Document:

Exhibit 10 q

 

Summary of Compensation Arrangements with Executive Officers

 

The following summarizes the current cash compensation and benefits received by the Company’s Chief Executive Officer and its other four most highly compensated executive officers (the “Named Executive Officers”). 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, from time to time.

 

The Named Executive Officers are also eligible to participate in the Company’s regular benefit plans and programs, as described below.

 

Cash Incentive Plan

 

All of the executive officers of the Company are eligible to participate in the Plan, at the discretion of the Compensation Committee.  Bonus awards under the Plan provide participants an opportunity to earn an annual bonus in a maximum amount of 100% 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, 2013.

 

The current secretary and chief financial officer 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.

 

The Company’s executive officers are also eligible for annual cash bonuses as determined by the Compensation Committee in its discretion.

 

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 in such amounts and with such terms and conditions as determined by the Committee at the time of grant.

 

Automobile Usage

 

The Company provides an automobile or automobile allowance to its executive officers.

 

Airplane Usage

 

The Company requires the Chairman and President & CEO to use Company aircraft for all travel whenever practicable for security reasons.  The Company also makes a payment to its eligible executives in the form of a gross-up for taxes due for this airplane usage.

 

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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.

 

2Exhibit 10r

 

SUMMARY OF COMPENSATION ARRANGEMENTS WITH NON-EMPLOYEE DIRECTORS

 

The following summarizes the current compensation and benefits received by the Company’s non-employee directors.  This document 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 non-employee director.

 

Retainer and Meetings Fees

 

Non-employee director compensation may be revised from time to time by the Board of Directors.  The Board of Directors of Rollins, Inc. (the “Company”), has approved effective January 1, 2011, the following fee schedule for the Board of Directors of the Company and all Committees of the Board of Directors of the Company.

 

	
Board   of Directors’

Annual   Retainer:

Board   Meeting Attended:
    	
 
    	
 

$26,000   per year to each non-employee Director 

$2,000   per meeting attended
    
	
 
    	
 
    	
 
    
	
Audit   Committee 

Chairman”
    	
 
    	
 

$20,000   per year to the Committee Chairman (in addition to the per meeting fee and a   fee of $1,500 for preparation for each quarterly Audit Committee meeting)
    
	
Per   Meeting Fee: 

Telephonic   Meeting:
    	
 
    	
$2,500   per Audit Committee meeting 

$2,500   per Audit Committee telephonic meeting
    
	
 
    	
 
    	
 
    
	
Compensation   Committee 

Chairman:
    	
 
    	
 

$10,000   per year to the Committee Chairman (in addition to the per meeting fee)
    
	
Per   Meeting Fee:
    	
 
    	
$2,000   per Compensation Committee meeting
    
	
 
    	
 
    	
 
    
	
Nominating/Governance   Committee  

Chairman:
    	
 
    	
 

$6,000   per year to the Committee Chairman (in addition to the per meeting fee)
    
	
Per   Meeting Fee:
    	
 
    	
$1,500   per Nominating/Governance Committee meeting
    
	
 
    	
 
    	
 
    
	
Diversity   Committee  

Chairman:
    	
 
    	
 

$6,000   per year to the Committee Chairman (in addition to the per meeting fee)
    
	
Per   Meeting Fee:
    	
 
    	
$1,500   per Diversity Committee meeting
    

 

The above Committee fees are in addition to the fees otherwise payable to directors for service on the Board of Directors of the Company.

 

Equity Compensation

 

Under the terms of the Company’s Stock Incentive Plans, directors are eligible to receive stock options, stock awards, and other types of equity-based compensation awards.  However, the Company does not make any such awards to non-employees directors under its current compensation practices.

 

All non-employee directors are entitled to reimbursement of expenses for all services as a director, including committee participation of special assignments.Exhibit 10.64

 

REVENUE SHARING FOR FLOW ACCOUNTS

PORTFOLIO MANAGERS

October 26, 2007

Revised November 14, 2008

Revised November 4, 2010

Revised February 19, 2011

 

Portfolio Managers have the opportunity to earn revenue sharing above and beyond their salary.  To be eligible for revenue sharing, certain conditions and contingencies must be satisfied. Among other things, an individual must be employed by WRIMCO or IICO on the date of the revenue sharing payment, have performed all job responsibilities to the satisfaction of WRIMCO or IICO and have acted at all times in accordance with every company policy, agreement, regulatory authority and legal requirement.

 

As is the case with all revenue sharing, the schedule and methodology of calculation are subject to change.  Additionally, consideration will be given to macro events that are out of the control of the investment management division.

 

The company makes no representations, promises or predictions as to the amount of any revenue sharing or the likelihood of personnel to receive revenue sharing.

 

Purpose: To compensate portfolio managers for flow accounts that have frequent cash flow activity, where the individual flows do not meet our regular criteria (i.e., 20% of market value) to receive significant contribution Revenue Sharing treatment.

 

Approach: The existing Revenue Sharing scheme is preserved but for certain flow accounts we will make an additional new annual calculation of contribution/withdrawal activity. Frequent contributions of each account would be tracked, aggregated, and used to apply the applicable revenue sharing rate for significant contributions. An annual aggregation period will be used based on the anniversary year of the account. This longer perspective on the account activity will determine if the aggregate change is significant (10% of the beginning market value).

 

Description of Method

 

Criteria: The criteria to be used in determining whether an account or the account’s activity is eligible for this new Revenue Sharing treatment are:

 

·      The account must be an institutional separate account to qualify,

 

·                  For an account to be considered a “flow account”, it must have frequent contribution/withdrawal activity (usually daily; or at least weekly and/or at the discretion of the Chief Administrative Officer). The most common example is a non-proprietary mutual fund that we sub-advise.

 

·                  The annual fee revenue for the account must be at least $500,000. If the account is below that level, then the new Revenue Sharing treatment would not be used until the assets reach a level that yields $500,000 in annual fee revenue.

 

·                  A review of annual contribution/withdrawal activity would occur following the account anniversary. The aggregate annual net contributions/withdrawals must be at least 10% of the market value at the beginning of each anniversary year.

 

 

Calculation: The calculation is conducted annually, as of the anniversary date of the account. If the contribution/withdrawal activity meets or exceeds 10% of the market value at the beginning of the anniversary year, then that activity (positive or negative) will be treated as a new “significant contribution” eligible for this flow account Revenue Sharing at the same rates as applicable to regular Revenue Sharing for significant contributions. Unlike the AUM that are the basis for paying the trail under regular revenue sharing, once the new flow account significant contribution has been established, its balance will not be adjusted for market appreciation or depreciation.

 

Any negative flows for the year will offset the balance of positive flows in the previous year on a LIFO basis. In other words, the negative flow can have a negative effect on the previous year’s flow account Revenue Sharing. However, the portfolio manager will never be paid less than their regular Revenue Sharing. In other words, there is a “floor”.

 

Revenue Sharing payments would be made on a quarterly basis starting the quarter after the annual calculation is made and if the 10% threshold was met. Each significant contribution that maintains a positive balance would pay the scheduled rate of Revenue Sharing for the eight quarters after the anniversary year.

 

Effective Date: This would be applicable to all accounts with an anniversary date after 6/30/07. When effective, the previous twelve months will be considered.

 

 

	
Approved   by:
    	
/s/   John E. Sundeen, Jr.
    	
 
    	
Date:
    	
February 19,   2011
    

 

****CONFIDENTIAL**** CONFIDENTIAL**** CONFIDENTIAL**** CONFIDENTIAL****

 

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