OMNICELL INC /CA/
EX-10.1
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
10.1</font></b></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">OMNICELL
QUARTERLY EXECUTIVE BONUS PLAN</font></b></p>

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<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(FY 2005 &#150;
Effective beginning Q2 2005)</font></p>

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<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">OBJECTIVES</font></u></b>:<u> </u></p>

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<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1) Drive earnings
predictability and backlog growth</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2) Drive execution
of operating plan and strategic objectives</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3) Motivate and
inspire employees to contribute at peak performance</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ELIGIBILITY</font></u>:</b>
All employees at the Director level and above (including Section 16 executive
officers) who are employed full-time by Omnicell during an entire eligibility
period (fiscal quarter) are eligible for the Executive Bonus Plan. If an
individual is hired after the start of the relevant quarter, or is no longer
employed by Omnicell as of the last day of the relevant quarter, the employee
is not eligible to participate in the Quarterly Executive Bonus Plan (the
&quot;Plan&quot;) for that quarter.</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INCENTIVE
TARGET</font></u>:</b> The Incentive Target is stated as a percentage of
quarterly base salary.&#160; 50% of the total
Incentive Target is based on achievement of the quarterly Corporate Target (as
defined below), and 50% is based on achievement of the quarterly Individual
Targets.&#160; The quarterly Corporate Target
must be achieved before any Individual Target (as defined below) bonus is paid,
but failure to achieve Individual Targets will not similarly affect payment of
the Corporate Target portion of the bonus.&#160;
It is anticipated that the Incentive Target levels will range from 15%
to 40% of a participant's quarterly salary depending on his or her seniority
level.</p>

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<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PAYMENT
SCHEDULE</font></u>:</b> The Incentive Target is paid on a quarterly
basis typically in the first payroll period after the compensation committee of
the Board of Directors (the &#147;Committee&#148;) has determined that the Corporate
Target for a particular quarter was reached.</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">BONUS COMPONENTS</font></u>:</b></p>

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<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Corporate
Target:</font></b> The Corporate Target is driven by the corporate
profitability and sales backlog growth goals.&#160;
Achievement of the Corporate Target requires 100% achievement of both
the EPS Target and Backlog Target as set forth below.</p>

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<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font> EPS Target &#150; The profitability portion of the Corporate
Target is achieved if the company meets the quarterly profitability threshold
target set by the Committee. There is an upside payment potential of an
additional 10% of each individual&#146;s total bonus amount for achievement of each
incremental profitability metric above the threshold target as set by the
Committee.</p>

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<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font> Backlog Target &#150; The backlog growth portion of the
Corporate Target is achieved by meeting the backlog threshold target set by the
Committee.</p>

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<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Individual
Target:</font></b> The Individual Target is based on achievement of
goals tied to the corporate operating plan and strategic objectives. Achievement
of the Individual Target requires 100% achievement of both the Budget Target
and MBO Target as set forth below:</p>

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<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font> Budget Target &#150; The budget goal of the Individual Target
is achieved by the individual meeting the individual budget (or equivalent
target for individuals that do not control a budget metric) targets set by
management.</p>

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<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font> MBO Target - The operating and strategic goals of the
Individual Target are achieved by meeting the quarterly individual objectives
set by the individual&#146;s manager.</p>

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<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">End of
year make up bonus:</font></b>&#160; If
the EPS Target is achieved for any quarter during the fiscal year but the
Backlog Target for that quarter is missed, then that quarter&#146;s Corporate Target
bonus can be earned at the end of that fiscal year if the fourth quarter
Backlog Target is achieved.&#160;&#160; In that
circumstance, the Individual Target bonus for each made up quarter will also be
paid if the individual achieved his or her Individual Targets during that
quarter.</p>

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<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DIRECTION AND ADMINISTRATION</font></u>:</b></p>

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<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font>  <i><font style="font-style:italic;">CEO may adjust the
percentage weightings within the plan to redirect behavior based on changes in
the economy, immediate needs of the company, changes in long-term strategies
and individual career growth and development throughout the fiscal year.</font></i></p>

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<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font>  <i><font style="font-style:italic;">Participation in the
Plan is at the discretion of Company management. The Company reserves the right
to make changes to the Plan at any time. The Committee may alter the incentive
payout based on achievement of publicly announced targets, product milestones,
strategic goals, cross functional teamwork and collaboration, and unforeseen
changes in the economy and/or geopolitical climate.</font></i></p>

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