Document:

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                                  OMNICELL.COM

                           1999 EQUITY INCENTIVE PLAN

                            ADOPTED SEPTEMBER 1, 1999
                       AMENDED AND RESTATED APRIL 19, 2000
                        TERMINATION DATE: AUGUST 30, 2009

1.       PURPOSES.

         (a) ELIGIBLE STOCK AWARD RECIPIENTS. The persons eligible to receive
Stock Awards are the Employees, Directors and Consultants of the Company and its
Affiliates.

         (b) AVAILABLE STOCK AWARDS. The purpose of the Plan is to provide a
means by which eligible recipients of Stock Awards may be given an opportunity
to benefit from increases in value of the Common Stock through the granting of
the following Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock
Options, (iii) stock bonuses and (iv) rights to acquire restricted stock. The
Plan also provides for non-discretionary grants of Nonstatutory Stock Options to
Non-Employee Directors of the Company.

         (c) GENERAL PURPOSE. The Company, by means of the Plan, seeks to retain
the services of the group of persons eligible to receive Stock Awards, to secure
and retain the services of new members of this group and to provide incentives
for such persons to exert maximum efforts for the success of the Company and its
Affiliates.

2.       DEFINITIONS.

         (a) "AFFILIATE" means any parent corporation or subsidiary corporation
of the Company, whether now or hereafter existing, as those terms are defined in
Sections 424(e) and (f), respectively, of the Code.

         (b) "BOARD" means the Board of Directors of the Company.

         (c) "CODE" means the Internal Revenue Code of 1986, as amended.

         (d) "COMMITTEE" means a committee of one or more members of the Board
appointed by the Board in accordance with subsection 3(c).

         (e) "COMMON STOCK" means the common stock of the Company.

         (f) "COMPANY" means OmniCell.Com, a California corporation.

         (g) "CONSULTANT" means any person, including an advisor, (i) engaged by
the Company or an Affiliate to render consulting or advisory services and who is
compensated for such services or (ii) who is a member of the Board of Directors
of an Affiliate. However, the

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term "Consultant" shall not include either Directors who are not compensated by
the Company for their services as Directors or Directors who are merely paid a
director's fee by the Company for their services as Directors.

         (h) "CONTINUOUS SERVICE" means that the Participant's service with the
Company or an Affiliate, whether as an Employee, Director or Consultant, is not
interrupted or terminated. The Participant's Continuous Service shall not be
deemed to have terminated merely because of a change in the capacity in which
the Participant renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Participant
renders such service, provided that there is no interruption or termination of
the Participant's Continuous Service. For example, a change in status from an
Employee of the Company to a Consultant of an Affiliate or a Director will not
constitute an interruption of Continuous Service. The Board or the chief
executive officer of the Company, in that party's sole discretion, may determine
whether Continuous Service shall be considered interrupted in the case of any
leave of absence approved by that party, including sick leave, military leave or
any other personal leave.

         (i) "COVERED EMPLOYEE" means the chief executive officer and the four
(4) other highest compensated officers of the Company for whom total
compensation is required to be reported to shareholders under the Exchange Act,
as determined for purposes of Section 162(m) of the Code.

         (j) "DIRECTOR" means a member of the Board of Directors of the Company.

         (k) "DISABILITY" means (i) before the Listing Date, the inability of a
person, in the opinion of a qualified physician acceptable to the Company, to
perform the major duties of that person's position with the Company or an
Affiliate of the Company because of the sickness or injury of the person and
(ii) after the Listing Date, the permanent and total disability of a person
within the meaning of Section 22(e)(3) of the Code.

         (l) "EMPLOYEE" means any person employed by the Company or an
Affiliate. Mere service as a Director or payment of a director's fee by the
Company or an Affiliate shall not be sufficient to constitute "employment" by
the Company or an Affiliate.

         (m) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

         (n) "FAIR MARKET VALUE" means, as of any date, the value of the Common
Stock determined as follows:

                  (i) If the Common Stock is listed on any established stock
exchange or traded on the Nasdaq National Market or the Nasdaq SmallCap Market,
the Fair Market Value of a share of Common Stock shall be the closing sales
price for such stock (or the closing bid, if no sales were reported) as quoted
on such exchange or market (or the exchange or market with the greatest volume
of trading in the Common Stock) on the last market trading day prior to the day
of determination, as reported in THE WALL STREET JOURNAL or such other source as
the Board deems reliable.

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                  (ii) In the absence of such markets for the Common Stock, the
Fair Market Value shall be determined in good faith by the Board.

                  (iii) Prior to the Listing Date, the value of the Common Stock
shall be determined in a manner consistent with Section 260.140.50 of Title 10
of the California Code of Regulations.

         (o) "INCENTIVE STOCK OPTION" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

         (p) "IPO DATE" means the effective date of the initial public offering
of the Company's Common Stock.

         (q) "LISTING DATE" means the first date upon which any security of the
Company is listed (or approved for listing) upon notice of issuance on any
securities exchange or designated (or approved for designation) upon notice of
issuance as a national market security on an interdealer quotation system if
such securities exchange or interdealer quotation system has been certified in
accordance with the provisions of Section 25100(o) of the California Corporate
Securities Law of 1968.

         (r) "NON-EMPLOYEE DIRECTOR" means a Director who either (i) is not a
current Employee or Officer of the Company or its parent or a subsidiary, does
not receive compensation (directly or indirectly) from the Company or its parent
or a subsidiary for services rendered as a consultant or in any capacity other
than as a Director (except for an amount as to which disclosure would not be
required under Item 404(a) of Regulation S-K promulgated pursuant to the
Securities Act ("Regulation S-K")), does not possess an interest in any other
transaction as to which disclosure would be required under Item 404(a) of
Regulation S-K and is not engaged in a business relationship as to which
disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is
otherwise considered a "non-employee director" for purposes of Rule 16b-3.

         (s) "NON-EMPLOYEE DIRECTOR OPTION" means a Non-Statutory Stock Option
granted pursuant to Section 7 hereof.

         (t) "NON-EMPLOYEE DIRECTOR OPTION AGREEMENT" means a written agreement
between the Company and a Non-Employee Director evidencing the terms and
conditions of a Non-Employee Director Option grant. Each Non-Employee Director
Option Agreement shall be subject to the terms and conditions of the Plan.

         (u) "NONSTATUTORY STOCK OPTION" means an Option not intended to qualify
as an Incentive Stock Option.

         (v) "OFFICER" means (i) before the Listing Date, any person designated
by the Company as an officer and (ii) on and after the Listing Date, a person
who is an officer of the Company within the meaning of Section 16 of the
Exchange Act and the rules and regulations promulgated thereunder.

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         (w) "OPTION" means an Incentive Stock Option or a Nonstatutory Stock
Option granted pursuant to the Plan.

         (x) "OPTION AGREEMENT" means a written agreement between the Company
and an Optionholder evidencing the terms and conditions of an individual Option
grant. Each Option Agreement shall be subject to the terms and conditions of the
Plan.

         (y) "OPTIONHOLDER" means a person to whom an Option is granted pursuant
to the Plan or, if applicable, such other person who holds an outstanding
Option.

         (z) "OUTSIDE DIRECTOR" means a Director who either (i) is not a current
employee of the Company or an "affiliated corporation" (within the meaning of
Treasury Regulations promulgated under Section 162(m) of the Code), is not a
former employee of the Company or an "affiliated corporation" receiving
compensation for prior services (other than benefits under a tax qualified
pension plan), was not an officer of the Company or an "affiliated corporation"
at any time and is not currently receiving direct or indirect remuneration from
the Company or an "affiliated corporation" for services in any capacity other
than as a Director or (ii) is otherwise considered an "outside director" for
purposes of Section 162(m) of the Code.

         (aa) "PARTICIPANT" means a person to whom a Stock Award is granted
pursuant to the Plan or, if applicable, such other person who holds an
outstanding Stock Award.

         (bb) "PLAN" means this OmniCell.Com 1999 Equity Incentive Plan.

         (cc) "RULE 16b-3" means Rule 16b-3 promulgated under the Exchange Act
or any successor to Rule 16b-3, as in effect from time to time.

         (dd) "SECURITIES ACT" means the Securities Act of 1933, as amended.

         (ee) "STOCK AWARD" means any right granted under the Plan, including an
Option, a stock bonus and a right to acquire restricted stock.

         (ff) "STOCK AWARD AGREEMENT" means a written agreement between the
Company and a holder of a Stock Award evidencing the terms and conditions of an
individual Stock Award grant. Each Stock Award Agreement shall be subject to the
terms and conditions of the Plan.

         (gg) "TEN PERCENT SHAREHOLDER" means a person who owns (or is deemed to
own pursuant to Section 424(d) of the Code) stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or of any of its Affiliates.

3.       ADMINISTRATION.

         (a) ADMINISTRATION BY BOARD. The Board shall administer the Plan unless
and until the Board delegates administration to a Committee, as provided in
subsection 3(c).

         (b) POWERS OF BOARD. The Board shall have the power, subject to, and
within the limitations of, the express provisions of the Plan:

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                  (i) To determine from time to time which of the persons
eligible under the Plan shall be granted Stock Awards; when and how each Stock
Award shall be granted; what type or combination of types of Stock Award shall
be granted; the provisions of each Stock Award granted (which need not be
identical), including the time or times when a person shall be permitted to
receive Common Stock pursuant to a Stock Award; and the number of shares of
Common Stock with respect to which a Stock Award shall be granted to each such
person.

                  (ii) To construe and interpret the Plan and Stock Awards
granted under it, and to establish, amend and revoke rules and regulations for
its administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Stock Award Agreement,
in a manner and to the extent it shall deem necessary or expedient to make the
Plan fully effective.

                  (iii) To amend the Plan or a Stock Award as provided in
Section 13.

                  (iv) Generally, to exercise such powers and to perform
such acts as the Board deems necessary or expedient to promote the best
interests of the Company which are not in conflict with the provisions of the
Plan.

         (c) DELEGATION TO COMMITTEE.

                  (i) GENERAL. The Board may delegate administration of the Plan
to a Committee or Committees of one (1) or more members of the Board, and the
term "Committee" shall apply to any person or persons to whom such authority has
been delegated. If administration is delegated to a Committee, the Committee
shall have, in connection with the administration of the Plan, the powers
theretofore possessed by the Board, including the power to delegate to a
subcommittee any of the administrative powers the Committee is authorized to
exercise (and references in this Plan to the Board shall thereafter be to the
Committee or subcommittee), subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to
time by the Board. The Board may abolish the Committee at any time and revest in
the Board the administration of the Plan.

                  (ii) COMMITTEE COMPOSITION WHEN COMMON STOCK IS PUBLICLY
TRADED. At such time as the Common Stock is publicly traded, in the discretion
of the Board, a Committee may consist solely of two or more Outside Directors,
in accordance with Section 162(m) of the Code, and/or solely of two or more
Non-Employee Directors, in accordance with Rule 16b-3. Within the scope of such
authority, the Board or the Committee may (1) delegate to a committee of one or
more members of the Board who are not Outside Directors the authority to grant
Stock Awards to eligible persons who are either (a) not then Covered Employees
and are not expected to be Covered Employees at the time of recognition of
income resulting from such Stock Award or (b) not persons with respect to whom
the Company wishes to comply with Section 162(m) of the Code and/or (2) delegate
to a committee of one or more members of the Board who are not Non-Employee
Directors the authority to grant Stock Awards to eligible persons who are not
then subject to Section 16 of the Exchange Act.

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         (d) EFFECT OF BOARD'S DECISION. All determinations, interpretations
and constructions made by the Board in good faith shall not be subject to
review by any person and shall be final, binding and conclusive on all
persons.

4.       SHARES SUBJECT TO THE PLAN.

         (a) SHARE RESERVE. Subject to the provisions of Section 12 relating
to adjustments upon changes in Common Stock, the Common Stock that may be
issued pursuant to Stock Awards shall not exceed in the aggregate five
million (5,000,000) shares of Common Stock, plus an annual increase to be
added each January 1, beginning January 1, 2001, equal to the lesser of
(i) five percent (5%) of the total number of shares of Common Stock
outstanding on such January 1 or (ii) three million (3,000,000) shares of
Common Stock. Notwithstanding the foregoing, the Board may designate a
smaller number of shares of Common Stock to be added to the share reserve as
of a particular January 1. The shares that may be issuable under incentive
stock options shall be limited to the above maximum number of shares reserved
under the Plan.

         (b) REVERSION OF SHARES TO THE SHARE RESERVE. If any Stock Award shall
for any reason expire or otherwise terminate, in whole or in part, without
having been exercised in full, the shares of Common Stock not acquired under
such Stock Award shall revert to and again become available for issuance under
the Plan. In addition, if any stock award issued under the Company's 1992
Incentive Stock Option Plan and 1995 Management Stock Option Plan shall for any
reason expire or otherwise terminate, in whole or in part, without having been
exercised in full, the shares of Common Stock not acquired under such stock
award shall revert to and again become available for issuance under this Plan
provided such shares shall not be issuable under an incentive stock option.

         (c) SOURCE OF SHARES. The shares of Common Stock subject to the Plan
may be unissued shares or reacquired shares, bought on the market or otherwise.

         (d) SHARE RESERVE LIMITATION. Prior to the Listing Date and to the
extent then required by Section 260.140.45 of Title 10 of the California Code of
Regulations, the total number of shares of Common Stock issuable upon exercise
of all outstanding Options and the total number of shares of Common Stock
provided for under any stock bonus or similar plan of the Company shall not
exceed the applicable percentage as calculated in accordance with the conditions
and exclusions of Section 260.140.45 of Title 10 of the California Code of
Regulations, based on the shares of Common Stock of the Company that are
outstanding at the time the calculation is made.

5.       ELIGIBILITY.

         (a) ELIGIBILITY FOR SPECIFIC STOCK AWARDS. Incentive Stock Options may
be granted only to Employees. Stock Awards other than Incentive Stock Options
may be granted to Employees, Directors and Consultants.

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         (b) TEN PERCENT SHAREHOLDERS.

                  (i) A Ten Percent Shareholder shall not be granted an
Incentive Stock Option unless the exercise price of such Option is at least one
hundred ten percent (110%) of the Fair Market Value of the Common Stock at the
date of grant and the Option is not exercisable after the expiration of five (5)
years from the date of grant.

                  (ii) Prior to the Listing Date, a Ten Percent Shareholder
shall not be granted a Nonstatutory Stock Option unless the exercise price of
such Option is at least (i) one hundred ten percent (110%) of the Fair Market
Value of the Common Stock at the date of grant or (ii) such lower percentage of
the Fair Market Value of the Common Stock at the date of grant as is permitted
by Section 260.140.41 of Title 10 of the California Code of Regulations at the
time of the grant of the Option.

                  (iii) Prior to the Listing Date, a Ten Percent Shareholder
shall not be granted a restricted stock award unless the purchase price of the
restricted stock is at least (i) one hundred percent (100%) of the Fair Market
Value of the Common Stock at the date of grant or (ii) such lower percentage of
the Fair Market Value of the Common Stock at the date of grant as is permitted
by Section 260.140.41 of Title 10 of the California Code of Regulations at the
time of the grant of the Option.

         (c) SECTION 162(m) LIMITATION. Subject to the provisions of Section 12
relating to adjustments upon changes in the shares of Common Stock, no Employee
shall be eligible to be granted Options covering more than one million two
hundred thousand (1,200,000) shares of Common Stock during any calendar year.
This subsection 5(c) shall not apply prior to the Listing Date and, following
the Listing Date, this subsection 5(c) shall not apply until (i) the earliest
of: (1) the first material modification of the Plan (including any increase in
the number of shares of Common Stock reserved for issuance under the Plan in
accordance with Section 4); (2) the issuance of all of the shares of Common
Stock reserved for issuance under the Plan; (3) the expiration of the Plan; or
(4) the first meeting of shareholders at which Directors are to be elected that
occurs after the close of the third calendar year following the calendar year in
which occurred the first registration of an equity security under Section 12 of
the Exchange Act; or (ii) such other date required by Section 162(m) of the Code
and the rules and regulations promulgated thereunder.

         (d) CONSULTANTS.

                  (i) Prior to the Listing Date, a Consultant shall not be
eligible for the grant of a Stock Award if, at the time of grant, either the
offer or the sale of the Company's securities to such Consultant is not exempt
under Rule 701 of the Securities Act ("Rule 701") because of the nature of the
services that the Consultant is providing to the Company, or because the
Consultant is not a natural person, or as otherwise provided by Rule 701, unless
the Company determines that such grant need not comply with the requirements of
Rule 701 and will satisfy another exemption under the Securities Act as well as
comply with the securities laws of all other relevant jurisdictions.

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                  (ii) From and after the Listing Date, a Consultant shall not
be eligible for the grant of a Stock Award if, at the time of grant, a Form S-8
Registration Statement under the Securities Act ("Form S-8") is not available to
register either the offer or the sale of the Company's securities to such
Consultant because of the nature of the services that the Consultant is
providing to the Company, or because the Consultant is not a natural person, or
as otherwise provided by the rules governing the use of Form S-8, unless the
Company determines both (i) that such grant (A) shall be registered in another
manner under the Securities Act (E.G., on a Form S-3 Registration Statement) or
(B) does not require registration under the Securities Act in order to comply
with the requirements of the Securities Act, if applicable, and (ii) that such
grant complies with the securities laws of all other relevant jurisdictions.

                  (iii) Rule 701 and Form S-8 generally are available to
consultants and advisors only if (i) they are natural persons; (ii) they provide
bona fide services to the issuer, its parents, its majority-owned subsidiaries
or majority-owned subsidiaries of the issuer's parent; and (iii) the services
are not in connection with the offer or sale of securities in a capital-raising
transaction, and do not directly or indirectly promote or maintain a market for
the issuer's securities.

6.       OPTION PROVISIONS.

         Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. All Options shall be separately
designated Incentive Stock Options or Nonstatutory Stock Options at the time of
grant, and, if certificates are issued, a separate certificate or certificates
will be issued for shares of Common Stock purchased on exercise of each type of
Option. The provisions of separate Options need not be identical, but each
Option shall include (through incorporation of provisions hereof by reference in
the Option or otherwise) the substance of each of the following provisions:

         (a) TERM. Subject to the provisions of subsection 5(b) regarding Ten
Percent Shareholders, no Option granted prior to the Listing Date shall be
exercisable after the expiration of ten (10) years from the date it was granted,
and no Incentive Stock Option granted on or after the Listing Date shall be
exercisable after the expiration of ten (10) years from the date it was granted.

         (b) EXERCISE PRICE OF AN INCENTIVE STOCK OPTION. Subject to the
provisions of subsection 5(b) regarding Ten Percent Shareholders, the exercise
price of each Incentive Stock Option shall be not less than one hundred percent
(100%) of the Fair Market Value of the Common Stock subject to the Option on the
date the Option is granted. Notwithstanding the foregoing, an Incentive Stock
Option may be granted with an exercise price lower than that set forth in the
preceding sentence if such Option is granted pursuant to an assumption or
substitution for another option in a manner satisfying the provisions of Section
424(a) of the Code.

         (c) EXERCISE PRICE OF A NONSTATUTORY STOCK OPTION. Subject to the
provisions of subsection 5(b) regarding Ten Percent Shareholders, the exercise
price of each Nonstatutory Stock Option granted prior to the Listing Date shall
be not less than eighty-five percent (85%) of the Fair Market Value of the
Common Stock subject to the Option on the date the Option is granted. The
exercise price of each Nonstatutory Stock Option granted on or after the Listing
Date shall be not less than eighty-five percent (85%) of the Fair Market Value
of the Common Stock subject to the Option on the date the Option is

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granted. Notwithstanding the foregoing, a Nonstatutory Stock Option may be
granted with an exercise price lower than that set forth in the preceding
sentence if such Option is granted pursuant to an assumption or substitution for
another option in a manner satisfying the provisions of Section 424(a) of the
Code.

         (d) CONSIDERATION. The purchase price of Common Stock acquired pursuant
to an Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash at the time the Option is exercised or (ii) at
the discretion of the Board at the time of the grant of the Option (or
subsequently in the case of a Nonstatutory Stock Option) (1) by delivery to the
Company of other Common Stock, (2) according to a deferred payment or other
similar arrangement with the Optionholder or (3) in any other form of legal
consideration that may be acceptable to the Board. Unless otherwise specifically
provided in the Option, the purchase price of Common Stock acquired pursuant to
an Option that is paid by delivery to the Company of other Common Stock
acquired, directly or indirectly from the Company, shall be paid only by shares
of the Common Stock of the Company that have been held for more than six (6)
months (or such longer or shorter period of time required to avoid a charge to
earnings for financial accounting purposes). At any time that the Company is
incorporated in Delaware, payment of the Common Stock's "par value," as defined
in the Delaware General Corporation Law, shall not be made by deferred payment.

         In the case of any deferred payment arrangement, interest shall be
compounded at least annually and shall be charged at the minimum rate of
interest necessary to avoid the treatment as interest, under any applicable
provisions of the Code, of any amounts other than amounts stated to be interest
under the deferred payment arrangement.

         (e) TRANSFERABILITY OF AN INCENTIVE STOCK OPTION. An Incentive Stock
Option shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Optionholder
only by the Optionholder. Notwithstanding the foregoing, the Optionholder may,
by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the
Optionholder, shall thereafter be entitled to exercise the Option.

         (f) TRANSFERABILITY OF A NONSTATUTORY STOCK OPTION. A Nonstatutory
Stock Option granted prior to the Listing Date shall not be transferable except
by will or by the laws of descent and distribution and, to the extent provided
in the Option Agreement, to such further extent as permitted by Section
260.140.41(d) of Title 10 of the California Code of Regulations at the time of
the grant of the Option, and shall be exercisable during the lifetime of the
Optionholder only by the Optionholder. A Nonstatutory Stock Option granted on or
after the Listing Date shall be transferable to the extent provided in the
Option Agreement. If the Nonstatutory Stock Option does not provide for
transferability, then the Nonstatutory Stock Option shall not be transferable
except by will or by the laws of descent and distribution and shall be
exercisable during the lifetime of the Optionholder only by the Optionholder.
Notwithstanding the foregoing, the Optionholder may, by delivering written
notice to the Company, in a form satisfactory to the

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Company, designate a third party who, in the event of the death of the
Optionholder, shall thereafter be entitled to exercise the Option.

         (g) VESTING GENERALLY. The total number of shares of Common Stock
subject to an Option may, but need not, vest and therefore become exercisable in
periodic installments that may, but need not, be equal. The Option may be
subject to such other terms and conditions on the time or times when it may be
exercised (which may be based on performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary. The
provisions of this subsection 6(g) are subject to any Option provisions
governing the minimum number of shares of Common Stock as to which an Option may
be exercised.

         (h) MINIMUM VESTING PRIOR TO THE LISTING DATE. Notwithstanding the
foregoing subsection 6(g), to the extent that the following restrictions on
vesting are required by Section 260.140.41(f) of Title 10 of the California Code
of Regulations at the time of the grant of the Option, then:

                  (i) Options granted prior to the Listing Date to an Employee
who is not an Officer, Director or Consultant shall provide for vesting of the
total number of shares of Common Stock at a rate of at least twenty percent
(20%) per year over five (5) years from the date the Option was granted, subject
to reasonable conditions such as continued employment; and

                  (ii) Options granted prior to the Listing Date to Officers,
Directors or Consultants may be made fully exercisable, subject to reasonable
conditions such as continued employment, at any time or during any period
established by the Company.

         (i) TERMINATION OF CONTINUOUS SERVICE. In the event an Optionholder's
Continuous Service terminates (other than upon the Optionholder's death or
Disability), the Optionholder may exercise his or her Option (to the extent that
the Optionholder was entitled to exercise such Option as of the date of
termination) but only within such period of time ending on the earlier of (i)
the date three (3) months following the termination of the Optionholder's
Continuous Service (or such longer or shorter period specified in the Option
Agreement, which period shall not be less than thirty (30) days for Options
granted prior to the Listing Date unless such termination is for cause), or (ii)
the expiration of the term of the Option as set forth in the Option Agreement.
If, after termination, the Optionholder does not exercise his or her Option
within the time specified in the Option Agreement, the Option shall terminate.

         (j) EXTENSION OF TERMINATION DATE. An Optionholder's Option Agreement
may also provide that if the exercise of the Option following the termination of
the Optionholder's Continuous Service (other than upon the Optionholder's death
or Disability) would be prohibited at any time solely because the issuance of
shares of Common Stock would violate the registration requirements under the
Securities Act, then the Option shall terminate on the earlier of (i) the
expiration of the term of the Option set forth in subsection 6(a) or (ii) the
expiration of a period of three (3) months after the termination of the
Optionholder's Continuous Service during which the exercise of the Option would
not be in violation of such registration requirements.

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         (k) DISABILITY OF OPTIONHOLDER. In the event that an Optionholder's
Continuous Service terminates as a result of the Optionholder's Disability, the
Optionholder may exercise his or her Option (to the extent that the Optionholder
was entitled to exercise such Option as of the date of termination), but only
within such period of time ending on the earlier of (i) the date twelve (12)
months following such termination (or such longer or shorter period specified in
the Option Agreement, which period shall not be less than six (6) months for
Options granted prior to the Listing Date) or (ii) the expiration of the term of
the Option as set forth in the Option Agreement. If, after termination, the
Optionholder does not exercise his or her Option within the time specified
herein, the Option shall terminate.

         (l) DEATH OF OPTIONHOLDER. In the event (i) an Optionholder's
Continuous Service terminates as a result of the Optionholder's death or (ii)
the Optionholder dies within the period (if any) specified in the Option
Agreement after the termination of the Optionholder's Continuous Service for a
reason other than death, then the Option may be exercised (to the extent the
Optionholder was entitled to exercise such Option as of the date of death) by
the Optionholder's estate, by a person who acquired the right to exercise the
Option by bequest or inheritance or by a person designated to exercise the
option upon the Optionholder's death pursuant to subsection 6(e) or 6(f), but
only within the period ending on the earlier of (1) the date eighteen (18)
months following the date of death (or such longer or shorter period specified
in the Option Agreement, which period shall not be less than six (6) months for
Options granted prior to the Listing Date) or (2) the expiration of the term of
such Option as set forth in the Option Agreement. If, after death, the Option is
not exercised within the time specified herein, the Option shall terminate.

         (m) EARLY EXERCISE. The Option may, but need not, include a provision
whereby the Optionholder may elect at any time before the Optionholder's
Continuous Service terminates to exercise the Option as to any part or all of
the shares of Common Stock subject to the Option prior to the full vesting of
the Option. Subject to the "Repurchase Limitation" in subsection 11(h), any
unvested shares of Common Stock so purchased may be subject to a repurchase
option in favor of the Company or to any other restriction the Board determines
to be appropriate. Provided that the "Repurchase Limitation" in subsection 11(h)
is not violated, the Company will not exercise its repurchase option until at
least six (6) months (or such longer or shorter period of time required to avoid
a charge to earnings for financial accounting purposes) have elapsed following
exercise of the Option unless the Board otherwise specifically provides in the
Option.

         (n) RIGHT OF REPURCHASE. Subject to the "Repurchase Limitation" in
subsection 11(h), the Option may, but need not, include a provision whereby the
Company may elect, prior to the Listing Date, to repurchase all or any part of
the vested shares of Common Stock acquired by the Optionholder pursuant to the
exercise of the Option. Provided that the "Repurchase Limitation" in subsection
11(h) is not violated, the Company will not exercise its repurchase option until
at least six (6) months (or such longer or shorter period of time required to
avoid a charge to earnings for financial accounting purposes) have elapsed
following exercise of the Option unless the Board otherwise specifically
provides in the Option.

                                       11
<PAGE>

         (o) RIGHT OF FIRST REFUSAL. The Option may, but need not, include a
provision whereby the Company may elect, prior to the Listing Date, to exercise
a right of first refusal following receipt of notice from the Optionholder of
the intent to transfer all or any part of the shares of Common Stock received
upon the exercise of the Option. Except as expressly provided in this subsection
6(o), such right of first refusal shall otherwise comply with any applicable
provisions of the Bylaws of the Company.

         (p) RE-LOAD OPTIONS.

                  (i) Without in any way limiting the authority of the Board to
make or not to make grants of Options hereunder, the Board shall have the
authority (but not an obligation) to include as part of any Option Agreement a
provision entitling the Optionholder to a further Option (a "Re-Load Option") in
the event the Optionholder exercises the Option evidenced by the Option
Agreement, in whole or in part, by surrendering other shares of Common Stock in
accordance with this Plan and the terms and conditions of the Option Agreement.
Unless otherwise specifically provided in the Option, the Optionholder shall not
surrender shares of Common Stock acquired, directly or indirectly from the
Company, unless such shares have been held for more than six (6) months (or such
longer or shorter period of time required to avoid a charge to earnings for
financial accounting purposes).

                  (ii) Any such Re-Load Option shall (1) provide for a number of
shares of Common Stock equal to the number of shares of Common Stock surrendered
as part or all of the exercise price of such Option; (2) have an expiration date
which is the same as the expiration date of the Option the exercise of which
gave rise to such Re-Load Option; and (3) have an exercise price which is equal
to one hundred percent (100%) of the Fair Market Value of the Common Stock
subject to the Re-Load Option on the date of exercise of the original Option.
Notwithstanding the foregoing, a Re-Load Option shall be subject to the same
exercise price and term provisions heretofore described for Options under the
Plan.

                  (iii) Any such Re-Load Option may be an Incentive Stock Option
or a Nonstatutory Stock Option, as the Board may designate at the time of the
grant of the original Option; provided, however, that the designation of any
Re-Load Option as an Incentive Stock Option shall be subject to the one hundred
thousand dollar ($100,000) annual limitation on the exercisability of Incentive
Stock Options described in subsection 11(d) and in Section 422(d) of the Code.
There shall be no Re-Load Options on a Re-Load Option. Any such Re-Load Option
shall be subject to the availability of sufficient shares of Common Stock under
subsection 4(a) and the "Section 162(m) Limitation" on the grants of Options
under subsection 5(c) and shall be subject to such other terms and conditions as
the Board may determine which are not inconsistent with the express provisions
of the Plan regarding the terms of Options.

7.       NON-EMPLOYEE DIRECTOR STOCK OPTIONS.

         Without any further action of the Board, each Non-Employee Director
shall be granted Nonstatutory Stock Options as described in subsections 7(a) and
7(b) (collectively, "Non-Employee Director Options"). Each Non-Employee Director
Option shall include the substance of the terms set forth in subsections 7(c)
through 7(k).

                                       12
<PAGE>

         (a) STOCK OPTION GRANTS.

                  (i) INITIAL GRANTS. After the IPO Date, each person who is
elected or appointed for the first time to be a Non-Employee Director
automatically shall, upon the date of his or her initial election or appointment
to be a Non-Employee Director by the Board or stockholders of the Company, be
granted an Initial Grant to purchase forty thousand (40,000) shares of Common
Stock on the terms and conditions set forth herein; provided, that a
Non-Employee Director who is one the Board on the IPO Date shall be granted his
or her Initial Grant on that date.

                  (ii) ANNUAL GRANTS. After the IPO Date, each person who is a
Non-Employee Director on the Board shall automatically as of the day following
the date of the annual shareholders' meeting be granted an Annual Grant to
purchase ten thousand (10,000) shares of Common Stock on the terms and
conditions set forth herein.

         (b) TERM. Each Non-Employee Director Option shall have a term of ten
(10) years from the date it is granted.

         (c) EXERCISE PRICE. The exercise price of each Non-Employee Director
Option shall be one hundred percent (100%) of the Fair Market Value of the stock
subject to the Non-Employee Director Option on the date of grant.
Notwithstanding the foregoing, a Non-Employee Director Option may be granted
with an exercise price lower than that set forth in the preceding sentence if
such Non-Employee Director Option is granted pursuant to an assumption or
substitution for another option in a manner satisfying the provisions of Section
424(a) of the Code.

         (d) VESTING.

                  (i) INITIAL GRANTS. Initial Grants shall vest one-thirty-sixth
(1/36th) for each month of Continuous Service of the Non-Employee Director from
the date of the stock option grant.

                  (ii) ANNUAL GRANTS. Annual Grants shall vest one-twelfth
(1/12th) for each month of Continuous Service of the Non-Employee Director from
the date of the stock option grant.

         (e) CONSIDERATION. The purchase price of stock acquired pursuant to a
Non-Employee Director Option may be paid, to the extent permitted by applicable
statutes and regulations, in any combination of (i) cash or check, (ii) delivery
to the Company of other Common Stock, (ii) deferred payment or (iv) any other
form of legal consideration that may be acceptable to the Board and provided in
the Non-Employee Director Option Agreement; provided, however, that at any time
that the Company is incorporated in Delaware, payment of the Common Stock's "par
value," as defined in the Delaware General Corporation Law, shall not be made by
deferred payment. In the case of any deferred payment arrangement, interest
shall be compounded at least annually and shall be charged at the minimum rate
of interest necessary to

                                       13
<PAGE>

avoid the treatment as interest, under any applicable provisions of the Code, of
any amounts other than amounts stated to be interest under the deferred payment
arrangement.

         (f) TRANSFERABILITY. A Non-Employee Director Option shall not be
transferable except by will or by the laws of descent and distribution and shall
be exercisable during the lifetime of the Non-Employee Director only by the
Non-Employee Director. Notwithstanding the foregoing, the Non-Employee Director
may, by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the
Non-Employee Director, shall thereafter be entitled to exercise the Non-Employee
Director Option.

         (g) TERMINATION OF CONTINUOUS SERVICE. In the event a Non-Employee
Director's Continuous Service terminates (other than upon the Non-Employee
Director's death or Disability), the Non-Employee Director may exercise his or
her Non-Employee Director Option (to the extent that the Non-Employee Director
was entitled to exercise it as of the date of termination) but only within such
period of time ending on the earlier of (i) the date three (3) months following
the termination of the Non-Employee Director's Continuous Service, or (ii) the
expiration of the term of the Non-Employee Director Option as set forth in the
Non-Employee Director Option Agreement. If, after termination, the Non-Employee
Director does not exercise his or her Non-Employee Director Option within the
time specified in the Non-Employee Director Option Agreement, the Non-Employee
Director Option shall terminate.

         (h) EXTENSION OF TERMINATION DATE. If the exercise of the Non-Employee
Director Option following the termination of the Non-Employee Director's
Continuous Service (other than upon the Non-Employee Director's death or
Disability) would be prohibited at any time solely because the issuance of
shares would violate the registration requirements under the Securities Act,
then the Non-Employee Director Option shall terminate on the earlier of (i) the
expiration of the term of the Non-Employee Director Option set forth in
subsection 7(c) or (ii) the expiration of a period of three (3) months after the
termination of the Non-Employee Director's Continuous Service during which the
exercise of the Non-Employee Director Option would not violate such registration
requirements.

         (i) DISABILITY OF NON-EMPLOYEE DIRECTOR. In the event a Non-Employee
Director's Continuous Service terminates as a result of the Non-Employee
Director's Disability, the Non-Employee Director may exercise his or her
Non-Employee Director Option (to the extent that the Non-Employee Director was
entitled to exercise it as of the date of termination), but only within such
period of time ending on the earlier of (i) the date twelve (12) months
following such termination or (ii) the expiration of the term of the
Non-Employee Director Option as set forth in the Non-Employee Director Option
Agreement. If, after termination, the Non-Employee Director does not exercise
his or her Non-Employee Director Option within the time specified herein, the
Non-Employee Director Option shall terminate.

         (j) DEATH OF NON-EMPLOYEE DIRECTOR. In the event (i) a Non-Employee
Director's Continuous Service terminates as a result of the Non-Employee
Director's death or (ii) the Non-Employee Director dies within the three-month
period after the termination of the Non-Employee Director's Continuous Service
for a reason other than death, then the Non-Employee

                                       14
<PAGE>

Director Option may be exercised (to the extent the Non-Employee Director was
entitled to exercise the Non-Employee Director Option as of the date of death)
by the Non-Employee Director's estate, by a person who acquired the right to
exercise the Non-Employee Director Option by bequest or inheritance or by a
person designated to exercise the Non-Employee Director Option upon the
Non-Employee Director's death, but only within the period ending on the earlier
of (1) the date eighteen (18) months following the date of death or (2) the
expiration of the term of such Non-Employee Director Option as set forth in the
Non-Employee Director Option Agreement. If, after death, the Non-Employee
Director Option is not exercised within the time specified herein, the
Non-Employee Director Option shall terminate.

8.       PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.

         (a) STOCK BONUS AWARDS. Each stock bonus agreement shall be in such
form and shall contain such terms and conditions as the Board shall deem
appropriate. The terms and conditions of stock bonus agreements may change from
time to time, and the terms and conditions of separate stock bonus agreements
need not be identical, but each stock bonus agreement shall include (through
incorporation of provisions hereof by reference in the agreement or otherwise)
the substance of each of the following provisions:

                  (i) CONSIDERATION. A stock bonus may be awarded in
consideration for past services actually rendered to the Company or an Affiliate
for its benefit.

                  (ii) VESTING. Subject to the "Repurchase Limitation" in
subsection 11(h), shares of Common Stock awarded under the stock bonus agreement
may, but need not, be subject to a share repurchase option in favor of the
Company in accordance with a vesting schedule to be determined by the Board.

                  (iii) TERMINATION OF PARTICIPANT'S CONTINUOUS SERVICE. Subject
to the "Repurchase Limitation" in subsection 11(h), in the event a Participant's
Continuous Service terminates, the Company may reacquire any or all of the
shares of Common Stock held by the Participant which have not vested as of the
date of termination under the terms of the stock bonus agreement.

                  (iv) TRANSFERABILITY. For a stock bonus award made before the
Listing Date, rights to acquire shares of Common Stock under the stock bonus
agreement shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Participant
only by the Participant. For a stock bonus award made on or after the Listing
Date, rights to acquire shares of Common Stock under the stock bonus agreement
shall be transferable by the Participant only upon such terms and conditions as
are set forth in the stock bonus agreement, as the Board shall determine in its
discretion, so long as Common Stock awarded under the stock bonus agreement
remains subject to the terms of the stock bonus agreement.

         (b) RESTRICTED STOCK AWARDS. Each restricted stock purchase agreement
shall be in such form and shall contain such terms and conditions as the Board
shall deem appropriate. The terms and conditions of the restricted stock
purchase agreements may change from time to time,

                                       15
<PAGE>

and the terms and conditions of separate restricted stock purchase agreements
need not be identical, but each restricted stock purchase agreement shall
include (through incorporation of provisions hereof by reference in the
agreement or otherwise) the substance of each of the following provisions:

                  (i) PURCHASE PRICE. Subject to the provisions of subsection
5(b) regarding Ten Percent Shareholders, the purchase price under each
restricted stock purchase agreement shall be such amount as the Board shall
determine and designate in such restricted stock purchase agreement. For
restricted stock awards made prior to the Listing Date, the purchase price shall
not be less than eighty-five percent (85%) of the Common Stock's Fair Market
Value on the date such award is made or at the time the purchase is consummated.
For restricted stock awards made on or after the Listing Date, the purchase
price shall not be less than eighty-five percent (85%) of the Common Stock's
Fair Market Value on the date such award is made or at the time the purchase is
consummated.

                  (ii) CONSIDERATION. The purchase price of Common Stock
acquired pursuant to the restricted stock purchase agreement shall be paid
either: (i) in cash at the time of purchase; (ii) at the discretion of the
Board, according to a deferred payment or other similar arrangement with the
Participant; or (iii) in any other form of legal consideration that may be
acceptable to the Board in its discretion; provided, however, that at any time
that the Company is incorporated in Delaware, then payment of the Common Stock's
"par value," as defined in the Delaware General Corporation Law, shall not be
made by deferred payment.

                  (iii) VESTING. Subject to the "Repurchase Limitation" in
subsection 11(h), shares of Common Stock acquired under the restricted stock
purchase agreement may, but need not, be subject to a share repurchase option in
favor of the Company in accordance with a vesting schedule to be determined by
the Board.

                  (iv) TERMINATION OF PARTICIPANT'S CONTINUOUS SERVICE. Subject
to the "Repurchase Limitation" in subsection 11(h), in the event a Participant's
Continuous Service terminates, the Company may repurchase or otherwise reacquire
any or all of the shares of Common Stock held by the Participant which have not
vested as of the date of termination under the terms of the restricted stock
purchase agreement.

                  (v) TRANSFERABILITY. For a restricted stock award made before
the Listing Date, rights to acquire shares of Common Stock under the restricted
stock purchase agreement shall not be transferable except by will or by the laws
of descent and distribution and shall be exercisable during the lifetime of the
Participant only by the Participant. For a restricted stock award made on or
after the Listing Date, rights to acquire shares of Common Stock under the
restricted stock purchase agreement shall be transferable by the Participant
only upon such terms and conditions as are set forth in the restricted stock
purchase agreement, as the Board shall determine in its discretion, so long as
Common Stock awarded under the restricted stock purchase agreement remains
subject to the terms of the restricted stock purchase agreement.

                                       16
<PAGE>

9.       COVENANTS OF THE COMPANY.

         (a) AVAILABILITY OF SHARES. During the terms of the Stock Awards, the
Company shall keep available at all times the number of shares of Common Stock
required to satisfy such Stock Awards.

         (b) SECURITIES LAW COMPLIANCE. The Company shall seek to obtain from
each regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to grant Stock Awards and to issue and sell shares
of Common Stock upon exercise of the Stock Awards; provided, however, that this
undertaking shall not require the Company to register under the Securities Act
the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any
such Stock Award. If, after reasonable efforts, the Company is unable to obtain
from any such regulatory commission or agency the authority which counsel for
the Company deems necessary for the lawful issuance and sale of Common Stock
under the Plan, the Company shall be relieved from any liability for failure to
issue and sell Common Stock upon exercise of such Stock Awards unless and until
such authority is obtained.

10.      USE OF PROCEEDS FROM STOCK.

         Proceeds from the sale of Common Stock pursuant to Stock Awards shall
constitute general funds of the Company.

11.      MISCELLANEOUS.

         (a) ACCELERATION OF EXERCISABILITY AND VESTING. The Board shall have
the power to accelerate the time at which a Stock Award may first be exercised
or the time during which a Stock Award or any part thereof will vest in
accordance with the Plan, notwithstanding the provisions in the Stock Award
stating the time at which it may first be exercised or the time during which it
will vest.

         (b) SHAREHOLDER RIGHTS. No Participant shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any shares of
Common Stock subject to such Stock Award unless and until such Participant has
satisfied all requirements for exercise of the Stock Award pursuant to its
terms.

         (c) NO EMPLOYMENT OR OTHER SERVICE RIGHTS. Nothing in the Plan or any
instrument executed or Stock Award granted pursuant thereto shall confer upon
any Participant any right to continue to serve the Company or an Affiliate in
the capacity in effect at the time the Stock Award was granted or shall affect
the right of the Company or an Affiliate to terminate (i) the employment of an
Employee with or without notice and with or without cause, (ii) the service of a
Consultant pursuant to the terms of such Consultant's agreement with the Company
or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of the
Company or an Affiliate, and any applicable provisions of the corporate law of
the state in which the Company or the Affiliate is incorporated, as the case may
be.

                                       17
<PAGE>

         (d) INCENTIVE STOCK OPTION $100,000 LIMITATION. To the extent that the
aggregate Fair Market Value (determined at the time of grant) of Common Stock
with respect to which Incentive Stock Options are exercisable for the first time
by any Optionholder during any calendar year (under all plans of the Company and
its Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or
portions thereof which exceed such limit (according to the order in which they
were granted) shall be treated as Nonstatutory Stock Options.

         (e) INVESTMENT ASSURANCES. The Company may require a Participant, as a
condition of exercising or acquiring Common Stock under any Stock Award, (i) to
give written assurances satisfactory to the Company as to the Participant's
knowledge and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who is
knowledgeable and experienced in financial and business matters and that he or
she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Stock Award; and (ii) to
give written assurances satisfactory to the Company stating that the Participant
is acquiring Common Stock subject to the Stock Award for the Participant's own
account and not with any present intention of selling or otherwise distributing
the Common Stock. The foregoing requirements, and any assurances given pursuant
to such requirements, shall be inoperative if (1) the issuance of the shares of
Common Stock upon the exercise or acquisition of Common Stock under the Stock
Award has been registered under a then currently effective registration
statement under the Securities Act or (2) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not
be met in the circumstances under the then applicable securities laws. The
Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or
appropriate in order to comply with applicable securities laws, including, but
not limited to, legends restricting the transfer of the Common Stock.

         (f) WITHHOLDING OBLIGATIONS. To the extent provided by the terms of a
Stock Award Agreement, the Participant may satisfy any federal, state or local
tax withholding obligation relating to the exercise or acquisition of Common
Stock under a Stock Award by any of the following means (in addition to the
Company's right to withhold from any compensation paid to the Participant by the
Company) or by a combination of such means: (i) tendering a cash payment; (ii)
authorizing the Company to withhold shares of Common Stock from the shares of
Common Stock otherwise issuable to the Participant as a result of the exercise
or acquisition of Common Stock under the Stock Award, provided, however, that no
shares of Common Stock are withheld with a value exceeding the minimum amount of
tax required to be withheld by law; or (iii) delivering to the Company owned and
unencumbered shares of Common Stock.

         (g) INFORMATION OBLIGATION. Prior to the Listing Date, to the extent
required by Section 260.140.46 of Title 10 of the California Code of
Regulations, the Company shall deliver financial statements to Participants at
least annually. This subsection 11(g) shall not apply to key Employees whose
duties in connection with the Company assure them access to equivalent
information.

                                       18
<PAGE>

         (h) REPURCHASE LIMITATION. The terms of any repurchase option shall be
specified in the Stock Award and may be either at Fair Market Value at the time
of repurchase or at not less than the original purchase price. To the extent
required by Section 260.140.41 and Section 260.140.42 of Title 10 of the
California Code of Regulations at the time a Stock Award is made, any repurchase
option contained in a Stock Award granted prior to the Listing Date to a person
who is not an Officer, Director or Consultant shall be upon the terms described
below:

                  (i) FAIR MARKET VALUE. If the repurchase option gives the
Company the right to repurchase the shares of Common Stock upon termination of
employment at not less than the Fair Market Value of the shares of Common Stock
to be purchased on the date of termination of Continuous Service, then (i) the
right to repurchase shall be exercised for cash or cancellation of purchase
money indebtedness for the shares of Common Stock within ninety (90) days of
termination of Continuous Service (or in the case of shares of Common Stock
issued upon exercise of Stock Awards after such date of termination, within
ninety (90) days after the date of the exercise) or such longer period as may be
agreed to by the Company and the Participant (for example, for purposes of
satisfying the requirements of Section 1202(c)(3) of the Code regarding
"qualified small business stock") and (ii) the right terminates when the shares
of Common Stock become publicly traded.

                  (ii) ORIGINAL PURCHASE PRICE. If the repurchase option gives
the Company the right to repurchase the shares of Common Stock upon termination
of Continuous Service at the original purchase price, then (i) the right to
repurchase at the original purchase price shall lapse at the rate of at least
twenty percent (20%) of the shares of Common Stock per year over five (5) years
from the date the Stock Award is granted (without respect to the date the Stock
Award was exercised or became exercisable) and (ii) the right to repurchase
shall be exercised for cash or cancellation of purchase money indebtedness for
the shares of Common Stock within ninety (90) days of termination of Continuous
Service (or in the case of shares of Common Stock issued upon exercise of
Options after such date of termination, within ninety (90) days after the date
of the exercise) or such longer period as may be agreed to by the Company and
the Participant (for example, for purposes of satisfying the requirements of
Section 1202(c)(3) of the Code regarding "qualified small business stock").

12.      ADJUSTMENTS UPON CHANGES IN STOCK.

         (a) CAPITALIZATION ADJUSTMENTS. If any change is made in the Common
Stock subject to the Plan, or subject to any Stock Award, without the receipt of
consideration by the Company (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the
receipt of consideration by the Company), the Plan will be appropriately
adjusted in the class(es) and maximum number of securities subject to the Plan
pursuant to subsection 4(a) and the maximum number of securities subject to
award to any person pursuant to subsection 5(c), and the outstanding Stock
Awards will be appropriately adjusted in the class(es) and number of securities
and price per share of Common Stock subject to such outstanding Stock Awards.
The Board shall make such adjustments, and its determination shall be final,
binding and conclusive.

                                       19
<PAGE>

(The conversion of any convertible securities of the Company shall not be
treated as a transaction "without receipt of consideration" by the Company.)

         (b) CHANGE IN CONTROL. In the event of (i) a dissolution, liquidation
or sale of substantially all of the assets of the Company, (ii) a merger or
consolidation in which the Company is not the surviving corporation or (iii) a
reverse merger in which the Company is the surviving corporation but the shares
of Common Stock outstanding immediately preceding the merger are converted by
virtue of the merger into other property, whether in the form of securities,
cash or otherwise, then, to the extent permitted by applicable law: (i) any
surviving corporation shall assume any Stock Awards outstanding under the Plan
or shall substitute similar stock awards (including an award to acquire the same
consideration paid to the stockholders in the transaction described in this
subsection 12(c)) for those outstanding under the Plan, or (ii) such Stock
Awards shall continue in full force and effect. In the event any surviving
corporation refuses to assume or continue such Stock Awards, or to substitute
similar stock awards for those outstanding under the Plan, then with respect to
Stock Awards held by Participants whose Continuous Service has not terminated,
the time during which such Stock Awards may be exercised shall be accelerated,
and the Stock Awards terminated if not exercised prior to such event.

13.      AMENDMENT OF THE PLAN AND STOCK AWARDS.

         (a) AMENDMENT OF PLAN. The Board at any time, and from time to time,
may amend the Plan. However, except as provided in Section 12 relating to
adjustments upon changes in Common Stock, no amendment shall be effective unless
approved by the shareholders of the Company to the extent shareholder approval
is necessary to satisfy the requirements of Section 422 of the Code, Rule 16b-3
or any Nasdaq or securities exchange listing requirements.

         (b) SHAREHOLDER APPROVAL. The Board may, in its sole discretion, submit
any other amendment to the Plan for shareholder approval, including, but not
limited to, amendments to the Plan intended to satisfy the requirements of
Section 162(m) of the Code and the regulations thereunder regarding the
exclusion of performance-based compensation from the limit on corporate
deductibility of compensation paid to certain executive officers.

         (c) CONTEMPLATED AMENDMENTS. It is expressly contemplated that the
Board may amend the Plan in any respect the Board deems necessary or advisable
to provide eligible Employees with the maximum benefits provided or to be
provided under the provisions of the Code and the regulations promulgated
thereunder relating to Incentive Stock Options and/or to bring the Plan and/or
Incentive Stock Options granted under it into compliance therewith.

         (d) NO IMPAIRMENT OF RIGHTS. Rights under any Stock Award granted
before amendment of the Plan shall not be impaired by any amendment of the Plan
unless (i) the Company requests the consent of the Participant and (ii) the
Participant consents in writing.

         (e) AMENDMENT OF STOCK AWARDS. The Board at any time, and from time to
time, may amend the terms of any one or more Stock Awards; provided, however,
that the rights under

                                       20
<PAGE>

any Stock Award shall not be impaired by any such amendment unless (i) the
Company requests the consent of the Participant and (ii) the Participant
consents in writing.

14.      TERMINATION OR SUSPENSION OF THE PLAN.

         (a) PLAN TERM. The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on the day before the tenth
(10th) anniversary of the date the Plan is adopted by the Board or approved by
the shareholders of the Company, whichever is earlier. No Stock Awards may be
granted under the Plan while the Plan is suspended or after it is terminated.

         (b) NO IMPAIRMENT OF RIGHTS. Suspension or termination of the Plan
shall not impair rights and obligations under any Stock Award granted while the
Plan is in effect except with the written consent of the Participant.

15.      EFFECTIVE DATE OF PLAN.

         The Plan shall become effective as determined by the Board, but no
Stock Award shall be exercised (or, in the case of a stock bonus, shall be
granted) unless and until the Plan has been approved by the shareholders of the
Company, which approval shall be within twelve (12) months before or after the
date the Plan is adopted by the Board.

16.      CHOICE OF LAW.

         The law of the State of California shall govern all questions
concerning the construction, validity and interpretation of this Plan, without
regard to such state's conflict of laws rules.

                                       21<PAGE>

                                                                   Exhibit 10.19

         CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED
         SEPERATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
         REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                SERVICE AGREEMENT

         This service agreement ("Agreement"), made and entered into as of this
1st day of August, 1998, by and between Dade Behring a Delaware corporation
("Dade Behring") having a principal place of business located at 1717 Deerfield
Road, Deerfield, IL 60015-0778, and OmniCell Technologies, Inc. a California
corporation ("Omnicell") having a principal place of business located at 1101
East Meadow Drive, Palo Alto, CA 94303.

         Whereas, Dade Behring is, among other things, in the business of
selling services relating to the installation, repair and preventive maintenance
of medical diagnostic products, equipment, apparatus, and instruments and of
selling parts and components related thereto;

         Whereas, OmniCell is in the business of selling certain products,
equipment, apparatus, and instruments related to medical supply and
pharmaceutical management;

         Whereas, OmniCell and Dade Behring mutually desire for Dade Behring to
provide service and parts in connection with OmniCell's products, equipment,
apparatus, and instruments;

         Now, Therefore, in consideration of the premises, mutual covenants and
other agreements contained herein, the parties hereto agree hereof, as follows;

                                   ARTICLE I
                                   ENGAGEMENT

         Section 1.01 GRANT. OmniCell hereby grants to Dade Behring, and agrees
to cause its affiliates to grant to Dade Behring the right to service the
products, equipment, apparatus and instruments described in Exhibit A ("Current
Products"), all accessories for all Current Products, and all products and
accessories which are similar thereto and which OmniCell or any of its
affiliates may at any time hereafter sell, lease, or otherwise provide or place
(collectively, "Products"). The nature of the grants hereby given is, however,
restricted to the territory or territories ("Territory") described on Exhibit A.

         Section 1.02 ACCEPTANCE. Dade Behring hereby accepts from OmniCell the
grant hereby given and agrees to exert its reasonable efforts to provide
service, or cause service to be provided, for Products in the Territory as
required herein. In providing service, Dade Behring will not be responsible for
the accuracy, completeness or timeliness of any advice or service or any return,
report, filing or other document which it provides, prepares or assists in
preparing, except to the extent that any inaccuracy, incompleteness or
untimeliness arises from the gross negligence or willful misconduct of Dade
Behring. OmniCell and Dade Behring will cooperate in planning the scope and
timing of services provided hereunder in order to minimize or eliminate
interference with the conduct of Dade Behring's business activities.
Notwithstanding any contrary indication herein, if such interference is
unavoidable, Dade Behring will apportion the available services in a fair and
reasonable manner, as determined by Dade Behring in its sole discretion.

         Section 1.03 DESIGNATION. OmniCell hereby appoints, and agrees to cause
its affiliates to appoint, Dade Behring as an authorized servicer of Products in
the Territory and

                                     1
<PAGE>

hereby grants to Dade Behring, and agrees to cause its affiliates to grant to
Dade Behring, the right to designate itself as an authorized servicer of
Products in the Territory. OmniCell agrees, and agrees to cause its affiliates
to agree, that Dade Behring may so advertise itself and. reasonably use
trademarks of OmniCell and its affiliates in so doing.

         Section 1.04 "AFFILIATE" DEFINED. As used in this Agreement, an
"affiliate" is a person, firm, partnership, joint venture, corporation or entity
which, directly or indirectly, controls, is controlled by, or is under the
common control of another person, firm, partnership, joint venture, corporation
or entity.

                                   ARTICLE II
                                    TRAINING

         Section 2.01 OMNICELL TRAINING. OmniCell will provide, at no charge for
mutually agreed upon service, products, and territories, complete specialized
training to technicians and/or technical instructors designated by Dade Behring
on how to service, repair, refurbish, and conduct preventive maintenance on all
Products, on all other matters and skills needed or appropriate for Dade Behring
to fulfill its obligations hereunder and on how to train others. It's the desire
of both parties to transition on-going training for existing mature products
from OmniCell to Dade Behring in a mutually agreed upon timeframe. OmniCell will
be responsible for new product training until such a time that both parties
agree to transition on-going training to Dade Behring. Dade Behring will
maintain records of such training sufficient for compliance with applicable laws
and governmental regulations.

         Section 2.02 FREQUENCY OF TRAINING. OmniCell shall provide such
training and will coordinate attendees and training dates with Dade's designated
training coordinator. Training will begin in 1998 and will conclude when
mutually agreed upon by both Dade Behring and OmniCell.

         Section 2.03 TRAINING LOCATIONS. Such training shall be provided by
OmniCell at its facility located at Palo Alto, California or other mutually
agreeable location. If it is mutually agreed to provide training at a location
other than OmniCell's headquarters, OmniCell will be responsible for shipping
expenses required to conduct such training. Dade Behring will bear the expense
of shipment of such equipment between Dade's own training facilities. Dade
Behring shall bear responsibility for all of OmniCell's equipment stored at a
Dade Behring facility.

         Section 2.04 OMNICELL TRAINING AIDS, PRODUCTS. In connection with such
training, OmniCell will furnish, at no charge, all such papers, procedures,
recommended parts lists, complete parts lists, books, manuals, workbooks, videos
and all training, instruction, and presentation aids as are necessary or
appropriate and all such Products and parts in sufficient quantities as are
necessary or appropriate. OmniCell also agrees to provide, at no charge upon
Dade's request, all mutually agreed required Products and parts in sufficient
quantities as may be needed or appropriate to enable Dade Behring to provide
such training to representatives who are intended by Dade Behring to provide
service hereunder. OmniCell agrees to promptly provide Dade Behring, at no
charge, with additional, new and revised papers, procedures, recommended parts
lists, complete parts lists, books, manuals, workbooks, videos and all training,
instruction, and presentation aids as are available to OmniCell or as OmniCell
may develop, for all mutually

                                      -2-
<PAGE>

agreed upon services provided. All equipment and training aids furnished by
OmniCell for training purposes will remain the property of OmniCell and will be
returned to OmniCell upon termination of this Agreement, regardless of other
claims and disputes, shipping charges billable to OmniCell, ordinary wear and
tear and damage by fire or casualty excepted. OmniCell agrees that Dade Behring
may freely reproduce any such papers, procedures, recommended parts lists,
complete parts lists, books, manuals, workbooks, videos and all training,
instruction, and presentation aids, unless such items are designated by OmniCell
as confidential, wherein such items may be reproduced for Dade's internal use
only. OmniCell agrees to pay and absorb the expenses, if any, in connection with
the repair, refurbishing, packaging and transportation of Products, parts,
papers, procedures, recommended parts lists, complete parts lists, books,
manuals, workbooks, videos and all training, instruction, and presentation aids
provided under this Section. Dade Behring shall be responsible for the cost of
any parts, tools, manuals, etc. that are lost or destroyed while in the
possession of Dade Behring or one of its employees.

         Section 2.05 TRAINING COSTS. OmniCell will be responsible for the [*]
for Dade Behring technicians, trained at an OmniCell facility, at a rate of
from [*] to [*] per technician and OmniCell will work with Dade Behring on
securing the travel schedules and guidelines (i.e., OmniCell will select the
hotels and work to receive the most economical rates). Dade Behring shall be
responsible for all other per diem costs for such technicians related to such
training. Dade Behring will be responsible for all retraining costs,
replacement of equipment, tools, manuals, etc., due to the layoff or loss of
an FSR.

         Section 2.06 ADDITIONAL TRAINING. Notwithstanding any contrary
indication herein, with respect to any Product or Part which is changed or
modified in any way, Dade Behring may request and, thereafter, OmniCell will
provide such training as if no prior training therefor had previously been
provided. For any product, accessory, component or part which will become a
Product or Part, Dade Behring may request such training at any time after a date
which is six months before such product, accessory, part or component becomes a
Product or Part, and OmniCell will provide such training as provided in this
Agreement.

                                  ARTICLE III
                             SERVICE TO BE PROVIDED

         Section 3.01 "SERVICE" DEFINED. As used in this Agreement, the word
"service", when used in connection with the Products, means Dade's duty to
OmniCell to perform in the Territory such in-warranty and out-of-warranty repair
work requested by a customer as OmniCell or any of its affiliates may have
agreed to provide, or cause to be provided to a customer, such installation work
as may be required by the complex nature of the Products, such preventive
maintenance work as OmniCell or any of its affiliates may have agreed to
provide, or cause to be provided to a customer, and such refurbishment work as
OmniCell may request on a Product for its own account; provided, however, and
notwithstanding any contrary indication herein, such "service" shall not include
any work for which OmniCell has not provided complete specialized training
throughout the Territory or any work more detailed than repairing or replacing
Product hardware only and in no event shall cover any software or hospital
network systems responsibilities, other that the simple reloading of software on
components of the Products, and

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         SEPERATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
         REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                      -3-
<PAGE>

such other responsibilities as may be agreed to in writing from time to time
between Dade Behring and OmniCell.

         Section 3.02 SERVICE LOCATIONS. All work will typically be provided at
the site of the product in the Territory, or at Dade's option and considering
the problem, at a specified repair depot. Premium service cities will be
activated with the mutual agreement of Dade Behring and OmniCell. Activation of
a Premium service city depends on the number of trained Dade Behring FSRs. In
some cases it may be necessary to return a Product to OmniCell for service, in
which event Dade Behring will call and arrange with OmniCell before returning a
Product to OmniCell.

         Section 3.03 SERVICE LEVELS. Reference Exhibit A for service level
requirements. The maximum response time shall be within [*] for disabled
units and [*] for functioning units. For any service provided by Dade Behring
at OmniCell's request beyond the scope of the above levels, OmniCell shall
pay Dade Behring at the rate listed in Exhibit A. Dade Behring shall provide
to OmniCell monthly activity reports including parts usage.

         Section 3.04 OMNICELL WARRANTIES TO CUSTOMERS. OmniCell agrees to
promptly provide Dade, at Dade's request from time to time, all information
concerning such warranties including, without limitation, (a) the name, address
and telephone number of each customer in the Territory with a Product under
warranty, showing as to each such customer the identity of each such Product and
as to each such warranty the expiration date therefor and (b) a copy of each
such warranty identified to each such Product.

         Section 3.05 OMNICELL SERVICE AGREEMENTS WITH CUSTOMERS. OmniCell
agrees to promptly provide Dade, at Dade's request from time to time, all
information concerning such service agreements including, without limitation,
the name, address and telephone number of each customer in the Territory with a
Product for which OmniCell or any of its affiliates has agreed to provide, or
cause to be provided out-of-warranty repair or preventive maintenance work,
showing as to each such customer the identity of each such Product and a
complete description or copy of each such agreement including, without
limitation, the term and duration thereof and the nature and scope of the work
to be provided, provided, however, that such description and such copy need not
show the amount, if any, to be paid by such customer to OmniCell for such work.

         Section 3.06 NEW PLACEMENTS, AGREEMENTS. Manufacturer agrees to
immediately (a) advise Dade Behring with respect to each Product it or any of
its affiliates sells, leases or otherwise provides or places in the Territory,
(b) with respect to each Product for which it agrees to provide service in the
Territory, provide the name, address and telephone number of the customer
therefor, and (c) provide the serial number, if any, for each such Product, and
provide a complete description or copy of each warranty or agreement relating to
each such Product including, without limitation, the term and duration thereof
and the nature and scope of the work to be provided, provided, however, that
such description and such copy need not show the amount, if any, to be paid by
such customer to Manufacturer for such work. Manufacturer agrees to provide
adequate prior notice of the delivery in the Territory to a customer of each
Product requiring installation work so that Dade Behring can properly schedule
such installation work.

         |*| = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
         SEPERATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
         REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                      -4-
<PAGE>

         Section 3.07 PARTS AVAILABILITY, PRICES, PAYMENT, DELIVERY. OmniCell
agrees to continuously maintain an adequate inventory of and to promptly fill
Dade's orders for parts. OmniCell will provide Dade Behring with an initial and
ongoing inventory of such parts on consignment. It is estimated that such
adequate inventory of parts shall initially be at least $1,000 in parts for each
Dade Behring technician servicing OmniCell Products. Dade Behring agrees to
provide part(s) depot services for OmniCell at a mutually agreed starting date
and inventory quantity of depot parts. Part(s) shipping costs will be charged
back to OmniCell on a monthly basis. Warehousing and handling costs will be
mutually agreed to by Dade Behring and OmniCell.

                                   ARTICLE IV
                                TECHNICAL SUPPORT

         Section 4.01 TELEPHONE ASSISTANCE. During normal working hours,
OmniCell will maintain a no-charge telephone hot line staffed by OmniCell
experts on the Products to provide technical assistance to its customers and
Dade Behring technicians providing service hereunder. It is contemplated that
such normal hours shall be from [*].

         Section 4.02 SERVICE MANUALS, SOFTWARE/FIRMWARE. OmniCell will promptly
provide, at no charge, to Dade Behring for each technician providing service
hereunder, for each Product a complete service manual which includes, without
limitation, operations procedures, theory of operation, installation procedures,
schematic diagrams, adjustment and calibration procedures, trouble shooting
guides, parts diagrams, and complete parts lists. All such service manuals will
be printed in English. OmniCell agrees to provide Dade, at no charge, reasonable
quantities of master sets of computer software and firmware for each Product and
all changes or modifications thereto, and OmniCell agrees that Dade Behring may
make additional copies thereof, for Dade's internal use only.

         Section 4.03 TOOLS. OmniCell agrees to promptly provide, at no charge,
to Dade Behring for each representative providing service hereunder, any test
equipment and tools which are not necessary in providing repair work on other
instruments which Dade Behring repairs, but are necessary for the proper repair
or preventive maintenance of a Product. Dade Behring agrees that OmniCell shall
not be required hereunder to replace or repair without cost any such test
equipment or tools which are lost, stolen or damaged while in Dade's possession.

         Section 4.04 WORK BY OMNICELL. Where a service problem on a Product is
not resolved after OmniCell provides technical assistance as contemplated by
Section 4.01 hereof, OmniCell will dispatch a service call to Dade Behring in a
manner to be specified by Dade. No cost or expense associated with such work by
OmniCell shall be born by Dade.

         Section 4.05 OVERFLOW CALL ANSWERING. Dade Behring agrees to provide to
OmniCell at no charge overflow call answering and forwarding services. Such
overflow service shall not include providing any technical information to the
customers calling in and will be provided only during the hours identified in
Exhibit A.

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         SEPERATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
         REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                      -5-
<PAGE>

         Section 4.06 SERVICE BULLETINS. OmniCell agrees to promptly provide, at
no charge, to Dade Behring for each technician providing service hereunder, all
service bulletins, service notes and service aids for each Product.

                                   ARTICLE V
                              PAYMENT FOR SERVICES

         Section 5.01 PAYMENT RATES. Reference Exhibit A for payment
information. OmniCell agrees to pay Dade Behring at the rate listed in
Exhibit A per month for each Product (frame/cabinet) covered by this
Agreement. On an annual basis, a review will be conducted by the parties.
Unfavorable cost experience related to significant changes in reliability or
serviceability will be evaluated and negotiated between Dade Behring and
OmniCell. OmniCell service parameters are based on [*] (including travel) per
service call, and an average service call failure frequency of one (1) call
every [*].

         Section 5.02 UTILIZED PARTS. OmniCell agrees to promptly replace all
parts utilized in connection with training or consigned in connection with
providing services hereunder.

         Section 5.03 PAYMENT. Dade Behring agrees to invoice OmniCell in detail
for the amounts to be paid by OmniCell to Dade Behring hereunder; and OmniCell
agrees to promptly pay the amount of such invoices, Net 30. OmniCell agrees that
Dade Behring may charge and OmniCell agrees to pay Dade Behring a delinquency
charge equal to the lesser of one and one-half percent per month or the highest
rate permitted by law on the undisputed past due balance, if any, of each such
invoice. Dade Behring agrees to maintain its detailed records of services
provided hereunder and further agrees to make such records reasonably available
to OmniCell at OmniCell's request. Service coverage will begin August 1, 1998.
Dade Behring will first invoice OmniCell no later than September 30, 1998, based
on the total frames installed as of August 1, 1998.

         Section 5.04 CUSTOMER DATABASE. OmniCell agrees to provide Dade Behring
with an accurate listing of all of its customers and each Product
(frame/cabinet) placed by the 15th of each month during the term of this
Agreement. Such database shall be accurately updated each month. Dade Behring
shall prepare its invoice for Products placed covered by this Agreement as
contemplated by Section 5.01 above by the end of each such month. The first
customer database report is due to Dade Behring by September 15, 1998, which
will reflect all frames installed as of August 31, 1998. OmniCell will regularly
provide written notification of a new customer location to Dade, and Dade
Behring will provide written acknowledgment of its ability to provide service
for the new location within 15 (fifteen) days of receipt of OmniCell's
notification. Should this new location require training for additional FSRs,
Dade Behring and OmniCell agree to determine training requirements within 30
(thirty) days of Dade's acknowledgment of service coverage.

                                   ARTICLE VI
                            MISCELLANEOUS PROVISIONS

         |*| = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
         SEPERATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
         REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                      -6-
<PAGE>

         Section 6.01 PARTS PACKAGING. OmniCell agrees that all parts will be
individually packaged and labeled to show the name and description thereof and
comply with all laws and regulations in the Territory including, without
limitation, laws and regulations concerning hazardous materials. OmniCell agrees
to package such parts adequately to protect them from shipping damage, dust,
humidity, other atmospheric and environmental conditions, and normal shop and
field handling. OmniCell agrees to clearly and visibly show on the packaging all
special handling and environmental conditions required of each Part.

         Section 6.02 RETROFITS. The parties agree that changes, upgrades,
retrofits, exchanges, recalls and similar events with respect to any Product in
the Territory are beyond the scope of this Agreement. Nonetheless, OmniCell
agrees to advise Dade, by notice, of each such matter and provide Dade Behring
full particulars and information with such advice; OmniCell hereby grants, and
agrees to cause its affiliates to grant, to Dade Behring the right and option to
provide such additional work on such matters on the terms, conditions and
provisions hereof. Dade Behring may exercise such option by advising OmniCell,
by notice, thereof on or before the fifth business day after receiving
OmniCell's notice to Dade Behring concerning the matter.

         Section 6.03 RETURN OF PARTS. Dade Behring agrees that it will, at
OmniCell's request, return to OmniCell such parts and components for any Product
which Dade Behring acquires from customers in the course of providing service
hereunder; provided, however, that no such return shall be required of any item
which is potentially hazardous.

         Section 6.04 RECOMMENDATIONS. OmniCell agrees to make recommendations
to Dade Behring so that Dade Behring may more efficiently and effectively
perform hereunder including, without limitation, appropriate stocking levels for
parts, matters concerning preventive maintenance, and training.

         Section 6.05 INDEMNIFICATION. OmniCell agrees to protect, defend, hold
harmless and indemnify Dade Behring from and against and in respect of any and
all damages, claims, losses, liabilities ("Losses") asserted against or incurred
by, and all expense (including, without limitation, all fees and expenses of
counsel, travel costs and other out-of-pocket costs) to the extent such Losses
or expenses result from or are caused by any fault or negligence of OmniCell or
any of its affiliates or any breach by OmniCell or any of its affiliates
hereunder.

         Section 6.06 INDEMNIFICATION. Dade Behring agrees to protect, defend,
hold harmless and indemnify OmniCell from and against and in respect of any and
all damages, claims, losses, liabilities ("Losses") asserted against or incurred
by, and all expense (including, without limitation, all fees and expenses of
counsel, travel costs and other out-of-pocket costs) to the extent such Losses
or expenses result from or are caused by any fault or negligence of Dade Behring
or any of its affiliates or any breach by Dade Behring or any of its affiliates
hereunder.

                                  ARTICLE VII
                       TERM, TERMINATION, PRODUCT DELETION

         Section 7.01 TERM. Except as otherwise provided herein, the term of
this Agreement shall commence on August 1, 1998, and, unless sooner terminated
as provided herein, shall continue until June 30, 2000; unless terminated by
notice given by one party. This

                                      -7-
<PAGE>

agreement shall continue for a period of two (2) years; unless terminated by
notice given by one party to the other on or before July 31, 1999. This
agreement shall continue from year-to-year until terminated by notice given by
one party to the other at least one (1) year prior to such termination.

         Section 7.02 BREACH. In the event either party materially breaches this
Agreement and fails to cure such breach within ninety (90) days after notice
thereof, the other party may, at any time within ninety (90) days thereafter,
terminate this Agreement upon at least thirty (30) days prior written notice.

         Section 7.03 NON-PAYMENT, INSOLVENCY, ETC. Either party may terminate
this Agreement immediately upon notice to the other party (a) if the other party
fails to pay any amount to the notifying party then past due and does not cure
such failure within thirty (30) days of receipt of notice from the notifying
party of such failure; (b) if the other party ceases to do business or otherwise
terminates its business operations; (c) if the other party becomes insolvent or
seeks protection under any insolvency, bankruptcy, receivership, creditors
arrangement or reorganization, composition or comparable proceeding; or (d) if
any such proceeding is instituted against the other party and is not dismissed
or withdrawn within sixty (60) days.

         Section 7.04 AUTHORITY. The parties agree that upon termination Dade
Behring shall cease to be an authorized servicer of Products in the Territory,
both parties agree not to further advertise such authority and Dade Behring
agrees not to further use the trademark rights granted hereunder; provided,
however, that each party may continue to use such catalogues, brochures, and
other materials referring to such authority and using such trademarks until the
supply thereof is exhausted or they are replaced in the normal course of
business.

         Section 7.05 OTHER PROPERTY. Within ninety (90) days after termination
Dade Behring agrees to return to OmniCell all of the property of OmniCell which
was furnished at no charge and which Dade Behring has in its possession together
with all copies thereof made by Dade Behring which are in Dade's possession.
OmniCell agrees to pay to Dade Behring any reasonable transportation, freight,
crating, packaging and related expenses paid or absorbed by Dade Behring in
connection with returning such property. Upon termination of the Agreement, Dade
Behring will reimburse OmniCell for any lost tools, kits, consigned parts, and
documentation.

                                  ARTICLE VIII
                               GENERAL PROVISIONS

         Section 8.01 EFFECT OF TERMINATION. The termination of this Agreement
shall not relieve the parties hereto of any rights or obligations respectively
accrued by or vested in them hereunder prior to such termination or as expressly
provided herein.

         Section 8.02 EXPENSES. The parties have considered the possibility that
one or both of them will incur expenses in preparing for performance of this
Agreement and that one or both of them will incur expenses and suffer losses as
a result of termination, and the parties have nevertheless agreed that neither
party shall be liable for any damages by reason of the termination of this
Agreement pursuant to its terms.

                                      -8-
<PAGE>

         Section 8.03 FORCE MAJEURE. Neither party shall be liable to the other
party for failure or delay in the performance of any obligation under this
Agreement during the time and to the extent such failure or delay is caused by
reason of acts of God or other cause beyond its reasonable control, including
but not limited to, acts of government, riots, war, interruption of
transportation, strikes or other labor trouble, shortages of labor, fire, storm,
flood, earthquake, inability to obtain suitable raw materials, Products, parts,
components, fuel or power or extraordinary price increases. The performance of
obligations hereunder shall be suspended during the existence of such cause, and
upon cessation of such cause, shall again be required.

         Section 8.04 NONWAIVER. Failure of any party to exercise its right to
terminate this Agreement or any other rights hereunder, in case of breach by the
other party of any provision of this Agreement, shall not constitute a waiver of
any other provision of this Agreement nor of any subsequent breach of the same
provision.

         Section 8.05 ASSIGNMENT. This Agreement shall not be assigned by either
of the parties to any third party without the prior written consent of the other
party, which consent shall not be unreasonably withheld or delayed; provided,
however, that either party may assign this Agreement in whole or in part to any
affiliate of such party. In addition, Dade Behring may subcontract or otherwise
delegate to any third party any obligation or performance hereunder, in which
case Dade Behring shall remain primarily responsible hereunder for any such
obligation or performance.

         Section 8.06 NOTICE. Any notice required to be given hereunder by
either party to the other shall be in writing and shall be given by personal
delivery or mailed, postage prepaid, by registered or certified mail addressed
to the other party at the address noted in the initial paragraph of this
Agreement.

         Section 8.07 ENTIRE AGREEMENT. This Agreement sets forth the entire
understanding between the parties with respect to the subject matter hereof and
merges all prior discussions and negotiations between them, and neither party
shall be bound by any condition, definition, warranty or representation
otherwise than as expressly provided for in this Agreement.

         Section 8.08 GOVERNING LAW. The validity and construction of this
Agreement shall be governed in accordance with the internal laws of the State of
California.

         Section 8.09 AMENDMENT. Every amendment of this Agreement shall be in
writing and signed by an authorized officer of both parties.

         Section 8.10 SEPARABILITY. In the event any provision herein shall be
inoperative, the remainder of this Agreement shall remain in effect.

         Section 8.11 COUNTERPARTS. This Agreement maybe executed in any number
of counterparts, each of which shall be deemed an original, but all such
counterparts together shall constitute one and the same instrument.

         Section 8.12 NON-SOLICITATION. Neither OmniCell nor Dade Behring will
solicit for employment or otherwise seek to contract for the services of any
present employee of either

                                      -9-
<PAGE>

party or employee hired by either party during the term hereof until one year
after the earlier of (a) the termination of such employee's employment; or (b)
the termination of this Agreement. No offer or other form of solicitation of
employment will be made at any time when the employment of such person is
prohibited by this Agreement. Such solicitation shall not be deemed to include
the placement of advertisements for employment in any general or industry
publications or the acceptance of unsolicited inquires from covered employees in
the normal course of business. In addition to all other courses of action and
damages the non-defaulting party may have, it is also agreed that such party
will also have the right to injunctive relief

         Section 8.13 CONFIDENTIALITY. By virtue of this agreement, the parties
may have access to the Confidential information of the other party. Such
Confidential Information shall either be clearly identified as "Confidential" on
its face or indicated in writing as being "Confidential" within a reasonable
time after its disclosure. Confidential Information shall include the terms and
pricing under this Agreement. Confidential Information shall not include
information that: (a) is or becomes a part of the public domain through no act
or omission of the other party; (b) was in the other party's lawful possession
prior to the disclosure and had not been obtained by the other party either
directly or indirectly from the disclosing party; (c) is lawfully disclosed to
the other party by a third party without restriction on disclosure; or (d) is
independently developed by the other party. In addition, either party may
disclose Confidential Information to a judicial or government request,
requirement, or order which compels such disclosure under penalty of law.
However, in such event, such party shall promptly notify the other party in
order to permit such party adequate time to oppose such request, requirement or
order, or to otherwise provide for the continued confidential treatment of such
Confidential Information by the governmental body seeking such disclosure. Each
party agrees that, except as directed by the other, such party will not at any
time during the term of this Agreement or for two (2) years thereafter (i)
disclose the other party's Confidential Information to any third party, or (ii)
use the other party's Confidential Information for any other purpose other than
set forth in this Agreement.

Each party agrees to take all reasonable steps to ensure that the Confidential
Information is not disclosed or distributed by its employees or agents in
violation of the terms of this Agreement. Each party shall return all
Confidential Information of the other party at the end of the term hereof at the
request of the other party. Each party acknowledges that the unauthorized use or
disclosure of a party's Confidential information would cause irreparable harm to
the other party.

                                      -10-
<PAGE>

Information shall remain the property of the disclosure party and the disclosure
of Confidential Information to the other party shall not be deemed to confer
upon the other party any rights whatsoever, by license or otherwise, in respect
of any part of the Confidential Information, except as permitted herein.

         In Witness Whereof, the parties have, by their duly authorized
representatives, executed and delivered this Agreement as of the date first
above written.

                                                Dade Behring

                                                By: /s/ Paul R. Duffie
                                                    ----------------------------
                                                [Typed Name]: Paul R. Duffie
                                                as its [Title]: Corporate

                                                OmniCell Technologies, Inc.

                                                By: /s/ Randall A. Lipps
                                                    ----------------------------
                                                [Typed Name]: Randall A. Lipps
                                                as its [Title]: Chairman

                                      -11-
<PAGE>

                                    EXHIBIT A
                             New Agreement Revision

PRODUCT

The current products are: OS104, OS224, OS344, OSD24, OSR24, OCR48, OLL12,
OSL12, XPC100, NPC100, OX104, OX224, OX344, OS56-7, RX-BLU, ORD10, OGD24, OMD24,
OLMD24, OLL6, OSL6, TPC100, PPC100, OSL24.

TERRITORY

The territory is the 50 states of the United States and the District of
Columbia.

OVERFLOW CALL ANSWERING
Note: This service is currently not being used by OmniCell, 30 day written
notice required prior to initiating this service.

         All times listed are Pacific Standard Time.

         After hours support:
                  Monday, Tuesday, Friday:           6PM - 11PM
                  Wednesday, Thursday:               6PM - 5AM
                  Saturday, Sunday:                  4PM - 11PM

         Single man support:
                  Monday, Tuesday, Friday:           11PM - 6AM
                  Wednesday, Thursday:               5AM - 6AM
                  Saturday, Sunday:                  7AM - 4PM

LEVEL OF SERVICE

PREMIUM
7 days a week, 24 hours a day, 365 days a year
[*] on-site response for inoperative "down" devices.
[*] on-site response for devices that are operating with a non-critical
problem.

[*]

         |*| = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
         SEPERATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
         REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

<PAGE>

STANDARD
7 days a week, 24 hours a day, 365 days a year
[*] on-site response for inoperative "down" devices.
[*] on-site response for devices that are operating with a non-critical
problem.

Cities NOT covered by Premium service are covered by this response schedule.

PRICING

These prices are guaranteed as listed below for designated years of the main
agreement provided the annual inflation rate, as measured by the Consumer Price
index (CPI) published by the Bureau of Labor and Statistics of the U. S.
Department of Labor, does not exceed 3.0%. If the 12 month CPI for the period
ending December 31 of such year exceeds 3.0%, these prices may be increased by
the CPI increase at the option of Dade Behring.

In addition to the standard monthly per frame service charge listed below, a
[*] per service request surcharge will be added for all service requests
performed for identified Premium service customers. On site service response is
expected to be at the [*] performance level. The premium surcharge will not
apply for service requests where on-site arrival exceeds the agreed time period.
[*] per frame per month for Standard service customers.
Special request services charged at [*] per hour for labor and travel hours.

         |*| = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
         SEPERATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
         REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

<PAGE>

                       Amendment to The Service Agreement

This Amendment to the Service Agreement is entered into as of November 1, 1999
between Dade Behring ("Dade"), a Delaware corporation, and OmniCell
Technologies, Inc. ("OmniCell") a California corporation.

                                    RECITALS

         A.       OmniCell and Dade entered into a Service Agreement on August
1, 1998.

         B.       OMNICELL and Dade now desire to amend that agreement to
include the servicing of the Sure-Med product line recently acquired by
OmniCell.

         C.       Except as noted below, all provisions of the prior Agreement
remain in force throughout the term of the Agreement.

                                    AGREEMENT

NOW, THEREFORE, the parties agree to amend the Service Agreement as follows:

         1.       ADDITION OF EXHIBIT C. OmniCell and Dade agree to include as
                  an amendment to the original Agreement, Exhibit C, which
                  describes the Level of Service, Pricing, Measurements, Parts,
                  and Training relating to Dade's servicing of OmniCell's
                  Sure-Med product line.

         2.       MODIFICATION OF JULY 30, 1999 AGREEMENT. OmniCell and Dade
                  agree that item 2 of their Agreement dated July 30, 1999 is
                  voided and superceded by Exhibit C.

         In witness Whereof, the parties have, by their duly authorized
representatives, executed and delivered this Amendment as of the date first
written above.

Dade Behring                                OMNICELL

By: /s/ Paul R. Duffie                      By: /s/ Joseph Coyne
    -----------------------------               --------------------------------
Name:  Paul R. Duffie                       Name:  Joseph Coyne
Title: President, ISD                       Title: Vice President of Customer
                                                   Service

<PAGE>

                                    EXHIBIT C

LEVEL OF SERVICE

STANDARD
Applies to all Sure-Med accounts not located in identified Premium cities.
7 days a week, 24 hours a day, 365 days a year
[*] on-site response for an inoperative "down" device
[*] on-site response for devices that are operating with a non-critical
problem

PREMIUM
Applies to Sure-Med accounts located within cities identified as Premium cities
by Exhibit A of the contract.
7 days a week, 24 hours a day, 365 days a year
[*] on-site response for an inoperative "down" device
[*] on-site response for devices that are operating with a non-critical
problem

Dade shall have the option and incentive to respond to any standard service
event on an accelerated basis. A premium shall be incurred if Dade is on-site
at a standard service account within [*] for an inoperative "down" device or
[*] for a device that is operating with a non-critical problem.

PRICING

STANDARD
Reimbursement for a service event responded to within the appropriate [*]
timeframe shall be [*] per event.

PREMIUM
For premium city accounts, if the response time is within the [*] timeframe,
reimbursement for that service event shall be [*]. For standard service
accounts, if the response time is within the [*] timeframe, an additional [*]
shall be billed by Dade in addition to the standard reimbursement for that
service event.

[*]

ADDITIONAL UNITS
In the event that OmniCell dispatches Dade to service more than one instrument
for a given service call, the reimbursement for each subsequent instrument shall
be $[*].

ADDITIONAL SERVICES
In the event that outside, additional services are required to complete the
repair of the refrigeration system of a Sure-Med product, those additional
charges will be billed to OmniCell.

MEASUREMENTS

OmniCell shall have the responsibility to monitor and measure on-site compliance
by Dade. Dade shall have the right to audit and present evidence of compliance
for those events classified as non-compliance by OmniCell.

         |*| = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
         SEPERATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
         REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

<PAGE>

PARTS

Dade Behring shall maintain an inventory of parts to support the Sure-Med
products. For all Dade owned parts consumed during a service event, Dade shall
bill OnmiCell the [*] of the part plus [*].

OmniCell shall maintain an inventory of Sure-Med parts to support the service
efforts of Dade. Parts supplied by OnmiCell are at [*] cost to Dade and [*].

All parts consumed during a service event shall be recorded in the service
report.

TRAINING

OmniCell shall be responsible for training Dade employees on Sure-Med products.
The training will be conducted at OmniCell's Waukegan, EL facility, or a
mutually agreed upon location.

[*]

         |*| = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
         SEPERATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
         REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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