Page 17 Exhibit 10(iii)A(c) May 24, 1996 J. Robert Hipps 5021 Northside Drive, N.W. Atlanta, Georgia 30327-4421 Re: Amendment of Stock Option Agreements Dear Bob: In connection with your termination of employment, and as confirmed and evidenced by this letter agreement, the terms of certain stock options previously granted to you were amended by action taken by the Executive Resource and Nominating Committee of NSI's Board of Directors (the "Committee") on March 20, 1996, and ratified by the Board of Directors on that same date. The following installments of employee stock options, which had previously been granted to you and which would otherwise have vested and become exercisable in September 1996, have been accelerated so that they are immediately exercisable on this date: Number of Option Grant Date Shares In Installment September 16, 1992 2,529 September 16, 1992 471 September 15, 1993 2,671 September 15, 1993 1,079 September 21, 1994 5,000 September 20, 1995 5,000 16,750 In addition, the Committee amended the expiration provisions of those options for 16,750 shares and options for 32,364 shares which were previously granted to you and were already exercisable according to their original vesting schedules. Pursuant to the amendment, said options for 49,114 shares remain exercisable through May 31, 1997, notwithstanding your resignation effective May 31, 1996. Page 18 Exhibit 10(iii)A(c) Page 2 J. Robert Hipps May 24, 1996 Your Incentive Stock Option Agreement dated September 19, 1990, Incentive Stock Option Agreement dated December 18, 1991, Incentive Stock Option Agreement dated September 16, 1992, Nonqualified Stock Option Agreement dated September 16, 1992, Incentive Stock Option Agreement dated September 15, 1993, Nonqualified Stock Option Agreement dated September 15, 1993, Nonqualified Stock Option Agreement dated September 21, 1994, and Nonqualified Stock Option Agreement dated September 20, 1995 (the "Stock Option Agreements") are each hereby amended in accordance with this letter. Please acknowledge your acceptance of this letter by signing in the space provided below and returning the executed letter to me. A duplicate is enclosed for you to retain with your copies of the Stock Option Agreements. Very truly yours, /s/ James S. Balloun James S. Balloun Chairman and Chief Executive Officer JSB:sdh Enclosures Accepted and agreed to as of the 24th day of May, 1996: /s/ J. Robert Hipps J. Robert Hipps