Exhibit 10.1


 


OMNICELL
QUARTERLY EXECUTIVE BONUS PLAN


 


(Fiscal Year 2006 –
Effective beginning Q1 2006)


 


COMPANY OBJECTIVES: 


 


1) Drive earnings predictability and revenue growth


 


2) Drive execution of operating plan and strategic objectives


 


3) Motivate and inspire employees to contribute at peak performance


 


ELIGIBILITY :
Certain 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 Executive Bonus Plan for that
quarter.


 


INCENTIVE TARGET : The
Incentive Target is stated as a percentage of quarterly base salary.  50% of the total Incentive Target is based on
achievement of the quarterly Corporate Target, and 50% is based on achievement
of the quarterly Individual Targets.  The
quarterly Corporate Target must be achieved before any Individual Target bonus
is paid, but failure to achieve Individual Targets will not similarly affect
payment of the Corporate Target portion of the bonus.  It is anticipated that the Incentive Target
levels will range from 25% to 60% of quarterly salary depending on the
seniority level of the participant.


 


PAYMENT SCHEDULE :
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 “Committee”)
has determined that the Corporate Target for a particular quarter was reached.


 


BONUS
COMPONENTS 


 


Corporate Target: the
Corporate Target is driven by the corporate profitability and revenue growth
goals.  Achievement of the Corporate
Target requires 100% achievement of both of the following EPS Targets and
Revenue Growth Targets.


 


• EPS Target – 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’s total bonus
amount for achievement of each incremental profitability metric above the
threshold target as set by the Committee.


 


• Revenue Growth Target – the
revenue growth portion of the Corporate Target is achieved by meeting the
revenue threshold target set by the Committee.


 


Individual Target: the
Individual Target is based on achievement of goals tied to the corporate operating
plan and strategic objectives.  This
target is achieved by meeting the quarterly individual objectives (MBOs) set by
the individual’s manager.


 





















 


DIRECTION
AND ADMINISTRATION


 


•  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.


 


•  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.