Document:

<PAGE>   1

                                                                   Exhibit 10.12

                              STANDSTILL AGREEMENT

        This STANDSTILL AGREEMENT (this "Agreement") is made as of April 28,
2000 (the "Effective Date") by and between Discovery Partners International,
Inc., a California corporation ("DPII"), and Axys Pharmaceuticals, Inc., a
Delaware corporation ("Axys").

                                    RECITALS

        WHEREAS, DPII, DPII Newco, LLC, a Delaware limited liability company
("Merger Sub"), Axys and Axys Advanced Technologies, Inc., a Delaware
corporation ("AAT") have entered into that certain Agreement and Plan of Merger,
dated as of April 11, 2000 (the "Merger Agreement"), pursuant to which Merger
Sub is being merged with and into AAT (the "Merger") with the consequence that
AAT will become a wholly-owned subsidiary of DPII (capitalized terms used herein
and not otherwise defined herein shall have the meanings given such terms in the
Merger Agreement);

        WHEREAS, the Merger Agreement requires that Axys and DPII enter into
this Agreement as a condition to consummate the Merger and to consummate the
other transactions contemplated by the Merger Agreement;

        NOW, THEREFORE, in consideration of the mutual covenants set forth in
this Agreement, and in connection with the Closing under the Merger Agreement,
the parties hereto agree as follows:

        1. Restricted Period. For a period ("Restricted Period") commencing with
the date of this Agreement and ending on the later of the date Axys, together
with all members of any "group" of which it is a member, first holds less than
5% of the then-outstanding Common Stock of the Company or the 10th anniversary
of the date of this Agreement, neither Axys nor any of its Representatives (as
defined below) on behalf of or as part of a "group" with Axys shall, without the
prior written consent of DPII upon express authorization by DPII's Board of
Directors:

           (a) acquire, offer to acquire, or agree to acquire, directly or
indirectly, by purchase or otherwise, any voting securities or direct or
indirect rights to acquire any voting securities of DPII or any subsidiary of
DPII, or of any successor to or person in control of DPII;

           (b) make, or in any way participate, directly or indirectly, in any
"solicitation" of shareholder written consents or of "proxies" to vote (as such
terms are used in the rules of the Securities and Exchange Commission ("SEC")),
or seek to advise or influence any person or entity with respect to the voting
of any voting securities of DPII;

<PAGE>   2

           (c) make any public announcement with respect to, or submit a
proposal for, or offer of (with or without conditions) any extraordinary
transaction involving DPII or any of its securities or assets (other than a
disposition of its DPII shares);

           (d) form, join or in any way participate in a "group" as defined in
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended ("Exchange
Act"), in connection with any of the foregoing or the holding or voting of DPII
voting securities;

           (e) otherwise act or seek to control or influence the management,
Board of Directors or policies of DPII, except solely through the nomination of
the DPII Directors which this Agreement entitles it to;

           (f) take any action that could reasonably be expected to require DPII
to make a public announcement regarding the possibility of any of the events
described in clauses (a) through (e) above; or

           (g) publicly request DPII or any of its Representatives, directly or
indirectly, to amend or waive any provision of this Section 1.

During the Restricted Period, Axys shall promptly advise DPII of any inquiry or
proposal made to it with respect to any of the foregoing.

Notwithstanding anything in this Agreement to the contrary, nothing in this
Agreement shall prevent Axys from exercising, during any time before the first
day any DPII stock is registered under the Exchange Act, any of Axys' express
rights under DPII's Amended and Restated Shareholders' Agreement dated as of
April 7, 2000 and/or DPII's Amended and Restated Investors' Rights Agreement
dated as of April 7, 2000, in each case as amended through the exercise of such
rights.

        2. Definitions. For purposes of this Agreement, (i) "Representative"
shall mean, as to any person, its affiliated (within the meaning of SEC Rule
405) companies and its and their directors, officers, employees, agents and
advisors (including, without limitation, financial advisors, attorneys and
accountants); (ii) "person" shall be broadly interpreted to include, without
limitation, any corporation, company, partnership, other entity or individual;
(iii) "voting securities" shall mean, with respect to DPII, at any time shares
of any class of capital stock of DPII which are then entitled to vote generally
in the election of directors.

        3. Securities Laws. Axys is aware, and will advise its Representatives
who are informed of the matters that are the subject of this Agreement, of the
restrictions imposed by the United States securities laws on the purchase or
sale of securities by any person who has received material, non-public
information from the issuer of such securities and on the communication of such
information to any other person when it is reasonably foreseeable that such
other person may purchase or sell such securities in reliance upon such
information.

        4. Legends. All DPII share certificates owned by Axys shall be imprinted
with a legend stating that the shares are subject to this Agreement. Such shares
shall also, if transferred to anyone other than to a Permitted Transferee,
remain subject to this Agreement, and this Agreement shall be binding upon such
transferee and such transferee's share certificate

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<PAGE>   3

representing such shares shall be imprinted with the same legend. Such legend
shall be removed as to shares which are sold to a Permitted Transferee. A
"Permitted Transferee" is one who (a) acquires such shares in a Rule 144
Transaction or (b) is not a person affiliated with Axys or a member of a "group"
which includes Axys and who acquires such shares in a Rule 144(k) or Rule 144A
transaction or pursuant to an effective resale registration statement, or (c) is
not a person affiliated with Axys or a member of a "group" which includes Axys,
and who acquires such shares in a Section 4(1) or Section 4(1 1/2) transaction
which does not Exceed the 5% Level, and is not the subject of a Schedule 13D or
13G report showing at the date of the transfer of shares by Axys to such
transferee current beneficial ownership of at least 5% of DPII's Common Stock by
such acquirer or any "group" of which such acquirer is a member. A transaction
"Exceeds the 5% Level" if immediately after the transaction the acquirer,
together with all other members of any "group" of which it is a member, will
have acquired from Axys (including such transaction and also all previous
transactions involving such acquirer and/or any member of the "group") more than
5% of the outstanding Common Stock of DPII (calculated as of the date of the
transaction which is being tested).

        5. Director Elections. DPII agrees to include on its management slate of
Director nominees, at each annual meeting of shareholders held while any DPII
stock is registered under the Exchange Act, a number of persons designated by
Axys as shall equal the number of Directors, if any, on DPII's Board of
Directors which Axys could have elected solely on its own with the DPII shares
originally owned by Axys as of April 28, 2000 and still then owned of record by
it if cumulative voting were in effect; provided, that if such calculation would
enable Axys to designate a number of nominees equal to one less than the number
which would constitute a majority of the Board of Directors, Axys shall be
entitled to designate one nominee fewer than what the calculation would have so
indicated. Also, if DPII has a staggered Board of Directors, this Section shall
not be applied literally, but instead shall be applied in a reasonable manner to
reflect the parties' intentions with respect to the Board as a whole even though
not all the Board seats are up for election each year. Axys agrees always to
vote for, and to use its reasonable efforts to cause its Representatives to vote
for, the entire management slate of Director nominees and not for any other
persons.

        6. Miscellaneous.

           (a) Notices. All notices, requests and other communications hereunder
must be in writing and will be deemed to have been duly given only if delivered
personally or by facsimile transmission with answer back confirmation or mailed
(first class, postage prepaid) or by overnight courier to the parties at the
following addresses or facsimile numbers:

           If to Axys, to:

                Axys Pharmaceuticals, Inc.
                180 Kimball Way
                South San Francisco, CA 94080
                Facsimile No.: (650) 829-1067
                Attention:  John Walker, Chairman and Chief Executive Officer

           with copy to:

                                       3
<PAGE>   4

                Cooley Godward LLP
                Five Palo Alto Square
                3000 El Camino Real
                Palo Alto, CA  94306-2155
                Facsimile No.: (650) 857-6663
                Attention:  Alan C. Mendelson, Esq.

           If to DPII, to:

                Discovery Partners International, Inc.
                9640 Towne Centre Drive
                San Diego, CA  92121
                Facsimile No.: (858) 455-8088
                Attention:  Riccardo Pigliucci,
                Chief Executive Officer and President

           with copy to:

                Brobeck, Phleger & Harrison LLP
                12390 El Camino Real
                San Diego, CA  92130
                Facsimile No.: (858) 720-2555
                Attention:  Hayden J. Trubitt, Esq.

All such notices, requests and other communications will (i) if delivered
personally or by overnight courier to the address as provided in this Section
4(a), be deemed given upon delivery, (ii) if delivered by facsimile transmission
to the facsimile number as provided in this Section 4(a), be deemed given upon
sending, and (iii) if delivered by mail in the manner described above to the
address as provided in this Section 4(a), be deemed given two business days
after mailing (in each case regardless of whether such notice, request or other
communication is received by any other person to whom a copy of such notice,
request or other communication is to be delivered pursuant to this Section). Any
party from time to time may change its address, facsimile number or other
information for the purpose of notices to that party by giving notice specifying
such change to the other parties hereto.

           (b) Entire Agreement. This Agreement, the Merger Agreement (and all
exhibits and schedules attached thereto) and all other documents delivered in
connection herewith supersede all prior discussions and agreements among the
parties with respect to the subject matter hereof and thereof and contain the
sole and entire agreement among the parties hereto with respect thereto.

           (c) Waiver. Any term or condition of this Agreement may be waived at
any time by the party that is entitled to the benefit thereof, but no such
waiver shall be effective unless set forth in a written instrument duly executed
by or on behalf of the party waiving such term or condition. No waiver by any
party hereto of any term or condition of this Agreement, in any one or more
instances, shall be deemed to be or construed as a waiver of the same or any
other term or condition of this Agreement on any future occasion. All remedies,
either under this Agreement or by law or otherwise afforded, will be cumulative
and not alternative.

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<PAGE>   5

           (d) Amendment. This Agreement may be amended, supplemented or
modified only by a written instrument duly executed by or on behalf of each
party hereto.

           (e) Third Parties. Axys Pharmaceuticals, Inc. shall be responsible
for any violation of the provisions of this Agreement by any present or future
affiliate (as defined in SEC Rule 405) of Axys Pharmaceuticals, Inc., excluding
AAT.

           (f) Headings. The headings used in this Agreement have been inserted
for convenience of reference only and do not define or limit the provisions
hereof.

           (g) Severability. All provisions contained herein are severable and
in the event that any of them shall be held to be to any extent invalid or
otherwise unenforceable by any court of competent jurisdiction, such provision
shall be excised from this Agreement; provided, however, that if the reason for
such invalidity or unenforceability is that the affected provision calls for an
excessive amount of time or money or area or an excessive breadth or scope of
coverage or otherwise requires an excessive degree of any thing or imposes any
excessively onerous restriction or requirement, the affected provision shall not
be excised but instead shall be construed as if it were written so as to call
only for the amount of money, time, area, breadth, scope and/or other thing,
restriction or requirement (but nonetheless for the maximum possible amount of
money, time, area, breadth, scope and/or other thing, restriction or
requirement) which would render such provision valid and enforceable, all so as
to effectuate to the greatest possible extent the parties' expressed intent; and
in every case the remainder of this Agreement shall not be affected thereby and
shall remain valid and enforceable, as if such excised or affected provision
were not contained herein.

           (h) Governing Law, Consent to Jurisdiction and Forum Selection. This
Agreement shall be governed by and construed in accordance with the laws of the
State of California applicable to contracts executed and performed in such
State, without giving effect to conflicts of laws principles. The parties hereto
agree that all actions or proceedings arising in connection with this Agreement
(as to proceedings initiated by Axys) shall be initiated and tried exclusively
in the State and Federal courts located in the County of San Diego, State of
California. The parties hereto agree that all actions or proceedings arising in
connection with this Agreement (as to proceedings initiated by DPII) shall be
initiated and tried exclusively in the State and Federal courts located in the
County of San Francisco, State of California. The aforementioned choice of venue
is intended by the parties to be mandatory and not permissive in nature, thereby
precluding the possibility of litigation between the parties with respect to or
arising out of this Agreement in any jurisdiction other than that specified in
this Section 4(h). Each party hereby waives any right it may have to assert the
doctrine of forum non conveniens or similar doctrine or to object to venue with
respect to any proceeding brought in accordance with this paragraph, and
stipulates that the State and Federal courts located in the County of San Diego,
State of California (as to proceedings initiated by Axys) or in the County of
San Francisco, State of California (as to proceedings initiated by DPII) shall
have in personam jurisdiction and venue over each of them for the purposes of
litigating any dispute, controversy or proceeding arising out of or related to
this Agreement. Each party hereby authorizes and accepts service of process
sufficient for personal jurisdiction in any action against it as contemplated by
this Section 4(h) by registered or certified mail, return receipt requested,
postage prepaid, to its address for the giving of notices as set forth in this
Agreement, or in the

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manner set forth in Section 4(a) of this Agreement for the giving of notice. Any
final judgment rendered against a party in any action or proceeding shall be
conclusive as to the subject of such final judgment and may be enforced in other
jurisdictions in any manner provided by law

           (i) Attorneys Fees. In the event suit or action is brought by any
party under this Agreement to enforce or construe any of its terms, the
prevailing party shall be entitled to recover, in addition to all other amounts
and relief, its reasonable costs and attorneys fees incurred at and in
preparation for arbitration, trial, appeal and review, such sum to be set by the
arbitrator or court before which the matter is heard.

           (j) Construction. No provision of this Agreement shall be construed
in favor of or against any party on the ground that such party or its counsel
drafted the provision. This Agreement shall at all times be construed so as to
carry out the purposes stated herein.

           (k) Counterparts. This Agreement may be executed in counterparts and
by facsimile, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

           (l) Reincorporation. Without limitation on any other rights of
assignment, the parties acknowledge that (A) if DPII reincorporates in Delaware
this Agreement shall be assigned to the new Delaware corporation and the rights
and obligations of the parties shall persist as if all references herein to
"DPII" were references to such Delaware corporation; and (B) Axys shall be
allowed to make a bona fide pledge of its DPII Common Stock and Axys' rights
under this Agreement may be assigned, on an indivisible basis, to any person if
both the following conditions apply: (i) the assignment to such person is part
of the enforcement against Axys' shares of DPII Common Stock of a security
interest which Axys had, via a bona fide pledge, granted to a lender, and (ii)
the assignee shall have executed a written agreement, reasonably satisfactory in
form and substance to DPII, pursuant to which such person becomes a party to
this Agreement (as then amended to date) and agrees to be bound by all the
burdens thereof as if such assignee was "Axys" thereunder.

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<PAGE>   7

        IN WITNESS WHEREOF, each of the parties hereto has duly executed this
Agreement as of the date first above written.

                                     DISCOVERY PARTNERS INTERNATIONAL, INC.,
                                     a California corporation

                                     By:    /s/ Riccardo Pigliucci
                                        ---------------------------------------
                                     Name:  Riccardo Pigliucci
                                           ------------------------------------
                                     Title: Chairman and CEO
                                            -----------------------------------

                                     AXYS PHARMACEUTICALS, INC.,
                                     a Delaware corporation

                                     By:    /s/ William J. Newell
                                        ---------------------------------------
                                     Name:  William J. Newell
                                           ------------------------------------
                                     Title: Senior Vice President
                                            -----------------------------------

                    [SIGNATURE PAGE TO STANDSTILL AGREEMENT]<PAGE>   1

Shareholders Agreement

                                                                   EXHIBIT 10.13

                             SHAREHOLDERS AGREEMENT

                                     BETWEEN

<TABLE>
<S>           <C>                                                                                     <C>
1.             Dr. Heinrich Zinsli
               Elblingstrasse 10
               4142 Munchenstein, Switzerland
                                                                                                       PARTY 1
                                       and

2.             Dr. Ernst Burgisser
               Marktgasse 106
               4310 Rheinfelden, Switzerland
                                                                                                       PARTY 2
                                       and

3.             Dr. Helmut Kessmann
               Talweg 34
               D-79540 Lorrach, Germany
                                                                                                       PARTY 3
                                   as well as

4.             Discovery Partners International, Inc.
               11149 North Torrey Pines Road
               La Jolla, California 92037, USA

                                                                                                       PARTY 4
</TABLE>

(hereinafter called "the Contracting Parties", "the Parties" or "the
Shareholders")

concerning Discovery Technologies Ltd, Gewerbestrasse 16, Allschwil, Switzerland
(hereinafter called "the Company")

                                -----------------

RECITALS

The Company disposes of an issued Voting Share Capital of CHF 500,000
(five-hundred thousand Swiss Francs) divided into 2,000 registered shares with a
nominal value of CHF 100 each and 300 registered shares with a nominal value of
CHF 1,000 each and a Non-Voting Capital of CHF 1,000,000 divided into 1,000
registered Non-Voting Shares with a nominal value of CHF 1,000 each.

<PAGE>   2
Shareholders Agreement                                                      -2-

After the sale of 40% of the Non-Voting Shares (40% of the Votes and 40% of the
Voting nominal capital) to Discovery Partners International based on the "Voting
Share Purchase Agreement", dated August 10, 1999 the Contracting Parties are
holding the following proportion of the Voting Shares:

<TABLE>
<CAPTION>
                                                         Voting shares
                                                         -------------
<S>                                                         <C>
Dr. Heinrich Zinsli                                          17.4%
Dr. Ernst Burgisser                                          25.2%
Dr. Helmut Kessmann                                          17.4%
Discovery Partners International                               40%
</TABLE>

The Parties agreed upon an exclusive and irrevocable right of Discovery Partners
International to buy the rest of the Voting Share Capital of the Company (60% of
the votes and 60% of the nominal capital). This right expires on December 31,
1999.

As of the closing day of this agreement, all of the Non-Voting Share Capital of
the Company is owned by Novartis (represented by Novartis Venture Fund). The
Buyer intends to buy and Novartis agreed to sell all of the Non-Voting Share
Capital of the Company to the Buyer (Novartis letter of May 27, 1999).

By this Agreement the Parties want to provide for the ownership and operation of
the Company.

Therefore the Parties agree as follows:

CLAUSE 1 - TRANSFER OF SHARES/RIGHT OF FIRST REFUSAL

No Party shall sell or transfer any portion of its shares in the Company without
the consent of the other parties, such consent not to be unreasonably withheld.

If any Party desires to sell or transfer all or any portion of its shares on or
after January 1, 2000, such Party ("Selling Party") shall first offer all such
shares by written notice to the other Parties ("Offeree Parties") specifying
price, terms and conditions of that sale. The Offeree Parties shall accept or
reject the offer in writing no later than ninety (90) days ("Acceptance Period")
after receipt of such offer from the Selling Party. If one of the Offeree
Parties accepts such offer, the written notice of acceptance shall set forth the
place and time, which shall be a business day not more than sixty (60) days
after the date of acceptance ("Acquisition Period") at which the closing for the
transfer shall take place. If all the Offeree Parties do not accept the offer
within the Acceptance Period, then the Selling Party shall thereafter be free to
dispose of its shares within a period of ninety (90) days ("Free Sale Period")
after the expiration of said Acceptance Period: provided however, the Selling
Party shall not sell such shares to any third party either (a) at a lower price
than the price at which such shares were offered to the Offeree Parties, or (b)
on other terms or conditions more favorable than those on which shares were
offered to the Offeree Parties. If the shares are not sold or transferred to a
third party upon the terms established herein

<PAGE>   3

Shareholders Agreement                                                      -3-

and within the Free Sale Period, then they shall automatically become subject
once more to the terms of this Article as if they had never before been offered
for sale.

In case more than one party is interested in taking over the shares, they will
be allotted to each of the interested parties in proportion to their share
capital.

If either Party hereto sells or otherwise transfers all or any part of its
shares to a third party, such Selling Party shall cause the party acquiring such
shares, as a condition of such acquisition, to furnish a written undertaking to
all Parties agreeing to observe and be bound by all provisions to this Agreement
to the same extent as the Party who sold the shares. In addition, such Selling
Party shall be responsible to the other Parties hereto, in respect of such
purchaser or transferee, to secure complete and timely observance of the
provisions of this Agreement by such purchaser or transferee.

CLAUSE 2 - TAKE ALONG CLAUSE

If any Party desires to sell or transfer all its shares to a third party and
this third party refuses to buy only the voting shares of the Party, but offers
to buy all remaining shares from the other Parties in addition, making up 100 %
of the Voting Share Capital and the price offered for all the shares by the
third party is at least equivalent to 110 % of the initial price as agreed in
the Voting Share Purchase Agreement, dated August 10, 1999, the other Parties
shall be obliged to sell its shares to the third party.

If Party 1, 2 and 3 together ("Group of Parties") or Party 4 by itself are
holding less than or equivalent to 40 % of the shares, the price paid by the
third party will not be distributed proportionally, but the Party or the Group
of Parties will receive only 90 % of the proportionate price, the difference
will be paid to the other Party respectively Group of Parties.

This Clause will enter into force as of January 1, 2000. Clause 1 (Right of
first refusal) will always override Clause 2.

CLAUSE 3 - MEETINGS OF SHAREHOLDERS

All actions and resolutions of the shareholders meeting shall be adopted by the
affirmative vote of a majority of sixty-seven (67) % of all Voting Shares. This
quorum may be changed by a majority of sixty-seven (67) % of all Voting Shares.

Each Party shall exercise its respective voting rights in the Company and take
such other steps as are necessary to ensure:

a) that the board of directors of the Company shall consist of five (5) board
members (the "Board of Directors");

b) that Dr. Zinsli, Dr. Burgisser and Dr. Kessmann shall each nominate either
themselves or a representative as member of the Board of Directors;

<PAGE>   4
Shareholders Agreement                                                      -4-

c) that Discovery Partners International shall nominate two (2) representatives
as members of the Board of Directors.

CLAUSE 4 - BOARD OF DIRECTORS AND DAY-TO-DAY MANAGEMENT

Meetings of the Board of Directors may be called at the request of any director
and notice of said meetings shall be given at least ten (10) days before the
meeting. In the notice the agenda has to be mentioned. A quorum shall exist and
any such meeting shall continue only if at least three (3) directors are
present, one of which must be a director representing Discovery Partners
International.

All actions and resolutions taken at a meeting of the Board of Directors shall
be adopted by a majority vote of all directors constituting a quorum except
those items listed below which always require the affirmative vote of a director
representing Discovery Partners International:

a)      Entering into new business areas and leaving of existing business areas;
        b) Purchase or disposition of real property or holdings in other
        companies by the Company; c) Purchase or sale of any asset valued in
        excess of CHF 50,000 by the Company;

d)      Adoption or modification of any internal policy including but not
        limited to any change in the management organization of the Company;

e)      Entering into an agreement or a commitment for the company to borrow or
        loan money, execute negotiable instruments or otherwise encumber
        property or incur debt;

f)      Entering into an agreement to bind the Company on any surety, guaranty
        or warranty contract;

g)      Entering into an agreement between the Company and a Party hereto or
        waiver to the terms thereof;

h)      Adoption or approval of and/or modification to any operating, capital or
        cash budget(s);

i)      Bids by the Company for any project on a turnkey, lump sum or guaranteed
        maximum price basis for projects valued in excess of USD 500,000;

j)      Any project where there exist the potential for liability for
        consequential damages;

k)      Granting of any powers of attorney to act on behalf of the Company;

1)      Adoption or modification of strategic plans of the Company;

m)      Selection and change of any tax, legal and accounting consultants to the
        Company;

n)      Election and/or modification of any tax or accounting methods, policies
        and practices;

o)      Implementation of tax strategies involving the Company;

p)      The nature and amount of officer compensation for the Company;

q)      The Investment of the capital in excess of the Company's necessary
        working capital;

r)      Designation of the Management Committee members of the Company;

s)      Issuing or changing of organizational bylaws;

t)      Opening of branch offices;

u)      Employment of staff in excess of budgeted levels;

The preceding paragraphs of this Clause shall be in force until July 31, 2001.

The day-to-day management of the Company shall be in the responsibility of the
CEO.

<PAGE>   5
Shareholders Agreement                                                      -5-

CLAUSE 5 - RIGHT TO DIVIDEND

The shareholders shall adopt the annual accounts and declare dividends on the
shares in a resolution at the annual shareholders meeting in accordance with the
proposals submitted by the Board of Directors.

CLAUSE 6 - SAFEGUARDING OF THE AGREEMENT

As security for the obligations under Clause 1 of this agreement, the
Contracting Parties undertake to deposit their shares with ATAG Ernst & Young AG
as escrow agent. A separate escrow agreement will be signed.

Infringements of the Clause 1 of this agreement entail a conventional penalty of
CHF 100,000. Further claims, especially claims to performance and to damages are
reserved.

CLAUSE 7 - TERMINATION

This Agreement shall continue to be in effect until terminated pursuant to the
provisions of this Agreement or by mutual agreement of the Parties or by
approval of sixty-seven (67) % of the Voting Shares. Clause 4 will terminate
July 31, 2001.

If any Party disposes of its shares and fulfills all duties of this agreement
the Party will not be bound any longer by this Agreement. However, as long as a
Party or their representative is a member of the Board of Directors it shall
continue to be bound to the Agreement. The shareholders may waive this
requirement by approval of sixty-seven (67) % of the Voting Shares.

The withdrawal from the Agreement by one Contracting Party does not affect the
validity of the present agreement for the remaining Contracting Parties.

This Agreement shall not be terminable for a period of ten (10) years. After ten
(10) years, each Party may, following six (6) month written notice in its sole
discretion terminate this Agreement, such termination to be effective at the end
of the calendar year in which the six months period expires.

This Agreement shall be terminable at any time forthwith upon the sending of
notice in writing upon liquidation and/or dissolution of the Company.

CLAUSE 8 - PREFERENTIAL RIGHT IN CASE OF TERMINATION

If any of the contracting parties terminate this Agreement following Clause 7,
paragraph 4, it previously has to offer its shares for takeover by the other
Contracting Parties. In this notice the other Contracting Parties will be
granted a period of sixty (60) days to assert their takeover right.

<PAGE>   6

Shareholders Agreement                                                      -6-

In case more than one party is interested in taking over the shares, they will
be allotted to each of the interested parties in proportion to their share
capital.

In case the Parties cannot reach an agreement over the takeover price of the
shares then the Board of Directors shall entrust a Fiduciary Company, member of
the Swiss Institute of Certified Accountants and Tax Consultants with the
fixation of the real value of the shares in order to determine the takeover
price. The takeover price is at least the initial price as agreed in the Voting
Share Purchase Agreement, dated August 10, 1999.

CLAUSE 9 - GOVERNING LAW AND COMPETENT JURISDICTION

This Agreement shall be controlled and interpreted under the laws of
Switzerland, excluding laws thereof which refer to the laws of another
jurisdiction.

The exclusive place of jurisdiction is Allschwil (BL), Switzerland.

CLAUSE 10 - DISPUTES

With regard to any dispute relating to the interpretation, performance or
termination of this Agreement, the parties will make their best efforts to come
to an amicable settlement, in particular, by organizing a mediation meeting
between their respective advisers, if this may be useful.

CLAUSE 11 - SALVATORY CLAUSE

In the event any term or provision of this Agreement is for any reason found
invalid, illegal or unenforceable in any respect, such invalidity shall not
affect the validity of any remaining portion, which shall remain in full force
and effect, as if the invalid portion was never a part of this Agreement when it
was executed.

CLAUSE 12 - MODIFICATIONS

Any modifications of this Agreement must be in writing and signed by all
parties.

<PAGE>   7

Shareholders Agreement                                                      -7-

Executes in 6 original counterparts of which one copy for each of the Parties
and one copy for the Company's documentation.

PARTIES

Date: 10/8/99                                  Date: 10/8/99

/s/ illegible                                  /s/ illegible
------------------------------                 ------------------------------

Date: 10/8/99                                  Date: 10/8/99

/s/ illegible                                  /s/ illegible
------------------------------                 ------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}]]