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                                                          Exhibit 10(iii)A(7)(b)


Dear Mr. Balloun:

     The terms of your  employment  with the Company are currently  covered by a
letter  agreement  ("Agreement"),  dated  February 1, 1996,  between you and the
Company.  In  connection  with the  restructuring  of the  Company  that will be
effective  August 31,  1996,  this will confirm that you may be employed by, and
perform services for, subsidiary  corporations or subsidiary partnerships of the
Company and that you may receive  compensation  and benefits from such entities.
This will also  confirm that you will  continue to be entitled to the  aggregate
amount of  compensation,  benefits and other amounts  provided in the Agreement.
Your rights to benefits upon  termination of employment with the Company and its
subsidiaries will continue to be as provided in Paragraph 7 of the Agreement.

                                            Sincerely,

                                            NATIONAL SERVICE INDUSTRIES, INC.



                                            By:_________________________________