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Exhibit 10 (q)  


 
 

Summary of Compensation Arrangements with Executive Officers
  dated as of January 23, 2007    
    


The
following summarizes the current cash compensation and benefits received by Rollins, Inc.'s (the "Company") Chief Executive Officer and its other four most highly compensated executive
officers (the "Named Executive Officers") as of January 1, 2007. It is intended to be a summary of existing oral, at will, arrangements, and in no way is intended to provide any additional
rights to any of the Named Executive Officers. 


Base Salaries 


The
executive officers of the Company serve at the discretion of the Board of Directors. The Compensation Committee of the Board (the "Committee") reviews and determines the salaries that are paid to
the Company's executive officers, including the Named Executive Officers. The annual base salaries as of January 23, 2007 are as follows: 



	R. Randall Rollins, Chairman of the Board	 	$	900,000
	Gary W. Rollins, President, Chief Executive Officer and Chief Operating Officer	 	$	1,000,000
	Harry J. Cynkus, Chief Financial Officer and Treasurer	 	$	385,000
	Michael W. Knottek, Senior Vice President and Secretary	 	$	385,000
	Glen Rollins, Vice President	 	$	600,000





The
Named Executive Officers are also eligible to participate in the Company's regular benefit plans and programs, as described below. Compensation paid or earned during fiscal 2006, is included in
the Company's 2006 Proxy Statement. 


Management Incentive Plan 


All
of the executive officers of the Company are eligible to participate in the Plan, at the discretion of Rollins's Compensation Committee. Bonus awards under the Plan provide participants an
opportunity to earn an annual bonus in a maximum amount of 80% of base salary or $2 million per individual per year, whichever is less. 



Whether
a bonus is payable, and the amount of any bonus payable, is contingent upon achievement of certain performance goals, which are measured according to one or more of the following three
targeted financial measures: revenue growth, pretax profit plan achievement, and pretax profit improvement over the prior year. 


Unless
sooner amended or terminated by the Compensation Committee, the Plan will be in place until April 22, 2008. 


Messrs. Knottek
and Cynkus also participate in the Company's Home Office Plan. Under the Home Office Plan, participants receive an opportunity to earn bonuses based on certain key operating
initiatives and customer service survey results. The Home Office Plan is implemented through the annual grant of individual bonus opportunities as described above. 


Stock Options and Other Equity Awards 


The
Named Executive Officers are eligible to receive options and restricted stock under The Company's stock incentive plans, including the 1998 Employee Stock Incentive Plan filed with the
March 24, 1998 Proxy Statement for the Annual Meeting held April 28, 1998, in such amounts and with such terms and conditions as determined by the Committee at the time of grant. 


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Automobile Usage  


The Company has agreed to provide R. Randall Rollins the exclusive use of an automobile. Based on separate arrangements between the Company and its vendor providing fleet
services to the Company, the Company receives certain automobiles at no charge to the Company. The Company uses one of these automobiles to fulfill its obligations in respect of these compensatory
arrangements with R. Randall Rollins. If this vehicle were not available to the Company free of charge, the Company would be required to make other arrangements to fulfill its obligations
regarding automobile usage for Mr. Rollins. 


Michael
Knottek and Harry Cynkus are each entitled to the use of company-leased automobiles. The Company insures both automobiles, and they are leased for $1,053 and $910 per month, respectively.
Messrs. Knottek and Cynkus each pay the Company $320 per month for their personal use of the automobiles. Messrs. R. Randall Rollins, Gary W. Rollins and Glen Rollins
receive an annual automobile allowance of $7,632. All executive officers are entitled to free care and maintenance, including detailing and car washes and gasoline free from the Company. 


Airplane Usage  


The Company requires the Chairman and President & CEO to use Company aircraft for all travel whenever practicable for security reasons. The value of personal aircraft
usage will be imputed to them as income from the Company, effective January 1, 2005. This value will be calculated using an aggregate incremental cost method, based on the variable operating
costs to the Company. The Company also makes a payment to its eligible executives in the form of a gross-up for taxes due for this airplane usage. 


Other Benefits  


The Named Executive Officers also participate in the Company's regular employee benefit programs, which include a defined benefit retirement plan, a 401(k) plan with Company
match, group medical and dental coverage, group life insurance and other group benefit plans. They are also provided with additional life insurance benefits, as well as long-term
disability. The Named Executives Officers are also eligible to participate in the Company's deferred compensation plan. 


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Summary of Compensation Arrangements with Executive Officers dated as of January 23, 2007