**Exhibit10.88**

 

EMPLOYMENTAGREEMENT

 

On behalf of Abgenix, Inc., a Delaware corporation,(the “Company”) and the Company’s Board of Directors (“Board”), we are pleasedto offer you the position of President and Chief Executive Officer reporting tothe Board.  You will work at the Company’sheadquarters in Fremont, California. Except as otherwise expressly provided below, this Agreement, by andbetween the Company and William R. Ringo, will become effective on your startdate of employment as the Company’s President and Chief Executive Officer, August 30,2004 (the “Effective Date”), and sets forth the terms and conditions of youremployment with the Company.

 

The terms of your employment are as follows:

 
| 1. | Salary: | Your base salary is $20,834 semi-monthly ($500,000  annualized) for fiscal year 2004 and is subject to all standard withholding  of taxes. Fiscal year 2004 ends on December 31, 2004. In subsequent  years, your base salary will be reviewed by the Compensation Committee of the  Board (the “Committee”) on an annual basis. The annualized base salary to be  paid, together with any subsequent adjustments thereto, shall be referred to  herein as the “Base Salary.”

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| 2. | Equity: | Subject to the approval of the Committee, the  Company will grant you as of the first date on which you become an employee  of Abgenix as set forth in paragraph 12 below (“Commencement of Employment”),  nonstatutory stock options under the Company’s 1999 Nonstatutory Stock Option  Plan, as amended (the “Plan”) to purchase 500,000 shares of Abgenix  common stock. The per-share exercise price will be equal to the “Fair Market  Value” (as defined in the Plan) of a Company common share as of your  Commencement of Employment. The stock option vesting schedule is as  follows: Vesting will begin on the Effective Date. At the end of twelve  months following the Effective Date, 12/48 (25%) will vest and thereafter  1/48 of the total grant will vest per month (so that if you remain  continuously in the Company’s employ, at the end of four years your option  would be fully vested). In the event of termination of your employment with  the Company for any reason, all vested options must be exercised within  90 days of your termination date and all unvested options shall be  canceled and forfeited without consideration. Subject to such stockholder  approval of additional shares to be used for stock option awards under the  Plan (or other Company stock option plans) as may be required by law, the  Committee will review your Company stock position annually for the purposes of  granting future stock options to you on a basis no less favorable than those  granted to other senior executives of the Company. Such a review normally  takes place in January of each year. The terms and conditions of any  stock option grants shall be governed by a separate agreement you will be  required to sign as a condition of the grant (a “Stock Option Agreement”). A  copy of the form of that Agreement is attached for your review. |

 

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| 3. | Sign-On Bonus: | You will receive a sign-on bonus of $280,000. This  payment is considered compensation and as such is subject to all standard  withholding taxes. Should you terminate employment other than through an  Involuntary Termination (as defined below) within 12 months of the  Effective Date, this payment will be repayable to the Company on a pro-rated  basis. The amount of such repayment is determined by multiplying $280,000  times a percentage; where such percentage is equal to: (i) one minus (ii) the  number of days you were employed by the Company divided by 365.

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| 4. | Bonus:         | For fiscal year 2004, you will be eligible to  participate in the Company’s annual management incentive bonus program. Under  this program, which is based on the Company attaining certain annual  corporate goals and you attaining personal objectives approved by the  Committee, you will be eligible, subject to Committee approval, for an annual  target bonus of 50% of your fiscal year-end Base Salary which is based upon  attaining 100% of plan achievement (the “Target Bonus”). Based on the  Effective Date, your Target Bonus for fiscal 2004 is pro-rated to $83,333.  Thereafter, you will be eligible for an annual bonus based on the attainment  of corporate and personal goals established by the Committee with input from  you. The Committee shall, in its sole and absolute discretion, determine the  amount of bonus, if any, that is actually paid to you.

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| 5. | Review Period: | Your formal performance review by the Committee will  take place in January of 2005 and annually thereafter.

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| 6. | Benefits:      | The Company provides benefit programs for all  regular full-time employees including senior executives. The details of these  programs, as well as enrollment forms and other pertinent literature, will be  available during your orientation with Human Resources. Enclosed for your  review is a summary of the plans. Term life insurance up to $500,000 is  provided to you. Supplemental life insurance for you or your family is  available according to the plan documents.

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| 7. | Relocation:    | The Company will reimburse you for (1) the cost of  moving your household goods to your new residence in the Bay Area;  (2) hotel and car rental expenses for up to one month; (3) expenses  incurred for your final move air travel; up to a maximum of $100,000 for (1)  through (3) combined. The Company will make arrangements for items (1) and  (2) directly through the vendor(s) of its choice, and may do so as well for  item (3). Under no circumstances will substitutions be made for any of the  above-mentioned covered items.

 

In connection with these costs, the Company will  provide you with additional compensation in the form of a one-time “tax gross  up” in accordance with standard Company policy. This is intended to offset  the majority of your non-deductible, tax-related costs for the                                                           |

 

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|   |                                              | above-mentioned relocation package.

 

This relocation expense coverage is intended to  assist in getting you established in your new residence in the local area as  quickly as possible. Therefore, it is required that all relocation assistance  provided for in this Agreement and all expense reimbursements for this  assistance be completed within one year from the Effective Date. Should you  terminate your employment within 12 months of the Effective Date other  than through an Involuntary Termination (as defined below), all relocation  expenses already reimbursed will be repayable to the Company on a pro-rated  basis (pursuant to the repayment methodology described in Section 3  above).

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| 8.     | Mortgage Differential:                            | In addition to the aforementioned relocation  assistance, the Company is prepared to offer you a mortgage differential  allowance. From September 2004 through August 2006 the amount of  this allowance will be $9,000 per month; from September 2006 through August 2009  the amount of this allowance will be $6,000 per month. This mortgage  differential allowance will be subject to standard tax withholding and will  terminate no later than August 31, 2009. These payments will be made on  a monthly basis. Should your employment with the Company terminate at any  time and for any reason prior to August 31, 2009, the mortgage  differential payments will also then immediately terminate.

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| 9.     | Termination of  Employment and Severance Payments | A.           In  addition to the terms set forth herein, severance of your employment in the  event of a change of control is subject to the terms of the Change of Control  Severance Agreement, incorporated here by reference, and attached hereto as  Appendix A. Appendix A must also be signed by you for this Agreement to  become Effective.

 

B.             Your  employment at the Company shall be “At Will,” which means your employment  with the Company may be terminated at any time either by you or the Company,  with or without cause and with or without notice. Upon your termination of  employment for any reason, you shall be deemed to have resigned from all  offices and positions with the Company or any of its affiliates and you shall  execute any documentation requested by the Company to confirm such  resignation(s). If your employment is terminated by the Company without  cause, or if your resignation is due to an Involuntary Termination (as  defined below) you will be paid two years of continuation payments of your  then Base Salary and Target Bonus, provided you timely execute a full release  of all claims in a form prescribed by the Company and further provided you  fully comply with any other terms and conditions established by the Company.

 

C.             Termination  Without Cause. For purposes of this Agreement, a “termination without  cause” by the Company is defined as an |

 

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|   |   | “Involuntary  Termination” as set forth in paragraph 1(d) of the Change of Control  Severance Agreement and is incorporated here by reference. This paragraph  provides as follows: 

 

1(d)    Involuntary  Termination.  “Involuntary  Termination” shall mean (i) without the Employee’s express written  consent, a significant reduction of the Employee’s duties, position or  responsibilities relative to the Employee’s duties, position or  responsibilities in effect immediately prior to such reduction, or the  removal of the Employee from such position, duties and responsibilities,  unless the Employee is provided with comparable duties, position and  responsibilities; (ii) without the Employee’s express written consent, a  substantial reduction, without good business reasons, of the facilities and  perquisites (including office space and location) available to the Employee  immediately prior to such reduction; (iii) a reduction by the Company of  the Employee’s base salary or target bonus as in effect immediately prior to  such reduction; (iv) a material reduction by the Company in the kind or  level of employee benefits to which the Employee is entitled immediately  prior to such reduction with the result that the Employee’s overall benefits  package is significantly reduced; (v) without the Employee’s express  written consent, the relocation of the Employee to a facility or a location  more than thirty-five (35) miles from his current location; (vi) any  purported termination of the Employee by the Company which is not effected  for Cause or for which the grounds relied upon are not valid; or  (vii) the failure of the Company to obtain the assumption of this  Agreement by any successors contemplated in Section 6 below.

 

D.            Termination  With Cause. Termination with “Cause” shall have the same meaning as  defined in paragraph 1(a) of the Change of Control Agreement and is  incorporated here by reference.This |
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|   |                       | paragraph provides as  follows:

 

1(a)     Cause.    “Cause”  shall mean (i) any act of personal dishonesty taken by the Employee in  connection with his responsibilities as an employee which is intended to  result in substantial personal enrichment of the Employee, (ii) Employee’s  conviction of a felony which the Board reasonably believes has had or will  have a material detrimental effect on the Company’s reputation or business,  (iii) a willful act by the Employee which constitutes misconduct and is  injurious to the Company, and (iv) continued willful violations by the  Employee of the Employee’s obligations to the Company after there has been  delivered to the Employee a written demand for performance from the Company  which describes the basis for the Company’s belief that the Employee has not  substantially performed his duties.

 

E.              If  you should resign your employment with the Company for any reason other than  as a result of an Involuntary Termination or should your employment be  terminated as a result of your death or your disability, you shall only be  paid for unpaid Base Salary accrued as of your date of termination and you  shall be entitled to no other payments from the Company, provided, however,  that in the event of your disability or death, you or your estate shall be  paid a pro rata share of your Target bonus for that year at the time that  Target Bonuses are paid to other senior executives of the Company..

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| 10.    | Proof of Right to Work     | Our offer to hire you is contingent upon your  submission of satisfactory proof of your identity and your legal  authorization to work in the United States. If you fail to timely submit this  proof, federal law prohibits us from hiring you and this Agreement shall be  null and void.

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| 11.    | Confidential  Information  | As a condition of this Agreement and your  employment, you agree to sign an Employment, Confidential Information and  Invention Assignment Agreement on or before the Effective Date of this  Agreement. A copy is attached as Appendix B to this Agreement.

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| 12.    | Commencement of Employment | You will commence employment initially on a  part-time basis, as a Transition Advisor, on July 20, 2004, and shall  perform transition-related duties in the office of the Company’s chief  Executive Officer, and shall assist the Chief Executive Officer as  appropriate and necessary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

 

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|   |   | to facilitate transition. You shall be paid at the  rate of $20,834 per month for working part-time between July 20 and August 29,  2004, inclusive. “Part-time” shall be sufficient to qualify you for participation  in the Plan. |
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This Agreement constitutes the full agreement of theparties as to the terms and subject matter covered.  This Agreement shall be governed by the lawsof the State of California without reference to rules relating to conflicts oflaw.  Except as to matters related tofuture compensation, no changes may be made to this Agreement except in writingsigned by both parties.

 

ACCEPTED:

 

 
| /s/ William R. Ringo                                                                     |   | July 20, 2004 |
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|   William R. Ringo                                                             |   |  Date         |
|                                                                                     |   |               |
|                                                                                     |   |               |
| /s/ R. Scott Greer                                                                       |   | July 20, 2004 |
|   R. Scott Greer, Chairman of the  Board    On behalf of the Company |   |  Date         |

 

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