International Purchase Agreement (2000)Full Document 

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                        IDEC PHARMACEUTICALS CORPORATION

                            (a Delaware corporation)

                         400,000 Shares of Common Stock

                        INTERNATIONAL PURCHASE AGREEMENT

                            Dated: November -o-, 2000



                                TABLE OF CONTENTS

                        INTERNATIONAL PURCHASE AGREEMENT



                                                                                                 PAGE

                                                                                               
         Section 1.        Representations and Warranties.............................................3
                  (a) Representations and Warranties by the Company...................................3
                           (i)      Compliance with Registration Requirements.........................3
                           (ii)     Incorporated Documents............................................4
                           (iii)    Independent Accountants...........................................4
                           (iv)     Financial Statements..............................................5
                           (v)      No Material Adverse Change in Business............................5
                           (vi)     Good Standing of the Company......................................5
                           (vii)    Good Standing of Subsidiaries.....................................5
                           (viii)   Capitalization....................................................6
                           (ix)     Authorization of Agreement........................................6
                           (x)      Authorization and Description of Securities.......................6
                           (xi)     Absence of Defaults and Conflicts.................................6
                           (xii)    Absence of Labor Dispute..........................................7
                           (xiii)   Absence of Proceedings............................................7
                           (xiv)    Accuracy of Exhibits..............................................8
                           (xv)     Possession of Intellectual Property...............................8
                           (xvi)    Absence of Further Requirements...................................8
                           (xvii)   Possession of Licenses and Permits................................8
                           (xviii)  Title to Property.................................................9
                           (xix)    Investment Company Act............................................9
                           (xx)     Environmental Laws................................................9
                           (xxi)    Filing of Tax Returns............................................10
                           (xxii)   Insurance........................................................10
                           (xxiii)  Interests in Corporation, Partnership or Joint Ventures..........10
                           (xxiv)   System of Internal Accounting Controls...........................10
                           (xxv)    Solvency.........................................................10
                  (b) Officer's Certificates.........................................................11

         Section 2.        Sale and Delivery to International Managers; Closing......................11
                  (a) Initial Securities.............................................................11
                  (b) Option Securities..............................................................11
                  (c) Payment........................................................................12
                  (d) Denominations; Registration....................................................12

         Section 3.        Covenants of the Company..................................................12
                  (a) Compliance with Securities Regulations and Commission Requests.................12
                  (b) Filing of Amendments...........................................................13
                  (c) Delivery of Registration Statements............................................13
                  (d) Delivery of Prospectuses.......................................................13




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                  (e) Continued Compliance with Securities Laws......................................14
                  (f) Blue Sky Qualifications........................................................14
                  (g) Rule 158.......................................................................14
                  (h) Use of Proceeds................................................................14
                  (i) Listing........................................................................14
                  (j) Restriction on Sale of Securities..............................................15
                  (k) Reporting Requirements.........................................................15

         Section 4.        Payment of Expenses.......................................................15
                  (a) Expenses.......................................................................15
                  (b) Termination of Agreement.......................................................16

         Section 5.        Conditions of International Managers' Obligations.........................16
                  (a) Effectiveness of Registration Statement........................................16
                  (b) Opinion of Counsel for Company.................................................16
                  (c) Opinion of Counsel for International Managers..................................16
                  (d) Opinion of Intellectual Property Counsel for the Company.......................17
                  (e) Opinion of Counsel for Underwriters............................................17
                  (f) Officers' Certificate..........................................................17
                  (g) Accountants' Comfort Letter....................................................17
                  (h) Bring-down Comfort Letter......................................................17
                  (i) Approval of Listing............................................................17
                  (j) No Objection...................................................................18
                  (k) Lock-up Agreements.............................................................18
                  (l) Purchase of Initial U.S. Securities............................................18
                  (m) Conditions to Purchase of International Option Securities......................18

                           (i)      Officers' Certificate............................................18
                           (ii)     Opinion of Counsel for Company...................................18
                           (iii)    Opinion of Counsel for International Managers....................18
                           (iv)     Bring-down Comfort Letter........................................18
                  (n) Additional Documents...........................................................19
                  (o) Termination of Agreement.......................................................19

         Section 6.        Indemnification...........................................................19
                  (a) Indemnification of International Managers......................................19
                  (b) Indemnification of Company, Directors and Officers.............................20
                  (c) Actions against Parties; Notification..........................................20
                  (d) Settlement without Consent if Failure to Reimburse.............................21

         Section 7.        Contribution..............................................................21

         Section 8.        Representations, Warranties and Agreements to Survive Delivery............22

         Section 9.        Termination of Agreement..................................................22
                  (a) Termination; General...........................................................22
                  (b) Liabilities....................................................................23



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         Section 10.       Default by One or More of the International Managers......................23

         Section 11.       Notices...................................................................24

         Section 12.       Parties...................................................................24

         Section 13.       Governing Law and Time....................................................24

         Section 14.       Effect of Headings........................................................24

SCHEDULES

     Schedule A - List of International Managers...................................................  Sch A-1
     Schedule B - Pricing Information..............................................................  Sch B-1
     [Schedule C - List of Persons and Entities Subject to Lock-Up.................................  Sch C-1]

EXHIBITS

     Exhibit A - Form of Opinion of Company's Counsel..............................................  A-1
     Exhibit B - Form of Opinion of Company's Regulatory Affairs Counsel...........................  B-1
     Exhibit C - Form of Opinion of Company's Intellectual Property Counsel........................  C-1
     [Exhibit D - Form of Lock-up Letter...........................................................  D-1]

ANNEXES

     Annex A - Form of Accountants' Comfort Letter.................................................  Annex A-1



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                                                                Draft of 11/8/00


                        IDEC PHARMACEUTICALS CORPORATION
                            (a Delaware corporation)

                         400,000 Shares of Common Stock
                          (Par Value $0.0005 Per Share)

                        INTERNATIONAL PURCHASE AGREEMENT

                                                              November -o-, 2000

MERRILL LYNCH INTERNATIONAL
Salomon Brothers International Limited
Bank of America International Limited
as Lead Managers of the several International Managers
c/o  Merrill Lynch International
     Ropemaker Place
     25 Ropemaker Street
     London EC2Y 9LY
     England

Ladies and Gentlemen:

         IDEC Pharmaceuticals Corporation, a Delaware corporation (the
"Company"), confirms its agreement with Merrill Lynch International ("Merrill
Lynch") and each of the other international underwriters named in Schedule A
hereto (collectively, the "International Managers," which term shall also
include any underwriter substituted as hereinafter provided in Section 10
hereof), for whom Merrill Lynch, Salomon Brothers International Limited and Bank
of America International Limited are acting as representatives (in such
capacity, the "Lead Managers"), with respect to the issue and sale by the
Company and the purchase by the International Managers, acting severally and not
jointly, of the respective numbers of shares of Common Stock, par value $0.0005
per share, of the Company ("Common Stock") set forth in said Schedule A, and
with respect to the grant by the Company to the International Managers, acting
severally and not jointly, of the option described in Section 2(b) hereof to
purchase all or any part of 60,000 additional shares of Common Stock to cover
over-allotments, if any. The aforesaid 400,000 shares of Common Stock (the
"Initial International Securities") to be purchased by the International
Managers and all or any part of the 60,000 shares of Common Stock subject to the
option described in Section 2(b) hereof (the "International Option Securities")
are hereinafter called, collectively, the "International Securities".

         It is understood that the Company is concurrently entering into an
agreement dated the date hereof (the "U.S. Purchase Agreement") providing for
the offering by the Company of an aggregate of 1,600,000 shares of Common Stock
(the "Initial U.S. Securities") through arrangements with certain underwriters
in the United States and Canada (the "U.S. Underwriters") for which Merrill
Lynch, Pierce, Fenner & Smith Incorporated and Salomon Smith Barney Inc. and
Banc of America Securities LLC are acting as representives (the "U.S.
Representatives") and the grant by the Company to the U.S. Underwriters, acting
severally and




not jointly, of an option to purchase all or any part of the U.S. Underwriters'
pro rata portion of up to 240,000 additional shares of Common Stock solely to
cover over-allotments, if any (the "U.S. Option Securities" and, together with
the International Option Securities, the "Option Securities"). The Initial U.S.
Securities and the U.S. Option Securities are hereinafter called the "U.S.
Securities". It is understood that the Company is not obligated to sell and the
International Managers are not obligated to purchase, any Initial International
Securities unless all of the Initial U.S. Securities are contemporaneously
purchased by the U.S. Underwriters.

         The International Managers and the U.S. Underwriters are hereinafter
collectively called the "Underwriters", the Initial International Securities and
the Initial U.S. Securities are hereinafter collectively called the "Initial
Securities," and the International Securities and the U.S. Securities are
hereinafter collectively called the "Securities."

         The Underwriters will concurrently enter into an Intersyndicate
Agreement of even date herewith (the "Intersyndicate Agreement") providing for
the coordination of certain transactions among the Underwriters under the
direction of Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith
Incorporated (in such capacity, the "Global Coordinator").

         The Company understands that the International Managers propose to make
a public offering of the International Securities as soon as the Lead Managers
deem advisable after this Agreement has been executed and delivered.

         The Company has filed with the Securities and Exchange Commission (the
"Commission") a registration statement on Form S-3 (No. 333-o-) covering the
registration of the Securities under the Securities Act of 1933, as amended (the
"1933 Act"), including the related preliminary prospectus or prospectuses.
Promptly after execution and delivery of this Agreement, the Company will either
(i) prepare and file a prospectus in accordance with the provisions of Rule 430A
("Rule 430A") of the rules and regulations of the Commission under the 1933 Act
(the "1933 Act Regulations") and paragraph (b) of Rule 424 ("Rule 424(b)") of

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