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] |
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DATE: |
[DATE] |
OFFICE: |
[TITLE OF RECIPIENT] |
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SUBJECT: |
[CURRENT YEAR] EXECUTIVE BONUS PLAN |
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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 |
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---|---|---|---|
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 |
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---|---|---|---|---|
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
II. Plan Components
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 .
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.
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.
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 |