1 Page 28 Exhibit 10(iii)A(h)-(ii) AMENDMENT NO. 1 TO THE NATIONAL SERVICE INDUSTRIES, INC. LONG-TERM INCENTIVE PROGRAM WHEREAS, The National Service Industries, Inc. Long- Term Incentive Program (the "Long-Term Plan") was adopted by the Board of Directors (the "Board") of National Service Industries, Inc. ("NSI") and became effective on September 20, 1989, and was approved by stockholders on January 3, 1990; and WHEREAS, paragraph 14(a) of the Plan permits the Board to amend the Plan, subject to certain restrictions set forth therein; and WHEREAS, the Board desires to amend the Long-Term Plan as set forth herein to enable the Corporation to grant options transferable under certain circumstances; NOW, THEREFORE, the Long-Term Plan is amended, effective September 21, 1994, by deleting paragraph 6(c) thereof in its entirety and substituting in lieu thereof the following: (c) Non-transferability. No Option granted hereunder shall be transferable by the Optionee to whom granted otherwise than (i) by will or the laws of descent and distribution and (ii) if permitted by the Committee, and upon such terms and conditions as the Committee may establish, to immediate family members of the Optionee or to a trust, partnership or similar vehicle for the benefit of such immediate family members (collectively, the "Permitted Transferees"). An Option may be exercised during the lifetime of such Optionee only by the Optionee or his guardian or legal representative or, if applicable, by Permitted Transferees. The terms of such Option shall be final, binding and conclusive upon the beneficiaries, executors, administrators, heirs, successors, and Permitted Transferees of the Optionee. IN WITNESS WHEREOF, this AMENDMENT NO. 1 has been executed on behalf of the Corporation, and the Corporation's seal has been affixed hereto, pursuant to action taken by the Board of Directors on September 21, 1994. Attest: NATIONAL SERVICE INDUSTRIES, INC. /s/ Kenyon W. Murphy By: /s/ D. Raymond Riddle Kenyon W. Murphy, Secretary D. Raymond Riddle Chairman of the Board and Chief Executive Officer (CORPORATE SEAL)