Document:

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                                                                   EXHIBIT 10.53
                     DISCOVERY PARTNERS INTERNATIONAL, INC.
                         NOTICE OF GRANT OF STOCK OPTION

Notice is hereby given of the following stock option grant (the "Option")
pursuant to the 1995 STOCK OPTION/STOCK ISSUANCE PLAN (the "Plan") to purchase
shares of the Common Stock of DISCOVERY PARTNERS INTERNATIONAL (the
"Corporation"):

        OPTIONEE:_________________________________________________________
        GRANT DATE:______________________          GRANT NUMBER: _________
        OPTION PRICE:  $_____________ PER SHARE    NUMBER OF SHARES: _____
        VESTING COMMENCEMENT DATE: _________________
        EXPIRATION DATE: ___________________       DATE EXERCISABLE: _____
        TYPE OF OPTION:  ___________________  Incentive Stock Option
                                              Non-Statutory Stock Option

This Option may be exercised at any time for all or any portion of the Option
Shares, whether or not vested.

VESTING SCHEDULE

The Option Shares shall vest in accordance with the following vesting schedule:

        (i)    No Option Shares shall vest unless and until the Optionee has
               completed twelve (12) months of Service (as defined in the Plan)
               measured from the Vesting Commencement Date.
        (ii)   Upon the completion of the twelve (12) month service period
               specified in subparagraph (i) above, 25% of the Option Shares
               shall become vested.
        (iii)  The Remaining Option Shares shall vest in a series of successive
               equal monthly installments over each of the next thirty-six (36)
               months of Service completed by the Optionee after the initial
               twelve (12) month Service period specified in subparagraph (i )
               above.

Optionee understands that the Option is granted pursuant to the Corporation's
Plan. By signing below, optionee agrees to be bound by the terms and conditions
of the Plan and the terms of conditions of the Option as set forth in the Stock
Option Agreement attached hereto as Exhibit A. Optionee understands that any
Option Shares purchased under the Option will be subject to the terms and
conditions set forth in the Stock Purchase Agreement attached hereto as Exhibit
B.

Optionee hereby acknowledges receipt of a copy of the Plan in the form attached
hereto as Exhibit C.

REPURCHASE RIGHTS. THE OPTIONEE HEREBY AGREES THAT OPTION SHARES ACQUIRED UPON
THE EXERCISE OF THE OPTION SHALL BE SUBJECT TO REPURCHASE RIGHTS AND RIGHTS OF
FIRST REFUSAL EXERCISABLE BY THE CORPORATION AND ITS ASSIGNS UPON ANY PROPOSED
SALE, ASSIGNMENT, TRANSFER, ENCUMBRANCE OR OTHER DISPOSITION OF THE
CORPORATION'S SHARES. THE TERMS AND CONDITIONS OF SUCH RIGHTS ARE SPECIFIED IN
THE STOCK PURCHASE AGREEMENT.

No Employment or Service Contract. Nothing in this Agreement or in the Plan
shall confer upon the Optionee any right to continue in the Service of the
Corporation for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Corporation or the Optionee, which rights
are hereby expressly reserved by each, to terminate Optionee's Service at any
time for any reason whatsoever, with or without cause.

______________________________________
               (date)
DISCOVERY PARTNERS INTERNATIONAL, INC.              OPTIONEE
                                                    (Name & Address)
BY: _______________________                         __________________________
Title: ____________________                         __________________________
                                                    __________________________

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                                    EXHIBIT A

                             STOCK OPTION AGREEMENT

Filed as Exhibit 10.54 to this Registration Statement

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                                    EXHIBIT B

                            STOCK PURCHASE AGREEMENT

Filed as Exhibit 10.55 to this Registration Statement

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                                    EXHIBIT C

                      1995 STOCK OPTION/STOCK ISSUANCE PLAN

Filed as Exhibit 10.52 to this Registration Statement<PAGE>   1
                                                                   EXHIBIT 10.54

                     DISCOVERY PARTNERS INTERNATIONAL, INC.
                             STOCK OPTION AGREEMENT

                                    RECITALS

        A. The Board of Directors of the Corporation has adopted the DISCOVERY
PARTNERS INTERNATIONAL 1995 Stock Option/Stock Issuance Plan (the "Plan") for
the purpose of attracting and retaining the services of persons who contribute
to the growth and financial success of the Corporation.

        B. Optionee is a person who the Plan Administrator believes has and will
contribute to the growth and financial success of the Corporation and this
Agreement is entered into pursuant to and is intended to carry out the purposes
of the Plan.

                                    AGREEMENT

        NOW, THEREFORE, it is hereby agreed as follows:

        1. GRANT OF OPTION. Subject to and upon the terms and conditions set
forth in this Agreement, the Corporation hereby grants to Optionee, as of the
grant date (the "Grant Date") specified in the accompanying Notice of Grant of
Stock Option (the "Grant Notice"), a stock option to purchase up to that number
of shares of the Corporation's Common Stock (the "Option Shares") as is
specified in the Grant Notice. The Option Shares shall be purchasable from time
to time during the option term at the option price per share (the "Option
Price") specified in the Grant Notice.

        2. OPTION TERM. This option shall expire at the close of business on the
expiration date (the "Expiration Date") specified in the Grant Notice, unless
sooner terminated in accordance with Paragraph 5, 6 or 17.

        3. LIMITED TRANSFERABILITY. This option shall be neither transferable
nor assignable by Optionee other than by will or by the laws of descent and
distribution following Optionee's death and may be exercised, during Optionee's
lifetime, only by Optionee.

        4. DATES OF EXERCISE. This option may not be exercised in whole or in
part at any time prior to the time the Plan is approved by the Corporation's
shareholders in accordance with Paragraph 17. Provided such shareholder approval
is obtained, this option shall thereupon become exercisable for the Option
Shares in one or more installments as is specified in the Grant Notice. As the
option becomes exercisable in one or more installments, the installments shall
accumulate and the option shall remain exercisable for such installments until
the Expiration Date or the sooner termination of the option term under Paragraph
5 or Paragraph 6 of this Agreement.

        5. ACCELERATED TERMINATION OF OPTION TERM. The option term specified in
Paragraph 2 shall terminate (and this option shall cease to be exercisable in
whole or in part)

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prior to the Expiration Date should any of the following provisions become
applicable:

                (i) Except as otherwise provided in subparagraph (ii) or (iii)
        below, should Optionee cease to remain in Service while this option is
        outstanding, then the period for exercising this option shall be reduced
        to a three (3)-month period commencing with the date of such cessation
        of Service, but in no event shall this option be exercisable at any time
        after the Expiration Date. Upon the expiration of such three (3)-month
        period or (if earlier) upon the Expiration Date, this option shall
        terminate and cease to be outstanding.

                (ii) Should Optionee die while this option is outstanding, then
        the personal representative of the Optionee's estate or the person or
        persons to whom the option is transferred pursuant to the Optionee's
        will or in accordance with the law of descent and distribution shall
        have the right to exercise this option. Such right shall lapse and this
        option shall cease to be exercisable upon the earlier of (A) the
        expiration of the twelve (12) month period measured from the date of
        Optionee's death or (B) the Expiration Date. Upon the expiration of such
        twelve (12) month period or (if earlier) upon the Expiration Date, this
        option shall terminate and cease to be outstanding.

                (iii) Should Optionee become permanently disabled and cease by
        reason thereof to remain in Service while this option is outstanding,
        then the Optionee shall have a period of twelve (12) months (commencing
        with the date of such cessation of Service) during which to exercise
        this option, but in no event shall this option be exercisable at any
        time after the Expiration Date. Optionee shall be deemed to be
        permanently disabled if Optionee is unable to engage in any substantial
        gainful activity for the Corporation or the parent or subsidiary
        corporation retaining his/her services by reason of any medically
        determinable physical or mental impairment, which can be expected to
        result in death or which has lasted or can be expected to last for a
        continuous period of not less than twelve (12) months. Upon the
        expiration of such limited period of exercisability or (if earlier) upon
        the Expiration Date, this option shall terminate and cease to be
        outstanding.

                (iv) During the limited period of exercisability applicable
        under subparagraph (i), (ii) or (iii) above, this option may be
        exercised for any or all of the Option Shares for which this option is,
        at the time of the Optionee's cessation of Service, exercisable in
        accordance with the exercise schedule specified in the Grant Notice and
        the provisions of Paragraph 6 of this Agreement.

                (v) For purposes of this Paragraph 5 and for all other purposes
        under this Agreement:

                A. The Optionee shall be deemed to remain in SERVICE for so long
        as the Optionee continues to render periodic services to the Corporation
        or any parent or subsidiary corporation, whether as an Employee, a
        non-employee member of the board of directors, or an independent
        contractor or consultant.

                B. The Optionee shall be deemed to be an EMPLOYEE of the
        Corporation and to continue in the Corporation's employ for so long as
        the Optionee

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        remains in the employ of the Corporation or one or more of its parent or
        subsidiary corporations, subject to the control and direction of the
        employer entity as to both the work to be performed and the manner and
        method of performance.

                C. A corporation shall be considered to be a SUBSIDIARY
        corporation of the Corporation if it is a member of an unbroken chain of
        corporations beginning with the Corporation, provided each such
        corporation in the chain (other than the last corporation) owns, at the
        time of determination, stock possessing 50% or more of the total
        combined voting power of all classes of stock in one of the other
        corporations in such chain.

                D. A corporation shall be considered to be a PARENT corporation
        of the Corporation if it is a member of an unbroken chain ending with
        the Corporation, provided each such corporation in the chain (other than
        the Corporation) owns, at the time of determination, stock possessing
        50% or more of the total combined voting power of all classes of stock
        in one of the other corporations in such chain.

        6. SPECIAL TERMINATION OF OPTION.

           A. This Option, to the extent not previously exercised, shall
terminate and cease to be exercisable upon the consummation of one or more of
the following shareholder-approved transactions (a "Corporate Transaction")
unless this Option is expressly assumed by the successor corporation or parent
thereof:

               (i) a merger or consolidation in which the Corporation is not the
surviving entity,

               (ii) the sale, transfer or other disposition of all or
substantially all of the Corporation's assets, or

               (iii) any transaction (other than an issuance of shares by the
Corporation for cash) in or by means of which one or more persons acting in
concert acquire, in the aggregate, more than 50% of the outstanding shares of
the stock of the Corporation.

           B. Each option which is assumed in connection with a Corporate
Transaction shall be appropriately adjusted, immediately after such Corporate
Transaction, to apply to the number and class of securities which would have
been issuable to the Optionee in consummation of such Corporate Transaction had
the option been exercised immediately prior to such Corporate Transaction.
Appropriate adjustments shall also be made to (i) the number and class of
securities available for issuance under the Plan on both an aggregate and per
Optionee basis following the consummation of such Corporate Transaction and (ii)
the exercise price payable per share under each outstanding option, provided the
aggregate exercise price payable for such securities shall remain the same.

           C. Any options which are assumed or replaced in the Corporate
Transaction and do not otherwise accelerate at that time, shall automatically
accelerate in the event the Optionee's Service should subsequently terminate by
reason of an Involuntary Termination within twelve (12) months following the
effective date of such Corporate Transaction. Any options so accelerated shall
remain exercisable for fully-vested shares until the

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earlier of (i) the expiration of the option term or (ii) the expiration of the
one (1)-year period measured from the effective date of the Involuntary
Termination. Involuntary Termination shall mean the termination of the Service
of any individual which occurs by reason of such individual's involuntary
dismissal or discharge by the Corporation for reasons other than Misconduct, or
such individual's voluntary resignation following a reduction in his or her
level of compensation (including base salary, fringe benefits) by more than
fifteen percent (15%) or a relocation of such individual's place of employment
by more than fifty (50) miles, provided and only if such change, reduction or
relocation is effected by the Corporation without the individual's consent.
Misconduct shall mean the commission of any act of fraud, embezzlement or
dishonesty by the Optionee or Participant, any unauthorized use or disclosure by
such person of confidential information or trade secrets of the Corporation (or
any Parent or Subsidiary), or any other intentional misconduct by such person
adversely affecting the business or affairs of the Corporation (or any Parent or
Subsidiary) in a material manner. The foregoing definition shall not be deemed
to be inclusive of all the acts or omissions which the Corporation (or any
Parent or Subsidiary) may consider as grounds for the dismissal or discharge of
any Optionee, Participant or other person in the Service of the Corporation (or
any Parent or Subsidiary).

           D. This Agreement shall not in any way affect the right of the
Corporation to adjust, reclassify, reorganize or otherwise make changes in its
capital or business structure or to merge, consolidate, dissolve, liquidate or
sell or transfer all or any part of its business or assets.

        7. ADJUSTMENT IN OPTION SHARES.

           A. In the event any change is made to the Corporation's outstanding
Common Stock by reason of any stock split, stock dividend, combination of
shares, exchange of shares, or other change affecting the outstanding Common
Stock as a class without receipt of consideration, then appropriate adjustments
shall be made to (i) the total number of Option Shares subject to this option,
(ii) the number of Option Shares for which this option is to be exercisable from
and after each installment date specified in the Grant Notice and (iii) the
Option Price payable per share in order to reflect such change and thereby
preclude a dilution or enlargement of benefits hereunder, provided that no
adjustment shall be made to the option or the shares available under any option
in connection with any exchange of common stock issued to investors for Series A
Preferred stock.

           B. If this option is to be assumed in connection with a Corporate
Transaction described in Paragraph 6 or is otherwise to remain outstanding, then
this option shall be appropriately adjusted, immediately after such Corporate
Transaction, to apply and pertain to the number and class of securities which
would have been issuable to the Optionee in the consummation of such Corporate
Transaction had the option been exercised immediately prior to such Corporate
Transaction, and appropriate adjustments shall also be made to the Option Price
payable per share, provided the aggregate Option Price payable hereunder shall
remain the same.

        8. PRIVILEGE OF STOCK OWNERSHIP. The holder of this option shall not
have any of the rights of a shareholder with respect to the Option Shares until
such individual shall have exercised the option and paid the Option Price.

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        9. MANNER OF EXERCISING OPTION.

           A. In order to exercise this option with respect to all or any part
of the Option Shares for which this option is at the time exercisable, Optionee
(or in the case of exercise after Optionee's death, the Optionee's executor,
administrator, heir or legatee, as the case may be) must take the following
actions: (i) Execute and deliver to the Secretary of the Corporation a stock
purchase agreement (the "Purchase Agreement") in substantially the form of
Exhibit B to the Grant Notice; (ii) pay the aggregate Option Price for the
purchased shares in one or more forms approved under the Plan; and (iii) furnish
to the Corporation appropriate documentation that the person or persons
exercising the option, if other than Optionee, have the right to exercise this
option.

           B. Should the Corporation's outstanding Common Stock be registered
under Section 12(g) of the Securities Exchange Act of 1934, as amended (the
"1934 Act") at the time the option is exercised, then the Option Price may also
be paid as follows:

                (i) in shares of Common Stock held by the Optionee for the
        requisite period necessary to avoid a charge to the Corporation's
        earnings for financial reporting purposes and valued at fair market
        value on the Exercise Date; or

                (ii) through a special sale and remittance procedure pursuant to
        which the Optionee is to provide irrevocable written instructions (a) to
        a designated brokerage firm to effect the immediate sale of the
        purchased shares and remit to the Corporation, out of the sale proceeds
        available on the settlement date, sufficient funds to cover the
        aggregate Option Price payable for the purchased shares plus all
        applicable Federal and State income and employment taxes required to be
        withheld by the Corporation by reason of such purchase and (b) to the
        Corporation to deliver the certificates for the purchased shares
        directly to such brokerage firm in order to effect the sale transaction.

        C. For purposes of this Agreement, the Exercise Date shall be the date
on which the executed Purchase Agreement shall have been delivered to the
Corporation, and the fair market value of a share of Common Stock on any
relevant date shall be determined in accordance with subparagraphs (i) through
(iii) below:

           (i) If the Common Stock is not at the time listed or admitted to
trading on any stock exchange but is traded on the NASDAQ National Market
System, the fair market value shall be the closing selling price of one share of
Common Stock on the date in question, as such price is reported by the National
Association of Securities Dealers through its NASDAQ system or any successor
system. If there is no closing selling price for the Common Stock on the date in
question, then the closing selling price on the last preceding date for which
such quotation exists shall be determinative of fair market value.

           (ii) If the Common Stock is at the time listed or admitted to trading
on any stock exchange, then the fair market value shall be the closing selling
price per share of Common Stock on the date in question on the stock exchange
determined by the Plan Administrator to be the primary market for the Common
Stock, as such price is officially quoted in the composite tape of transactions
on such exchange. If there is no reported sale of Common

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Stock on such exchange on the date in question, then the fair market value shall
be the closing selling price on the exchange on the last preceding date for
which such quotation exists.

               (iii) If the Common Stock at the time is neither listed nor
admitted to trading on any stock exchange nor traded in the over-the-counter
market, or if the Plan Administrator determines that the value determined
pursuant to subparagraphs (i) and (ii) above does not accurately reflect the
fair market value of the Common Stock, then such fair market value shall be
determined by the Plan Administrator after taking into account such factors as
the Plan Administrator shall deem appropriate.

            D. As soon after the Exercise Date as practical, the Corporation
shall mail or deliver to Optionee or to the other person or persons exercising
this option a certificate or certificates representing the shares so purchased
and paid for, with the appropriate legends affixed thereto, in accordance with
the terms of the Stock Purchase Agreement.

            E. In no event may this option be exercised for any fractional
shares.

        10. COMPLIANCE WITH LAWS AND REGULATIONS.

            A. The exercise of this option and the issuance of Option Shares
upon such exercise shall be subject to compliance by the Corporation and the
Optionee with all applicable requirements of law relating thereto and with all
applicable regulations of any stock exchange on which shares of the
Corporation's Common Stock may be listed at the time of such exercise and
issuance.

            B. In connection with the exercise of this option, Optionee shall
execute and deliver to the Corporation such representations in writing as may be
requested by the Corporation in order for it to comply with the applicable
requirements of Federal and State securities laws.

        11. SUCCESSORS AND ASSIGNS. Except to the extent otherwise provided in
Paragraph 3 or 6, the provisions of this Agreement shall inure to the benefit
of, and be binding upon, the successors, administrators, heirs, legal
representatives and assigns of Optionee and the successors and assigns of the
Corporation.

        12. LIABILITY OF CORPORATION.

            A. If the Option Shares covered by this Agreement exceed, as of the
Grant Date, the number of shares of Common Stock which may without shareholder
approval be issued under the Plan, then this option shall be void with respect
to such excess shares, unless shareholder approval of an amendment sufficiently
increasing the number of shares of Common Stock issuable under the Plan is
obtained in accordance with the provisions of Article IV, Section 3, of the
Plan.

            B. The inability of the Corporation to obtain approval from any
regulatory body having authority deemed by the Corporation to be necessary to
the lawful issuance and sale of any Common Stock pursuant to this option shall
relieve the Corporation of any liability with respect to the non-issuance or
sale of the Common Stock as to which such

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approval shall not have been obtained. The Corporation, however, shall use its
best efforts to obtain all such approvals.

        13. NOTICES. Any notice required to be given or delivered to the
Corporation under the terms of this Agreement shall be in writing and addressed
to the Corporation in care of the Corporate Secretary at its principal corporate
offices. Any notice required to be given or delivered to Optionee shall be in
writing and addressed to Optionee at the address indicated below Optionee's
signature line on the Grant Notice. All notices shall be deemed to have been
given or delivered upon personal delivery or upon deposit in the U.S. mail,
postage prepaid and properly addressed to the party to be notified.

        14. LOANS. The Plan Administrator may, in its absolute discretion and
without any obligation to do so, assist the Optionee in the exercise of this
option by (i) authorizing the extension of a loan to the Optionee from the
Corporation or (ii) permitting the Optionee to pay the option price for the
purchased Common Stock in installments over a period of years. The terms of any
such loan or installment method of payment (including the interest rate, the
requirements for collateral and the terms of repayment) shall be established by
the Plan Administrator in its sole discretion.

        15. CONSTRUCTION. This Agreement and the option evidenced hereby are
made and granted pursuant to the Plan and are in all respects limited by and
subject to the express terms and provisions of the Plan. All decisions of the
Plan Administrator with respect to any question or issue arising under the Plan
or this Agreement shall be conclusive and binding on all persons having an
interest in this option.

        16. GOVERNING, LAW. The interpretation, performance, and enforcement of
this Agreement shall be governed by the laws of the State of California without
resort to that State's conflict-of-laws rules.

        17. SHAREHOLDER APPROVAL. The grant of this option is subject to
approval of the Plan by the Corporation's shareholders within twelve (12) months
after the adoption of the Plan by the Board of Directors. Notwithstanding any
provision of this Agreement to the contrary, this option may not be exercised in
whole or in part until such shareholder approval is obtained. In the event that
such shareholder approval is not obtained, then this option shall thereupon
terminate in its entirety and the Optionee shall have no further rights to
acquire any Option Shares hereunder.

        18. ADDITIONAL TERMS APPLICABLE TO AN INCENTIVE STOCK OPTION. In the
event this option is designated an incentive stock option in the Grant Notice,
the following terms and conditions shall also apply to the grant:

            A. This option shall cease to qualify for favorable tax treatment as
an incentive stock option under the Federal tax laws if (and to the extent) this
option is exercised for one or more Option Shares: (i) more than three (3)
months after the date the Optionee ceases to be an Employee for any reason other
than death or permanent disability (as defined in Paragraph 5) or (ii) more than
one (1) year after the date the Optionee ceases to be an Employee by reason of
permanent disability.

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<PAGE>   8

            B. Should this option be designated as immediately exercisable in
the Grant Notice, then this option shall not become exercisable in the calendar
year in which granted if (and to the extent) the aggregate fair market value
(determined at the Grant Date) of the Corporation's Common Stock for which this
option would otherwise first become exercisable in such calendar year would,
when added to the aggregate fair market value (determined as of the respective
date or dates of grant) of the Corporation's Common Stock for which this option
or one or more other incentive stock options granted to the Optionee prior to
the Grant Date (whether under the Plan or any other option plan of the
Corporation or its parent or subsidiary corporations) first become exercisable
during the same calendar year, exceed One Hundred Thousand Dollars ($100,000) in
the aggregate. To the extent the exercisability of this option is deferred by
reason of the foregoing limitation, the deferred portion will first become
exercisable in the first calendar year or years thereafter in which the One
Hundred Thousand Dollar ($100,000) limitation of this Paragraph 18.B would not
be contravened.

            C. Should this option be designated as exercisable in installments
in the Grant Notice, then no installment under this option (whether annual or
monthly) shall qualify for favorable tax treatment as an incentive stock option
under the Federal tax laws if (and to the extent) the aggregate fair market
value (determined at the Grant Date) of the Corporation's Common Stock for which
such installment first becomes exercisable hereunder will, when added to the
aggregate fair market value (determined as of the respective date or dates of
grant) of the Corporation's Common Stock for which one or more other incentive
stock options granted to the Optionee prior to the Grant Date (whether under the
Plan or any other option plan of the Corporation or any parent or subsidiary
corporation) first become exercisable during the same calendar year, exceed One
Hundred Thousand Dollars ($100,000) in the aggregate.

        19. WITHHOLDING. Optionee hereby agrees to make appropriate arrangements
with the Corporation or parent or subsidiary corporation employing Optionee for
the payment of all Federal, State or local income tax withholding requirements
and Federal employment taxes applicable to the exercise of this option.

                                      -8-

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