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                                                                   EXHIBIT 10.56

                     DISCOVERY PARTNERS INTERNATIONAL, INC.

                       RESTRICTED STOCK ISSUANCE AGREEMENT
                       -----------------------------------

                AGREEMENT made as of this ____ day of ________, 200__, by and
between DISCOVERY PARTNERS INTERNATIONAL, INC. (the "Corporation"),
___________________, a participant ("Participant") in the Corporation's 1995
Stock Option/Stock Issuance Plan (the "Plan") and Participant's spouse.

        I.      PURCHASE OF SHARES

                1.1 PURCHASE. The Participant hereby purchases, and the
Corporation hereby sells to Participant, __________ shares (the "Shares") of the
Corporation's common stock ("Common Stock") at a purchase price of $__.__ per
share (the "Purchase Price") pursuant to the provisions of the Plan, with a
vesting start date of ____________, ____ (the "Vesting Start Date").

                1.2 PAYMENT. Concurrently with the execution of this Agreement,
the Participant shall deliver to the Corporate Secretary of the Corporation (i)
the aggregate Purchase Price payable for the Shares in cash or cash equivalent
and (ii) a duly-executed blank Assignment Separate from Certificate (in the form
attached hereto as Exhibit A).

                1.3 DELIVERY OF CERTIFICATES. The certificates representing the
Shares hereunder shall be held in escrow by the Secretary of the Corporation as
provided in Article VII hereof.

                1.4 SHAREHOLDER RIGHTS. Until such time as the Corporation
actually exercises its repurchase right, rights of first refusal or special
purchase right under this Agreement, Participant (or any successor in interest)
shall have all the rights of a shareholder (including voting and dividend
rights) with respect to the Shares, including the Shares held in escrow under
Article VII, subject, however, to the transfer restrictions of Article IV.

        II.     SECURITIES LAW COMPLIANCE

                2.1 PURCHASE ENTIRELY FOR OWN ACCOUNT. This Agreement is made
with Participant in reliance upon Participant's representation to the Company,
which by Participant's execution of this Agreement Participant hereby confirms,
that the Shares are being acquired for investment for Participant's own account,
not as a nominee or agent, and not with a view to the resale or distribution of
any part thereof, and that Participant has no present intention of selling,
granting any participation in, or otherwise distributing the same. By executing
this Agreement, Participant further represents that Participant does not have
any contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participations to such person or to any third person, with
respect to any of the Shares. Participant represents that he has full power and
authority to enter into this Agreement.

                2.2 EXEMPTION FROM REGISTRATION. The Shares have not been
registered under the Securities Act of 1933, as amended (the "1933 Act"), and
are accordingly being issued to Participant in reliance upon the exemption from
such registration provided by Rule 701 of the Securities and Exchange Commission
for stock issuances under compensatory benefit plans such as the Plan.
Participant hereby acknowledges receipt of a copy of the documentation for such
Plan in the form of Exhibit B attached hereto.

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                2.3 RESTRICTED SECURITIES.

                        A. Participant hereby confirms that Participant has been
informed that the Shares are restricted securities under the 1933 Act and may
not be resold or transferred unless the Shares are first registered under the
Federal securities laws or unless an exemption from such registration is
available. Accordingly, Participant hereby acknowledges that Participant is
prepared to hold the Shares for an indefinite period and that Participant is
aware that Rule 144 of the Securities and Exchange Commission issued under the
1933 Act is not presently available to exempt the sale of the Shares from the
registration requirements of the 1933 Act.

                        B. Upon the expiration of the ninety (90)-day period
immediately following the date on which the Corporation first becomes subject to
the reporting requirements of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), the Shares, to the extent vested under Article V, may be
sold (without registration) pursuant to the applicable requirements of Rule 144.
If Participant is at the time of such sale an affiliate of the Corporation for
purposes of Rule 144 or was such an affiliate during the preceding three (3)
months, then the sale must comply with all the requirements of Rule 144
(including the volume limitation on the number of shares sold, the
broker/market-maker sale requirement and the requisite notice to the Securities
and Exchange Commission); however, the two-year holding period requirement of
the Rule will not be applicable. If Participant is not at the time of the sale
an affiliate of the Corporation nor was such an affiliate during the preceding
three (3) months, then none of the requirements of Rule 144 (other than the
broker/market-maker sale requirement for Shares held for less than three (3)
years following payment in cash of the Purchase Price therefor) will be
applicable to the sale.

                        C. Should the Corporation not become subject to the
reporting requirements of the Exchange Act, then Participant may, provided
he/she is not at the time an affiliate of the Corporation (nor was such an
affiliate during the preceding three (3) months), sell the Shares (without
registration) pursuant to paragraph (k) of Rule 144 after the Shares have been
held for a period of three (3) years following the payment in cash of the
Purchase Price for such shares.

                2.4 DISPOSITION OF SHARES. Participant hereby agrees that
Participant shall make no disposition of the Shares (other than a permitted
transfer under paragraph 4.1) unless and until there is compliance with all of
the following requirements:

                        (a) Participant shall have notified the Corporation of
        the proposed disposition and provided a written summary of the terms and
        conditions of the proposed disposition.

                        (b) Participant shall have complied with all
        requirements of this Agreement applicable to the disposition of the
        Shares.

                        (c) Participant shall have provided the Corporation with
        written assurances, in form and substance satisfactory to the
        Corporation, that (i) the proposed disposition does not require
        registration of the Shares under the 1933 Act or (ii) all appropriate
        action necessary for compliance with the registration requirements of
        the 1933 Act or of any exemption from registration available under the
        1933 Act (including Rule 144) has been taken.

                The Corporation shall not be required (i) to transfer on its
books any Shares which have been sold or transferred in violation of the
provisions of this Article II nor (ii) to treat as the owner of the ---

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Shares, or otherwise to accord voting or dividend rights to, any transferee to
whom the Shares have been transferred in contravention of this Agreement.

                2.5 RESTRICTIVE LEGENDS. In order to reflect the restrictions on
disposition of the Shares, the stock certificates for the Shares will be
endorsed with restrictive legends, including one or more of the following
legends:

                        (i) "The shares represented by this certificate have not
        been registered under the Securities Act of 1933. The shares may not be
        sold or offered for sale in the absence of (a) an effective registration
        statement for the shares under such Act, (b) a 'no action' letter of the
        Securities and Exchange Commission with respect to such sale or offer,
        or (c) satisfactory assurances to the Corporation that registration
        under such Act is not required with respect to such sale or offer."

                        (ii) "The shares represented by this certificate are
        unvested and accordingly may not be sold, assigned, transferred,
        encumbered, or in any manner disposed of except in conformity with the
        terms of a written agreement dated , 19 , between the Corporation and
        the registered holder of the shares (or the predecessor in interest to
        the shares). Such agreement grants certain repurchase rights and rights
        of first refusal to the Corporation (or its assignees) upon the sale,
        assignment, transfer, encumbrance or other disposition of the
        Corporation's shares or upon termination of service with the
        Corporation. The Corporation will upon written request furnish a copy of
        such agreement to the holder hereof without charge."

        III.    SPECIAL TAX PROVISIONS

                3.1 SECTION 83(b) ELECTION. The Participant understands that
under Section 83 of the Code, the excess of the fair market value of the Shares
on the date any forfeiture restrictions applicable to such shares lapse over the
Purchase Price for such Shares will be reportable as ordinary income on such
lapse date. For this purpose, the term "forfeiture restrictions" includes the
right of the Corporation to repurchase the Shares pursuant to the Repurchase
Right provided under Article V of this Agreement. Participant understands that
he/she may elect under Section 83(b) of the Internal Revenue Code of 1986, as
amended (the "Code") to be taxed at the time the Shares are acquired hereunder,
rather than when and as such Shares cease to be subject to such forfeiture
restrictions. Such election must be filed with the Internal Revenue Service
within thirty (30) days after the date of this Agreement. Even if the fair
market value of the Shares on the date of this Agreement equals the Purchase
Price paid (and thus no tax is payable), the election must be made to avoid
adverse tax consequences in the future. The form for making this election is
attached as Exhibit C hereto. Participant understands that failure to make this
filing within the thirty (30)-day period will result in the recognition of
ordinary income by the Participant as the forfeiture restrictions lapse.

                3.2 PARTICIPANT ACKNOWLEDGES THAT IT IS PARTICIPANT'S SOLE
RESPONSIBILITY, AND NOT THE CORPORATION'S, TO FILE A TIMELY ELECTION UNDER
SECTION 83(b), EVEN IF PARTICIPANT REQUESTS THE CORPORATION OR ITS
REPRESENTATIVES TO MAKE THIS FILING ON HIS/HER BEHALF. This filing should be
made by registered or certified mail, return receipt requested, and Participant
must retain two (2) copies of the completed form for filing with his/her State
and Federal tax returns for the current tax year and an additional copy for
his/her personal records.

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        IV.     TRANSFER RESTRICTIONS

                4.1 RESTRICTION ON TRANSFER. Participant shall not transfer,
assign, encumber or otherwise dispose of any of the Shares which are subject to
the Corporation's Repurchase Right under Article V. In addition, Shares which
are released from the Repurchase Right shall not be transferred, assigned,
encumbered or otherwise made the subject of disposition in contravention of the
Corporation's First Refusal Right under Article VI. Such restrictions on
transfer, however, shall not be applicable to (i) a gratuitous transfer of the
Shares made to the Participant's spouse or issue, including adopted children, or
to a trust for the exclusive benefit of the Participant or the Participant's
spouse or issue, provided and only if the Participant obtains the Corporation's
prior written consent to such transfer, (ii) a transfer of title to the Shares
effected pursuant to the Participant's will or the laws of intestate succession
or (iii) a transfer to the Corporation in pledge as security for any
purchase-money indebtedness incurred by the Participant in connection with the
acquisition of the Shares.

                4.2 TRANSFEREE OBLIGATIONS. Each person (other than the
Corporation) to whom the Shares are transferred by means of one of the permitted
transfers specified in paragraph 4.1 must, as a condition precedent to the
validity of such transfer, acknowledge in writing to the Corporation that such
person is bound by the provisions of this Agreement and that the transferred
shares are subject to (i) both the Corporation's Repurchase Right and the
Corporation's First Refusal Right granted hereunder and (ii) the market
stand-off provisions of paragraph 4.4, to the same extent such Shares would be
so subject if retained by the Participant.

                4.3 DEFINITION OF OWNER. For purposes of Articles IV, V, VI and
VII of this Agreement, the term "Owner" shall include the Participant and all
subsequent holders of the Shares who derive their chain of ownership through a
permitted transfer from the Participant in accordance with paragraph 4.1.

                4.4 MARKET STAND-OFF PROVISIONS.

                A. In connection with any underwritten public offering by the
Corporation of its equity securities pursuant to an effective registration
statement filed under the 1933 Act, including the Corporation's initial public
offering, Owner shall not sell, make any short sale of, loan, hypothecate,
pledge, grant any option for the purchase of, or otherwise dispose or transfer
for value or otherwise agree to engage in any of the foregoing transactions with
respect to, any Shares without the prior written consent of the Corporation or
its underwriters. Such limitations shall be in effect for such period of time
from and after the effective date of such registration statement as may be
requested by the Corporation or such underwriters; provided, however, that in no
event shall such period exceed one hundred-eighty (180) days. The limitations of
this paragraph 4.4 shall remain in effect for the two-year period immediately
following the effective date of the Corporation's initial public offering and
shall thereafter terminate and cease to have any force or effect.

                B. Owner shall be subject to the market stand-off provisions of
this paragraph 4.4 provided and only if the officers and directors of the
Corporation are also subject to similar arrangements.

                C. In the event of any stock dividend, stock split,
recapitalization or other change affecting the Corporation's outstanding Common
Stock effected without receipt of consideration, then any new, substituted or
additional securities distributed with respect to the Shares shall be
immediately subject to the provisions of this paragraph 4.4, to the same extent
the Shares are at such time covered by such provisions.

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                D. In order to enforce the limitations of this paragraph 4.4,
the Corporation may impose stop-transfer instructions with respect to the Shares
until the end of the applicable stand-off period.

        V.      REPURCHASE RIGHT

                5.1 GRANT. The Corporation is hereby granted the right (the
"Repurchase Right"), exercisable at any time during the sixty (60)-day period
following the date the Participant ceases for any reason to remain in Service or
(if later) during the sixty (60)-day period following the execution date of this
Agreement, to repurchase at the Purchase Price all or (at the discretion of the
Corporation and with the consent of the Participant) any portion of the Shares
in which the Participant has not acquired a vested interest in accordance with
the vesting provisions of paragraph 5.3 below (such shares to be hereinafter
called the "Unvested Shares"). For purposes of this Agreement, the Participant
shall be deemed to remain in Service for so long as the Participant 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.

                5.2 EXERCISE OF THE REPURCHASE RIGHT. The Repurchase Right shall
be exercisable by written notice delivered to the Owner of the Unvested Shares
prior to the expiration of the applicable sixty (60)-day period specified in
paragraph 5.1. The notice shall indicate the number of Unvested Shares to be
repurchased and the date on which the repurchase is to be effected, such date to
be not more than thirty (30) days after the date of notice. To the extent one or
more certificates representing Unvested Shares may have been previously
delivered out of escrow to the Owner, then Owner shall, prior to the close of
business on the date specified for the repurchase, deliver to the Secretary of
the Corporation the certificates representing the Unvested Shares to be
repurchased, each certificate to be properly endorsed for transfer. The
Corporation shall, concurrently with the receipt of such stock certificates
(either from escrow in accordance with paragraph 7.3 or from Owner as herein
provided), pay to Owner in cash or cash equivalents (including the cancellation
of any purchase-money indebtedness), an amount equal to the Purchase Price
previously paid for the Unvested Shares which are to be repurchased.

                5.3 TERMINATION OF THE REPURCHASE RIGHT. The Repurchase Right
shall terminate with respect to any Unvested Shares for which it is not timely
exercised under paragraph 5.2. In addition, the Repurchase Right shall
terminate, and cease to be exercisable, with respect to any and all Shares in
which the Participant vests in accordance with the schedule below. Accordingly,
as the Participant continues in Service, the Participant shall acquire a vested
interest in, and the Repurchase Right shall lapse with respect to, the Shares in
installments in accordance with the following provisions:

                        (i) The Participant shall not acquire any vested
        interest in, nor shall the Repurchase Right lapse with respect to, any
        Shares unless and until the Participant has completed twelve (12) months
        of Service measured from the Vesting Start Date.

                        (ii) Upon the completion of the twelve (12) month
        Service period specified in subparagraph (i) above, the Participant
        shall acquire a vested interest in, and the Repurchase Right shall lapse
        with respect to, 25% of the Shares.

                        (iii) The Participant shall acquire a vested interest
        in, and the Repurchase Right shall lapse with respect to, the remaining
        Shares in a series of successive equal monthly installments over each of
        the next thirty-six (36) months of Service completed by the Participant
        after the initial vesting date under subparagraph (ii)

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        above.

                All Shares as to which the Repurchase Right lapses shall,
however, continue to be subject to (i) the First Refusal Right and (ii) the
market stand-off provisions of paragraph 4.4.

                5.4 FRACTIONAL SHARES. No fractional shares shall be repurchased
by the Corporation. Accordingly should the Repurchase Right extend to a
fractional share (in accordance with the vesting computation provisions of
paragraph 5.3) at the time the Participant ceases Service, then such fractional
share shall be added to any fractional share in which the Participant is at such
time vested in order to make one whole vested share no longer subject to the
Repurchase Right.

                5.5 ADDITIONAL SHARES OR SUBSTITUTED SECURITIES. In the event of
any stock dividend, stock split, recapitalization or other change affecting the
Corporation's outstanding Common Stock as a class effected without receipt of
consideration, then any new, substituted or additional securities or other
property (including money paid other than as a regular cash dividend) which is
by reason of any such transaction distributed with respect to the Shares shall
be immediately subject to the Repurchase Right, but only to the extent the
Shares are at the time covered by such right. Appropriate adjustments to reflect
the distribution of such securities or property shall be made to the number of
Shares at the time subject to the Repurchase Right hereunder and to the price
per share to be paid upon the exercise of the Repurchase Right in order to
reflect the effect of any such transaction upon the Corporation's capital
structure; provided, however, that the aggregate Purchase Price shall remain the
same.

                5.6 CORPORATE TRANSACTION.

                A. Immediately prior to the consummation of any of the following
shareholder-approved transactions (a "Corporate Transaction"):

                        (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,

                the Repurchase Right shall automatically lapse in its entirety
except to the extent the Repurchase Right is to be assigned to the successor
corporation (or its parent company) in connection with such Corporate
Transaction.

                B. To the extent the Repurchase Right remains in effect
following such Corporate Transaction, such right shall apply to the new capital
stock or other property (including cash) received in exchange for the Purchased
Shares in consummation of the Corporate Transaction, but only to the extent the
Purchased Shares are at the time covered by such right. Appropriate adjustments
shall be made to the price per share payable upon exercise of the Repurchase
Right to reflect the effect of the Corporate Transaction upon the Corporation's
capital structure; provided, however, that the aggregate purchase price shall
remain the same.

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                C. Any Repurchase Rights which remain in effect following such
Corporate Transaction, shall automatically cease to be exercisable immediately
prior to Optionee's termination of Service should Optionee's Service
subsequently terminate by reason of an Involuntary Termination within twelve
(12) months following the effective date of such Corporate Transaction.
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.

        VI.     RIGHT OF FIRST REFUSAL

                6.1 GRANT. The Corporation is hereby granted rights of first
refusal (the "First Refusal Right"), exercisable in connection with any proposed
transfer of the Purchased Shares in which the Optionee has vested in accordance
with the vesting provisions of Article V. For purposes of this Article VI, the
term "transfer" shall include any sale, assignment, pledge, encumbrance or other
disposition for value of the Purchased Shares intended to be made by the Owner,
but shall not include any of the permitted transfers under paragraph 4.1.

                6.2 NOTICE OF INTENDED DISPOSITION. In the event the Owner
desires to accept a bona fide third-party offer for the transfer of any or all
of the Purchased Shares (the shares subject to such offer to be hereinafter
called the "Target Shares"), Owner shall promptly (i) deliver to the Corporate
Secretary of the Corporation written notice (the "Disposition Notice") of the
terms and conditions of the offer, including the purchase price and the identity
of the third-party offeror, and (ii) provide satisfactory proof that the
disposition of the Target Shares to such third-party offeror would not be in
contravention of the provisions set forth in Articles II and IV of this
Agreement.

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                6.3 EXERCISE OF RIGHT. The Corporation shall, for a period of
forty-five (45) days following receipt of the Disposition Notice, have the right
to repurchase any or all of the Target Shares specified in the Disposition
Notice upon the same terms and conditions specified therein or upon terms and
conditions which do not materially vary from those specified therein. Such right
shall be exercisable by delivery of written notice (the "Exercise Notice") to
Owner prior to the expiration of the forty-five (45)-day exercise period. If
such right is exercised with respect to all the Target Shares specified in the
Disposition Notice, then the Corporation (or its assignees) shall effect the
repurchase of the Target Shares, including payment of the purchase price, not
more than ten (10) business days after delivery of the Exercise Notice; and at
such time Owner shall deliver to the Corporation the certificates representing
the Target Shares to be repurchased, each certificate to be properly endorsed
for transfer. To the extent any of the Target Shares are at the time held in
escrow under Article VII, the certificates for such shares shall automatically
be released from escrow and delivered to the Corporation for purchase. Should
the purchase price specified in the Disposition Notice be payable in property
other than cash or evidences of indebtedness, the Corporation (or its assignees)
shall have the right to pay the purchase price in the form of cash equal in
amount to the value of such property. If the Owner and the Corporation (or its
assignees) cannot agree on such cash value within ten (10) days after the
Corporation's receipt of the Disposition Notice, the valuation shall be made by
an appraiser of recognized standing selected by the Owner and the Corporation
(or its assignees) or, if they cannot agree on an appraiser within twenty (20)
days after the Corporation's receipt of the Disposition Notice, each shall
select an appraiser of recognized standing and the two appraisers shall
designate a third appraiser of recognized standing, whose appraisal shall be
determinative of such value. The cost of such appraisal shall be shared equally
by the Owner and the Corporation. The closing shall then be held on the later of
(i) the tenth business day following delivery of the Exercise Notice or (ii) the
tenth business day after such cash valuation shall have been made.

                6.4 NON-EXERCISE OF RIGHT. In the event the Exercise Notice is
not given to Owner within forty-five (45) days following the date of the
Corporation's receipt of the Disposition Notice, Owner shall have a period of
thirty (30) days thereafter in which to sell or otherwise dispose of the Target
Shares to the third-party offeror identified in the Disposition Notice upon
terms and conditions (including the purchase price) no more favorable to such
third-party offeror than those specified in the Disposition Notice; provided,
however, that any such sale or disposition must not be effected in contravention
of the provisions of Article II of this Agreement. To the extent any of the
Target Shares are at the time held in escrow under Article VII, the certificates
for such shares shall automatically be released from escrow and surrendered to
the Owner. The third-party offeror shall acquire the Target Shares free and
clear of the Corporation's Repurchase Right under Article V and the
Corporation's First Refusal Right hereunder, but the acquired shares shall
remain subject to (i) the securities law restrictions of Article II and (ii) the
market stand-off provisions of paragraph 4.4. In the event Owner does not effect
such sale or disposition of the Target Shares within the specified thirty
(30)-day period, the Corporation's First Refusal Right shall continue to be
applicable to any subsequent disposition of the Target Shares by Owner until
such right lapses in accordance with paragraph 6.7.

                6.5 PARTIAL EXERCISE OF RIGHT. In the event the Corporation (or
its assignees) makes a timely exercise of the First Refusal Right with respect
to a portion, but not all, of the Target Shares specified in the Disposition
Notice, Owner shall have the option, exercisable by written notice to the
Corporation delivered within thirty (30) days after the date of the Disposition
Notice, to effect the sale of the Target Shares pursuant to one of the following
alternatives:

                        (i) sale or other disposition of all the Target Shares
        to the third-party offeror identified in the Disposition Notice, but in
        full compliance with the requirements of paragraph 6.4, as if the
        Corporation did not exercise the First Refusal Right hereunder; or

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                        (ii) sale to the Corporation (or its assignees) of the
        portion of the Target Shares which the Corporation (or its assignees)
        has elected to purchase, such sale to be effected in substantial
        conformity with the provisions of paragraph 6.3.

                Failure of Owner to deliver timely notification to the
Corporation under this paragraph 6.5 shall be deemed to be an election by Owner
to sell the Target Shares pursuant to alternative (i) above.

                6.6 RECAPITALIZATION/MERGER.

                (a) In the event of any stock dividend, stock split,
recapitalization or other transaction affecting the Corporation's outstanding
Common Stock as a class effected without receipt of consideration, then any new,
substituted or additional securities or other property which is by reason of
such transaction distributed with respect to the Purchased Shares shall be
immediately subject to the Corporation's First Refusal Right hereunder, but only
to the extent the Purchased Shares are at the time covered by such right.

                (b) In the event of any of the following transactions:

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

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

                        (iii) a reverse merger in which the Corporation is the
        surviving entity but in which the Corporation's outstanding voting
        securities are transferred in whole or in part to person or persons
        other than those who held such securities immediately prior to the
        merger, or

                        (iv) any transaction effected primarily to change the
        State in which the Corporation is incorporated, or to create a holding
        company structure,

                the Corporation's First Refusal Right shall remain in full force
and effect and shall apply to the new capital stock or other property received
in exchange for the Purchased Shares in consummation of the transaction but only
to the extent the Purchased Shares are at the time covered by such right.

                6.7 LAPSE. The First Refusal Right under this Article VI shall
lapse and cease to have effect upon the earliest to occur of (i) the first date
on which shares of the Corporation's Common Stock are held of record by more
than five hundred (500) persons, (ii) a determination is made by the
Corporation's Board of Directors that a public market exists for the outstanding
shares of the Corporation's Common Stock, or (iii) a firm commitment
underwritten public offering pursuant to an effective registration statement
under the 1933 Act, covering the offer and sale of the Corporation's Common
Stock in the aggregate amount of at least $5,000,000. However, the market
stand-off provisions of paragraph 4.4 shall continue to remain in full force and
effect following the lapse of the First Refusal Right hereunder.

        VII.    ESCROW

                7.1 DEPOSIT. Upon issuance, the certificates for any Unvested
Shares purchased

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hereunder shall be deposited in escrow with the Corporation to be held in
accordance with the provisions of this Article VII. Each deposited certificate
shall be accompanied by a duly executed Assignment Separate from Certificate in
the form of Exhibit A. The deposited certificates, together with any other
assets or securities from time to time deposited with the Corporation pursuant
to the requirements of this Agreement, shall remain in escrow until such time or
times as the certificates (or other assets and securities) are to be released or
otherwise surrendered for cancellation in accordance with paragraph 7.3. Upon
delivery of the certificates (or other assets and securities) to the
Corporation, the Owner shall be issued an instrument of deposit acknowledging
the number of Unvested Shares (or other assets and securities) delivered in
escrow to the Corporation.

                7.2 RECAPITALIZATION. All regular cash dividends on the Unvested
Shares (or other securities at the time held in escrow) shall be paid directly
to the Owner and shall not be held in escrow. However, in the event of any stock
dividend, stock split, recapitalization or other change affecting the
Corporation's outstanding Common Stock as a class effected without receipt of
consideration or in the event of a Corporate Transaction, any new, substituted
or additional securities or other property which is by reason of such
transaction distributed with respect to the Unvested Shares shall be immediately
delivered to the Corporation to be held in escrow under this Article VII, but
only to the extent the Unvested Shares are at the time subject to the escrow
requirements of paragraph 7.1.

                7.3 RELEASE/SURRENDER. The Unvested Shares, together with any
other assets or securities held in escrow hereunder, shall be subject to the
following terms and conditions relating to their release from escrow or their
surrender to the Corporation for repurchase and cancellation:

                        (i) Should the Corporation (or its assignees) elect to
        exercise the Repurchase Right under Article V with respect to any
        Unvested Shares, then the escrowed certificates for such Unvested Shares
        (together with any other assets or securities issued with respect
        thereto) shall be delivered to the Corporation, concurrently with the
        payment to the Owner, in cash or cash equivalent (including the
        cancellation of any purchase-money indebtedness), of an amount equal to
        the aggregate Purchase Price for such Unvested Shares, and the Owner
        shall cease to have any further rights or claims with respect to such
        Unvested Shares (or other assets or securities attributable to such
        Unvested Shares).

                        (ii) Should the Corporation (or its assignees) elect to
        exercise its First Refusal Right under Article VI with respect to any
        vested Target Shares held at the time in escrow hereunder, then the
        escrowed certificates for such Target Shares (together with any other
        assets or securities attributable thereto) shall, concurrently with the
        payment of the paragraph 6.3 purchase price for such Target Shares to
        the Owner, be surrendered to the Corporation, and the Owner shall cease
        to have any further rights or claims with respect to such Target Shares
        (or other assets or securities).

                        (iii) Should the Corporation (or its assignees) elect
        not to exercise its First Refusal Right under Article VI with respect to
        any Target Shares held at the time in escrow hereunder, then the
        escrowed certificates for such Target Shares (together with any other
        assets or securities attributable thereto) shall be surrendered to the
        Owner for disposition in accordance with the provisions of paragraph
        6.4.

                        (iv) As the interest of the Participant in the Unvested
        Shares (or any other assets or securities attributable thereto) vests in
        accordance with the provisions of Article V, the certificates for such
        vested shares (as well as all other vested assets and

                                      -10-
<PAGE>   11

        securities) shall be released from escrow and delivered to the Owner in
        accordance with the following schedule:

                                a. The initial release of vested shares (or
                other vested assets and securities) from escrow shall be
                effected within thirty (30) days following the expiration of the
                initial twelve (12)-month period measured from the initial
                vesting date under paragraph 5.3.

                                b. Subsequent releases of vested shares (or
                other vested assets and securities) from escrow shall be
                effected at semi-annual intervals thereafter, with the first
                such semi-annual release to occur six (6) months after the
                initial paragraph 5.3 vesting date.

                                c. Upon the Participant's cessation of Service,
                any escrowed Shares (or other assets or securities) in which the
                Participant is at the time vested shall be promptly released
                from escrow.

                                d. Upon any earlier termination of the
                Corporation's Repurchase Right in accordance with the applicable
                provisions of Article V, the Shares (or other assets or
                securities) at the time held in escrow hereunder shall promptly
                be released to the Owner as fully-vested shares or other
                property.

                        (v) All Shares (or other assets or securities) released
        from escrow in accordance with the provisions of subparagraph (iv) above
        shall nevertheless remain subject to (I) the Corporation's First Refusal
        Right under Article VI until such right lapses pursuant to paragraph
        6.7, (II) the market stand-off provisions of paragraph 4.4 until such
        provisions terminate in accordance therewith and (III) the Special
        Purchase Right under Article VIII.

        VIII.   MARITAL DISSOLUTION OR LEGAL SEPARATION

                8.1 GRANT. In connection with the dissolution of the
Participant's marriage or the legal separation of the Participant and the
Participant's spouse, the Corporation shall have the right (the "Special
Purchase Right"), exercisable at any time during the thirty (30)-day period
following the Corporation's receipt of the required Dissolution Notice under
paragraph 8.2, to purchase from the Participant's spouse, in accordance with the
provisions of paragraph 8.3, all or any portion of the Shares which would
otherwise be awarded to such spouse in settlement of any community property or
other marital property rights such spouse may have in such shares.

                8.2 NOTICE OF DECREE OR AGREEMENT. The Participant shall
promptly provide the Secretary of the Corporation with written notice (the
"Dissolution Notice") of (i) the entry of any judicial decree or order resolving
the property rights of the Participant and the Participant's spouse in
connection with their marital dissolution or legal separation or (ii) the
execution of any contract or agreement relating to the distribution or division
of such property rights. The Dissolution Notice shall be accompanied by a copy
of the actual decree of dissolution or settlement agreement between the
Participant and the Participant's spouse which provides for the award to the
spouse of one or more Shares in settlement of any community property or other
marital property rights such spouse may have in such shares.

                                      -11-
<PAGE>   12

                8.3 EXERCISE OF SPECIAL PURCHASE RIGHT. The Special Purchase
Right shall be exercisable by delivery of the Purchase Notice to the Participant
and the Participant's spouse within thirty (30) days after the Corporation's
receipt of the Dissolution Notice. The Purchase Notice shall indicate the number
of shares to be purchased by the Corporation, the date such purchase is to be
effected (such date to be not less than five (5) business days, nor more than
ten (10) business days, after the date of the Purchase Notice), and the fair
market value to be paid for such Shares. The Participant (or the Participant's
spouse, to the extent such spouse has physical possession of the Shares) shall,
prior to the close of business on the date specified for the purchase, deliver
to the Corporate Secretary of the Corporation the certificates representing the
shares to be purchased, each certificate to be properly endorsed for transfer.
To the extent any of the shares to be purchased by the Corporation are at the
time held in escrow under Article VII, the certificates for such shares shall be
promptly delivered out of escrow to the Corporation. The Corporation shall,
concurrently with the receipt of the stock certificates, pay to the
Participant's spouse (in cash or cash equivalents) an amount equal to the fair
market value specified for such shares in the Purchase Notice.

                If the Participant's spouse does not agree with the fair market
value specified for the shares in the Purchase Notice, then the spouse shall
promptly notify the Corporation in writing of such disagreement and the fair
market value of such shares shall thereupon be determined by an appraiser of
recognized standing selected by the Corporation and the spouse. If they cannot
agree on an appraiser within twenty (20) days after the date of the Purchase
Notice, each shall select an appraiser of recognized standing, and the two
appraisers shall designate a third appraiser of recognized standing whose
appraisal shall be determinative of such value. The cost of the appraisal shall
be shared equally by the Corporation and the Participant's spouse. The closing
shall then be held on the fifth business day following the completion of such
appraisal; provided, however, that if the appraised value is more than fifteen
percent (15%) greater than the fair market value specified for the shares in the
Purchase Notice, the Corporation shall have the right, exercisable prior to the
expiration of such five (5) business-day period, to rescind the exercise of the
Special Purchase Right and thereby revoke its election to purchase the shares
awarded to the spouse.

                8.4 LAPSE. The Special Purchase Right under this Article VIII
shall lapse and cease to have effect upon the earlier to occur of (i) the first
date on which the First Refusal Right under Article VI lapses or (ii) the
expiration of the thirty (30)-day exercise period specified in paragraph 8.3, to
the extent the Special Purchase Right is not timely exercised in accordance with
such paragraph.

        IX.     GENERAL PROVISIONS

                9.1 ASSIGNMENT. The Corporation may assign its Repurchase Right
under Article V, its First Refusal Right under Article VI and/or its Special
Purchase Right under Article VIII to any person or entity selected by the
Corporation's Board of Directors, including (without limitation) one or more
shareholders of the Corporation.

                If the assignee of the Repurchase Right is other than a one
hundred percent (100%) owned subsidiary corporation of the Corporation or the
parent corporation owning one hundred percent (100%) of the Corporation, then
such assignee must make a cash payment to the Corporation, upon the assignment
of the Repurchase Right, in an amount equal to the excess (if any) of (i) the
fair market value of the Unvested Shares at the time subject to the assigned
Repurchase Right over (ii) the aggregate repurchase price payable for Unvested
Shares thereunder.

                9.2 DEFINITIONS. Except as otherwise provided herein,
capitalized terms shall have the meanings assigned to them in the Plan.

                                      -12-
<PAGE>   13

                9.3 NO EMPLOYMENT OR SERVICE CONTRACT. Nothing in this Agreement
or in the Plan shall confer upon the Participant any right to continue in the
Service of the Corporation (or any parent or subsidiary corporation employing or
retaining Participant) for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Corporation (or any parent or
subsidiary corporation employing or retaining Participant) or the Participant,
which rights are hereby expressly reserved by each, to terminate the
Participant's Service at any time for any reason whatsoever, with or without
cause.

                9.4 NOTICES. Any notice required in connection with (i) the
Repurchase Right, the Special Purchase Right or the First Refusal Right or (ii)
the disposition of any Shares covered thereby shall be given in writing and
shall be deemed effective upon personal delivery or upon deposit in the United
States mail, registered or certified, postage prepaid and addressed to the party
entitled to such notice at the address indicated below such party's signature
line on this Agreement or at such other address as such party may designate by
ten (10) days advance written notice under this paragraph 9.4 to all other
parties to this Agreement.

                9.5 NO WAIVER. The failure of the Corporation (or its assignees)
in any instance to exercise the Repurchase Right granted under Article V, or the
failure of the Corporation (or its assignees) in any instance to exercise the
First Refusal Right granted under Article VI, or the failure of the Corporation
(or its assignees) in any instance to exercise the Special Purchase Right
granted under Article VIII shall not constitute a waiver of any other repurchase
rights and/or rights of first refusal that may subsequently arise under the
provisions of this Agreement or any other agreement between the Corporation and
the Participant or the Participant's spouse. No waiver of any breach or
condition of this Agreement shall be deemed to be a waiver of any other or
subsequent breach or condition, whether of like or different nature.

                9.6 CANCELLATION OF SHARES. If the Corporation (or its
assignees) shall make available, at the time and place and in the amount and
form provided in this Agreement, the consideration for the Shares to be
repurchased in accordance with the provisions of this Agreement, then from and
after such time, the person from whom such shares are to be repurchased shall no
longer have any rights as a holder of such shares (other than the right to
receive payment of such consideration in accordance with this Agreement), and
such shares shall be deemed purchased in accordance with the applicable
provisions hereof and the Corporation (or its assignees) shall be deemed the
owner and holder of such shares, whether or not the certificates therefor have
been delivered as required by this Agreement.

        X.      MISCELLANEOUS PROVISIONS

                10.1 PARTICIPANT UNDERTAKING. Participant hereby agrees to take
whatever additional action and execute whatever additional documents the
Corporation may in its judgment deem necessary or advisable in order to carry
out or effect one or more of the obligations or restrictions imposed on either
the Participant or the Shares pursuant to the express provisions of this
Agreement.

                10.2 AGREEMENT IS ENTIRE CONTRACT. This Agreement constitutes
the entire contract between the parties hereto with regard to the subject matter
hereof. This Agreement is made pursuant to the provisions of the Plan and shall
in all respects be construed in conformity with the express terms and provisions
of the Plan.

                10.3 GOVERNING LAW. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of California, as such laws
are applied to contracts entered into and

                                      -13-
<PAGE>   14

performed in such State without resort to that State's conflict-of-laws rules.

                10.4 COUNTERPARTS. This Agreement may be executed in
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument.

                10.5 SUCCESSORS AND ASSIGNS. The provisions of this Agreement
shall inure to the benefit of, and be binding upon, the Corporation and its
successors and assigns and the Participant and the Participant's legal
representatives, heirs, legatees, distributees, assigns and transferees by
operation of law, whether or not any such person shall have become a party to
this Agreement and have agreed in writing to join herein and be bound by the
terms and conditions hereof.

                10.6 POWER OF ATTORNEY. Participant's spouse hereby appoints
Participant his or her true and lawful attorney in fact, for him or her and in
his or her name, place and stead, and for his or her use and benefit, to agree
to any amendment or modification of this Agreement and to execute such further
instruments and take such further actions as may reasonably be necessary to
carry out the intent of this Agreement. Participant's spouse further gives and
grants unto Participant as his or her attorney in fact full power and authority
to do and perform every act necessary and proper to be done in the exercise of
any of the foregoing powers as fully as he or she might or could do if
personally present, with full power of substitution and revocation, hereby
ratifying and confirming all that Participant shall lawfully do and cause to be
done by virtue of this power of attorney.

                                      -14-
<PAGE>   15

        IN WITNESS WHEREOF, the parties have executed this Agreement on the day
and year first indicated above.

                                   DISCOVERY PARTNERS INTERNATIONAL, INC.

                                   By
                                     -------------------------------------------
                                   Title
                                        ----------------------------------------

                                   Address:
                                           -------------------------------------

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

                                   ---------------------------------------------
                                   Participant(1)

                                   Address:
                                           -------------------------------------

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

                The undersigned spouse of Participant has read and hereby
approves the foregoing Restricted Stock Purchase Agreement. In consideration of
the Corporation's granting the Participant the right to acquire the Shares in
accordance with the terms of such Agreement, the undersigned hereby agrees to be
irrevocably bound by all the terms and provisions of such Agreement, including,
(specifically) the right of the Corporation (or its assignees) to purchase any
and all interest or right the undersigned may otherwise have in such shares
pursuant to community property laws or other marital property rights.

                                   ---------------------------------------------
                                        Participant's Spouse

--------
   (1) I have executed the Section 83(b) election that was attached hereto as
Exhibit D. As set forth in Article III, I understand that I, and not the
Corporation, will be responsible for completing the form and filing the election
with the appropriate offices of the federal and state tax authorities and that
if such filing is not completed within thirty (30) days after the date of this
Agreement, I will not be entitled to the tax benefits provided by Section 83(b).

                                      -15-
<PAGE>   16

                                    EXHIBIT B

                      1995 STOCK OPTION/STOCK ISSUANCE PLAN

Filed as Exhibit 10.52 to this Registration Statement

                                    EXHIBIT A
                      ASSIGNMENT SEPARATE FROM CERTIFICATE

                FOR VALUE RECEIVED, hereby sell(s), assign(s) and transfer(s)
unto DISCOVERY PARTNERS INTERNATIONAL, _______________________________ INC. (the
"Corporation") ( ) shares of the Common Stock of the Corporation standing in
his\her name on the _________________________ (_____________) books of the
Corporation represented by Certificate No. and do hereby irrevocably constitute
and appoint as ________________ _____________________ Attorney to transfer
the said stock on the books of the Corporation with full power of substitution
in the premises.

Dated:
-------------------------

                                   Signature
                                            ------------------------------------

INSTRUCTION: Please do not fill in any blanks other than the signature line. The
purpose of this assignment is to enable the Corporation to exercise the
Repurchase Right set forth in the Agreement without requiring additional
signatures on the part of the Participant.

                                      A-1
<PAGE>   17

                                    EXHIBIT B

                      1995 STOCK OPTION/STOCK ISSUANCE PLAN

Filed as Exhibit 10.52 to this Registration Statement

                                      B-1
<PAGE>   18

                                    EXHIBIT C
                           SECTION 83(b) TAX ELECTION

This statement is being made under Section 83(b) of the Internal Revenue Code,
pursuant to Treas. Reg. Section 1.83-2.

(1)     The taxpayer who performed the services is:

        Name:
             -----------------------------------------
        Address:
                --------------------------------------
        Taxpayer Ident. No.:
                            --------------------------

(2)     The property with respect to which the election is being made is
        __________ shares of the common stock of DISCOVERY PARTNERS
        INTERNATIONAL, INC.

(3)     The property was issued on _________________, 199__.

(4)     The taxable year in which the election is being made is the calendar
        year 19__.

(5)     The property is subject to a repurchase right pursuant to which the
        issuer has the right to acquire the property at the original purchase
        price if for any reason taxpayer's employment with the issuer is
        terminated. The issuer's repurchase right lapses in a series of annual
        and monthly installments over a four (4) year period commencing on
        ______, 199__.

(6)     The fair market value at the time of transfer (determined without regard
        to any restriction other than a restriction which by its terms will
        never lapse) is $_______per share.

(7)     The amount paid for such property is $__.__ per share.

(8)     A copy of this statement was furnished to DISCOVERY PARTNERS
        INTERNATIONAL, INC. for whom taxpayer rendered the service underlying
        the transfer of property.

(9)     This statement is executed as of: __________________, 199__.

---------------------------------     ------------------------------------------
Spouse (if any)                       Taxpayer

This form must be filed with the Internal Revenue Service Center with which
taxpayer files his/her Federal income tax returns. The filing must be made
within 30 days after the execution date of the Restricted Stock Issuance
Agreement.

                                      C-1<PAGE>   1
                                                                   EXHIBIT 10.61

                            INDEMNIFICATION AGREEMENT

        THIS INDEMNIFICATION AGREEMENT (the "Agreement") is made and entered
into this ___ day of May, 2000, between Discovery Partners International, Inc.,
a Delaware corporation ("Corporation"), and Riccardo Pigliucci ("Indemnitee").

        A.     Indemnitee, as a member of Corporation's Board of Indemnitees
(the "Board")and/or an officer of Corporation, performs valuable services for
Corporation.

        B.     The stockholders of Corporation have adopted Bylaws (the
"Bylaws") providing for the indemnification of the officers, directors, agents
and employees of Corporation to the maximum extent authorized by Section 145 of
the Delaware General Corporation Law, as amended (the "Law").

        C.     The Bylaws and the Law, as amended and in effect from time to
time or any successor or other statutes of Delaware having similar import and
effect, currently purport to be the controlling law governing Corporation with
respect to certain aspects of corporate law, including indemnification of
directors and officers.

        D.     In accordance with the authorization provided by the Law,
Corporation may from time to time purchase and maintain a policy or policies of
Indemnitees and Officers Liability Insurance ("D & O Insurance"), covering
certain liabilities which may be incurred by its directors and officers in the
performance of services as directors and officers of Corporation.

        E.     As a result of developments affecting the terms, scope and
availability of D & O Insurance there exists general uncertainty as to the
extent and overall desirability of protection afforded members of the Board by
such D & O Insurance, if any, and by statutory and bylaw indemnification
provisions.

        G.     Corporation (i) desires to attract and retain the involvement of
highly qualified individuals, such as Indemnitee, to serve Corporation and (ii)
wishes to provide for the indemnification and advancing of expenses to
Indemnitee to the maximum extent permitted by law.

        H.     In view of the considerations set forth above, Corporation
desires that Indemnitee be indemnified by Corporation as set forth herein.

        NOW, THEREFORE, in consideration of Indemnitee's service to Corporation,
the parties hereto agree as follows:

        1.     Certain Definitions. The following terms used in this Agreement
shall have the meanings set forth below. Other terms are defined where
appropriate in this Agreement.

               (a)    "Disinterested Director" shall mean a director of
Corporation who is not or was not a party to the Proceeding in respect of which
indemnification is being sought by Indemnitee.

<PAGE>   2

               (b)    "Expenses" shall include all direct and indirect costs
(including, without limitation, attorneys' fees, retainers, court costs,
transcripts, fees of experts, witness fees, travel expenses, duplicating costs,
printing and binding costs, telephone charges, postage, delivery service fees,
all other disbursements or out-of-pocket expenses and reasonable compensation
for time spent by Indemnitee for which he or she is otherwise not compensated by
Corporation) actually and reasonably incurred in connection with a Proceeding or
establishing or enforcing a right to indemnification under this Agreement,
applicable law or otherwise; provided, however, that "Expenses" shall not
include any Liabilities.

               (c)    "Final Adverse Determination" shall mean that a
determination that Indemnitee is not entitled to indemnification shall have been
made pursuant to Section 5 hereof and either (i) a final adjudication in a
Delaware court or decision of an arbitrator pursuant to Section 12(a) hereof
shall have denied Indemnitee's right to indemnification hereunder, or (ii)
Indemnitee shall have failed to file a complaint in a Delaware court or seek an
arbitrator's award pursuant to Section 12(a) for a period of one hundred twenty
(120) days after the determination made pursuant to Section 5 hereof.

               (d)    "Independent Legal Counsel" shall mean a law firm or
member of a law firm selected by Corporation and approved by Indemnitee (which
approval shall not be unreasonably withheld) and that neither is presently nor
in the past five years has been retained to represent: (i) Corporation, in any
material matter, or (ii) any other party to the Proceeding giving rise to a
claim for indemnification hereunder. Notwithstanding the foregoing, the term
"Independent Legal Counsel" shall not include any person who, under the
applicable standards of professional conduct then prevailing, would have a
conflict of interest in representing either Corporation or Indemnitee in a
Proceeding to determine Indemnitee's right to indemnification under this
Agreement.

               (e)    "Liabilities" shall mean liabilities of any type
whatsoever including, but not limited to, any judgments, fines, ERISA excise
taxes and penalties, and penalties and amounts paid in settlement (including all
interest assessments and other charges paid or payable in connection with or in
respect of such judgments, fines, penalties or amounts paid in settlement) of
any Proceeding.

               (f)    "Proceeding" shall mean any threatened, pending or
completed action, claim, suit, arbitration, alternative dispute resolution
mechanism, investigation, administrative hearing or any other proceeding whether
civil, criminal, administrative or investigative, including any appeal
therefrom.

               (g)    "Change of Control" shall mean the occurrence of any of
the following events after the date of this Agreement:

                      (i)    A change in the composition of the Board, as a
result of which fewer than two-thirds (2/3) of the incumbent directors are
directors who either (1) had been directors of Corporation twenty-four (24)
months prior to such change or (2) were elected, or nominated for election, to
the Board with the affirmative votes of at least a majority of the directors who
had been directors of Corporation 24 months prior to such change and who were
still in office at the time of the election or nomination; or

                                      -2-
<PAGE>   3

                      (ii)   Any "person" (as such term is used in section 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended) through the
acquisition or aggregation of securities is or becomes the beneficial owner,
directly or indirectly, of securities of Corporation representing twenty percent
(20%) or more of the combined voting power of Corporation's then outstanding
securities ordinarily (and apart from rights accruing under special
circumstances) having the right to vote at elections of directors (the "Capital
Stock"), except that any change in ownership of Corporation's securities by any
person resulting solely from a reduction in the aggregate number of outstanding
shares of Capital Stock shall be disregarded until such person increases in any
manner, directly or indirectly, such person's beneficial ownership of any
securities of Corporation.

        2.     Indemnity of Indemnitee. Corporation hereby agrees to hold
harmless and indemnify Indemnitee to the fullest extent authorized or permitted
by the provisions of the Law, as may be amended from time to time.

        3.     Additional Indemnity. Subject only to the exclusions set forth in
Section 4 hereof, Corporation hereby further agrees to hold harmless and
indemnify Indemnitee:

               (a)    against any and all Expenses in connection with any
Proceeding (including an action by or in the right of Corporation) to which
Indemnitee is, was or at any time becomes a party, or is threatened to be made a
party, by reason of the fact that Indemnitee is, was or at any time becomes a
director, officer, employee or agent of Corporation, or is or was serving or at
any time serves at the request of Corporation as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise; and

               (b)    otherwise to the fullest extent as may be provided to
Indemnitee by Corporation under the non-exclusivity provisions of the Bylaws of
Corporation and the Law.

        4.     Limitations on Additional Indemnity. No indemnity pursuant to
Section 3 hereof shall be paid by Corporation:

               (a)    except to the extent the aggregate of losses to be
indemnified thereunder exceeds the sum of such losses for which the Indemnitee
is indemnified pursuant to Section 2 hereof or reimbursed pursuant to any D & O
Insurance purchased and maintained by Corporation;

               (b)    in respect of remuneration paid to Indemnitee if it shall
be determined by a final judgment or other final adjudication that such
remuneration was in violation of law;

               (c)    on account of any Proceeding in which judgment is rendered
against Indemnitee for an accounting of profits made from the purchase or sale
by Indemnitee of securities of Corporation pursuant to the provisions of Section
16(b) of the Securities Exchange Act of 1934 and amendments thereto or similar
provisions of any federal, state or local statutory law;

               (d)    on account of a Final Adverse Determination that
Indemnitee's conduct was knowingly fraudulent or deliberately dishonest or
constituted willful misconduct;

                                      -3-
<PAGE>   4

               (e)    provided there has been no Change of Control, on account
of or arising in response to any Proceeding (other than a Proceeding referred to
in Section 10(b) or 12 hereof) initiated by Indemnitee or any of Indemnitee's
affiliates against Corporation or any officer, director or stockholder of
Corporation unless such Proceeding was authorized in the specific case by action
of the Board;

               (f)    if a final decision by a court having jurisdiction in the
matter shall determine that such indemnification is not lawful; or

               (g)    on account of any Proceeding to the extent that Indemnitee
is a plaintiff, a counter-complainant or a cross-complainant therein (other than
a Proceeding permitted by Section 4(e) hereof).

        5.     Procedure for Determination of Entitlement to Indemnification.

               (a)    Whenever Indemnitee believes that he or she is entitled to
indemnification pursuant to this Agreement, Indemnitee shall submit a written
request for indemnification to Corporation. Any request for indemnification
shall include sufficient documentation or information reasonably available to
Indemnitee to support his or her claim for indemnification. Indemnitee shall
submit his or her claim for indemnification within a reasonable time not to
exceed five years after any judgment, order, settlement, dismissal, arbitration
award, conviction, acceptance of a plea of nolo contendere or its equivalent,
final termination or other disposition or partial disposition of any Proceeding,
whichever is the later date for which Indemnitee requests indemnification. The
President, Secretary or other appropriate officer shall, promptly upon receipt
of Indemnitee's request for indemnification, advise the Board in writing that
Indemnitee has made such a request. Determination of Indemnitee's entitlement to
indemnification shall be made not later than ninety (90) days after
Corporation's receipt of his or her written request for such indemnification.

               (b)    The Indemnitee shall be entitled to select the forum in
which Indemnitee's request for indemnification will be heard, which selection
shall be included in the written request for indemnification required in Section
5(a). This forum shall be any one of the following:

                      (i)    The stockholders of Corporation;

                      (ii)   A quorum of the Board consisting of Disinterested
Directors;

                      (iii)  Independent Legal Counsel, who shall make the
determination in a written opinion; or

                      (iv)   A panel of three arbitrators, one selected by
Corporation, another by Indemnitee and the third by the first two arbitrators
selected. If for any reason three arbitrators are not selected within thirty
(30) days after the appointment of the first arbitrator, then selection of
additional arbitrators shall be made by the American Arbitration Association. If
any arbitrator resigns or is unable to serve in such capacity for any reason,
the American Arbitration Association shall select his or her replacement. The
arbitration shall be conducted pursuant to the commercial arbitration rules of
the American Arbitration Association now in effect.

                                      -4-
<PAGE>   5

        If Indemnitee fails to make such designation, his or her claim shall be
determined by the forum selected by Corporation.

        6.     Presumption and Effect of Certain Proceedings. Upon making a
request for indemnification, Indemnitee shall be presumed to be entitled to
indemnification under this Agreement and Corporation shall have the burden of
proof to overcome that presumption in reaching any contrary determination. The
termination of any Proceeding by judgment, order, settlement, arbitration award
or conviction, or upon a plea of nolo contendere or its equivalent shall not
affect this presumption or, except as may be provided in Section 4 hereof,
establish a presumption with regard to any factual matter relevant to
determining Indemnitee's rights to indemnification hereunder. If the person or
persons so empowered to make a determination pursuant to Section 5(b) hereof
shall have failed to make the requested determination within thirty (30) days
after any judgment, order, settlement, dismissal, arbitration award, conviction,
acceptance of a plea of nolo contendere or its equivalent, or other disposition
or partial disposition of any Proceeding or any other event which could enable
Corporation to determine Indemnitee's entitlement to indemnification, the
requisite determination that Indemnitee is entitled to indemnification shall be
deemed to have been made.

        7.     Contribution. If the indemnification provided in Sections 2 and 3
is unavailable and may not be paid to Indemnitee for any reason other than those
set forth in Section 4, then in respect of any Proceeding in which Corporation
is or is alleged to be jointly liable with Indemnitee (or would be if joined in
such Proceeding), Corporation shall contribute to the amount of Expenses and
Liabilities paid or payable by Indemnitee in such proportion as is appropriate
to reflect (i) the relative benefits received by Corporation on the one hand and
Indemnitee on the other hand from the transaction from which such Proceeding
arose, and (ii) the relative fault of Corporation on the one hand and of
Indemnitee on the other hand in connection with the events which resulted in
such Expenses and Liabilities, as well as any other relevant equitable
considerations. The relative fault of Corporation on the one hand and of
Indemnitee on the other shall be determined by reference to, among other things,
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent the circumstances resulting in such Expenses and
Liabilities. Corporation agrees that it would not be just and equitable if
contribution pursuant to this Section 7 were determined by pro rata allocation
or any other method of allocation which does not take account of the foregoing
equitable considerations.

        8.     Insurance and Funding. Corporation hereby represents and warrants
that it shall purchase and maintain insurance to protect itself and/or
Indemnitee against any Expenses and Liabilities in connection with any
Proceeding to the fullest extent permitted by the Law.

        9.     Continuation of Obligations. All agreements and obligations of
Corporation contained herein shall continue during the period Indemnitee is a
director, officer, employee or agent of Corporation (or is or was serving at the
request of Corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise) and shall continue thereafter so long as Indemnitee shall be subject
to any possible Proceeding, by reason of the fact that Indemnitee was serving
Corporation or such other entity in any capacity referred to herein.

                                      -5-
<PAGE>   6

        10.    Notification and Defense of Claim. Promptly after receipt by
Indemnitee of notice of the commencement of any Proceeding, Indemnitee will, if
a claim in respect thereof is to be made against Corporation under this
Agreement, notify Corporation of the commencement thereof; but the omission so
to notify Corporation will not relieve it from any liability which it may have
to Indemnitee otherwise than under this Agreement. With respect to any
Proceeding as to which Indemnitee notifies Corporation of the commencement
thereof:

               (a)    Corporation will be entitled to participate therein at its
own expense;

               (b)    Except as otherwise provided below, to the extent that it
may wish, Corporation jointly with any other indemnifying party similarly
notified will be entitled to assume the defense thereof, with counsel reasonably
satisfactory to Indemnitee. After notice from Corporation to Indemnitee of its
election to assume the defense thereof, Corporation will not be liable to
Indemnitee under this Agreement for any Expenses subsequently incurred by
Indemnitee in connection with the defense thereof other than reasonable costs of
investigation or as otherwise provided below. Indemnitee shall have the right to
employ his or her own counsel in such Proceeding but the Expenses associated
with the employment of such counsel incurred after notice from Corporation of
its assumption of the defense thereof shall be at the expense of Indemnitee
unless (i) the employment of counsel by Indemnitee has been authorized by
Corporation, (ii) Indemnitee shall have reasonably concluded that there may be a
conflict of interest between Corporation and Indemnitee in the conduct of the
defense of such Proceeding or (iii) Corporation shall not in fact have employed
counsel to assume the defense of such Proceeding, in each of which cases the
Expenses of Indemnitee's separate counsel shall be at the expense of
Corporation. Corporation shall not be entitled to assume the defense of any
Proceeding brought by or on behalf of Corporation or as to which Indemnitee
shall have made the conclusion provided for in (ii) above; and

               (c)    Provided there has been no Change of Control, Corporation
shall not be liable to indemnify Indemnitee under this Agreement for any amounts
paid in settlement of any Proceeding effected without its written consent, which
consent shall not be unreasonably withheld. Corporation shall be permitted to
settle any Proceeding except that it shall not settle any Proceeding in any
manner which would impose any penalty, out-of-pocket liability, or limitation on
Indemnitee without Indemnitee's written consent.

        11.    Advancement and Repayment of Expenses.

               (a)    In the event that Indemnitee employs his or her own
counsel pursuant to Section 10(b)(i) through (iii) above, Corporation shall
advance to Indemnitee, prior to any final disposition of any Proceeding any and
all Expenses incurred in investigating or defending any such Proceeding within
ten (10) days after receiving copies of invoices presented to Indemnitee for
such Expenses.

               (b)    Indemnitee agrees that Indemnitee will reimburse
Corporation for all Expenses paid by Corporation in defending any Proceeding
against Indemnitee in the event and only to the extent that there has been a
Final Adverse Determination that Indemnitee is not entitled, under the
provisions of the Law, the Bylaws, this Agreement or otherwise, to be
indemnified by Corporation for such Expenses.

                                      -6-
<PAGE>   7

        12.    Remedies of Indemnitee.

               (a)    In the event that (i) a determination pursuant to Section
5 hereof is made that Indemnitee is not entitled to indemnification, (ii)
advances of Expenses are not made pursuant to this Agreement, (iii) payment has
not been timely made following a determination of entitlement to indemnification
pursuant to this Agreement, or (iv) Indemnitee otherwise seeks enforcement of
this Agreement, Indemnitee shall be entitled to a final adjudication in an
appropriate court of his or her rights. Alternatively, Indemnitee at his or her
option may seek an award in arbitration to be conducted by a single arbitrator
pursuant to the commercial arbitration rules of the American Arbitration
Association now in effect, whose decision is to be made within ninety (90) days
following the filing of the demand for arbitration. The Corporation shall not
oppose Indemnitee's right to seek any such adjudication or arbitration award.

               (b)    In the event that a determination that Indemnitee is not
entitled to indemnification, in whole or in part, has been made pursuant to
Section 5 hereof, the decision in the judicial proceeding or arbitration
provided in paragraph (a) of this Section 12 shall be made de novo and
Indemnitee shall not be prejudiced by reason of a determination that he or she
is not entitled to indemnification.

               (c)    If a determination that Indemnitee is entitled to
indemnification has been made pursuant to Section 5 hereof or otherwise pursuant
to the terms of this Agreement, Corporation shall be bound by such determination
in the absence of (i) a misrepresentation of a material fact by Indemnitee or
(ii) a specific finding (which has become final) by an appropriate court that
all or any part of such indemnification is expressly prohibited by law.

               (d)    In any court proceeding pursuant to this Section 12,
Corporation shall be precluded from asserting that the procedures and
presumptions of this Agreement are not valid, binding and enforceable. The
Corporation shall stipulate in any such court or before any such arbitrator that
Corporation is bound by all the provisions of this Agreement and is precluded
from making any assertion to the contrary.

               (e)    Expenses reasonably incurred by Indemnitee in connection
with his or her request for indemnification under this Agreement, meeting
enforcement of this Agreement or to recover damages for breach of this Agreement
shall be borne by Corporation.

               (f)    Corporation and Indemnitee agree herein that a monetary
remedy for breach of this Agreement, at some later date, will be inadequate,
impracticable and difficult to prove, and further agree that such breach would
cause Indemnitee irreparable harm. Accordingly, Corporation and Indemnitee agree
that Indemnitee shall be entitled to temporary and permanent injunctive relief
to enforce this Agreement without the necessity of proving actual damages or
irreparable harm. The Corporation and Indemnitee further agree that Indemnitee
shall be entitled to such injunctive relief, including temporary restraining
orders, preliminary injunctions and permanent injunctions, without the necessity
of posting bond or other undertaking in connection therewith. Any such
requirement of bond or undertaking is hereby waived by Corporation, and
Corporation acknowledges that in the absence of such a waiver, a bond or
undertaking may be required by the court.

                                      -7-
<PAGE>   8

        13.    Enforcement. Corporation expressly confirms and agrees that it
has entered into this Agreement and assumed the obligations imposed on
Corporation hereby in order to induce Indemnitee to continue as a director of
Corporation, and acknowledges that Indemnitee is relying upon this Agreement in
continuing in such capacity.

        14.    Separability. Each of the provisions of this Agreement is a
separate and distinct agreement and independent of the others, so that if any or
all of the provisions hereof shall be held to be invalid or unenforceable to any
extent for any reason, such invalidity or unenforceability shall not affect the
validity or enforceability of the other provisions hereof, or the obligation of
the Corporation to indemnify Indemnitee to the full extent provided by the
Bylaws or the Law, and the affected provision shall be construed and enforced so
as to effectuate the parties' intent to the maximum extent possible.

        15.    Governing Law. This Agreement shall be governed by and
interpreted and enforced in accordance with the internal laws of the State of
Delaware.

        16.    Consent to Jurisdiction. The Corporation and Indemnitee each
irrevocably consent to jurisdiction of the courts of the State of Delaware for
all purposes in connection with any Proceeding which arises out of or relates to
this Agreement and agree that any Proceeding instituted under this Agreement
shall be brought only in the state courts of the State of Delaware.

        17.    Binding Effect. This Agreement shall be binding upon Indemnitee
and upon Corporation, its successors and assigns, and shall inure to the benefit
of Indemnitee, his or her heirs, executors, administrators, personal
representatives and assigns and to the benefit of Corporation, its successors
and assigns.

        18.    Entire Agreement. This Agreement represents the entire agreement
between the parties hereto and there are no other agreements, contracts or
understandings between the parties hereto with respect to the subject matter of
this Agreement, except as specifically referred to herein. This Agreement
supersedes any and all agreements regarding indemnification heretofore entered
into by the parties.

        19.    Amendment and Termination. No amendment, modification, waiver,
termination or cancellation of this Agreement shall be effective for any purpose
unless set forth in writing signed by both parties hereto.

        20.    Subrogation. In the event of payment under this Agreement,
Corporation shall be subrogated to the extent of such payment to all of the
rights of recovery of Indemnitee, who shall execute all documents required and
shall do all acts that may be necessary to secure such rights and to enable
Corporation effectively to bring suit to enforce such rights.

        21.    Non-Exclusivity of Rights. The rights conferred on Indemnitee by
this Agreement shall not be exclusive of any other right which Indemnitee may
have or hereafter acquire under any statute, provision of Corporation's
Certificate of Incorporation or Bylaws, agreement, vote of stockholders or
directors, or otherwise, both as to action in his official capacity and as to
action in another capacity while holding office.

                                      -8-
<PAGE>   9

        22.    Survival of Rights. The rights conferred on Indemnitee by this
Agreement shall continue after Indemnitee has ceased to be a director, officer,
employee or other agent of Corporation or such other entity.

        23.    Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be addressed to Indemnitee or to
Corporation, as the case may be, at the address shown on page 1 of this
Agreement, or to such other address as may have been furnished by either party
to the other, and shall be deemed to have been duly given if (a) delivered by
hand and receipted for by the party to whom said notice or other communication
shall have been directed, or (b) mailed by certified or registered mail with
postage prepaid, on the third business day after the date on which it is so
mailed.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                      -9-
<PAGE>   10

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
and as of the day and year first above written.

INDEMNITEE:                             DISCOVERY PARTNERS
                                        INTERNATIONAL, INC.,
                                        a Delaware corporation

______________________________          By: _______________________________

                                        Its: _______________________________

                  [SIGNATURE PAGE TO INDEMNIFICATION AGREEMENT]

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