loss
under the Delaware General Corporation Law.

                  Section 6.        Indemnification of Employees and Agents of
                                    the Corporation.

                  The Corporation may, to the extent authorized from time to
time by the Board of Directors, grant rights to indemnification and to the
advancement of expenses to any employee or agent of the Corporation to the
fullest extent of the provisions of this Article with respect to the
indemnification and advancement of expenses of directors and officers of the
Corporation.

                  Section 7.        Nature of Rights.

                  The rights conferred upon indemnitees in this Article VII
shall be contract rights and such rights shall continue as to an indemnitee who
has ceased to be a director, officer or trustee and shall inure to the benefit
of the indemnitee's heirs, executors and administrators. Any amendment,
alteration or repeal of this Article VII that adversely affects any right of an
indemnitee or its successors shall be prospective only and shall not limit or
eliminate any such right with respect to any proceeding involving any occurrence
or alleged occurrence of any action or omission to act that took place prior to
such amendment or repeal.

<PAGE>   10

                                   EXHIBIT II

                               FORM OF UNDERTAKING

         THIS UNDERTAKING has been entered into by
______________________________ (hereinafter "Indemnitee") pursuant to an
Indemnification Agreement dated ________________, 2001 (the "Indemnification
Agreement") between L & C Spinco, Inc. (hereinafter "Company"), a Delaware
corporation and Indemnitee.

                                   WITNESSETH:

         WHEREAS, pursuant to the Indemnification Agreement, Company agreed to
pay Expenses (within the meaning of the Indemnification Agreement) as and when
incurred by Indemnitee in connection with any threatened, pending, or completed
action, suit, or proceeding, whether civil, criminal, administrative or
investigative, to which indemnitee was, is, or is threatened to be made a party
by reason of facts which include Indemnitee's being or having been a director,
officer or employee of the Company or a person who is serving or has served at
the request of the Company as a director, officer, or trustee of another
corporation, joint venture, trust or other enterprise;

         WHEREAS, a claim has been asserted against the Indemnitee and the
Indemnitee has notified the company thereof in accordance with the terms of
Section 6 of the Indemnification Agreement (hereinafter the "Proceeding");

         WHEREAS, Indemnitee believes that Indemnitee should prevail in this
proceeding and it is in the interest of both the Indemnitee and the Company to
defend against the claim against Indemnitee thereunder.

         NOW THEREFORE, Indemnitee hereby agrees that in consideration of the
Company's advance payment of Indemnitee's Expenses incurred prior to a final
disposition of the proceeding, Indemnitee hereby undertakes to reimburse the
Company for any and all legal fees, costs and expenses paid by Company on behalf
of the Indemnitee prior to a final disposition of the Proceeding in the event
that Indemnitee is determined under the Applicable Document (within the meaning
of the Indemnification Agreement) not to be entitled to indemnification. Such
payments or arrangements for payments shall be consummated within ninety (90)
days after a determination that Indemnitee is not entitled to indemnification
and reimbursement pursuant to the Indemnification Agreement and applicable law.

         IN WITNESS WHEREOF, the undersigned has set his/her hand this ____ day
of , 20___.

                                                      --------------------------
                                                      Name:

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