Document:

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                                                                    EXHIBIT 10.3

                              ARRAY BIOPHARMA INC.
                          EMPLOYEE STOCK PURCHASE PLAN

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                                TABLE OF CONTENTS

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1.    SHARES SUBJECT TO THE PLAN.....................................................................1

2.    ADMINISTRATION.................................................................................1

3.    INTERPRETATION.................................................................................1

4.    ELIGIBLE EMPLOYEES.............................................................................1

5.    PARTICIPATION IN THE PLAN......................................................................2

6.    OFFERINGS......................................................................................2

7.    OFFERING PERIODS...............................................................................3

8.    RIGHTS TO PURCHASE COMMON STOCK; PURCHASE PRICE................................................3

9.    TIMING OF PURCHASE; PURCHASE LIMITATION........................................................3

10.   ISSUANCE OF STOCK CERTIFICATES.................................................................4

11.   WITHHOLDING OF TAXES...........................................................................4

12.   ACCOUNT STATEMENTS.............................................................................5

13.   PARTICIPATION ADJUSTMENT.......................................................................5

14.   CHANGES IN ELECTIONS TO PURCHASE...............................................................5

15.   VOLUNTARY TERMINATION OF EMPLOYMENT OR DISCHARGE...............................................5

16.   RETIREMENT OR SEVERANCE........................................................................6

17.   LAY-OFF, AUTHORIZED LEAVE OF ABSENCE OR DISABILITY.............................................6

18.   DEATH..........................................................................................7

19.   FAILURE TO MAKE PERIODIC CASH PAYMENTS.........................................................8

20.   TERMINATION OF PARTICIPATION...................................................................8
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21.   ASSIGNMENT.....................................................................................8

22.   APPLICATION OF FUNDS...........................................................................8

23.   NO RIGHT TO CONTINUED EMPLOYMENT...............................................................8

24.   AMENDMENT OF PLAN..............................................................................9

25.   EFFECTIVE DATE; TERM AND TERMINATION OF THE PLAN...............................................9

26.   EFFECT OF CHANGES IN CAPITALIZATION............................................................9

      a.       Changes in Stock......................................................................9

      b.       Reorganization in Which the Company Is the Surviving Corporation.....................10

      c.       Reorganization in Which the Company Is Not the Surviving Corporation, Sale of
               Assets or Stock, and other Corporate Transactions.....................................10

      d.       Adjustments...........................................................................11

      e.       No Limitations on Company.............................................................11

27.   GOVERNMENTAL REGULATION........................................................................11

28.   STOCKHOLDER RIGHTS.............................................................................11

29.   RULE 16b-3.....................................................................................12

30.   PAYMENT OF PLAN EXPENSES.......................................................................12
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                              ARRAY BIOPHARMA INC.
                          EMPLOYEE STOCK PURCHASE PLAN

         The Board of Directors of Array BioPharma Inc. (the "Company") has
adopted this Employee Stock Purchase Plan (the "Plan") to enable eligible
employees of the Company and its participating Affiliates (as defined below),
through payroll deductions or other cash contributions, to purchase shares of
the Company's Common Stock, par value $0.001 per share (the "Common Stock"). The
Plan is for the benefit of the employees of Array BioPharma Inc. and any
participating Affiliates. The Plan is intended to benefit the Company by
increasing the employees' interest in the Company's growth and success and
encouraging employees to remain in the employ of the Company or its
participating Affiliates. The provisions of the Plan are set forth below:

1.       SHARES SUBJECT TO THE PLAN.

         Subject to adjustment as provided in Section 26 below, the aggregate
number of shares of Common Stock that may be made available for purchase by
participating employees under the Plan is 800,000. The shares issuable under the
Plan may, in the discretion of the Board of Directors of the Company (the
"Board"), be either authorized but unissued shares or treasury shares.

2.       ADMINISTRATION.

         The Plan shall be administered under the direction of the Compensation
Committee of the Board (the "Committee"). No member of the Board or the
Committee shall be liable for any action or determination made in good faith
with respect to the Plan.

3.       INTERPRETATION.

         It is intended that the Plan will meet the requirements for an
"employee stock purchase plan" under Section 423 of the Internal Revenue Code of
1986 (the "Code"), and it is to be so applied and interpreted. Subject to the
express provisions of the Plan, the Committee shall have authority to interpret
the Plan, to prescribe, amend and rescind rules relating to it, and to make all
other determinations necessary or advisable in administering the Plan (including
any determinations that are reserved by the Board under this Plan), all of which
determinations will be final and binding upon all persons.

4.       ELIGIBLE EMPLOYEES.

         Any employee of the Company or any of its participating Affiliates may
participate in the Plan, except the following, who are ineligible to
participate:

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(a) an employee who has been employed by the Company or any of its participating
Affiliates for less than thirty days as of the beginning of an Offering Period
(as defined in Section 7 below), provided that this Section 4(a) shall not apply
to any employee who is employed by the Company prior to the date of the pricing
of the Company's initial public offering; (b) an employee whose customary
employment is for less than five months in any calendar year; (c) an employee
whose customary employment is 20 hours or less per week; and (d) an employee
who, after exercising his or her rights to purchase shares under the Plan, would
own shares of Common Stock (including shares that may be acquired under any
outstanding options) representing five percent or more of the total combined
voting power of all classes of stock of the Company. The term "participating
Affiliate" means any company or other trade or business that is a subsidiary of
the Company (determined in accordance with the principles of Sections 424(e) and
(f) of the Code and the regulations thereunder). The Board may at any time in
its sole discretion, if it deems it advisable to do so, terminate the
participation of the employees of a particular participating Affiliate.

5.       PARTICIPATION IN THE PLAN.

         An eligible employee may become a participating employee in the Plan by
completing an election to participate in the Plan on a form provided by the
Company and submitting that form to the Payroll Department of the Company. The
form will authorize payroll deductions (as provided in Section 6 below) and
authorize the purchase of shares of Common Stock for the employee's account in
accordance with the terms of the Plan. Enrollment will become effective upon the
first day of the first Offering Period. Notwithstanding the forgoing, the Board
may, in its discretion, also choose to automatically enroll eligible employees
in the Plan in connection with the first Offering Period coinciding with the
Company's initial public offering. Eligible employees who are automatically
enrolled in the Plan shall be deemed to have elected to purchase Common Stock
with a total Purchase Price fixed by the Board at the time of the first Offering
Period and payable as a lump sum, which total Purchase Price shall in no event
be more than $25,000.

6.       OFFERINGS.

         At the time an eligible employee submits his or her election to
participate in the Plan (as provided in Section 5 above), the employee shall
elect to have deductions made from his or her pay on each pay day following his
or her enrollment in the Plan, and for as long as he or she shall participate in
the Plan. The deductions will be credited to the participating employee's
account under the Plan. Pursuant to Section 5 above, the Board shall also have
the authority to authorize in the election form the payment for shares of Common
Stock through cash payments from participating employees. An employee may not
during any Offering Period change his or her percentage of payroll deduction for
that Offering

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Period, nor may an employee withdraw any contributed funds, other than in
accordance with Sections 14 through 20 below.

7.       OFFERING PERIODS.

         The Offering Periods shall be determined by the Board. The first
Offering Period under the Plan shall commence on the date determined by the
Board.

8.       RIGHTS TO PURCHASE COMMON STOCK; PURCHASE PRICE.

         Rights to purchase shares of Common Stock will be deemed granted to
participating employees as of the first trading day of each Offering Period. The
purchase price of each share of Common Stock (the "Purchase Price") shall be the
lesser of 85 percent of the fair market value of the Common Stock (i) on the
first trading day of the Offering Period or (ii) on the last trading day of such
Offering Period; provided, further, that in no event shall the Purchase Price be
less than the par value of the Common Stock. For purposes of the Plan, "fair
market value" means the value of each share of Common Stock subject to the Plan
on a given date determined as follows: if on such date the shares of Common
Stock are listed on an established national or regional stock exchange, are
admitted to quotation on The Nasdaq Stock Market, or are publicly traded on an
established securities market, the fair market value of the shares of Common
Stock shall be the closing price of the shares of Common Stock on such exchange
or in such market (the highest such closing price if there is more than one such
exchange or market) on such date or, if such date is not a trading day, on the
trading day immediately preceding such date (or if there is no such reported
closing price, the fair market value shall be the mean between the highest bid
and lowest asked prices or between the high and low sale prices on such trading
day) or, if no sale of the shares of Common Stock is reported for such trading
day, on the next preceding day on which any sale shall have been reported. If
the shares of Common Stock are not listed on such an exchange, quoted on such
system or traded on such a market, fair market value shall be determined by the
Board in good faith. Notwithstanding the foregoing, the fair market value of
each share of Common Stock on the first day of the Offering Period that
commences with the Company's initial public offering shall be the public
offering price at which the shares of Common Stock are offered for sale in the
initial public offering.

9.       TIMING OF PURCHASE; PURCHASE LIMITATION.

         Unless a participating employee has given prior written notice
terminating such employee's participation in the Plan, or the employee's
participation in the Plan has otherwise been terminated as provided in Sections
14 through 20 below, such employee will be deemed to have exercised
automatically his or her right to purchase Common Stock on the last trading day
of the Offering Period (except as provided in Section 14 below) for the number
of shares of Common Stock which the accumulated funds in the employee's account
at that time will purchase at the

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Purchase Price, subject to the participation adjustment provided for in Section
13 below and subject to adjustment under Section 26 below. Notwithstanding any
other provision of the Plan, no employee may purchase in any one calendar year
under the Plan and all other "employee stock purchase plans" of the Company and
its participating Affiliates shares of Common Stock having an aggregate fair
market value in excess of $25,000, determined as of the first trading date of
the Offering Period as to shares purchased during such period. Effective upon
the last trading day of the Offering Period, a participating employee will
become a stockholder with respect to the shares purchased during such period,
and will thereupon have all dividend, voting and other ownership rights incident
thereto. Notwithstanding the foregoing, no shares shall be sold pursuant to the
Plan unless the Plan is approved by the Company's stockholders in accordance
with Section 25 below.

10.      ISSUANCE OF STOCK CERTIFICATES.

         On the last trading day of the Offering Period, a participating
employee will be credited with the number of shares of Common Stock purchased
for his or her account under the Plan during such Offering Period. The Board may
permit or require that shares be deposited directly with a broker designated by
the Board or to a designated agent of the Company, and the Board may utilize
electronic or automated methods of share transfer. The Board may require that
shares be retained with such broker or agent for a designated period of time
(and may restrict dispositions for a period of up to 12 months from the date of
purchase) and/or may establish other procedures to permit tracking of
disqualifying dispositions of such shares or to restrict transfer of such
shares. The Company shall retain the amount of payroll deductions or the
lump-sum payment used to purchase shares of Common Stock as full payment for the
shares of Common Stock and the shares of Common Stock shall then be fully paid
and non-assessable.

11.      WITHHOLDING OF TAXES.

         To the extent that a participating employee realizes income in
connection with an acquisition, sale or other transfer of any shares of Common
Stock acquired under the Plan, the Company may withhold amounts needed to cover
such taxes from any payments otherwise due and owing to the participating
employee or from shares that would otherwise be issued to the participating
employee hereunder. Any participating employee who sells or otherwise transfers
shares purchased under the Plan within two years after the beginning of the
Offering Period in which the shares were purchased must within 30 days of such
transfer notify the Payroll Department of the Company in writing of such
transfer. Notwithstanding any implication herein to the contrary, this Section
11 shall not be interpreted in a manner to impose an withholding obligations on
an entity other than the Company.

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12.      ACCOUNT STATEMENTS.

         The Company will cause a statement to be delivered to each
participating employee for each Offering Period during which the employee
purchases Common Stock under the Plan, reflecting the amount of payroll
deductions or other cash contributions during the Offering Period, the number of
shares purchased for the employee's account, the price per share of the shares
purchased for the employee's account and the number of shares held for the
employee's account at the end of the Offering Period.

13.      PARTICIPATION ADJUSTMENT.

         If in any Offering Period the number of unsold shares that may be made
available for purchase under the Plan pursuant to Section 1 above is
insufficient to permit exercise of all rights deemed exercised by all
participating employees pursuant to Section 9 above, a participation adjustment
will be made, and the number of shares purchasable by all participating
employees will be reduced proportionately. Any funds then remaining in a
participating employee's account after such exercise will be refunded to the
employee.

14.      CHANGES IN ELECTIONS TO PURCHASE.

         (a) A participating employee may, at any time prior to the last trading
day of the Offering Period, by written notice to the Company, direct the Company
to cease payroll deductions (or, if the payment for shares is being made through
periodic cash payments, notify the Company that such payments will be
terminated), and the amount in the employee's account will be distributed and
the employee's option to purchase will terminate.

         (b) Any participating employee may increase or decrease his or her
payroll deduction or periodic cash payments, to take effect on the first day of
the next Offering Period, by delivering to the Company a new form regarding
election to participate in the Plan under Section 5 above.

15.      VOLUNTARY TERMINATION OF EMPLOYMENT OR DISCHARGE.

         In the event a participating employee voluntarily leaves the employ of
the Company or a participating Affiliate, otherwise than by retirement under a
plan of the Company or a participating Affiliate, or is discharged for cause
prior to the last day of the Offering Period, the amount in the employee's
account will be distributed and the employee's option to purchase will
terminate.

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16.      RETIREMENT OR SEVERANCE.

         In the event a participating employee who has an option to purchase
shares leaves the employ of the Company or a participating Affiliate because of
retirement under a plan of the Company or a participating Affiliate, or because
of termination of the employee's employment by the Company or a participating
Affiliate for any reason except discharge for cause, the participating employee
may elect, within 10 days after the date of such retirement or termination, one
of the following alternatives:

         (a) The employee's option to purchase shall be reduced to the number of
shares which may be purchased, as of the last day of the Offering Period, with
the amount then credited to the employee's account; or

         (b) Withdraw the amount in such employee's account and terminate such
employee's option to purchase.

         In the event the participating employee does not make an election
within the aforesaid 10-day period, he or she will be deemed to have elected
subsection 16(b) above.

17.      LAY-OFF, AUTHORIZED LEAVE OF ABSENCE OR DISABILITY.

         Payroll deductions for shares for which a participating employee has an
option to purchase may be suspended during any period of absence of the employee
from work due to lay-off, authorized leave of absence or disability or, if the
employee so elects, periodic payments for such shares may continue to be made in
cash.

         If such employee returns to active service prior to the last day of the
Offering Period, the employee's payroll deductions will be resumed and if said
employee did not make periodic cash payments during the employee's period of
absence, the employee shall, by written notice to the Company's Payroll
Department within 10 days after the employee's return to active service, but not
later than the last day of the Offering Period, elect:

         (a) To make up any deficiency in the employee's account resulting from
a suspension of payroll deductions by an immediate cash payment;

         (b) Not to make up such deficiency, in which event the number of shares
to be purchased by the employee shall be reduced to the number of whole shares
which may be purchased with the amount, if any, then credited to the employee's
account plus the aggregate amount, if any, of all payroll deductions to be made
thereafter; or

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         (c) Withdraw the amount in the employee's account and terminate the
employee's option to purchase.

         A participating employee on lay-off, authorized leave of absence or
disability on the last day of the Offering Period shall deliver written notice
to his or her employer on or before the last day of the Offering Period,
electing one of the alternatives provided in the foregoing clauses (a), (b) and
(c) of this Section 17. If any employee fails to deliver such written notice
within 10 days after the employee's return to active service or by the last day
of the Offering Period, whichever is earlier, the employee shall be deemed to
have elected subsection 17(c) above.

         If the period of a participating employee's lay-off, authorized leave
of absence or disability shall terminate on or before the last day of the
Offering Period, and the employee shall not resume active employment with the
Company or a participating Affiliate, the employee shall receive a distribution
in accordance with the provisions of Section 16 of this Plan.

18.      DEATH.

         In the event of the death of a participating employee while the
employee's option to purchase shares is in effect, the legal representatives of
such employee may, within three months after the employee's death (but no later
than the last day of the Offering Period) by written notice to the Company or
participating Affiliate, elect one of the following alternatives:

         (a) The employee's option to purchase shall be reduced to the number of
shares which may be purchased, as of the last day of the Offering Period, with
the amount then credited to the employee's account; or

         (b) Withdraw the amount in such employee's account and terminate such
employee's option to purchase.

         In the event the legal representatives of such employee fail to deliver
such written notice to the Company or participating Affiliate within the
prescribed period, the election to purchase shares shall terminate and the
amount, then credited to the employee's account shall be paid to such legal
representatives.

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19.      FAILURE TO MAKE PERIODIC CASH PAYMENTS.

         Under any of the circumstances contemplated by this Plan, where the
purchase of shares is to be made through periodic cash payments in lieu of
payroll deductions, the failure to make any such payments shall reduce, to the
extent of the deficiency in such payments, the number of shares purchasable
under this Plan.

20.      TERMINATION OF PARTICIPATION.

         A participating employee will be refunded all moneys in his or her
account, and his or her participation in the Plan will be terminated if either
(a) the Board elects to terminate the Plan as provided in Section 25 below, or
(b) the employee ceases to be eligible to participate in the Plan under Section
4 above. As soon as practicable following termination of an employee's
participation in the Plan, the Company will deliver to the employee a check
representing the amount in the employee's account and a stock certificate
representing the number of whole shares held in the employee's account. Once
terminated, participation may not be reinstated for the then current Offering
Period, but, if otherwise eligible, the employee may elect to participate in any
subsequent Offering Period.

21.      ASSIGNMENT.

         No participating employee may assign his or her rights to purchase
shares of Common Stock under the Plan, whether voluntarily, by operation of law
or otherwise. Any payment of cash or issuance of shares of Common Stock under
the Plan may be made only to the participating employee (or, in the event of the
employee's death, to the employee's estate). Once a stock certificate has been
issued to the employee or for his or her account, such certificate may be
assigned the same as any other stock certificate.

22.      APPLICATION OF FUNDS.

         All funds received or held by the Company under the Plan may be used
for any corporate purpose until applied to the purchase of Common Stock and/or
refunded to participating employees. Participating employees' accounts will not
be segregated.

23.      NO RIGHT TO CONTINUED EMPLOYMENT.

         Neither the Plan nor any right to purchase Common Stock under the Plan
confers upon any employee any right to continued employment with the Company or
any of its participating Affiliates, nor will an employee's participation in the
Plan restrict or interfere in any way with the right of the Company or any of
its participating Affiliates to terminate the employee's employment at any time.

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24.      AMENDMENT OF PLAN.

         The Board may, at any time, amend the Plan in any respect (including an
increase in the percentage specified in Section 8 above used in calculating the
Purchase Price); provided, however, that without approval of the stockholders of
the Company no amendment shall be made (a) increasing the number of shares
specified in Section 1 above that may be made available for purchase under the
Plan (except as provided in Section 26 below) or (b) changing the eligibility
requirements for participating in the Plan. No amendment may be made that
impairs the vested rights of participating employees.

25.      EFFECTIVE DATE; TERM AND TERMINATION OF THE PLAN.

         The Plan shall be effective as of the date of adoption by the Board,
which date is set forth below, subject to approval of the Plan by a majority of
the votes present and entitled to vote at a duly held meeting of the
shareholders of the Company at which a quorum representing a majority of all
outstanding voting stock is present, either in person or by proxy; provided,
however, that upon approval of the Plan by the shareholders of the Company as
set forth above, all rights to purchase shares granted under the Plan on or
after the effective date shall be fully effective as if the shareholders of the
Company had approved the Plan on the effective date. If the shareholders fail to
approve the Plan on or before one year after the effective date, the Plan shall
terminate, any rights to purchase shares granted hereunder shall be null and
void and of no effect, and all contributed funds shall be refunded to
participating employees. The Board may terminate the Plan at any time and for
any reason or for no reason, provided that such termination shall not impair any
rights of participating employees that have vested at the time of termination.
In any event, the Plan shall, without further action of the Board, terminate ten
(10) years after the date of adoption of the Plan by the Board or, if earlier,
at such time as all shares of Common Stock that may be made available for
purchase under the Plan pursuant to Section 1 above have been issued.

26.      EFFECT OF CHANGES IN CAPITALIZATION.

         a. CHANGES IN STOCK.

         If the number of outstanding shares of Common Stock is increased or
decreased or the shares of Common Stock are changed into or exchanged for a
different number or kind of shares or other securities of the Company by reason
of any recapitalization, reclassification, stock split, reverse split,
combination of shares, exchange of shares, stock dividend, or other distribution
payable in capital stock, or other increase or decrease in such shares effected
without receipt of consideration by the Company occurring after the effective
date of the Plan, the number and kinds of shares that may be purchased under the
Plan shall be

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adjusted proportionately and accordingly by the Company. In addition, the number
and kind of shares for which rights are outstanding shall be similarly adjusted
so that the proportionate interest of a participating employee immediately
following such event shall, to the extent practicable, be the same as
immediately prior to such event. Any such adjustment in outstanding rights shall
not change the aggregate Purchase Price payable by a participating employee with
respect to shares subject to such rights, but shall include a corresponding
proportionate adjustment in the Purchase Price per share. Notwithstanding the
foregoing, in the event of a spin-off that results in no change in the number of
outstanding shares of stock of the Company, the Company may, in such manner as
the Company deems appropriate, adjust (i) the number and kind of shares for
which rights are outstanding under the Plan, and (ii) the Purchase Price per
share.

         b. REORGANIZATION IN WHICH THE COMPANY IS THE SURVIVING CORPORATION.

         Subject to Subsection (c) of this Section 26, if the Company shall be
the surviving corporation in any reorganization, merger or consolidation of the
Company with one or more other corporations, all outstanding rights under the
Plan shall pertain to and apply to the securities to which a holder of the
number of shares of Common Stock subject to such rights would have been entitled
immediately following such reorganization, merger or consolidation, with a
corresponding proportionate adjustment of the Purchase Price per share so that
the aggregate Purchase Price thereafter shall be the same as the aggregate
Purchase Price of the shares subject to such rights immediately prior to such
reorganization, merger or consolidation.

         c. REORGANIZATION IN WHICH THE COMPANY IS NOT THE SURVIVING
         CORPORATION, SALE OF ASSETS OR STOCK, AND OTHER CORPORATE TRANSACTIONS.

         Upon any dissolution or liquidation of the Company, or upon a merger,
consolidation or reorganization of the Company with one or more other
corporations in which the Company is not the surviving corporation, or upon a
sale of all or substantially all of the assets of the Company to another
corporation, or upon any transaction (including, without limitation, a merger or
reorganization in which the Company is the surviving corporation) approved by
the Board that results in any person or entity owning more than 50 percent of
the combined voting power of all classes of stock of the Company, the Plan and
all rights outstanding hereunder shall terminate, except to the extent provision
is made in writing in connection with such transaction for the continuation of
the Plan and/or the assumption of the rights theretofore granted, or for the
substitution for such rights of new rights covering the stock of a successor
corporation, or a parent or subsidiary thereof, with appropriate adjustments as
to the number and kinds of shares and exercise prices,

                                      -10-
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in which event the Plan and rights theretofore granted shall continue in the
manner and under the terms so provided. In the event of any such termination of
the Plan, the Offering Period shall be deemed to have ended on the last trading
day prior to such termination, and in accordance with Section 10 above the
rights of each participating employee then outstanding shall be deemed to be
automatically exercised on such last trading day. The Board shall send written
notice of an event that will result in such a termination to all participating
employees not later than the time at which the Company gives notice thereof to
its stockholders.

         d. ADJUSTMENTS.

         Adjustments under this Section 26 related to stock or securities of the
Company shall be made by the Board, whose determination in that respect shall be
final, binding, and conclusive.

         e. NO LIMITATIONS ON COMPANY.

         The grant of a right pursuant to the Plan shall not affect or limit in
any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business
structure or to merge, consolidate, dissolve or liquidate, or to sell or
transfer all or any part of its business or assets.

27.      GOVERNMENTAL REGULATION.

         The Company's obligation to issue, sell and deliver shares of Common
Stock pursuant to the Plan is subject to such approval of any governmental
authority and any national securities exchange or other market quotation system
as may be required in connection with the authorization, issuance or sale of
such shares.

28.      STOCKHOLDER RIGHTS.

         Any dividends paid on shares held by the Company for a participating
employee's account will be transmitted to the employee. The Company will deliver
to each participating employee who purchases shares of Common Stock under the
Plan, as promptly as practicable by mail or otherwise, all notices of meetings,
proxy statements, proxies and other materials distributed by the Company to its
stockholders. Any shares of Common Stock held for an employee's account will be
voted in accordance with the employee's duly delivered and signed proxy
instructions. There will be no charge to participating employees in connection
with such notices, proxies and other materials.

                                      -11-
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29.      RULE 16b-3.

         Transactions under this Plan are intended to comply with all applicable
conditions of Rule 16b-3 or any successor provision under the Securities
Exchange Act of 1934, as amended. If any provision of the Plan or action by the
Board fails to so comply, it shall be deemed null and void to the extent
permitted by law and deemed advisable by the Board. Moreover, in the event the
Plan does not include a provision required by Rule 16b-3 to be stated herein,
such provision (other than one relating to eligibility requirements, or the
price and amount of awards) shall be deemed automatically to be incorporated by
reference into the Plan.

30.      PAYMENT OF PLAN EXPENSES.

         The Company will bear all costs of administering and carrying out the
Plan.

                                       ***

                                      -12-
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         This Plan was duly adopted and approved by the Board of Directors of
the Company on the 8th day of September 2000 and approved by the stockholders of
the Company on the 8th day of September 2000, in each case to be effective upon
the closing of the initial public offering of the Company's common stock.

                                             -----------------------------------
                                             Michael Carruthers, Secretary

                                      -13-<PAGE>   1
                                                                   EXHIBIT 10.12

                              EMPLOYMENT AGREEMENT

                  THIS EMPLOYMENT AGREEMENT (this "Agreement"), dated effective
September 1, 2000, is between Array Biopharma, Inc., a Delaware corporation (the
"Company"), and ___________ ("Employee").

                  In consideration of the mutual covenants and agreements
contained herein, the parties hereto agree as follows:

                  1. Employment. The Company hereby employs Employee and
Employee hereby agrees to be employed by the Company for the period and upon the
terms and conditions hereinafter set forth.

                  2. Capacity and Duties. Employee shall initially be employed
by the Company in such executive capacity as the officers or directors of the
Company shall determine. During his employment Employee shall perform the duties
and bear the responsibilities commensurate with his position and shall serve the
Company faithfully and to the best of his ability, under the direction of the
board of directors and the duly elected officers of the Company. Employee shall
devote his entire working time, attention and energies to the business of the
Company. His actions shall at all times be such that they do not discredit the
Company or its products and services. Employee shall not engage in any other
business activity or activities that, in the judgment of the board of directors,
may conflict with the proper performance of Employee's duties hereunder,
including constituting a conflict of interest between such activity and the
Company's business.

                  3. Compensation.

                           (a) For all services rendered by Employee the Company
shall pay Employee during the term of this Agreement an annual salary as set
forth herein, payable semimonthly in arrears. Employee's initial annual salary
shall be $___________. During the term of this Agreement, the amount of
Employee's salary shall be reviewed at periodic intervals and, upon agreement of
the parties hereto, appropriate adjustments in such salary may be made. In
addition, Employee shall be eligible for performance bonuses on an annual or
more frequent basis, as determined by, and at the discretion of the Company.

                           (b) In addition to salary payments as provided in
Section 3(a), the Company shall provide Employee, during the term of this
Agreement, with the benefits of such insurance plans, hospitalization plans and
other employee fringe benefit plans as shall be generally provided to employees
of the Company and for which Employee may be eligible under the terms and
conditions thereof. Nothing herein contained shall require the Company to adopt
or maintain any such employee benefit plans.

                           (c) During the term of this Agreement, except as
otherwise provided in Section 5(b), Employee shall be entitled to sick leave and
annual vacation consistent with the Company's customary sick leave and vacation
policies.

                           (d) During the term of this Agreement the Company
shall reimburse Employee for all reasonable out-of-pocket expenses incurred by
Employee in connection with the

<PAGE>   2

business of the Company and in the performance of his duties under this
Agreement upon presentation to the Company of an itemized accounting of such
expenses with reasonable supporting data.

                  4. Term. Unless sooner terminated in accordance with Section
5, the term of this Agreement shall be two years from the date of this
Agreement, and thereafter shall continue for one year terms from year to year
unless and until either party shall give notice to the other at least 60 days
prior to the end of the original or then current renewal term of his or its
intention to terminate at the end of such term. The provisions of Sections 6, 7,
8 and 10 shall remain in full force and effect for the time periods specified in
such Sections notwithstanding the termination of this Agreement.

                  5. Termination/Severance.

                           (a) If Employee dies during the term of this
Agreement, the Company shall pay his estate the compensation that would
otherwise be payable to him for the month in which his death occurs, this
Agreement shall be considered terminated on the last day of such month and the
Company shall cause any issued but unvested options granted to Employee to
immediately vest.

                           (b) If during the term of this Agreement Employee is
prevented from performing his duties by reason of illness or incapacity for a
continuous period of 120 days the Company may terminate this Agreement upon 30
days' prior notice thereof to Employee or his duly appointed legal
representative. For the purposes of this Section 5(b), a period of illness or
incapacity shall be deemed "continuous" notwithstanding Employee's performance
of his duties during such period for continuous periods of less than 15 days in
duration.

                           (c) The Company may terminate this Agreement at any
time, upon 10 days' prior notice, for Employee's 1) gross negligence; 2) a
material breach of any obligation created by this Agreement; 3) a violation of
any policy, procedure or guideline of the Company, or any material injury to the
economic or ethical welfare of the Company caused by Employee's malfeasance,
misfeasance, misconduct or inattention to Employee's duties and
responsibilities, or any other material failure to comply with the Company's
reasonable performance expectations, upon notice of same from Company and
failure to cure such violation, injury or failure within 30 days; or 4)
misconduct, including but not limited to, commission of any felony, or of any
misdemeanor involving dishonesty or moral turpitude, or violation of any state
or federal law in the course of his or her employment; theft or misuse of the
Company's property or time.

                           (d) The Company may terminate this Agreement at any
time for any or no reason upon 30 days' notice to Employee.

                           (e) If this Agreement is terminated by the Company
prior to the end of the term pursuant to any provision other than 5(a) or 5(c),
then i) the Company shall pay to Employee one year's annual salary, or the
amount due Employee through the remainder of the term, whichever is greater, in
equal monthly installments, subject to all applicable deductions and
withholdings; and ii) the Company shall cause any issued but unvested options
granted to Employee to immediately vest. In the event of (x) reduction of
Employee's salary to a rate below the initial annual salary; or (y)
consolidation or merger involving the Company in which the Company is not the
surviving entity or any transaction in which more than 50% of the Company's
voting power is transferred or more than 50% of the Company's assets are sold,
Employee may elect to treat such event, by notice of termination within 30 days
of its occurrence, as a termination pursuant to 5(d); provided, that any
accelerated vesting pursuant to (ii) caused by such notice of termination as a
result of (y) shall cause no more than 75% of all outstanding options granted to
Employee to vest.

                                       2
<PAGE>   3

                           (f) If a change in control occurs, as defined in
Paragraph (5)(e)(y) above, 75% of all outstanding options granted to Employee as
of such event shall immediately vest (to the extent they are not already
vested), and the remainder of all outstanding options granted to Employee as of
such event shall vest one year from the date of the closing of such event if
Employee remains in continuous service with the Company for one year from such
closing date. The foregoing acceleration provision shall be supplementary to,
and shall not diminish any rights that Employee has under, any other written
agreement with the Company, including an option certificate or agreement.

                  6. Confidential Information. This Agreement incorporates by
reference all the terms of that certain Confidential Information Agreement dated
as of ______________ between Employee and the Company, as if fully set forth
herein.

                  7. Covenants Not to Compete or Interfere. This Agreement
incorporates all the terms of that certain Noncompete Agreement dated as of
______________ between Employee and the Company, as if fully set forth herein.

                  8. Waiver of Breach. A waiver by the Company of a breach of
any provision of this Agreement by Employee shall not operate or be construed as
a waiver of any subsequent breach by Employee.

                  9. Severability. It is the desire and intent of the parties
that the provisions of this Agreement shall be enforced to the fullest extent
permissible under the laws and public policies applied in each jurisdiction in
which enforcement is sought. Accordingly, if any particular provision or portion
of this Agreement shall be adjudicated to be invalid or unenforceable, this
Agreement shall be deemed amended to delete therefrom the portion thus
adjudicated to be invalid or unenforceable, such deletion to apply only with
respect to the operation of this Section in the particular jurisdiction in which
such adjudication is made.

                  10. Notices. All communications, requests, consents and other
notices provided for in this Agreement shall be in writing and shall be deemed
given if mailed by first class mail, postage prepaid, addressed as follows: i)
If to the Company: to its principal office at 1885 33rd Street, Building AC-1,
Boulder, Colorado 80301-2505; ii) If to Employee: at the principal office of the
Company; or such other address as either party may hereafter designate by notice
as herein provided. Notwithstanding the foregoing provisions of this Section 10,
so long as Employee is employed by the Company any such communication, request,
consent or other notice shall be deemed given if delivered as follows: if to the
Company, by hand delivery to any executive officer of the Company [other than
Employee], and if to Employee, by hand delivery to him.

                  11. Governing Law. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Colorado
without regard to choice of law provisions thereof, and the parties each agree
to exclusive jurisdiction in the state and federal courts in Colorado.

                  12. Assignment. The Company may assign its rights and
obligations under this Agreement to any affiliate of the Company or to any
acquirer of substantially all of the business of the Company, and all covenants
and agreements hereunder shall inure to the benefit of and be enforceable by or
against any such assignee. Neither this Agreement nor any rights or duties
hereunder may be signed or delegated by Employee.

                                       3
<PAGE>   4

                  13. Entire Agreement. This Agreement sets forth the entire
agreement and understanding of the parties and supersedes all prior
understandings, agreements or representations by or between the parties, whether
written or oral, which relate in any way to the subject matter hereof.

                  14. Amendments. No provision of this Agreement shall be
altered, amended, revoked or waived except by an instrument in writing signed by
the party sought to be charged with such amendment, revocation or waiver.

                  15. Binding Effect. Except as otherwise provided herein, this
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective legal representatives, heirs, successors and
assigns.

                          ***Signature Page Follows***

                                       4
<PAGE>   5

                  IN WITNESS WHEREOF the parties have executed this Agreement as
of the date first above written.

                                           THE COMPANY:

                                           ARRAY BIOPHARMA, INC.

                                           By:
                                              --------------------------------
                                           Name:
                                                ------------------------------
                                           Title:
                                                 -----------------------------

                                           EMPLOYEE:

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

                                       5

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