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Exhibit 10 (l)  

 
 

Summary of Compensation Arrangements with Executive Officers
  Dated as of January 24, 2006    
    

        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, 2006. 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 26, 2006 are as follows: 

	R. Randall Rollins, Chairman of the Board	 	$	850,000
	Gary W. Rollins, President, Chief Executive Officer and Chief Operating Officer	 	$	1,000,000
	Harry J. Cynkus, Chief Financial Officer and Treasurer	 	$	350,000
	Michael W. Knottek, Senior Vice President and Secretary	 	$	350,000
	Glen Rollins, Vice President	 	$	500,000

        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 2005, is
included in the Company's 2005 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. 

Automobile Usage  

        Mike Knottek and Harry Cynkus are each entitled to the use of Company-leased automobiles. Both automobiles are self-insured by the Company, and they
are leased for $980.35 and $909.96 per month, respectively. Messrs. Knottek and Cynkus each pay the Company $325 per month for their personal use of the automobiles. 

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, including a gross-up for taxes due. 

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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Exhibit 10(o)  

 
 

STANDARD FORM A OF
  EXECUTIVE BONUS PLAN    
    

[Rollins logo] Executive Offices  

PERSONAL & CONFIDENTIAL  

	TO:	 	[NAME OF RECIPIENT]	 	FROM:	 	Gary W. Rollins*
	

 	
 	
* [cover memo is not delivered with Gary Rollins's bonus plan]
	

DATE:	
 	

[DATE]	
 	

OFFICE:	
 	

[TITLE OF RECIPIENT]
	

SUBJECT:	
 	
[CURRENT YEAR] EXECUTIVE BONUS PLAN
	

COPIES:	
 	

file	
 	

 	
 	

 

        I
am pleased to enclose your [PREVIOUS YEAR] Executive Bonus check and worksheet. 

        Additionally,
the Rollins, Inc. Board of Directors Compensation Committee has approved your participation in a [CURRENT
YEAR] Executive Bonus Plan program and the details of your bonus opportunity are enclosed. 

        This
plan is designed to support shareholder interests by rewarding you for Rollins Inc.'s achievements in the areas of Profit Improvements, Profit to Plan, and Combined Revenues
to Plan. 

        Attached
are two copies of your [CURRENT YEAR] Executive Bonus Plan. Please keep one copy for your records and
return one signed copy to Human Resources for company record keeping purposes. Also attached is a copy of the Agreement to Arbitrate, which, according to our Company Dispute Resolution Policy, is a
required document of every bonus-eligible employee. Please return a signed copy of the Agreement to Arbitrate with your signed bonus plan. You are required to sign it only once. 

        With
your assistance we expect [CURRENT YEAR] to be a continuation of our profit and revenue successes that we've
established over recent years. Your individual efforts will be key to the success of the Company for our employees and shareholders. 

[TITLE OF RECIPIENT]
  Incentive Compensation Plan—[PLAN YEAR]  

FOR:  [NAME OF RECIPIENT] 

        The
elements of the plan are as follows: 

1.     PROFIT TO PLAN  

        The Profit to Plan element will be paid according to the following scale up to a maximum of 20% of your annual salary: 

	Rollins Inc. Pre-Tax Profit

to Plan Achievement
	 	Annual % of Salary
	 
	100+%	 	20	%
	97.5%	 	15	%
	95%	 	10	%
	90%	 	5	%

        The
Company must have a profit and a profit improvement for this element to be paid. 

	Your CY [YEAR] Pre-Tax Profit Plan is:	 	$[TARGET AMOUNT]
Annual [YEAR]

2.     PROFIT INCREASE OVER LAST YEAR  

        You will be paid [1.85% for chairman of the board, 2.17% for CEO of Rollins, 1.09% for President of
Orkin] of the profit increase up to the maximum of 20% of your annual salary. 

        The
Company must have a profit and a profit improvement for this element to be paid. 

	Your CY[LAST YEAR] Pre-Tax Adjusted Profit base was:	 	$

	 	 	Annual '0    

3.     COMBINED REVENUE TO PLANNED INCREASE  

        The Revenue to Planned Increase element will be paid according to the following scale up to a maximum of 20% of your annual salary: 

	Rollins Inc. Combined

Net Revenue to

Planned Increase Achievement
	 	Planned Percentage Increase

over Prior Year
	 	Annual % of Salary

	100%	 	            %	 	20%
	95 – 99.9%	 	            %	 	15%
	90 – 94.9%	 	            %	 	10%
	85 – 89.9%	 	            %	 	5%

        The
Company must have a profit and a profit improvement for this element to be paid. 

        Your
CY0        Combined Revenue Plan is: 

	$[plan year target amt.]	 	$            	 	[target percentage]
	Annual '0    	 	Actual '0    	 	% increase

Glossary of Terms and Conditions

[year] Rollins, Inc. Executive Bonus Plan  

I.     General Plan Qualifiers and Provisions  

	A.
	The
plan year for this bonus is January 1, 200            to December 31, 200            .

	B.
	Your
bonus plan is subject to change each year.

	C.
	Your
bonus will be calculated using your actual current base salary as of December 31, 200            .

	D.
	Your
eligibility for a bonus and the amount due will be determined solely by the Company.

	E.
	Bonus
payments will be made in one lump sum no later than March 15, 200            , minus applicable state and federal taxes. Other deductions may apply, e.g., 401(K)
deductions, etc.

	F.
	You
must be employed in the same position on December 31, 200            to be eligible for a bonus, except as described below in (H.)

	G.
	You
will not receive a bonus if for any reason you are in a position on December 31, 200            that is not eligible for a bonus or if you are not actively employed on
the date that the bonus is paid.

	H.
	If
you are promoted during the plan year from one bonus-eligible position to another bonus-eligible position, the bonus components common to both plans carry over to the new position.
Plan components unique to the original bonus-eligible position will be paid based on time spent in the position (must be at least 50 percent of the plan year). Bonus amounts on these unique
components will be calculated at the time of the transfer based on year-to-date results.

	I.
	If
you are hired into a bonus-eligible position during the year, or if you are promoted during the plan year from a position that is ineligible for a bonus into a bonus-eligible
position, you will be eligible for a pro-rated bonus if you are in the bonus-eligible position for at least 50 percent of the plan year.

	J.
	You
will not receive any bonus if you falsify documents, violate company policy or know of such actions by employees under your direction without taking corrective actions.

	K.
	Any
disputes over your bonus will be resolved by the Compensation Committee.

	L.
	The
Compensation Committee reserves the right to reward outstanding performance in unique situations by awarding an employee a bonus outside the terms of the 200            Home
Office Bonus Plan.

	M.
	The
actual profit from which the bonus may be determined may be subject to adjustments as recommended by the President and approved by the Compensation Committee for the year
200            .

	N.
	Acquisitions
over $5,000,000 in revenue will be added to the Company strategic plan (revenue and profit) based on a pro forma of the acquisition model for bonus calculations. 

II.    Plan Components

	A.
	General Provisions

The
200            Home Office Executive Bonus Plans divide bonus opportunity into three components: profit to plan performance, profit increase over last year, and combined revenue to planned
increase. No bonus will be paid under any component if Rollins Inc.'s pre-tax profit does not result in a profit improvement in 200            , as compared to
200            . 

	B.
	Profit Increase Performance Component

If
Rollins Inc.'s pre-tax profit in 200            increases compared to 200            , you will receive a percentage of the
profit increase up to the maximum allowable
percentage of salary under your bonus plan for this component. 

	C.
	Profit To Plan Performance Component

If
Rollins Inc.'s pre-tax profit meets or exceeds 90% of the Company's plan in 200            , you will receive a bonus based on a scale up to the maximum allowable percentage
of salary under your bonus plan for this component. Payouts will begin at 90% of Profit Plan and rise to 100% payout at 100% of Profit Plan. 

	D.
	Combined Revenue to Planned Increase

If
Rollins Inc.'s combined revenues meet or exceed 85% of the Company's revenue planned increase for 200            , you will receive a bonus based on a scale up to the maximum allowable
percentage of salary under your bonus plan for this component. 

ACKNOWLEDGMENT 

I
have received and read a copy of my Incentive Plan with the accompanying Glossary of Terms and Conditions. I understand that participation in this Plan should in no way be construed as a contract or
promise of employment and/or compensation. Employment is at-will, and therefore employment and compensation can terminate, with or without cause and with or without notice, at any time at
the option of the Company or employee. I also understand that this Incentive Plan will be subject to review, and likely to change next year. 

	
 Plan Participant	 	
 Date

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STANDARD FORM A OF EXECUTIVE BONUS PLAN

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