Document:

Exhibit 10.1

 

 

MASTER
LEASE/LOAN PURCHASE PROGRAM AGREEMENT

 

This
MASTER LEASE/LOAN PURCHASE PROGRAM AGREEMENT, dated and effective as of April
3, 2006 (“Effective Date”), is
made and entered into by and between Omnicell, Inc., a Delaware corporation (“Omnicell”) and General Electric Capital
Corporation, a Delaware (“Buyer”)
(each individually, a “Party,” and collectively, the “Parties”) and
includes the General Terms and Conditions and all Schedules, Attachments,
Exhibits, and Riders hereto as specified below.

 

Signature Page (This Page)

 

General Terms and Conditions

 

Exhibit
A – Required Documents

 

Exhibit
B – Assignment Forms

 

Exhibit
C –Formulas

 

	
  Omnicell

  Mailing
  Address

  	
   

  	
  General Electric Capital
  Corporation

  Mailing
  Address

  
	
   

  	
   

  	
   

  
	
  Omnicell, Inc.

  	
   

  	
  General Electric Capital Corporation

  
	
  1201 Charleston Rd

  	
   

  	
  83 Wooster Heights Road

  
	
  Mountain View, CA 94043

  	
   

  	
  Danbury, CT 06810

  
	
  Attn.: Accounts Payable

  	
   

  	
  Attention: Relationship Manager

  
	
  Tel: 1-800-251-6664; Fax: 650-251-6266

  	
   

  	
   

  

 

Each
Party agrees to all of the terms and conditions of this Master Lease/Loan
Purchase Program Agreement. These terms and conditions are a complete and
exclusive statement of the agreement of the Parties with respect to the subject
matter hereof and may be modified only by a written agreement signed by both of
the Parties and not by course of performance. Notwithstanding the foregoing,
this Agreement is not intended to amend or supplement or supersede or replace
the prior Program Agreement, executed on June 4, 1999, and June 7, 1999, by Omnicell
and Buyer, respectively, as amended which shall remain in full force and effect
and shall continue to govern the respective rights and obligations of Omnicell
and Buyer with respect to all transactions purchased by Buyer and the
corresponding transactions among Omnicell, Buyer and the respective customers
prior to the Effective Date. By signing this Master Lease/Loan Purchase Program
Agreement, each Party represents that it has the authority to bind itself to
this Master Lease/Loan Purchase Program Agreement.

 

	
  Accepted:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Omnicell,
  Inc.

  	
   

  	
  General
  Electric Capital Corporation

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  Print
  Name:

  	
   

  	
  Print
  Name:

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Title:

  

 

 

GENERAL TERMS AND CONDITIONS

 

1.               DEFINITIONS. As
used herein, all capitalized terms shall have the meanings set forth below:

 

1.1.                              “Agreement” means this Master Lease/Loan Purchase Program
Agreement and all exhibits, attachments, riders, schedules and written
amendments annexed hereto and made a part hereof, as it may be amended,
supplemented, and/or modified in writing from time to time by the Parties.

 

1.2.                              “Amount Recovered” has the meaning given to such term in Section 5.7(b).

 

1.3.                              “Application” means an application (including credit and
financial information concerning the prospective Customer) and related
documents reasonably required by Buyer in accordance with its standard
procedures to initiate its consideration of a proposed Transaction which will
usually consist of the items listed in Section A of EXHIBIT A
hereto.

 

1.4.                              “Assigned Payments” means all Assigned Rental Payments and,
if applicable, all Assigned Service Payments.

 

1.5.                              “Assigned Rental Payments” means all Rental Payments which
are specified in an Assignment Agreement as being assigned to Buyer.

 

1.6.                              “Assigned Service Payments” means all Service Payments which
are specified in an Assignment Agreement as being assigned to Buyer.

 

1.7.                              “Assignment Agreement” means an assignment agreement
substantially in the form attached in EXHIBIT B hereto, pursuant to
which Omnicell sells and assigns to Buyer: (i) the right to certain Rental
Payments, (ii) in some cases, a security interest in, or title (subject to the
terms and conditions of Section 4.4)
to, the related Equipment, and/or (iii) if so specified in the Assignment
Agreement, the right to certain Service Payments.

 

1.8.                              “Assignment Letter” means the original customer-executed
amendment to the Lease Supplement, substantially in the form attached in EXHIBIT B
hereto, whereby the Customer acknowledges and agrees, among other things, that
(a) Omnicell is assigning the right to certain Rental Payments and/or Service
Payments under a Contract to Buyer and (b) the Customer’s obligation to remit
Assigned Rental Payments to the assignee is absolute and unconditional.

 

1.9.                              “Contract” means a Lease Supplement, Service Agreement,
conditional sale agreement, or other evidence or form of Customer payment
obligation and/or security interest in favor of Omnicell.

 

1.10.                        “Contract Default” means,
other than any default arising out of a Service Default, (a) the failure of a
Customer to make any Assigned Rental Payment or perform any obligation due
under a Contract for a period of 60 days or (b) an Event of Bankruptcy relating
to such Customer.

 

1.11.                        “Customer” means a qualified customer of Omnicell who is an
obligor under a Contract or a guarantor of such Customer.

 

1.12.                        “Documentation Period” has the meaning given to such term in
Section 3.5.

 

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1.13.                        “Event of Bankruptcy” means as to either Party or a
Customer, its insolvency, inability to pay debts as they mature, failure to
operate as a going concern, filing under Title 11 of the United States Code or
any successor or similar federal or state statute, assignment for the benefit
of creditors, appointment of a receiver or dissolution.

 

1.14.                        “Event of Cancellation” means (i) a Material Adverse
Change of Omnicell since the date of this Agreement or of a Customer since the
date of the related Application, or (ii) the occurrence of an event which
causes a representation made by Omnicell or a Customer in connection with a
Transaction or related Contract to be false in any material respect when made,
or (iii) notification by such Customer to Omnicell or to Buyer of its
intent to cancel all or any part of such related Contract or to refuse to
accept any part of the related System.

 

1.15.                        “Event of Default” has the meaning given such term in Section 12.1.

 

1.16.                        “Final Document Package” means such properly completed and
duly executed documentation, consisting of the items listed in Section B
of EXHIBIT A hereto and
such other documents as Buyer may reasonably require in accordance with its
standard procedures in order to finalize a Transaction and to pay the Purchase
Price to Omnicell.

 

1.17.                        “Lease Supplement” means an executed contract supplement to
a Master Agreement, incorporating the terms and conditions of such Master
Agreement, that sets forth the terms of the lease from Omnicell to a Customer
of the subject Equipment, including, without limitation, the terms of the
Rental Payments that are the subject of a Transaction.

 

1.18.                        “Master Agreement” means Omnicell’s Customer purchase,
rental or lease agreement, including all support terms (or a separate Master
Service Agreement if applicable), schedules, riders, addenda or amendments
thereto, in a form substantially similar to those that Omnicell provides to
Buyer from time to time, and which is reasonably approved by and acceptable to
Buyer, that includes the Lease Supplement(s) with respect to which Buyer purchases
Rental Payments or Service Payments under this Agreement.

 

1.19.                        “Material Adverse Change” means, with respect to any person,
(i) a change that is materially adverse to the financial condition of such
person, or (ii) its insolvency, inability to pay debts as they mature,
failure to operate as a going concern, filing by it under Title 11 of the
United States Code or any successor or similar federal or state statute,
assignment for the benefit of creditors, appointment of a receiver, or
dissolution.

 

1.20.                        “Net Book Value” means, with respect to a particular
Contract, as of the date of determination, the sum of the following amounts:
(i) all accrued and unpaid Assigned Rental Payments due under the Contract; plus (ii) the remaining Assigned Rental Payments scheduled
to become due during the remainder of the term of the Contract, with each such
remaining scheduled Assigned Rental Payment discounted to its present value
from the due date thereof to the date of determination at the applicable
Standard Rate; plus (iii) any property, sales or
use taxes paid by, or required to be paid by, Buyer with respect to any
Equipment subject to such Contract (“Reimbursable Taxes”);
provided, however, that Reimbursable
Taxes shall not be included in the calculation of Net Book Value to the extent
that (A) such Reimbursable Taxes have been reimbursed or collected by Buyer
from any Customer or otherwise or (B) Buyer is in breach of its obligations to
provide Administrative Services with respect to such Reimbursable Taxes.

 

1.21.                        “Pass-Through Equipment” has the meaning given such term in
the Contract.

 

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1.22.                        “Payments” means all Rental Payments and all Service
Payments.

 

1.23.                        “Penalty for Early Termination” means the penalty to be
charged to a Customer for the early termination of a Contract, calculated in
accordance with the terms of the Contract or as set forth in Section A
of EXHIBIT C.

 

1.24.                        “Pro Rata Share” has the meaning given such term in Section 5.7(b).

 

1.25.                        “Purchase Price” means for any Assigned Rental Payments
and/or Assigned Service Payments purchased hereunder, the amount agreed on
between Buyer and Omnicell as the amount to be paid to Omnicell for such
Assigned Rental Payments and/or Assigned Service Payments. The typical method
for determining the Purchase Price is set forth in more detail in Section B
of EXHIBIT C, and the Purchase Price for each particular Transaction
shall be fixed for that Transaction provided the applicable Contract is
delivered and executed by the Customer within ninety (90) days of receiving
credit approval by Buyer.

 

1.26.                        “Purchase Program” means the Transactions where Buyer
purchases the Rental Payments and/or Service Payments under Contracts, all
pursuant to the terms and conditions of this Agreement.

 

1.27.                        “Remarketing Period” means the period beginning on the date
Buyer tenders to Omnicell the legal right to possession of any Equipment, and
ending ninety (90) days later.

 

1.28.                        “Remarketing Proceeds” means, as to any Equipment remarketed
pursuant to this Agreement, the sale price of any re-sold Equipment, or the
discounted present value (discounted at                 )
of all lease payments on any re-leased Equipment, net of any applicable taxes.

 

1.29.                        “Rental Payments” means all amounts that a Customer is
required to pay periodically under a Contract as rental under a lease, or
principal and interest under a loan, with respect to the Equipment and the
Software subject to such Contract.

 

1.30.                        “Service Agreement” means any agreement, or any schedule,
exhibit or attachment thereto, that sets forth the terms and conditions upon
which Omnicell provides service, maintenance and updated versions of existing
Software capabilities for Equipment or Systems set forth in a Contract; provided, however, that in the event that such service terms
are incorporated into a Master Agreement, or any similar document, in which
there are obligations to make payments for both (i) the lease of a System and
(ii) the provision of related services, the term “Service Agreement” shall
refer to such combined agreement only insofar as it relates to the provision of
related services, maintenance and updated versions of existing Software
capabilities, and not the lease of equipment and software.

 

1.31.                        “Service Default” means (i) a Customer’s assertion of any
offset or recoupment rights, cancellation or early termination rights, or
defense to payment based upon Omnicell’s failure to fully perform its
obligations under any Service Agreement or (ii) a breach by Omnicell under Section 9.2(c)(i).

 

1.32.                        “Service Payments” means all amounts that a Customer is
required to pay periodically under a Service Agreement.

 

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1.33.                        “Standard Rate” means the standard discount rate to be
applied to each Transaction in order to determine the Purchase Price thereof.
The typical method for determining the Standard Rate is set forth in more
detail in Section B of EXHIBIT C.

 

1.34.                        “System” means the Equipment and Software included in a
Contract that is subject to a Transaction.

 

(a)   “Equipment”
means certain equipment manufactured by Omnicell and Pass Through Equipment
together with all components and parts incorporated therein, and other
acquisitions, replacements, substitution and accessories incorporated therein
leased to a Customer as set forth in a Lease Supplement.

 

(b)   “Software”
means the Omnicell software products related to the Equipment licensed for use
to the Customer and embedded in the Equipment or specifically listed in a Lease
Supplement.

 

1.35.                        “Title Transfer” has the meaning given to such term in Section 4.4.

 

1.36.                        “Transaction” means the purchase by, and assignment to Buyer
hereunder, of Rental Payments and/or Service Payments under a lease or
financing of a System, as set forth in Contract, for a specified term during
which Omnicell, or its assigns, may, if applicable, be the owner of the
relevant Equipment, and the Customer shall be allowed the use of the System.

 

2.               ESTABLISHMENT AND STRUCTURE OF PROGRAM.

 

2.1.                              Financing Options Offered to Customers. Subject to the terms
of this Agreement, Buyer will assist Omnicell in the development of new
financing options that Omnicell may, in its sole discretion, offer to
prospective Customers in connection with this Purchase Program. Financing
options or products that differ from the program described in the General Terms
and Conditions section of this Agreement, shall be specifically set forth and
incorporated in this Agreement via written and executed Riders attached hereto.
Buyer and Omnicell each acknowledge and agree that the actual financing options
(i) offered and made available by Buyer under this Purchase Program will be
determined by Buyer in its sole and absolute discretion and may change from
time to time; and (ii) offered to any particular Customer will be determined
and offered by Omnicell in its sole and absolute discretion, and may change
from time to time; provided, however, that Buyer
may elect to enter into or not enter into a Transaction in its sole and
absolute discretion in accordance with the terms set forth in Section 3 hereof.

 

2.2.                              Referral of Customers to Buyer. Omnicell will use
commercially reasonable efforts to (i) advise prospective Customers of the
financing options offered by Omnicell under the Purchase Program; and (ii)
refer to the Purchase Program, on a nonexclusive basis, each prospective
Customer that has requested financing pursuant to the Purchase Program.
Notwithstanding the above, nothing herein shall prohibit Omnicell from advising
such prospective Customers of options offered by other Omnicell programs, or
from running limited marketing programs whereby special options offered by
other entities are made available to prospective Customers without advisement
on Buyer’s offerings.

 

2.3.                              Relationship Managers. Buyer and Omnicell will each appoint
a relationship manager (“Relationship Manager”)
to supervise the Purchase Program described herein and to serve as the primary
management contact between Buyer and Omnicell under the Purchase Program.
Buyer’s Relationship Manager shall be charged with monitoring the following
areas:  Purchase Program

 

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roll-out, Customer satisfaction, sales
support, sales training, the development of appropriate documentation, and the
development of requested marketing materials.

 

2.4.                              General Administrative Support. Buyer shall provide general
administrative and operations services in connection with the Purchase Program,
including but not limited to field sales support (when and where mutually
agreed upon by Omnicell and Buyer), credit investigation and evaluation,
document preparation, billing and collection, collection and remittance of
payment of applicable property, sales, use or similar taxes pertaining to the
System and customer service (collectively, “Administrative
Services”). As part of the Administrative Services, Buyer will (i)
advise Omnicell on a weekly basis of the Standard Rates that are applicable to
all Transactions, (ii) maintain and operate systems which track the status of
each Application and Transaction, (iii) invoice Customers, collect payments,
process and apply funds, and (iv) collect and remit in a timely manner all
applicable property, sales, use or similar taxes pertaining to the System and
prepare and file tax returns in connection therewith. In performing the
Administrative Services, Buyer will make reasonable efforts to collect all
payments and taxes called for under the applicable Contract and Master
Agreement, and will follow collection procedures at least as rigorous as those
it would take in servicing similar receivables and in collecting payments and
taxes thereunder for its own account. In the event a Customer, serviced by
Buyer, has a good faith dispute with Buyer regarding the provision of the
services described in this Section 2.4,
Buyer will apply best efforts to resolve the dispute with such customer in such
manner that Omnicell’s relationship with the Customer is not negatively
affected; provided, however, that in all cases,
subject to Section 5.1, Buyer reserves the
right to employ (or decline to employ) such lawful collection procedures
(including without limitation, litigation) as Buyer may determine prudent in
its sole and absolute discretion.

 

2.5.                              Customer Support. Buyer personnel will be available to
answer Customer and Omnicell inquiries relating to the Purchase Program or
Transactions on business days (via a toll free telephone line) between the
hours of 8:00 a.m. and 5:00 p.m., Central Time in the United States. Customer
inquiries received when no personnel are available will be recorded
electronically and promptly responded to. Buyer will conduct its communications
with Customers in a courteous, prompt and efficient manner. Buyer shall use its
best efforts to resolve all Customer complaints relating to Transactions within
two business days of receipt and, failing that, will keep the affected Customer
informed of the progress toward resolution on a regular basis; provided, however, that nothing in this Section 2.5
shall be deemed to require Buyer to resolve or endeavor to resolve any Customer
complaints relating to the System, or the maintenance or servicing thereof,
which shall remain the sole responsibility of Omnicell. Buyer shall use its
best efforts to immediately notify Omnicell in writing of all Customer
complaints relating to service, maintenance or the performance of the System.
Omnicell will take such actions it deems reasonable and appropriate in
resolving such complaints. Buyer shall periodically monitor the quality of customer
service and other aspects of the Program through scorecards or other
measurements, and shall seek improvement of such areas as are necessary. The
rights and obligations of Buyer and Omnicell under this Agreement shall remain
unaffected by any such quality improvement activity.

 

2.6.                              Sales Support. Buyer shall work with Omnicell’s field sales
organization (when and where mutually agreed upon by Omnicell and Buyer) to
structure and negotiate new Transactions and otherwise support the Purchase
Program and Omnicell sales efforts.

 

2.7.                              Ongoing Training. At the request of Omnicell, Buyer may
agree, in Buyer’s sole and absolute discretion, to sponsor periodic training
programs for Omnicell sales representatives and employees,

 

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at which such individuals shall be trained on
the techniques and benefits of using leases and other financial products as
sales tools, proper documentation, and such other topics as the parties
mutually agree upon. Such training shall be performed at sites as the parties
mutually agree upon, and Buyer shall be responsible for such training expenses
as the parties mutually agree upon in advance (which expenses shall not include
transportation, and travel and living expenses of Omnicell employees).

 

2.8.                              Product Support. Omnicell shall be responsible for service
and maintenance of Customer Systems, and shall offer Service Agreements to prospective Customers which
provide for Systems service and maintenance and updated versions of existing
Software capabilities. The Service Payments due by the Customer are to be
included as separate line items in each Contract.

 

2.9.                              Government and International Programs. With respect to
finance products for equipment/software provided to government entity Customers
or Customers in countries other than the U.S., each of Omnicell and Buyer
agrees that, in its sole discretion, it may choose to negotiate in good faith
any additional or differing terms and conditions from this Purchase Program, to
be set forth in one or more Rider attachments to this Agreement, as the parties
may require to take into account special terms for government entities, local
laws and customs and such other matters as the parties may require. If Buyer
and Omnicell choose to negotiate such terms and conditions in accordance with
the preceding sentence, then Buyer agrees to provide to Omnicell with drafts of
such written Rider terms, together with drafts of appropriate Customer
financing documentation, within 30 days after Omnicell requests that Buyer
provide such additional or differing terms and conditions with respect to a
Purchase Program for government entities or for a particular country.

 

3.               OFFER AND ACCEPTANCE.

 

3.1.                              Assets to be Sold. The Parties hereby agree that unless
otherwise agreed in writing, each Transaction pursuant to this Agreement shall
include the sale and assignment of all of Omnicell’s right, title and interest,
but not its obligations or responsibilities, in, to and under the Rental
Payments, and, if so specified in the Assignment Agreement the Service
Payments, under the applicable Contract, and, if so specified in the Assignment
Agreement, all of Omnicell’s title or other interest in the Equipment subject
thereto, which Omnicell has offered, and Buyer has approved and accepted, for
purchase and assignment in accordance with the terms and conditions hereof.
Buyer shall have the option with respect to each Transaction (i) to provide
pass-through service billing in accordance with Section 5.7
with respect to the applicable Contract or (ii) to purchase the Service
Payments under the applicable Contract, and in either case Buyer shall at its
sole cost and expense, perform all the billing and collection of Assigned
Payments and Service Payments due and to become due with respect to such
Transaction in accordance with the terms of this Agreement. If Buyer chooses to
purchase the Service Payments under the applicable Contract, the Assignment
Agreement shall specify that such Service Payments have been purchased by
Buyer.

 

3.2.                              Credit Submission. In each instance in which Omnicell
invites Buyer to make an offer to purchase a Transaction hereunder, Omnicell
will, or shall cause a prospective Customer to, furnish Buyer with a completed
Application in order for Buyer to make a credit determination. All information
and materials furnished to Buyer shall be held strictly confidential and shall
be used by Buyer solely for the purpose of making a decision whether or not to
offer to purchase the Transaction.

 

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3.3.                              Credit Decision. Buyer shall review each Application upon
receipt and either approve (which approval shall constitute an offer to enter
into a Transaction) or reject it, and shall notify Omnicell: (a) of its
determination, and (b) if Buyer has approved such Transaction, as to whether
Buyer will provide pass-through service billing in accordance with Section 5.7 or purchase the applicable Service Payments.
Buyer shall attempt to approve or decline an Application, classify each prospective
Customer and notify Omnicell of its decision within: (i) two (2) business days
after receipt of a complete Application in the case of any proposed Transaction
in which the proposed Purchase Price does not exceed $2,000,000, and (ii) a
reasonable time (not to exceed five (5) days) after receipt of a complete
Application in the case of any proposed Transaction in which the proposed
Purchase Price exceeds $2,000,000. Upon notification, Omnicell shall advise the
prospective Customer of the approval or rejection of the Application.

 

3.4.                              Credit Rejection. If the Application has been rejected, then
upon request of Omnicell, Buyer shall return to Omnicell all credit information
and materials furnished by Omnicell, and shall, upon the prospective Customer’s
request, provide Customer with an explanation as to why the credit has been
denied in accordance with the requirements of the Federal Equal Credit
Opportunity Act. Buyer is not a credit reporting agency and consequently
Omnicell agrees that any details provided to substantiate Buyer’s reason(s) for
rejection of a specific proposed transaction represent strictly Buyer’s opinion
of the credit and financial risk(s) involved in the proposed transaction, and
not statements of fact. Omnicell agrees to keep all such details and statements
of opinion strictly confidential, to the extent permitted by applicable law.
Buyer agrees to provide to any such proposed Customer any notice required by
the Federal Equal Credit Opportunity Act.

 

3.5.                              Credit Approval. If the Application has been approved by
Buyer, then, subject to acceptance of Buyer’s offer by Omnicell in its sole
discretion, either Omnicell or Buyer shall arrange for delivery to, and
completion by the Customer of, the Final Document Package and for the subsequent
delivery of the Final Document Package to Buyer. A credit approval shall be
valid for a period of ninety (90) days after the date Buyer notifies Omnicell
of its approval of such Transaction (the “Documentation Period”).

 

3.6.                              Revocation Rights After Approval. At any time prior to
payment of the Purchase Price, Buyer may revoke its agreement to enter into a
Transaction or to purchase the related Equipment and/or finance the license of
the related Software, and may transfer to Omnicell any right, title or interest
which it acquired in such Transaction or System if (i) Buyer does not receive
the Final Document Package from the Customer within the Documentation Period);
or (ii) prior to Buyer’s receipt of the Final Document Package from the
Customer or payment of the Purchase Price, Buyer determines, in its sole and
absolute discretion, that an Event of Cancellation has occurred. Upon
revocation of its agreement to enter into a Transaction or to purchase the
related Equipment and/or finance the license of the related Software, Buyer
shall have no further liability to the Customer or to Omnicell in connection
with such proposed Transaction.

 

3.7.                              Acceptance Certificate. Omnicell shall provide Buyer with a
certified copy of the Customer acceptance certificate duly executed by the
Customer indicating its unconditional acceptance for each item of Equipment
within 90 days of the date on which Buyer pays the Purchase Price for the
related Transaction; provided, however,
that if Omnicell does not provide Buyer with such duly executed certified copy
of the Customer acceptance certificate for each item of Equipment within 90
days of the date on which Buyer pays the Purchase Price, then, for each
affected item of Equipment, Omnicell agrees , at Buyer’s request, to repurchase
the Assigned Payments and related Equipment for a price equal to the sum of the
amount paid by Buyer for such Assigned Payments

 

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plus interest on
such amount calculated at an interest rate equal to the rate set forth in
Section C of Exhibit C hereto. In the event of such purchase of Assigned
Payments and Equipment by Omnicell, Buyer shall make to Omnicell no
representations or warranties as to the sale of such Assigned Payments and
Equipment except that Buyer shall represent and warrant that it is conveying to
Omnicell the title to such Assigned Payments and Equipment that it received
from Omnicell, that there are no liens or encumbrances respecting such Assigned
Payments or Equipment in favor of any person claiming by, through or under
Buyer, and that no act or omission of Buyer has adversely affected the amount,
timing of payment, or collectibility of the Assigned Payments unless disclosed
in writing by Buyer to Omnicell and as to which the parties have agreed to a
price adjustment to the repurchase price for the Assigned Payments. Upon
delivery to Buyer of a duly executed certified copy of the Customer acceptance
certificate for an item of Equipment, a true sale of the Assigned Rental
Payments related to such item of Equipment shall be deemed to have occurred.

 

4.               ASSIGNMENT AND PURCHASE OF TRANSACTIONS

 

4.1.                              Limited Recourse to Omnicell. Each Party agrees that each
sale of Assigned Rental Payments covered by this Agreement is, and shall in all
cases be treated as, a true sale and not as a loan. Except as expressly
provided in Sections 3.7, 10.1 and 12.2, Assigned Rental Payments shall be sold and assigned
hereunder without recourse to Omnicell. Buyer hereby assumes all risk of the
Customer’s failure to make Assigned Rental Payments, due to bankruptcy,
insolvency, or other financial inability to pay.

 

4.2.                              Final Document Package Delivery. As soon as practicable
after Buyer’s approval of a proposed Transaction, the Final Document Package
shall be delivered to the office designated by Buyer. Upon receipt of the Final
Document Package, Buyer shall immediately examine all documents submitted and
shall promptly advise Omnicell of existing deficiencies, if any.

 

4.3.                              Standard Rates. Buyer shall have no obligation to enter into
any Transaction, including, without limitation, any Transaction that provides
for a rate different from the then current Standard Rate (or any special rate
previously approved by Buyer in writing). With respect to Transactions approved
by Buyer, Buyer shall honor all Standard Rate quotations by Omnicell that
predate the effective date of a new Standard Rate, provided
that a Final Document Package is received by Buyer prior to the date of such
new quotation. Standard Rates shall be effective upon notice to Omnicell. All
Standard Rates that apply to Transactions that are intended to be true leases
for federal income tax purposes shall expire on December 31 of each year,
unless otherwise indicated in writing by Buyer

 

4.4.                              Equipment Title and Warranties.

 

(a)   Omnicell
(i) consents to the assignment from a Customer to Buyer of any purchase order
for Equipment represented in a Transaction hereto; (ii) consents to assignment
by Buyer to such Customer of all warranty rights in connection with the
Equipment related to such Transaction and acknowledges that Buyer intends to
permit the Customer to enforce such warranty rights in the Customer’s name
provided a Contract Default has not occurred, (iii) acknowledges that it has
transferred to the applicable Customer all warranty rights in connection with
the Software related to such Transaction, (iv) shall, upon the acceptance of
the related System by the applicable Customer, deliver to Buyer a properly
executed Assignment Agreement and a certified copy of the acceptance
certificate. Omnicell and Buyer hereby agree that (i) any transfer to Buyer,
with respect to any Transaction, of title to the Equipment (a “Title Transfer”) is for the sole purpose of

 

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facilitating Buyer’s billing and collecting
of property taxes with respect to such Equipment, (ii) the Title Transfer
together with the corresponding option of Omnicell to repurchase such Equipment
as set forth in Sections 6.1 and 6.3, the formula for distribution of remarketing proceeds
under Section 8.5, and the formula for
distribution of insurance proceeds under Section 4.8,
are intended to convey to Buyer a security interest in such Equipment to secure
payment to Buyer of the Net Book Value of such Transaction, and (iii) Buyer
does not have any interest in the residual value of the Equipment after payment
to Buyer of the applicable Net Book Value. In the event Omnicell is audited by
a taxing authority with respect to any taxes paid by Buyer pursuant to the
terms of this paragraph, Omnicell agrees to hold Buyer and each Customer
harmless from and against any such tax liability and shall not assert any
claims against Buyer or Customer for reimbursement of the same to the extent
that Buyer can specifically show that such taxes were already paid by Buyer and
the Customer.

 

(b)   The
parties intend for each Transaction to be a true sale upon Buyer’s receipt of a
certified copy of a duly executed acceptance certificate for the Equipment
under such Transaction and not a loan by Buyer to Omnicell. To the extent that
any Transaction is deemed to be a secured financing, Omnicell grants to Buyer a
security interest in the Assigned Rental Payments and the Equipment (and the
proceeds of each) subject to each Transaction to secure the payment of the Net
Book Value for such Transaction and authorizes Buyer to file financing
statement(s) to perfect such security interest; provided,
however, that Buyer shall provide Omnicell with a reasonable
opportunity to review and approve such financing statement(s) prior to the
filing of such financing statement(s). Notwithstanding the foregoing, Buyer may
file a financing statement against Omnicell noting the sale of Transactions
hereunder without the approval of or notice to Omnicell, except that such
financing statements shall be in substantially the form sent by Buyer to
Omnicell and approved by Omnicell prior to execution of this Agreement.

 

4.5.                              Risk of Loss. Omnicell will bear all risk of loss to the
System until the date of its acceptance by the Customer. In the event any
Customer returns or fails to accept any part of the System for any reason
whatsoever prior to the date on which Buyer pays the Purchase Price to
Omnicell, Buyer may assign its rights to Omnicell (and Omnicell shall be required
to accept such assignment) and Buyer will thereafter have no further liability
to Omnicell or to such Customer with regards to the particular Transaction.

 

4.6.                              Payment of Purchase Price. Provided that Buyer has not
revoked its approval of a Transaction pursuant to Section 3.6
above, Buyer will fund the applicable Transaction by paying Omnicell the
applicable Purchase Price within five (5) business days (or such other period
as the parties mutually agree in writing) following receipt by Buyer of the
Final Document Package. Upon payment of the Purchase Price by Buyer, Buyer
shall be deemed to have received the Final Document Package in form and
substance satisfactory to Buyer.

 

4.7.                              Limitation on Acceptance of Transaction. The purchase by
Buyer of any Transaction hereunder shall not constitute or be deemed an
assumption or acceptance by Buyer or an imposition on Buyer of any
representation, warranty, obligation, covenant, liability or duty of Omnicell,
or of any manufacturer or supplier of the Equipment, under the Transaction or
any other agreement relating to the Transaction or the Equipment.

 

4.8.                              Proceeds of Insurance. Omnicell and Buyer agree that any
proceeds of insurance on the Equipment shall be paid (a) first to Buyer, in an
amount up to the Net Book Value of the affected

 

10

 

Equipment determined as of the date of the
casualty to such Equipment, and (b) second to Omnicell, in the amount of any
surplus over the applicable Net Book Value.

 

4.9.                              Perfection of a Contract. Omnicell shall provide Buyer with a copy of each Contract containing a
complete description of the Equipment subject thereto, prior to or within five
(5) days of the delivery date of the first item comprising the System to a
Customer with respect to any Transaction. Buyer shall then file a UCC-1
Financing Statement against the Customer with respect to the System (which
UCC-1 will provide Buyer with a first priority security interest in the System
or Buyer shall have obtained lien subordination agreements from any creditors
of Customer with a conflicting, higher priority interest in the System).

 

4.10.                        Lease Extensions; Holdover Rent. This Agreement covers the
purchase and sale of Assigned Payments due under the original term of certain
Contracts. If within 90 days after the expiration of the original term of a
Contract an extension of such Contract is not entered into between the Customer
and Omnicell then Buyer may, in its sole discretion, with 30 days prior written
notice to Omnicell, cease providing billing and collection services with
respect to such Contract, without any cost or penalty to Buyer whatsoever. If a
Customer extends a Contract beyond its original term, Buyer shall have no
interest in the Payments payable for the extension unless such Payments are
specifically purchased hereunder. Nothing in this Section 4.10 is intended to
obligate Buyer to continue to provide billing and collection services with
respect to any Contract that is extended beyond its original term but where
such extension is not financed by Buyer.

 

5.               COLLECTION AND ADMINISTRATION

 

5.1.                              Billing and Collection of Assigned Payments. Buyer will, at
its sole cost and expense, perform all the billing and collection of Assigned
Payments due and to become due with respect to the Transactions sold and/or
assigned under this Agreement. Buyer shall bill Customers and pursue the
collection of all amounts due under such Transactions in accordance with its
standard billing and collection procedures, but in no case shall Buyer be obligated
to take any affirmative steps (including, without limitation, initiation of
litigation or any other affirmative collection action(s)) to bill or collect
any Assigned Payments. Notwithstanding anything contained in this Agreement to
the contrary, Buyer may, from time-to-time in its sole and absolute discretion,
with prior written notice to Omnicell, decline to bill or stop billing a
Customer for any Assigned Payments, without any cost or penalty to Buyer (but
without recourse to Omnicell); provided, however, that
if Buyer declines to bill or stops billing a Customer for any Assigned
Payments, then (i) Buyer shall assign its rights in the affected Equipment to
Omnicell for $1 and (ii) notwithstanding anything to the contrary in this
Agreement, Buyer shall not have any recourse to Omnicell for any such Assigned
Payments and Omnicell shall not be obligated to service any such Assigned
Payments on Buyer’s behalf. In the event of such purchase of Equipment by
Omnicell, Buyer shall make to Omnicell no representations or warranties as to
the sale of such Equipment except that Buyer shall represent and warrant that
it is conveying to Omnicell the title to such Equipment that it received from
Omnicell, that there are no liens or encumbrances respecting such Equipment in
favor of any person claiming by, through or under Buyer.

 

5.2.                              Deposit of Checks. Omnicell hereby authorizes Buyer to
deposit in its account all checks and collections delivered to Buyer in the
name of, or payable to, Omnicell and representing funds due to Buyer in
connection with any Transaction.

 

11

 

5.3.                              Reporting. Buyer shall provide Omnicell with quarterly
reports detailing:  (i) Application
activity, (ii) volume of funded Transactions, (iii) approved Transaction
backlog, (iv) delinquencies under the Program and (v) quote activity.

 

5.4.                              Enforcement. Omnicell agrees to cooperate with Buyer in the
enforcement of its rights under any Transaction, including but not limited to
support in litigation or other proceedings (at the reasonable request and
expense of Buyer) pertaining to or arising out of any such Transaction; provided however, Omnicell shall not be required to itself
take any legal action or to commence any legal proceeding against the Customer.

 

5.5.                              No Modification After Assignment. Except as contemplated by Sections 6.2 and 6.3 and by Service Agreements of Omnicell,
Omnicell shall have no right or authority to, and will not, without the prior
written consent of Buyer, (i) repossess or consent to the return of any
Equipment or (ii) modify the terms of any Transaction, if such modification
would adversely affect Buyer’s rights and remedies with respect to the Assigned
Payments.

 

5.6.                              Repurchase of Transactions by Omnicell. In the event Omnicell
repurchases any Transaction pursuant to this Agreement, Buyer shall reassign
the Transaction to Omnicell and its title to or security interest in the
related Equipment as is, where is, without representations or warranties, other
than that the Equipment is free of all liens and encumbrances attributable to
Buyer. All documents, instruments, and other information on such repurchased
Transaction that Omnicell gave or provided Buyer with respect to the Customer
shall be returned upon request.

 

5.7.                              Pass-Through Service Billing.

 

(a)   This
Section 5.7 shall apply to Transactions
only to the extent that Buyer has not purchased the Service Payments under the
applicable Contracts. With respect to each Service Agreement which relates to
Equipment under a Lease Supplement with respect to which Rental Payments have
been assigned to Buyer hereunder, Omnicell shall retain the right to receive
the related Service Payments but Buyer will, as an accommodation to Omnicell,
bill the applicable Customer for such Service Payments as provided for herein.
Prior to Buyer undertaking such Service Payment billing, Omnicell shall provide
Buyer with a complete and accurate description of the amount and frequency of
the Service Payments to be billed. Buyer will remit to Omnicell on a monthly
basis the Service Payments collected provided that Buyer shall be entitled to
deduct therefrom any or all amounts then due Buyer from Omnicell, but Buyer
shall not be entitled to deduct therefrom any amounts owing to Buyer from
Customers.

 

(b)   Provided
that no Contract Default has occurred and is continuing, in the event that any
Customer makes a payment to Buyer for amounts owed with respect to either or
both of Assigned Rental Payments and related Service Payments, and the amount
recovered (the “Amount Recovered”) is insufficient
to cover amounts then owing with respect to either or both of Assigned Rental
Payments and such related Service Payments, then the portion of the Amount
Recovered which is attributable to Assigned Rental Payments shall be payable to
Buyer and the amount of the Amount Recovered which is attributable to Service
Payments shall be paid to Omnicell; provided that
if it can not be reasonably determined whether the Amount Recovered is
attributable to Assigned Rental Payments or Service Payments because the
Customer has not made the payment with reference to a particular invoice that
relates only to Assigned Rental Payments or Service Payments or the Customer
has not otherwise specified to what the payment is to be applied, then (except
as otherwise required by law) Buyer shall pay over to Omnicell, Omnicell’s Pro
Rata

 

12

 

Share. “Pro Rata Share”
shall mean an amount equal to the Amount Recovered multiplied
by: (i) in the case of Omnicell, a fraction (A) the numerator of
which is the amount of all Service Payments then due under the applicable
Service Agreement and (B) the denominator of which is the sum of all Service
Payments then due under the applicable Service Agreement and the Assigned
Rental Payments then due under applicable Contract, and (ii) in the case of
Buyer, a fraction (A) the numerator of which is the sum of all Assigned Rental
Payments then due under the applicable Contract and the denominator of which is
the sum of all Service Payments then due under the applicable Service Agreement
and the Assigned Rental Payments then due under applicable Contract.

 

(c)   Other
than sending regular, periodic bills to the Customer in accordance with the
express terms of the Service Agreement, Buyer shall not be required to take any
affirmative steps to collect any Service Payments. Notwithstanding anything
contained in this Section 5.7 to
the contrary, with respect to any given Service Agreement(s), Buyer may, from
time-to-time in its sole discretion, with prior written notice to Omnicell,
decline to provide or cease providing such billing services, without any cost
or penalty to Buyer whatsoever.

 

(d)   Omnicell
shall, upon demand, reimburse, indemnify, save and hold harmless Buyer, it affiliates,
subsidiaries, parents, shareholders, directors, officers, agents, employees,
attorneys, successors and assigns (each an “Billing
Indemnified Party”), for, from and against any and all third-party
claims, demands, actions, losses, liabilities, damages, penalties, fines costs
and expenses (including without limitation, court costs and reasonable
attorney’s fees) (collectively, “Billing Claims”)
made against or incurred by a Billing Indemnified Party, directly or
indirectly, which result from Buyer’s billing and/or collection of the Service
Payments provided such billing and collection is performed in a manner
consistent with this Section 5.7; provided further, however, that Omnicell shall not be
required to indemnify Buyer for any Billing Claims arising out of the
negligence or willful misconduct of Buyer. Buyer shall not be responsible for
any indirect, incidental or consequential liabilities, losses, injuries or
cost, claims, demands, actions or damages (including without limitation lost
profits) incurred as a result of, or relating, directly or indirectly, to,
Buyer’s failure to perform in accordance with this subsection. This subsection
shall survive the termination of this Agreement.

 

6.               END OF TERM, EXTENSIONS AND UPGRADES, EARLY TERMINATION

 

6.1.                              End of Term. Upon a Transaction reaching its end-of-term,
provided that Buyer has been paid the applicable Net Book Value of such
Transaction determined as of the end of the term of such Transaction, Omnicell
shall have the option to purchase the Equipment from Buyer on an “as-is
where-is” basis for One Dollar ($1.00). Buyer makes no representations or
warranties as to the condition of the Equipment, other than that the Equipment
will be free of all liens and encumbrances attributable to Buyer.

 

6.2.                              Extensions and Upgrades (Rollovers). If, prior to the end of
the initial term of a Contract, a Customer wishes to extend the term of its
existing Contract (an “Extension”),
which extension may or may not include new Equipment and/or new Software that
offers new capabilities (as opposed to an updated version of existing
capabilities) (an “Upgrade”),
Omnicell shall request, and Buyer shall provide, the Net Book Value for a
Customer buy-out of the Assigned Rental Payments together with the remaining
Assigned Service Payments discounted at the Standard Rate

 

13

 

under the particular Contract. Omnicell will
then offer to Buyer the proposed new Transaction for approval and acceptance in
accordance with the procedures set forth in Section 3
of this Agreement. All proposed Extension or Upgrade Transactions submitted
hereunder will have a Purchase Price that exceeds the Net Book Value of the
original Transaction. Upon acceptance by Buyer of the new Transaction involving
an Extension and/or Upgrade, the original Transaction shall be deemed cancelled
without application of any Penalty for Early Termination, and the new
Transaction shall be deemed to have replaced, in total, such original
Transaction, and the amount due to Omnicell for the new Transaction involving
an Extension and/or Upgrade shall be the new Purchase Price less the Net Book
Value of the original Transaction determined as of the date of the new
Transaction and less the Repurchase Price of any remaining Assigned Service
Payments related thereto. If for any reason Buyer rejects funding of the new
Transaction involving an Extension and/or Upgrade then Buyer shall notify
Omnicell of the decline, and Buyer shall permit the Customer to terminate the
original Transaction(s) without penalty, upon Customer’s payment to Buyer of
the then current Net Book Value of such original Transaction, together with
payment by Omnicell of the Repurchase Price with respect to any remaining
Assigned Service Payments related thereto. In each case, upon receipt of the
Repurchase Price, Buyer will pass title to the Remaining Unearned Payments to
Omnicell free and clear of all liens attributable to Buyer, and reassign any
financing statements related thereto. Notwithstanding the foregoing, Omnicell
will not agree with a Customer to terminate a Contract prior to the expiration
of its original term in order to take advantage of lower interest rates.

 

6.3.                              Early Termination. If any Customer notifies a Party hereto
that it wishes to terminate a Contract prior to the end of the initial term of
such Contract, other than in connection with an Extension and/or Upgrade, such
Party shall notify the other Party of the Customer’s request. Following such
notification, Buyer shall permit the Customer to terminate the applicable
Contract upon (i) the expiration of a thirty (30) day notice period and (ii)
the payment to Buyer of an amount equal to the Net Book Value of the applicable
Transaction as of the date of termination, plus the Penalty for Early
Termination, plus the Repurchase Price of any remaining Assigned Service
Payments related thereto. Upon any termination of a Contract hereunder and
provided that Buyer has received the Net Book Value of the applicable
Transaction determined as of the date of termination plus the Penalty for Early
Termination plus the Repurchase Price with respect to any remaining Assigned
Service Payments related thereto, Omnicell shall have the option to purchase
the Equipment from Buyer on an “as-is where-is” basis for One Dollar ($1.00).
Buyer makes no representations or warranties as to the condition of the
Equipment, other than that the Equipment will be free of all liens and
encumbrances attributable to Buyer. Upon receipt of the Repurchase Price, Buyer
will pass title to such Remaining Unearned Payments to Omnicell free and clear
of all liens attributable to Buyer, and reassign any financing statements
related thereto.

 

7.               CUSTOMER DEFAULTS

 

7.1.                              Service Default.

 

(a)   If
a Customer alleges a Service Default with respect to a Transaction which
includes the sale of Service Payments to Buyer, then Buyer shall promptly give
Omnicell written notice of such alleged Service Default. For a period of thirty
(30) days from the date of such notice (the “Investigation
Period”) (i) Buyer shall attempt to collect all Assigned Service
Payments owed by the applicable Customer to Buyer under the defaulted Contract
related to such alleged Service Default, and (ii) Omnicell shall have the right
to investigate the alleged Service Default and, if Omnicell determines such
allegation to be valid, to cure any and all Service Defaults. If at the
expiration of such

 

14

 

Investigation Period, Buyer has been unable
to collect such payments, Buyer shall so notify Omnicell in writing (a “Notice of Continuing Nonpayment”).

 

(b)   If,
prior to expiration of the applicable Investigation Period with respect to each
Service Default, Omnicell has either (A) cured such Service Default or (B)
provided Buyer with satisfactory (determined in Buyer’s reasonable discretion)
evidence that Customer’s Service Default allegation is invalid, then Omnicell
shall not be required to pay to Buyer any amounts relating to such Service
Default under this Section 7.1.
If, however, Omnicell is unable to either cure such Service Default or refute
Customer’s Service Default allegation, then upon receipt of such Notice of
Continuing Nonpayment, Omnicell shall, as Buyer’s sole and exclusive remedy for
such Service Default, do one of the following:

 

(i)                   In any case
where the Service Agreement will remain in effect with the Customer, Omnicell
shall cure the Service Default by paying to Buyer, within thirty (30) days of
the expiration of the Investigation Period, the accrued and unpaid Assigned
Service Payments due under such Service Agreement as of the date of Buyer’s
Notice of Continuing Non-Payment (“Past Due Payments”),
or

 

(ii)               In any case
whereby the Customer has terminated the Service Agreement prior to the
expiration of the stated term of such Service Agreement, Omnicell shall
repurchase the Past Due Payments and the Remaining Unearned Payments (defined
below) from Buyer for a purchase price equal to the Repurchase Price (defined
below). Upon receipt of the Repurchase Price, Buyer will pass title to such
Past Due Payments and Remaining Unearned Payments to Omnicell free and clear of
all liens attributable to Buyer, and reassign any financing statements related
thereto. “Repurchase Price” means the sum of: (1)
the Past Due Payments and (2) the Remaining Unearned Payments, with each such
Remaining Unearned Payment discounted to its present value from the date
thereof to the date of the repurchase by Omnicell at the applicable Standard
Rate. “Remaining Unearned Payments” means
Assigned Service Payments scheduled to become due during the remainder of the
term of the Service Agreements to the extent that: (A) such payments would have
come due if not for the early termination of the applicable Service Agreement,
(B) such payments have not been paid by Customer as of the date of such
repurchase by Omnicell, and (C) Omnicell is no longer obligated to perform the
obligations relating to such payments.

 

7.2.                              Contract Default. The Parties hereby acknowledge and agree
there shall be no recourse to Omnicell for any Contract Defaults; however,
provided that Buyer has made the applicable Equipment legally available for
repossession by Omnicell, in the event of a Contract Default, Omnicell agrees
to use commercially reasonable efforts to obtain possession of the System (with
the assistance of Buyer where appropriate) for the benefit of Buyer. Omnicell
shall not be required to take any legal action or to commence any legal
proceeding against the Customer to obtain possession. If possession of the
Equipment is obtained under this Section, Omnicell shall, at the request of
Buyer, act on behalf of Buyer in storing, repairing and remarketing the
Equipment in accordance with the terms of Section 8
below.

 

7.3.                              Customer Bankruptcy. If the Equipment cannot be made legally
available due to a Customer’s Event of Bankruptcy, and a court of competent
jurisdiction determines that the value of the System is less than the value
determined by Buyer, or the net present value of the payments approved by such
court may be less than the Net Book Value (determined as of the date of
default) of such

 

15

 

defaulted Transaction, Buyer shall notify
Omnicell of any relevant court proceeding of which Buyer receives notice at
which the value of the System may be discussed, and may appear at such
proceeding and submit evidence relating to the value of the System.
Notwithstanding anything in this Agreement to the contrary, Omnicell shall not
be required to repurchase any Assigned Rental Payments or Assigned Service
Payments under any Transaction, which Assigned Rental Payments or Assigned
Service Payments Buyer is unable to collect due to the insolvency, bankruptcy,
or financial inability to pay of any Customer.

 

8.               REMARKETING ASSISTANCE

 

8.1.                              Agreement to Remarket. Upon any repossession by Buyer of
Equipment, Buyer shall promptly deliver such Equipment to Omnicell. In order to
allow Omnicell to control the aftermarket for its Equipment and in an attempt
to obtain reasonable proceeds from Equipment related to a Contract Default in
order to protect Omnicell’s residual interest in the Equipment, Omnicell shall
remarket such Equipment on behalf of Buyer as provided below. Omnicell shall
have the exclusive right, and the obligation to use commercially reasonable
efforts, to remarket the Equipment on a non-discriminatory, non-priority basis
during the Remarketing Period in accordance with the remarketing guidelines set
forth in Sections 8.4 below.

 

8.2.                              Appraisal. Omnicell shall appraise the Equipment and advise
Buyer in writing of its best estimate of the Equipment’s market value in an “as
is/where is” condition. Additionally, Omnicell shall promptly provide Buyer
with a written estimate of its costs of repair, refurbishment, Software
upgrade, insurance and remarketing (“Out-Of-Pocket Costs”).
If Buyer does not approve such Out-Of-Pocket Costs, which approval shall not be
unreasonably withheld or delayed, Omnicell shall have a right of first refusal
to purchase the Equipment for an amount equal to the Net Book Value determined
as of the date of the applicable Contract Default. If Omnicell does not
exercise such purchase option within 10 days after written notice of a decision
by Buyer to not approve the Out-of-Pocket Costs, Omnicell shall, at Buyer’s
reasonable expense, promptly cause the Equipment to be crated and safely
delivered to a location selected by Buyer.

 

8.3.                              Repairs. If Buyer approves the Out-Of-Pocket Costs, Omnicell
shall repair and refurbish the System, including replacing the existing
Software configuration with its most recent available Software upgrades (if
necessary), and attempt to remarket the System as set forth below. Buyer shall
not be obligated to pay actual Out-Of-Pocket Costs that exceed the estimated
Out-Of-Pocket Costs by more than 10%.

 

8.4.                              Manner of Remarketing. During the ninety (90) day
Remarketing Period, Omnicell shall:

 

(a)   use
commercially reasonable efforts to remarket the System on a non-discriminatory,
non-priority basis, as compared to substantially similar used equipment and software
owned by Omnicell or owned by another party to whom Omnicell may be bound to
provide remarketing assistance (except that Omnicell shall not be required to
market the Equipment to any third party that would not be the end-user of such
Equipment, and Buyer acknowledges that Omnicell in the ordinary course of its
business will be engaged in the marketing of other equipment and such activity
shall not be a breach of any duty or warranty of Omnicell as contained herein);

 

(b)   make
available maintenance service to any subsequent purchaser or lessee of the
Equipment and licensee of the Software at Omnicell’s then current market rates;

 

16

 

(c)   grant
a valid license to the Software to any subsequent purchaser or lessee of the
Equipment upon such purchaser’s or lessee’s acceptance of Omnicell’s standard
software license agreement;

 

(d)   not
permit any lien or encumbrance to attach to the System by or through Omnicell,
and will waive any right or claim to the Equipment which may arise in
connection with its remarketing services;

 

(e)   warrant
that the System that is delivered to customers will be in good working order,
condition and repair, conforming to specifications according to Omnicell’s
current warranty policy for used equipment and will meet all applicable
governmental standards; and

 

(f)    not
agree to any sales price or lease terms without Buyer’s prior approval, which
shall not be unreasonably withheld or delayed.

 

8.5.                              Distribution of Remarketing Proceeds. If a buyer or new
lessee is obtained by Omnicell or Buyer, the Remarketing Proceeds shall be
distributed as follows:

 

(a)   first
to the recovery by Omnicell of the costs and expenses of repossession,
remarketing and reconditioning the Equipment as directed by Buyer but not
previously paid to Omnicell by Buyer;

 

(b)   then
to Buyer for recovery of its Net Book Value (determined as of the date of the
applicable Contract Default) of the Transaction; and

 

(c)   last,
the remainder, if any, to Omnicell.

 

8.6.                              Unsuccessful Remarketing. In Transactions involving
Equipment, if the Equipment has been made legally available for repossession
and Omnicell has been unable to remarket the System during the Remarketing
Period, Omnicell shall return the Equipment to Buyer who may remarket it and
retain all proceeds from any resulting sale (unless the Transaction does not
constitute a lease, in which case any proceeds received by Buyer that exceed
the applicable Net Book Value (determined as of the date of the applicable
Contract Default) shall be remitted to the applicable Customer or as otherwise
required by law).

 

9.               REPRESENTATIONS, WARRANTIES AND COVENANTS

 

9.1.                              With Respect to this Agreement. Each Party hereby
represents, warrants and covenants to the other (and such other Party’s
permitted successors and assigns), as of the date hereof, of the Application,
and on each date that a Transaction is sold by Omnicell and purchased by Buyer,
that:

 

(a)   it
is a duly organized and validly existing corporation in its state of
incorporation and has full power to enter into this Agreement and to carry out
the transactions contemplated hereby;

 

(b)   the
execution and delivery of this Agreement and the performance by it of the
transactions contemplated hereby have been duly authorized by all necessary
corporate action;

 

(c)   this
Agreement constitutes a legal, valid and binding obligation on its part,
enforceable in accordance with its terms;

 

(d)   neither
the execution of this Agreement nor the consummation of the transactions
contemplated hereby will constitute (i) a violation or default of any material
statute, rule, or decree of any court,

 

17

 

administrative agency or governmental body to
which it is subject, or (ii) a material default with respect to any material
indenture, loan agreement or other material agreement to which it is bound;

 

(e)   there
are no suits or proceedings pending or, to its knowledge, threatened in any
court or before any regulatory commission, or other administrative or governmental
agency against or affecting it which is reasonably likely to materially impair
its ability to perform its obligations hereunder or in connection with any
Transaction; and

 

(f)    it
shall notify the other Party promptly upon becoming aware of a Material Adverse
Change it experiences.

 

9.2.                              With Respect to Each Transaction.

 

(a)   Omnicell
hereby warrants and represents with respect to each Transaction assigned
hereunder, as of the later of the date that the related Assigned Rental
Payments or Assigned Service Payments are sold by Omnicell and purchased by
Buyer or the date that Omnicell delivers a Customer acceptance certificate in
accordance with the terms of Section 3.7,
that:

 

(i)                   neither
Omnicell, nor its agents have participated in or have any knowledge of any
fraudulent act in connection with such Transaction;

 

(ii)               all documents
relating to a Transaction to which Omnicell is a party or by which it is bound
will be genuine, legal, valid, and binding obligations of Omnicell;

 

(iii)           to the best of Omnicell’s
knowledge, in all documents where Omnicell is responsible for obtaining the
Customer’s signature, the signature of the named Customer is genuine, the
individual signing on behalf of the Customer holds the office set forth below
his signature and;

 

(iv)              it has not
received and kept any rent or other monies from any Customer in respect of any
Transaction (other than any required down payments) which is owed to Buyer and
Omnicell will promptly remit any funds owed to Buyer which it may receive;

 

(v)                  the System
will have been delivered to the Customer after, or no more than five (5) days
prior to, Omnicell’s provision of a copy of the Contract to Buyer pursuant to Section 4.9 and thereafter accepted by the named Customer,
properly installed (in the customary manner) at the location indicated in the
applicable Application, and will be in good working order, condition and
repair, conforming to specifications, reasonable wear and tear excepted, on the
date title (subject to the terms and conditions of Section 4.4)
to said specific Equipment is transferred to Buyer;

 

(vi)              Buyer will have
good title (subject to the terms and conditions of Section 4.4)
to the Equipment and a first priority security interest in the related licenses
of Software governed by any Transaction, free and clear of all liens, claims,
and encumbrances on the date it is accepted by a Customer on behalf of Buyer,
subject only to the interest of the Customer under the Contract and the
interest of Omnicell under this Agreement;

 

(vii)          all sales, use, or
property taxes applicable to the System assessed or imposed prior to the time
Buyer pays the applicable Purchase Price, shall have been paid or shall be
timely

 

18

 

remitted by Omnicell to the appropriate
taxing authority and Omnicell shall on request provide Buyer with proof of such
payment as promptly as possible;

 

(viii)      the financial statements
of Omnicell delivered to Buyer from time to time fairly present the financial
position of Omnicell as of the dates thereof and the results of operations of
Omnicell for the periods covered thereby, all in conformity with generally
accepted accounting principles applied on a consistent basis; and

 

(ix)             Omnicell has or
will deliver to Buyer concurrently with payment of the Purchase Price the
lessor’s sole original executed chattel paper constituting the Lease Supplement
to the Contract (and certified copies of any master agreement not constituting
chattel paper).

 

(b)   Buyer
hereby warrants, represents and covenants with respect to each Transaction
assigned hereunder, as of the date such Transaction is sold by Omnicell and
purchased by Buyer, that:

 

(i)                   neither
Buyer, nor its agents have participated in or have any knowledge of any
fraudulent act in connection with such Transaction;

 

(ii)               it will honor
any agreements made or warranties given by Buyer, or its agents, under the
Transaction to any Customer in connection with such Transaction, provided they
are in writing and duly executed; and

 

(iii)           all documents relating
to a Transaction to which Buyer is a party or by which it is bound will be
genuine, legal, valid, and binding obligations of Buyer.

 

(c)   Omnicell
hereby covenants with respect to each Transaction assigned hereunder that:

 

(i)                   it will not
transfer or assign its obligation to provide maintenance or to maintain service
capability without the prior written consent of Buyer, which consent will not
be unreasonably withheld or delayed, provided that this subparagraph will not
prohibit the routine subcontracting of maintenance or service obligations by
Omnicell, and, provided further, that the Customer shall not be obligated to
have its System serviced by Omnicell; and

 

(ii)               it shall
deliver to Buyer within one hundred twenty (120) days of the close of each
fiscal year, its audited financial statements or annual report, and, within
ninety (90) days of the close of the second fiscal quarter, its six month
unaudited financial report, certified by its chief financial officer.

 

10.         INDEMNITIES

 

10.1.                        By Omnicell. Omnicell shall indemnify and hold harmless
Buyer, its officers, directors, employees and agents (each a “Buyer Indemnified Party”), from any losses, claims,
liabilities, demands and expenses, including reasonable attorneys’ fees and
additional tax liabilities (collectively “Buyer Claims”)
arising out of actions against such Buyer Indemnified Party by any third-party
resulting from (i) any breach by Omnicell of its representations, warranties or
obligations hereunder, or (ii) any act, failure to act, omission,
representation or misrepresentation by Omnicell, its employees or agents in
connection with any Transaction or with the sale, use, operation, ownership,
licensing, servicing or maintenance of the System, including any strict
liability therefor, or (iii) the failure of the System to meet all federal and
state standards applicable

 

19

 

to the existence and operation of the System,
or (iv) the expiration or earlier termination of any patent or copyright pertaining
to any item of the System, or (v) any swap of Equipment or Software comprising
the System by Omnicell pursuant to the terms of any Service Agreement; provided, however, that for any Buyer Claim arising out of
actions against such Buyer Indemnified Party by any Customer, Omnicell shall
not indemnify such Buyer Indemnified Party for any failure to collect Assigned
Rental Payments under any Transaction or the cost of collection and enforcement
of such Assigned Rental Payments.

 

10.2.                        Buyer. Buyer shall indemnify and hold harmless Omnicell, its
officers, directors, employees and agents (each an “Omnicell
Indemnified Party”), from any losses, claims, liabilities, demands
and expenses, including without limitation reasonable attorneys’ fees and
additional tax liabilities (“Omnicell Claims”),
arising out of (i) any breach by Buyer of its representations, warranties or
obligations hereunder or (ii) any act, failure to act, omission, representation
or misrepresentation by Buyer, its employees or agents in connection with any
Transaction.

 

10.3.                        Limitations. Notwithstanding anything in this Agreement to
the contrary, Omnicell shall not be required to indemnify a Buyer Indemnified
Party for any failure to collect Assigned Rental Payments under any Transaction
due to the insolvency, bankruptcy, or financial inability to pay of any
Customer. In no event shall Omnicell or Buyer indemnify a Buyer Indemnified
Party or an Omnicell Indemnified Party, as applicable, against liability for
indirect, special, consequential or incidental damages including loss of use,
revenue or profit regardless of the form of the cause of action. Neither a
Buyer Indemnified Party nor an Omnicell Indemnified Party shall be required as
a condition to receipt of payments hereunder to contest or to permit Omnicell
or Buyer, as applicable, to participate in any contest in connection with the
foregoing or to attempt to recover from any Customer through legal proceedings
or otherwise. All indemnities and obligations under this Section 10.3
shall survive the expiration or termination of this Agreement and
the expiration or termination of any Transaction, but shall not apply in the
case of Buyer Indemnified Party’s or Omnicell Indemnified Party’s negligence,
gross negligence or intentional misconduct.

 

10.4.                        Notice. If any Buyer Claim or action, or any Omnicell Claim
or action is brought or threatened against a Buyer Indemnified Party or an
Omnicell Indemnified Party, as applicable, and for which Omnicell or Buyer, as
applicable, is required to provide indemnity hereunder (the “Indemnifying Party”), such Buyer Indemnified Party or
Omnicell Indemnified Party, as applicable, shall promptly notify Indemnifying
Party in writing of such Buyer Claim or Omnicell Claim, as applicable.

 

10.5.                        Defense of Claims. Following the receipt of notice if the
Indemnifying Party has been given full authority, information and assistance
for the defense of same by Buyer Indemnified Party or Omnicell Indemnified
Party, as applicable, Indemnifying Party shall defend such actions or Buyer
Claims or Omnicell Claims, as applicable, at its expense and pay all costs,
damages and attorneys’ fees which may be awarded in any such action against
Buyer Indemnified Party or Omnicell Indemnified Party, as applicable. Buyer
Indemnified Party or Omnicell Indemnified Party, as applicable, shall take all
reasonable actions (at the expense of Indemnifying Party) as may be reasonably
requested by Indemnifying Party to assist it in the settlement and defense of
such Buyer Claim or Omnicell Claim, as applicable.

 

20

 

11.         TERM AND
TERMINATION.

 

11.1.                        Term. This Agreement shall be effective as of the Effective
Date first set forth on the Signature Page of this Agreement and shall continue
until terminated by either Party as set forth in Section 11.2
below.

 

11.2.                        Termination. This Agreement may be terminated (i) without
cause with ninety (90) days prior written notice, or (ii) upon the occurrence
of the other Party’s breach of any material covenant of this Agreement, which
breach is not cured within thirty (30) days after written notice to such
breaching Party. Upon the termination of this Agreement for any reason, the
obligations of the parties with respect to Transactions not funded by Buyer
shall cease, but all obligations with respect to Transactions which have been
funded by Buyer shall survive.

 

12.         EVENTS OF
DEFAULT, REMEDIES

 

12.1.                        Events of Default. Each of the following shall be an “Event of Default” under this Agreement.

 

(A)  If
any representation or warranty made by either Omnicell or Buyer in this
Agreement shall have proved to have been inaccurate in any substantial and
material respect as of the date or dates with respect to which it is deemed to
have been made.

 

(b)   If
either Omnicell or Buyer shall breach in any substantial and material respect
any material covenant in this Agreement, other than a Service Default.

 

(c)   If
either Omnicell or Buyer breaches any obligation to indemnify Buyer or
Omnicell, as applicable and as set forth in Sections 10.1
or 10.2, hereof, as applicable.

 

12.2.                        Remedies.

 

(a)   Upon
the occurrence and during the continuance of (i) an Event of Default by
Omnicell with respect to a particular Contract and (ii) a failure on the part
of the Customer under such Contract to pay Assigned Rental Payments when due
because of such Event of Default, which failure continues for more than sixty
(60) days, Buyer may by written notice to Omnicell declare Omnicell to be in
default of this Agreement or an Assignment Agreement and, as its sole remedy,
upon demand by Buyer require Omnicell to purchase for cash from Buyer in an
amount equal to the applicable Net Book Value, all unpaid Assigned Rental
Payments under any Contract as to which such Event of Default directly relates,
together with the related Equipment. In the event of such purchase of Assigned
Rental Payments and Equipment by Omnicell, Buyer shall make to Omnicell no
representations or warranties as to the sale of such Assigned Rental Payments
and Equipment except that Buyer shall represent and warrant that it is
conveying to Omnicell the title to such Assigned Rental Payments and Equipment
that it received from Omnicell, that there are no liens or encumbrances
respecting such Assigned Rental Payments or Equipment in favor of any person
claiming by, through or under Buyer, and that no act or omission of Buyer has
adversely affected the amount, timing of payment, or collectibility of the
Assigned Rental Payments unless disclosed in writing by Buyer to Omnicell and
as to which the parties have agreed to a price adjustment to the repurchase
price for the Assigned Rental Payments.

 

(b)   Upon
the occurrence of an Event of Default by Buyer, Omnicell may by written notice
to Buyer declare Buyer to be in default of this Agreement and, upon demand by
Omnicell, Buyer shall pay in a lump sum to Omnicell, Omnicell’s actual damages
incurred and reasonably to be incurred by Omnicell by reason of such breach or
misrepresentation.

 

21

 

13.         MISCELLANEOUS

 

13.1.                        No Joint Venture. Buyer and Omnicell acknowledge that they
are separate entities, each of which has entered into this Agreement for
independent business reasons. Nothing in this Agreement shall be deemed to
constitute the creation of a partnership or joint venture for legal purposes.

 

13.2.                        Assignments. Neither Party may assign any of its rights or
obligations hereunder without written consent of the other Party; provided that
either Party may without prior written consent assign any of its rights hereunder
or under any Transaction to an affiliate or other entity in which a majority of
the common stock is owned directly or indirectly by such assigning Party, and
Omnicell may without prior written consent assign any of its rights to payment
hereunder to any party. Buyer may, in its sole discretion, securitize or
syndicate its rights under any Transaction.

 

13.3.                        Confidentiality. From time to time either Party may provide
information to the other Party which is plainly marked as “Confidential.”  The Parties agree to take reasonable steps to
preserve the confidential nature of such information and to prevent its
disclosure to third parties. Such information shall not be considered
confidential if (i) it is already in the public domain, or (ii) it is obtained
from an independent source (unless such independent source is known by the
recipient to be legally bound to refrain from such disclosure), or (iii) it is
independently developed by the receiving party without reference to the
confidential information, as demonstrated by the receiving party’s files and
records immediately prior to the date of disclosure. The Parties will fulfill
their obligations hereunder if they exercise the same degree of care to
preserve and safeguard such confidential information as they use to preserve
and safeguard their own confidential information, but no less than “reasonable
care.”  The Parties may disclose
confidential information to their respective affiliates, and confidential
information relating to specific Transactions may be disclosed by Buyer to its
representatives and agents, in the event that such Transactions are referred
for collection, and to any purchaser or administrator, in the event that such
Transactions are syndicated or securitized, provided that the receiving party
agrees to be bound by the terms hereof in writing. Nothing herein shall be
deemed to prohibit disclosure of confidential information that is required by
law, so long as the disclosing party, so far as practicable, consults with the
other party prior to such disclosure and takes such steps as the other party
may reasonably request to mitigate the effect of such disclosure.

 

13.4.                        Notices. All notices, consents, requests, instructions,
approvals and communications provided herein shall be validly given, made or
served, effective only if in writing, except as otherwise provided herein, and
sent by (i) U.S. registered or certified mail, postage prepaid, and return
receipt requested, (ii) a nationally recognized overnight delivery; or (iii)
electronic facsimile (promptly confirmed in writing) to the other Party at the
address and/or facsimile number first stated above, or to such other address
and/or facsimile number as such party may designate in writing.

 

13.5.                        Governing Law. This Agreement will be governed by and
construed in accordance with, the laws of the State of California, other than
any choice of law rule that would cause the application of the laws of any
other jurisdiction, as such laws apply to contracts between California
residents performed entirely within California. The United Nations Convention
on Contracts for the International Sale of Goods does not apply to this
Agreement.

 

13.6.                        Venue. Any action or proceeding arising from or relating to
this Agreement must may be brought in a federal court in the Northern District
of California or in state court in Santa Clara County,

 

22

 

California, and each party irrevocably
submits to the jurisdiction and venue of any such court in any such action or
proceeding.

 

13.7.                        Severability. If any part of this Agreement shall be
contrary to any law which either party might seek to apply or enforce or should
otherwise be defective, the other provisions hereof shall not be affected
thereby but shall continue in full force and effect, to which end they are
hereby declared severable.

 

13.8.                        Headings. The headings of the sections of this Agreement are
for convenience only and shall not be used to interpret or construe this
Agreement.

 

13.9.                        Counterparts. This Agreement may be executed in
counterparts, each of which will be considered an original, but all of which
together will constitute the same instrument.

 

13.10.                  Entirety; Amendments. This Agreement, together with the
Exhibits, Riders, Schedules and addenda referred to herein, constitute the
entire agreement between Buyer and Omnicell as to the subject matter
contemplated herein, and supersedes all prior agreements and understandings
relating thereto. No other agreements will be effective to change, modify or
terminate this Agreement in whole or in part unless such agreement is in
writing and duly executed by the party to be charged except as expressly set
forth herein. In the event there is any conflict between this Agreement and any
ancillary agreements with respect to any Transaction, the terms and conditions
of the relevant Exhibit, Schedule, Rider or addenda shall control.

 

23

 

EXHIBIT A

 

REQUIRED DOCUMENTS

 

A.            Application
Documents.

 

1.               a complete description of the Equipment;

2.               payment terms requested;

3.               estimated Equipment delivery date;

4.               a complete copy of the proposed
Customer’s most recent three fiscal year end audited financial statements
including all notes thereto;

5.               if more than six months have elapsed since
the end of the immediately prior fiscal year end, the most recent interim
financial statement and a comparable interim statement from the prior year; and

6.               a copy of any written lease proposal
presented to the potential Customer by Omnicell.

 

B.            Final
Documents.

 

1.               Assignment Agreement (in the form
substantially as shown below);

2.               a copy of the Customer’s Master
Agreement;

3.               a copy of the Customer’s Master Service
Agreement (if different from Master Agreement);

4.               the original Lease Supplement(s) representing
the relevant Transaction and/or Supplement(s) to Service Agreement being
assigned to Buyer;

5.               a purchase order from Customer or a
mutually agreeable Customer billing reference number;

6.               an
Assignment Letter (as shown on Exhibit B); and

7.               evidence of current insurance by
Customer as required pursuant to the terms of a Contract.

 

24

 

EXHIBIT B

 

A. Form of Assignment Agreement.

 

25

 

B. Form of Assignment Letter.

 

AMENDMENT AND ACKNOWLEDGEMENT OF ASSIGNMENT

 

This Amendment and Acknowledgement of Assignment (this “Amendment”) is made and entered into as of the           
day of                            ,
20   by and between                                                
(“Customer”) and Omnicell, Inc. (“Omnicell”).

 

Whereas, Customer and Omnicell are executing,
contemporaneously with this Amendment, that certain SCHEDULE A-2, PRICING
SUPPLEMENT NO.       FOR FINANCED PRODUCTS dated                                        
(the “Pricing Supplement”) subject to the terms of that certain Schedule B, FINANCING SCHEDULE
dated                 
(the “Financing Schedule”) entered into subject to certain GENERAL TERMS AND CONDITIONS dated             
between Omnicell and the Customer (the “Master Agreement”) (the Pricing
Supplement, the Financing Schedule and the Master Agreement shall be
collectively referred to herein as the “Agreement”); and

 

Whereas, Customer and Omnicell wish to amend and supplement the terms
of the Agreement as hereinafter set forth;

 

NOW,
THEREFORE, in exchange for the mutual promises and agreements hereinafter set
forth, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Customer and Omnicell hereby agree
as follows:

 

1.             Definitions.
Except as otherwise specifically defined herein, terms used herein
shall have the same meanings as set forth in the Agreement.

 

2.             Modification
of Section 1.5 of the Financing Schedule. The Financing Schedule is
hereby amended, solely as it pertains to the Pricing Supplement, by adding the
following as the last sentence of Section 1.5
thereof:

 

“Customer hereby acknowledges and agrees that Omnicell is assigning the
right to Monthly Lease Payments for the Financed Products described in that
certain Schedule A-2, Pricing Supplement For Financed Products dated                                       
(the “Pricing Supplement”) entered into
hereunder to                    
(the “Finance Company”) but the Finance Company
is only being assigned the rights to such Monthly Lease Payments and is not
undertaking any of Omnicell’s obligations under the Agreement. (Omnicell shall
remain solely liable for all performance obligations as the rentor under the
Agreement, all warranties as manufacturer and/or supplier, all claims under any
service contract (including, without limitation, any related Schedule D
(Support Services Schedule)) or any other matters concerning the Financed
Products. CUSTOMER ACKNOWLEDGES AND AGREES THAT ANY CLAIMS AGAINST OMNICELL
UNDER THE AGREEMENT OR AS VENDOR OR SUPPLIER OF THE EQUIPMENT OR UNDER ANY
SERVICE CONTRACT SHALL BE MADE SOLELY AGAINST OMNICELL AND NOT THE FINANCE
COMPANY AND THAT THE OBLIGATION TO MAKE MONTHLY LEASE PAYMENTS TO THE FINANCE
COMPANY OR ITS SUCCESSORS OR ASSIGNS IS ABSOLUTE AND UNCONDITIONAL AND SHALL
NOT BE SUBJECT TO ANY DISPUTES, CLAIMS, DAMAGES, LIABILITIES, OR OFFSETS
AGAINST ANY PAYMENTS DUE UNDER ANY AGREEMENTS FOR ANY REASON WHATSOEVER
(INCLUDING, WITHOUT LIMITATION, REMEDIES ARISING FROM NON-PERFORMANCE BY
OMNICELL OR FROM ANY FAILURE OF, OR DAMAGE TO, THE EQUIPMENT). Monthly Lease
Payments and Monthly Support Fees under the Agreement on or after this date
shall be remitted to Finance Company (or its successors or assigns) to the
address referenced on the invoices. Any assertion of remedies for
non-performance (including, if applicable claims requesting credits against
monthly service payments under the Service Supplements,) must be directed ONLY
to Omnicell and

 

26

 

shall not limit or otherwise affect Finance Company’s unconditional
right to collect full payments under the Agreement.”

 

3.             Insurance
Information. Customer represents and warrants that the insurance
information set forth is true and correct, and Omnicell acknowledges receipt of
same:

 

 

NAME
OF INSURANCE COMPANY 

 

NAME
OF AGENCY 

 

ADDRESS

 

TELEPHONE
#                                                           
POLICY # 

 

POLICY
EXPIRATION DATE                                          ;
CONTACT PERSON AT AGENCY 

 

4.             Miscellaneous. This Amendment shall inure to the benefit of,
and be binding upon the parties and their respective successors and permitted
assigns. This Amendment, together with those provisions of the Agreement not
deleted or modified hereby, represents the entire agreement between the parties
as to the subject matter hereof, and supersedes all prior oral and written
negotiations, agreements and understandings. To the extent any current
provision of the Agreement conflicts with any provision added to the Agreement
or modified via this Amendment, the provision added via this Amendment shall
control. As amended herein, the terms and conditions of the Agreement shall
remain in full force and effect. No modification or addition to this Amendment
shall be effective unless such modification or addition is in writing and
signed by both parties.

 

IN WITNESS WHEREOF, the parties have executed this Amendment as of the
date and year first above written.

 

 

	
  Omnicell, Inc. 

  	
   

  
	
   

  	
   

  
	
  By:

  	
  By:

  	
   

  	
   

  
	
  Print:

  	
   

  	
  Print:

  	
   

  	
   

  
	
  Its:

  	
   

  	
  Its:

  	
   

  	
   

  
							

 

27

 

EXHIBIT C

 

FORMULAS

 

A.                                   Penalty for Early Termination.

 

The fee will
be an amount equal to the Purchase Price for the related Transaction times****

 

B.                                     Purchase Price (include formula for determining
Standard Rate).

 

The Purchase Price to be calculated based ****

 

C.                                     Interest Rate for Repurchases under Section 3.7

 

The interest rate used for purposes of Section 3.7 shall be****

 

*Confidential Treatment
requested on certain portions, which portions have been filed separately with
the Securities and Exchange Commission.

 

28Exhibit 10.15

 

G A R Y  S
T E V E N  F I N D L E Y  &  A
S S O C I A T E S

 

	
  Gary Steven Findley*

  	
   

  	
  A PROFESSIONAL CORPORATION

  	
   

  	
  Telephone

  
	
  Thomas Q. Kwan

  	
   

  	
  ATTORNEYS AT LAW

  	
   

  	
  (714) 630-7136

  
	
  Laura Dean-Richardson

  	
   

  	
   

  	
   

  	
  Telecopier

  
	
  Debra L. Barbin

  	
   

  	
  1470 NORTH HUNDLEY STREET

  	
   

  	
  (714) 630-7910

  
	
   

  	
   

  	
  ANAHEIM, CALIFORNIA 92806

  	
   

  	
   

  

 

*A
Professional Corporation

 

MEMORANDUM

 

	
  To:

  	
   

  	
  Steven Ellsworth and Kevin
  Stevenson

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Gary Steven Findley

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  January 31, 2006

  
	
   

  	
   

  	
   

  
	
  Re:

  	
   

  	
  Memorandum of Understanding
  Update- Arizona Project

  
						

 

This Memorandum of Understanding is an update
on the December 27, 2005 Memorandum of Understanding concerning the
organization of a new national bank in Arizona that will be majority owned by
Premier Commercial Bancorp (“PCB”) and to which Steven Ellsworth (“SE”) and
Kevin Stevenson (“KS”) are critical players. PCB, SE and KS understand that PCB
would not proceed with the organization of the new national bank in Arizona (“PCBAZ”)
without the involvement of SE and KS. It is important to memorialize the
understanding of PCB, SE and KS concerning the structure of PCBAZ and the
employment and compensation for SE and KS related to PCBAZ. PCB have drafted
various agreements that have been reviewed by SE and KS related to their ownership
in PCBAZ and the employment with PCBAZ. This Memorandum of Understanding is
intended to described the terms and conditions which have been agreed to by the
parties, that are not included in the various agreements that have been
circulated between the parties.

 

Basic Framework

 

The initial capital of PCBAZ will be $10
million. The two critical players to PCBAZ will be SE and KS who have requested
ownership in PCBAZ rather than PCB. It was initially discussed that PCB would
own 80% of PCBAZ with the remaining 20% to be owned by SE, KS and other local
directors from the Arizona market. While there are certain advantages to PCB if
it owns at least 80% of PCBAZ, it is acceptable for PCB to own a minimum of 70%
of PCBAZ if there are stockholder agreements in place at PCBAZ that provide
protection to PCB going forward. The stockholder agreements have been forwarded
in draft form to SE and KS.

 

It is understood that PCB will need to raise
the capital necessary to invest into PCBAZ and that PCB will be using a combination
of common stock and trust preferred securities in order to increase the capital
accounts and complete the investment. PCB will likely be raising over $12
million in common stock and trust preferred securities to fund PCBAZ and other
projects ($3 million in trust preferred securities were issued on December 23,
2005 with another $3 million in the summer of 2006). SE and KS have agreed to
invest $1.3 million ($750,000 and $550,000 respectively) in the initial
offering of PCBAZ, therefore they will own a combined 13% of PCBAZ if the
initial capital is $10 million. Both SE and KS are interested in increasing
their ownership of PCBAZ over time into the range of 20% to 30%. This increase
in ownership is acceptable to PCB based upon satisfactory performance of PCBAZ
going forward.

 

 

Initial Capital

 

PCBAZ would be capitalized for $10,000,000
through the sale of shares of common stock. Normally we would consider the sale
of shares at a price of $10.00 per share. However to replace the incentive
compensation that SE is walking away from at his current employer in the amount
of approximately $210,000 by joining the PCBAZ project before March 16, 2006 it
is agreed that the price per share of PCBAZ’s offering be reduced to $8.00 per
share for SE. This pricing preference only applies to SE. Only SE and KS would
be allowed to invest into PCBAZ, other than PCB. Based upon an initial capital
outlay by SE and KS of $1,300,000, it is agreed that PCB will contribute
$8,700,000 in capital to PCBAZ and is issued 870,000 shares of common stock. SE
and KS would each purchase units of PCBAZ for $20.00 per unit. The SE $750,000
investment would purchase 37,500 units with each unit consisting of 2.5 shares
and a warrant to purchase one additional share of PCBAZ common stock over a
five-year period. The KS $550,000 investment would purchase 27,500 units with
each unit consisting of 2 shares of PCBAZ common stock and a warrant to
purchase one additional share of PCBAZ common stock over a five-year period.
The warrants for SE and KS would be exercisable at a price equal to the higher
of 1.5 times the book value of PCBAZ at the time of the exercise of the warrant
or an annual increasing price over the five-year term between $15.00 and
$20.00. These warrants would vest immediately, not be transferable and would be
forfeited prior to exercise if SE or KS resigned employment from PCBAZ or they
were terminated for cause. The warrants would also be adjustable for splits and
stock dividends by PCBAZ. Following this type of plan there would be 1,018,750
shares of PCBAZ outstanding. Under this scenario SE would own 93,750 shares or
9.20%, KS would own 55,000 shares or 5.40% with the combined ability upon the
exercise of the warrants to go to 213,750 shares or slightly less than 20% of
the outstanding. This does not include the exercise of stock options, which is
discussed later in the Memorandum.

 

The stockholders agreement between PCB and
SE/KS, that have been negotiated by the parties, give PCB the ability to
purchase the shares of SE and KS in the event that they resigned or were
terminated for cause. The stockholders agreement restricts SE and KS ability to
sell the shares to anyone other than PCB or an entity or person identified by
PCB. We would place into the stockholders agreement a preemptive right to SE
and KS to purchase additional shares of PCBAZ common stock if PCB purchased
additional shares pursuant to a common stock offering at PCBAZ. The
stockholders agreement contains a right of first refusal.

 

All other local investors will invest in PCB’s
common stock offering rather than PCBAZ. PCB’s initial ownership will be
870,000 shares or 85.40% of PCBAZ. From recent discussions, approximately
$2,000,000 of the PCB offering the second quarter of 2006 will be reserved for
the Arizona shareholders. It is agreed that PCB will create a form of
stockholders agreement for the Arizona shareholders that will invest in the PCB
offering. It is understood that the shares of PCB common stock in the offering
could be sold to existing PCB shareholders since there is high demand. Under
the terms of the

 

 

stockholders agreement PCB, or a party
designated by PCB would be able to purchase the shares owned by the Arizona
shareholders in the event that the Arizona shareholder either left the
employment or directorship of PCBAZ or an entity affiliated with PCB. The
stockholders agreement would be for a five-year period and would release one
fifth of the shares on each anniversary of the original purchase. The purchase
price per share will be finalized in the near term but would suggest the lower
of the then current market value of PCB common stock or the original purchase
price of the shares with a five percent annual increase. The stockholders
agreement would allow for a legend on the share certificates and would also
state that the purchase price to be paid will not be less than the original
purchase price, adjusted for stock splits and dividends. The stockholders
agreement would also terminate in the event there was a change in control
involving PCB. This is a form of golden handcuff that we agreed to protect
PCBAZ and PCB.

 

Compensation

 

PCBAZ is being created based upon the talents
of SE, KS and members of senior management of PCB. There are several components
of compensation that have been finalized with SE and KS and are the basis of
employment agreements that have been negotiated by the parties.

 

Stock
Options

 

Part of the compensation program for PCBAZ
will be the use of stock options and restricted stock grants. Due to the young
age of PCBAZ no restricted stock grants will be used during the first three
years of PCBAZ’s existence. A stock option plan for PCBAZ will be created. The
initial stock option pool shall be 300,000 shares and is set aside for officers
and directors of PCBAZ. The initial stock option grants for all directors and
officers of PCBAZ are limited to no more than 175,000 with the remaining
options to be granted based upon performance of PCBAZ. SE will receive 30,000
stock options and KS will receive 20,000 stock options. The initial price of
the stock options shall be $10.00 and the options shall vest over five years.
There will be an acceleration of stock option vesting in the event of a change
in control involving PCBAZ or PCB. All stock option agreements would require
the execution of a stockholders agreement with PCB prior to the exercise of any
stock option. The stock option agreement would vest over a four to five year
period and have immediate forfeiture language in the event that the option
holder resigned from PCBAZ or was terminated for cause. The stockholders
agreement would have restrictions on transferability of shares acquired
pursuant to the stock option grant and would allow PCB to purchase the shares
at the higher of 1.0 times PCBAZ’s book value per share or the original option
price paid in the event that the stockholder was either terminated for cause or
resigned to work for a competing entity. The consideration to be paid by PCB
could be in the form of cash or market value of PCB common stock. In addition
the stock options could be converted into PCB common stock based upon a formula
to be agreed upon by the parties. We would suggest that the formula would be
the higher of (A) PCBAZ’s book value per share multiplied by PCB’s

 

 

book value per share multiple, or (B) PCBAZ’s
last twelve months earnings per share multiplied by PCB’s last twelve months
price to earnings multiple divided by the current market value of PCB common
stock. This will have to be modeled, however this type of conversion feature
provides liquidity to the PCBAZ option holder.

 

Timing and LPO

 

While PCBAZ will take several months to get
off the ground SE and KS would be valuable to PCB running a loan production
operation. Rather than use consulting agreements related to this engagement, SE
and KS will enter into one-year employment agreements with PCBCA that have been
negotiated.

 

Other Matters

 

As part of the process SE will be proposed to
the regulatory agencies as an initial director of PCBAZ. The Board of PCBAZ
will consider retirement benefits in the form of a SERP for SE and KS after the
third year anniversary of the operation of PCBAZ. One additional factor that
needs addressing is the addition of DB to the PCBAZ team. From conversations
with SE and KS, DB is a critical component to the success of the venture since
he is located in the Phoenix market and has the deposit and loan sources. DB
would be walking way from about $550,000 in compensation before tax to join
PCBAZ. It is understood that PCBAZ and PCB will not make this type of payment.
However as an enticement to DB to join the project during the second quarter of
2006 PCB will provide to DB 10,000 shares of restricted stock grants to DB out
of PCB that vest over a four-year period. If DB leaves early or is terminated
he would forfeit all of the restricted shares that are not vested. On a value
basis, assuming an appreciation in value to over $40 in four year, DB would be
receiving over $400,000 in PCB stock. As a restricted stock grant there would
be tax issues for DB and he will need to consider various elections. The
restricted stock grant appears to be a fair trade off and the actual dilution
to book value at PCB would be nominal at best. DB will not receive any
restricted shares in PCBAZ and that he would only be entitled to shares in
PCBAZ as part of the normal stock option plan. It will be necessary to have an
employment agreement with DB, but that will be refined with AP, KC, SE and KS.

 

We hope this Memorandum of Understanding
provides further clarification for the project.

 

I am available to discuss this memorandum.

 

Best regards,

 

GSF

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