Document:

Exhibit
10.89

 

ABGENIX,
INC.

 

CHANGE OF CONTROL SEVERANCE AGREEMENT

 

This Change of Control
Severance Agreement (the “Agreement”) is made and entered into effective as of August 30,
2004 (the “Effective Date”), by and between William R. Ringo (the “Employee”)
and Abgenix, Inc., a Delaware corporation (the “Company”).  Certain capitalized terms used in this
Agreement are defined in Section 1 below.

 

RECITALS

 

A.                                   It
is expected that the Company from time to time will consider the possibility of
a Change of Control.  The Board of
Directors of the Company (the “Board”) recognizes that such consideration can
be a distraction to the Employee and can cause the Employee to consider
alternative employment opportunities.

 

B.                                     The
Board believes that it is in the best interests of the Company and its
shareholders to provide the Employee with an incentive to continue his
employment and to maximize the value of the Company upon a Change of Control
for the benefit of its shareholders.

 

C.                                     In
order to provide the Employee with enhanced financial security and sufficient
encouragement to remain with the Company notwithstanding the possibility of a
Change of Control, the Board believes that it is imperative to provide the
Employee with certain severance benefits upon the Employee’s termination of
employment following a Change of Control.

 

AGREEMENT

 

In consideration of the
mutual covenants herein contained and the continued employment of Employee by
the Company, the parties agree as follows:

 

1.             Definition of Terms.  The following terms referred to in this
Agreement shall have the following meanings:

 

(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.

 

(b)                                 Change
of Control.  “Change of Control”
shall mean the occurrence of any of the following events:

 

 

(i)                                                        the
approval by shareholders of the Company of a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) more than fifty
percent (50%) of the total voting power represented by the voting securities of
the Company or such surviving entity outstanding immediately after such merger or
consolidation;

 

(ii)                                                     any
approval by the shareholders of the Company of a plan of complete liquidation
of the Company or an agreement for the sale or disposition by the Company of
all or substantially all of the Company’s assets;

 

(iii)                                                  any “person”
(as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended) becoming the “beneficial owner” (as defined
in Rule 13d-3 under said Act), directly or indirectly, of securities of
the Company representing 50% or more of the total voting power represented by
the Company’s then outstanding voting securities; or

 

(iv)                                                 a
change in the composition of the Board, as a result of which fewer than a
majority of the directors are Incumbent Directors.  “Incumbent Directors” shall mean directors
who either (A) are directors of the Company as of the date hereof, or
(B) are elected, or nominated for election, to the Board with the
affirmative votes of at least a majority of those directors whose election or
nomination was not in connection with any transaction described in
subsections (i), (ii) or (iii) or in connection with an actual or
threatened proxy contest relating to the election of directors of the Company.

 

(c)                                  Compensation
Continuation Period.  “Compensation
Continuation Period” shall mean the period of time commencing with termination
of the Employee’s employment as a result of Involuntary Termination at any time
within twenty four (24) months after a Change of Control and ending with the
date twenty-four (24) months following the date of the Employee’s termination.

 

(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

 

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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.

 

2.                                       Term
of Agreement.  This Agreement shall
terminate upon the date that all obligations of the parties hereto under this
Agreement have been satisfied.

 

3.                                       At-Will
Employment.  The Company and the
Employee acknowledge that the Employee’s employment is and shall continue to be
at-will, as defined under applicable law. 
If the Employee’s employment terminates for any reason, the Employee
shall not be entitled to any payments, benefits, damages, awards or
compensation other than as provided by this Agreement, or as may otherwise be
established under the Company’s then existing employee benefit plans or
policies at the time of termination.

 

4.                                       Change
of Control and Severance Benefits.

 

(a)                                  Termination
Following A Change of Control.

 

(i)                                          Severance
Payments.  If the Employee’s
employment with the Company terminates as a result of an Involuntary
Termination at any time within twenty four (24) months after a Change of Control,
then the Employee shall be entitled to receive continuing payments of severance
pay during the Compensation Continuation Period at a rate equal to one hundred
(100)% of the Employee’s base salary and target bonus (as in effect immediately
prior to the Change of Control).  Such
severance payments shall be paid bi-weekly in accordance with the Company’s
normal payroll practices. In addition, during the Compensation Continuation
Period, the Company shall continue to make available to the Employee and Employee’s
spouse and dependents covered under any group health plans or life insurance
plans of the Company on the date of such termination of employment, all group
health, life and other similar insurance plans in which Employee or such
Covered Dependents participate on the date of the Employee’s termination.

 

(ii)                                       Option
Acceleration.  If the Employee’s
employment with the Company terminates as a result of an Involuntary
Termination at any time within twenty four (24) months after a Change of
Control, then each option granted to the Employee by the Company (the “Options”)
shall immediately become vested and exercisable in full.

 

(iii)                                    Other
Termination.  If the Employee’s
employment with the Company terminates other than as a result of an Involuntary
Termination at any time within twenty four (24) months after a Change of
Control, then the Employee shall not be entitled to receive severance or other
benefits hereunder, but may be eligible for those benefits (if any) as may then
be established under the Company’s then existing severance and benefits plans
and policies at the time of such termination.

 

(b)                                 Termination
Apart from a Change of Control.  If
the Employee’s employment with the Company terminates for any or no reason
other than within twenty four (24) months following a Change of Control, then
the Employee shall not be entitled to receive severance or other benefits
hereunder, but may be eligible for those benefits (if any) as may then be
established under

 

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the Company’s then
existing severance and benefits plans and policies at the time of such
termination.

 

(c)                                  Accrued
Wages and Vacation; Expenses. 
Without regard to the reason for, or the timing of, Employee’s
termination of employment:  (i) the
Company shall pay the Employee any unpaid base salary due for periods prior to
the date of termination; (ii) the Company shall pay the Employee all of
the Employee’s accrued and unused vacation through the date of termination; and
(iii) following submission of proper expense reports by the Employee, the
Company shall reimburse the Employee for all expenses reasonably and
necessarily incurred by the Employee in connection with the business of the
Company prior to the date of termination. 
These payments shall be made promptly upon termination and within the
period of time mandated by law.

 

5.                                       Golden
Parachute Excise Tax Gross-Up.  In
the event that the severance and other benefits provided for in this Agreement
or otherwise payable to Employee constitute “excess parachute payments” within
the meaning of Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”), and will be subject to the excise tax imposed by Section 4999
of the Code (the “Excise Tax”), then Employee shall receive (i) a payment
from the Company sufficient to pay the Excise Tax, and (ii) an additional
payment from the Company sufficient to pay the Excise Tax arising from the
payments made by the Company to Employee pursuant to this sentence.  Unless the Company and Employee otherwise agree
in writing, the determination of Employee’s Excise Tax liability and the amount
required to be paid under this Section 5 shall be made in writing by the
Company’s independent public accountants (the “Accountants”).  In the event that the Excise Tax incurred by
Employee is determined by the Internal Revenue Service to be greater or lesser
than the amount determined by the Accountants, the Company and Employee agree
to promptly make such additional payment, including interest and any tax
penalties, to the other party as the Accountants reasonably determine is
appropriate to ensure that the net economic effect to Employee under this Section 5,
on an after-tax basis, is as if the Excise Tax did not apply to Employee.  For purposes of making the calculations required
by this Section 5, the Accountants may make reasonable assumptions and
approximations concerning applicable taxes and may rely on reasonable, good
faith interpretations of the Code.  The
Company and Employee shall furnish to the Accountants such information and
documents as the Accountants may reasonably request in order to make a
determination under this Section.  The
Company shall bear all costs the Accountants may reasonably incur in connection
with any calculations contemplated by this Section 5.

 

The
gross-up payment to which Employee is entitled hereunder shall be paid by the
Company to Employee, in cash and in full, not later than thirty (30) calendar
days following the date Employee becomes subject to the Excise Tax.

 

6.                                       Successors.

 

(a)                                  Company’s
Successors.  Any successor to the
Company (whether direct or indirect and whether by purchase, lease, merger,
consolidation, liquidation or otherwise) to all or substantially all of the
Company’s business and/or assets shall assume the Company’s obligations under
this Agreement and agree expressly to perform the Company’s obligations under
this Agreement in the same manner and to the same extent as the Company would
be required to perform

 

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such obligations
in the absence of a succession.  For all
purposes under this Agreement, the term “Company” shall include any successor
to the Company’s business and/or assets which executes and delivers the
assumption agreement described in this subsection (a) or which becomes
bound by the terms of this Agreement by operation of law.

 

(b)                                 Employee’s
Successors.    Without the written
consent of the Company, Employee shall not assign or transfer this Agreement or
any right or obligation under this Agreement to any other person or entity.
Notwithstanding the foregoing, the terms of this Agreement and all rights of
Employee hereunder shall inure to the benefit of, and be enforceable by,
Employee’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.

 

7.                                       Notices.

 

(a)                                  General.  Notices and all other communications
contemplated by this Agreement shall be in writing and shall be deemed to have
been duly given when personally delivered or when mailed by U.S. registered or
certified mail, return receipt requested and postage prepaid.  In the case of the Employee, mailed notices
shall be addressed to him at the home address that he most recently
communicated to the Company in writing. 
In the case of the Company, mailed notices shall be addressed to its
corporate headquarters, and all notices shall be directed to the attention of
its Secretary.

 

(b)                                 Notice
of Termination.  Any termination by
the Company for Cause or by the Employee as a result of a voluntary resignation
or an Involuntary Termination shall be communicated by a notice of termination
to the other party hereto given in accordance with this Section.  Such notice shall indicate the specific
termination provision in this Agreement relied upon, shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination under the provision so indicated. 
The failure by the Employee to include in the notice any fact or
circumstance which contributes to a showing of Involuntary Termination shall
not waive any right of the Employee hereunder or preclude the Employee from
asserting such fact or circumstance in enforcing his rights hereunder.

 

8.                                       Arbitration.

 

(a)                                  Except
as provided in Section 8(d) below, any dispute or controversy arising out
of, relating to, or in connection with this Agreement, or the interpretation,
validity, construction, performance, breach, or termination thereof, shall be
settled by binding arbitration to be held in Palo Alto, California, in
accordance with the National Rules for the Resolution of Employment Disputes
then in effect of the American Arbitration Association (the “Rules”).  The arbitrator may grant injunctions or other
relief in such dispute or controversy. 
The decision of the arbitrator shall be final, conclusive and binding on
the parties to the arbitration.  Judgment
may be entered on the arbitrator’s decision in any court having jurisdiction.

 

(b)                                 The
arbitrator(s) shall apply California law to the merits of any dispute or claim,
without reference to conflicts of law rules. 
The arbitration proceedings shall be governed by

 

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federal
arbitration law and by the Rules, without reference to state arbitration
law.  Employee hereby consents to the
personal jurisdiction of the state and federal courts located in California for
any action or proceeding arising from or relating to this Agreement or relating
to any arbitration in which the parties are participants.

 

(c)                                  Employee
understands that nothing in this Section modifies Employee’s at-will
employment status.  Either Employee or
the Company can terminate the employment relationship at any time, with or
without cause.

 

(d)                                 EMPLOYEE
HAS READ AND UNDERSTANDS THIS SECTION, WHICH DISCUSSES ARBITRATION.  EMPLOYEE UNDERSTANDS THAT SUBMITTING ANY
CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR
THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION
THEREOF TO BINDING ARBITRATION TO THE EXTENT PERMITTED BY LAW, AND THAT THIS
ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EMPLOYEE’S RIGHT TO A JURY TRIAL AND
RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE
EMPLOYER/EMPLOYEE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO, THE FOLLOWING
CLAIMS:

 

(i)                                          ANY
AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT; BREACH OF CONTRACT, BOTH
EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING,
BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL INFLICTION OF EMOTIONAL
DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION; NEGLIGENT OR INTENTIONAL
INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION.

 

(ii)                                       ANY
AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL STATE OR MUNICIPAL STATUTE,
INCLUDING, BUT NOT LIMITED TO, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, THE
CIVIL RIGHTS ACT OF 1991, THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE
AMERICANS WITH DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT, THE
CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT, AND LABOR CODE SECTION 201, et seq;

 

(iii)                                    ANY AND ALL CLAIMS
ARISING OUT OF ANY OTHER LAWS AND REGULATIONS RELATING TO EMPLOYMENT OR
EMPLOYMENT DISCRIMINATION.

 

9.                                       Miscellaneous
Provisions.

 

(a)                                  No
Duty to Mitigate.  The Employee shall
not be required to mitigate the amount of any payment contemplated by this
Agreement, nor shall any such payment be reduced by any earnings that the
Employee may receive from any other source.

 

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(b)                                 Waiver.  No provision of this Agreement may be
modified, waived or discharged unless the modification, waiver or discharge is
agreed to in writing and signed by the Employee and by an authorized officer of
the Company (other than the Employee). 
No waiver by either party of any breach of, or of compliance with, any
condition or provision of this Agreement by the other party shall be considered
a waiver of any other condition or provision or of the same condition or
provision at another time.

 

(c)                                  Integration.  This Agreement and the stock option agreements
representing the Options represent the entire agreement and understanding
between the parties as to the subject matter herein and supersede all prior or
contemporaneous agreements, whether written or oral.

 

(d)                                 Choice
of Law.  The validity, interpretation,
construction and performance of this Agreement shall be governed by the
internal substantive laws, but not the conflicts of law rules, of the State of
California.

 

(e)                                  Severability.  The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision hereof, which shall remain in full force
and effect.

 

(f)                                    Employment
Taxes.  All payments made pursuant to
this Agreement shall be subject to withholding of applicable income and
employment taxes.

 

(g)                                 Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument.

 

IN WITNESS WHEREOF, each
of the parties has executed this Agreement, in the case of the Company by its
duly authorized officer, as of the day and year first above written.

 

	
  COMPANY:

  	
   

  	
  ABGENIX, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ R. Scott Greer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Chairman

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EMPLOYEE:

  	
   

  	
  /s/ William R. Ringo

  	
   

  
	
   

  	
   

  	
   

  	
  William R. Ringo

  
										

 

7Exhibit 10.90

 

Abgenix, Inc.

RESIGNATION AND TRANSITION
AGREEMENT

 

This Resignation
and Transition Agreement (this “Agreement”) is entered into between
Abgenix, Inc. (the “Company”) and Raymond M. Withy (“Employee”).
The purpose of this Agreement is to arrange for Employee’s resignation as the
Chief Executive Officer and President of the Company as well as for a
transition of Employee’s employment with Company on a basis that is
satisfactory both to Company and to Employee (collectively, the “Parties”).  In consideration of the promises and
obligations set forth herein, the Company agrees to provide certain additional
benefits to Employee in full satisfaction of its obligations under the
employment relationship between the Parties and Employee agrees to release the
Company from any claims or obligations as set forth herein.

 

1.                                       Resignation.  Employee irrevocably resigns from his
positions as Chief Executive Officer and President of the Company effective as
of August 30, 2004.

 

2.                                       Continued Employment for Transition Period.  After August 30, 2004, Employee shall
continue providing services as a full-time employee of the Company through
December 31, 2004 (“Transition Period”). 
Employee shall report to the individual who is then serving as the
Company’s Chief Executive Officer, who shall determine Employee’s duties and
responsibilities.

 

Provided that Employee (1) executes this
Agreement and the Exhibits attached hereto, including the release of claims
attached hereto as Exhibit A, (2) does not revoke such release of
claims, and (3) uses his best efforts to perform the services requested of him
during the Transition Period, Employee shall continue to receive the same base
salary, cash incentive bonus opportunity, benefits, and perquisites as he was
receiving immediately prior to the effectiveness of his resignation under
Section 1 above.  For avoidance of doubt,
the Parties agree that the terms of Employee’s annual cash incentive bonus for
2004, including but not limited to the performance objectives and target bonus
amount, shall remain unchanged.  The
stock options previously granted to Employee by the Company shall continue to
vest during the Transition Period, but not thereafter.  Employee agrees to execute the form of
amendments to Employee’s stock option agreements attached hereto as Exhibit
B at the same time that he executes this Agreement.

 

Employee understands and agrees that the
compensation and benefits described in this Section 2 are greater than the
amounts that the Company would otherwise expect to pay in order to obtain
Employee’s services during the Transition Period, and furthermore agrees that
such additional compensation and benefits provide consideration for Employee’s
obligations hereunder, including but not limited to execution by Employee of any
release of claims described herein and execution of the amendments to Employee’s
stock option agreements.

 

 

3.                                       Transition Information.

 

(a)                                  Separation Date.  Employee’s employment with the Company and
its affiliates will terminate effective as of December 31, 2004 (the “Separation
Date”).  Employee understands and
agrees that this termination is effective with respect to all positions he then
holds with the Company and any of its affiliates, except as a member of the
Board of Directors of the Company (“Board”). 
If requested by the Company in its sole discretion, Employee agrees to
execute a release of claims substantially in the form attached hereto as Exhibit
A in order to release any claims arising out of Employee’s service with the
Company through the Separation Date.

 

Commencing on
January 1, 2005, Employee shall be compensated for his services on the Board in
accordance with the Company’s policies for individuals who continue to serve on
the Board after having ceased employment with the Company.  For avoidance of doubt, for service on the
Board in 2005, Employee shall be entitled to payment of a pro-rated annual
retainer fee, standard meeting fees, and reimbursement for expenses incurred to
attend meetings of the Board or a committee of the Board or to otherwise carry
out his responsibilities as a member of the Board.  The Board and Employee agree that Employee
will continue to serve as a member of the Board until at least the expiration
of his current term.

 

(b)                                 Accrued Benefits.  On or before the Separation Date, the Company
will have paid Employee all wages due to him, including regular base salary
through his Separation Date and payment for all accrued and unused vacation
credited to him as of the Separation Date. 
In addition, the Company will reimburse Employee in a timely fashion for
all approved business expenses incurred by Employee prior to the Separation
Date in accordance with normal Company policy.

 

4.                                       Continuation of Benefits.

 

(a)                                  Group Health Insurance.  Employee’s
current coverage under the Company’s standard group health insurance programs
will terminate on December 31, 2004. 
Employee may then have the opportunity to elect continuation coverage
under the Company’s group health insurance programs as permitted pursuant to
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”).  Employee will be provided with information
regarding, and an opportunity to elect, such coverage following the Separation
Date.

 

(b)                                 Other Benefits.  Employee
acknowledges and agrees that Employee will have no right, title, interest, or
claim in or to participation in, or any benefits provided under, any of the
Company’s employee benefit programs or policies following the Separation Date.

 

5.                                       Equity Benefits.  Exhibit B to this Agreement sets forth
Employee’s rights to purchase shares of the Company’s capital stock as of the
Separation Date (assuming that Employee continues to be employed by the Company
through the Separation Date), reflecting

 

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the amendments to
Employee’s stock option agreements included as part of Exhibit B.  Employee acknowledges and agrees that except
as set forth on Exhibit B and in those stock option agreements as
amended that govern Employee’s rights to the 

shares described on Exhibit
B, Employee has no other right, title, interest, or claim in or to any
shares of the Company’s capital stock, other than any shares he might own that
are unencumbered by any contractual restrictions in favor of the Company.

 

6.                                       No Other Payments Due.  Employee acknowledges and agrees that, upon
payment of those amounts set forth in this Agreement, he will have received all
salary, accrued vacation, bonuses, wages, compensation or other such sums due
to him as of the Separation Date other than amounts, if any, to be paid after
the Separation Date pursuant to this Agreement.

 

7.                                       Covenants.

 

(a)                                  Confidential and Proprietary Information.  Employee represents and warrants that at
all times prior to the date on which he executes this Agreement he has been in
full compliance with his obligation to maintain the confidentiality of all
confidential and proprietary information of the Company.  Employee understands and agrees that the
provisions of the Company’s standard form of proprietary information and
inventions agreement shall continue in full force and effect following his
Separation Date, such that the Company shall continue to hold all remedies
available to it, whether at law or in equity, in order to enforce Employee’s
compliance with such agreement.

 

(b)                                 Return of Company Property.  As a condition of the Company entering into
this Agreement, Employee is required to return all of the Company’s property,
including but not limited to any confidential or proprietary information, in
his possession, on or before the Separation Date, except for any property that
the Company expressly agrees Employee may retain or any property that has been
made available to members of the Board in order to allow them to perform their
duties in that capacity.

 

(c)                                  Non-Disparagement.  Employee agrees to refrain from making any
derogatory, disparaging and/or detrimental statements to any other person or
third parties about the Company or any of the Released Parties, including but
not limited to the Company’s directors, officers, investors, employees,
products, or services.  The Company
agrees to direct each of the current members of its Board of Directors (other
than Employee) and its current named executive officers to refrain from making
any derogatory, disparaging and/or detrimental statements to any other person
or third parties about Employee.

 

8.                                       Taxes. 
Any payments or benefits provided pursuant to this Agreement will be
subject to applicable tax withholdings. 
Employee expressly permits the Company to deduct from any amounts due
hereunder such amounts as necessary to satisfy any withholding or employment
tax obligations arising in connection with the termination of his employment,
including, but not limited to, the cancellation of any debt, the payment of any
amount or the provision of any benefit hereunder.

 

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9.                                       Entire Agreement.  This Agreement (including the Exhibits
hereto) sets forth the entire agreement between the Company and Employee, and
supersedes any prior agreements or understanding, whether oral or written,
concerning the subject matter set forth herein. 
This Agreement may not be altered or amended except by a written
document signed by the Parties.  Employee
expressly agrees that, except as set forth herein, the terms of this Agreement
supersede the terms of any individual agreement or understanding with the
Company relating to Employee’s rights as an employee of the Company, including
but not limited to that certain Amended and Restated Change of Control
Severance Agreement between the Parties dated as of April 24, 2003.  Employee acknowledges that he is executing
this Agreement voluntarily and knowingly and that he has not relied upon any
representation or statement made by the Company, the Released Parties (as that
term is defined in Exhibit A) or their respective agents with respect to
the subject matter, basis or effect of this Agreement, other than those
specifically stated in this written Agreement.

 

10.                                 Severability.  If any one or more of the provisions of this
Agreement, including, without limitation, Employee’s obligations described in
Section 7 herein, shall be or become invalid, illegal or unenforceable in any
respect or to any degree, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected thereby and said
illegal, unenforceable or invalid provisions shall be deemed not to be a part
of this Agreement.

 

11.                                 Governing Law.  This Agreement shall be governed by the laws
of the State of California, without regard to its conflicts of law provisions.

 

12.                                 Counterparts.  This Amendment may be executed in
counterparts, each of which shall be deemed to be an original and together
shall be deemed to be one and the same document.

 

13.                                 Voluntary Execution.  Employee hereby understands and agrees that:

 

(a)                                  He has been given twenty-one
(21) days from the date that this Agreement was delivered to him (i.e., until
September 16, 2004) in which to accept its terms, although he may accept it at
any time within those twenty-one (21) days;

 

(b)                                 He has carefully read and
fully understands all of the terms of the Agreement;

 

(c)                                  He is, through this
Agreement, releasing the Released Parties from any and all claims he may have
against them;

 

(d)                                 He was advised and is hereby
advised in writing to consult with an attorney of his choice prior to executing
this Agreement;

 

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(e)                                  He has so consulted with an
attorney of his choice or knowingly declined to do so;

 

(f)                                    He knowingly and voluntarily
agrees to all of the terms set forth in this Agreement with full appreciation
that he is forever foreclosed from pursuing any of the rights waived herein;

 

(g)                                 He has a period of 7 days
after signing this Agreement within which to revoke his consent to this
Agreement and that neither the Company nor any other person is obligated to
provide any payment or benefit to him until 8 days have passed since his
signing of this Agreement without his signature having been revoked in a
writing received by the Company within the seven day revocation period; and

 

(h)                                 He is under no disability or
impairment that affects his decision to sign this Agreement and knowingly and
voluntarily intends to be legally bound by this Agreement.

 

 

IN WITNESS WHEREOF, the
Parties hereto have duly executed this Agreement.

 

 

	
   

  	
  Abgenix, Inc.:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ R. Scott Greer

  
	
   

  	
  Name: R. Scott Greer

  
	
   

  	
  Title:  
  Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
  /s/ Raymond M. Withy

  
	
   

  	
  Raymond M. Withy

  
	
   

  	
   

  
	
   

  	
  August 26, 2004

  
	
   

  	
  Date

  

 

5

 

EXHIBIT A

 

Employee’s
Release of All Claims

 

In consideration of the benefits to be provided to Employee by the
Company as set forth in this Agreement to which this Release of All Claims is
an Exhibit, Employee, on behalf of himself, his spouse, domestic partner,
agents, attorneys, successors, assigns, heirs and executors hereby fully and
forever releases and discharges Abgenix, Inc., and its current and former
officers, directors, shareholders, partners, members, investors,
administrators, employees, contractors, agents, attorneys, insurers,
affiliates, successors, predecessors, subsidiaries, assigns and fiduciaries in
their individual and/or representative capacities (collectively, the “Released
Parties”) from any and all claims, suits, agreements, promises, damages,
disputes, controversies, contentions, differences, judgments, debts, dues, sums
of money, accounts, reckonings, bonds, causes of action, bills, covenants,
contracts, variances, trespasses, extents, executions and demands of any kind
whatsoever, which Employee or his spouse, domestic partner, agents, attorneys,
successors, assigns, heirs and executors ever had, now have or may have against
the Released Parties or any of them, in law, admiralty or equity, for, upon, or
by reason of, any matter, action, omission, course or thing whatsoever
occurring up to the date this Agreement is signed by Employee, including,
without limitation, in connection with or in relationship to Employee’s
employment or other service relationship with the Company or its affiliates,
Employee’s resignation as the Chief Executive Officer and President of the
Company, the termination of any such employment or service relationship and any
applicable employment, compensatory or equity arrangement with the Company or
its respective affiliates; provided that such released claims shall not
include (1) any claims to enforce Employee’s rights under, or with respect to,
this Agreement, (2) Employee’s rights to employee benefits under the terms of
the Company’s employee benefit plans, programs and arrangements, and (3) any
rights to indemnification from the Company that Employee may possess relating
to his service with the Company, whether under the Company’s Articles of
Incorporation, By-laws, the Indemnification Agreement executed by Company and
Employee or otherwise (such released claims are collectively referred to herein
as the “Released Claims”).  
Employee understands and agrees that the release set forth in this
Exhibit A to this Agreement is a full and complete waiver of all claims,
whether known or unknown by him, including, but not limited to, any claims with
respect to his entitlement to any wages, bonuses, severance benefits or other
forms of compensation; any claims with respect to his purchase of, or right to
purchase, any capital stock of the Company; any claims of wrongful discharge,
breach of contract, breach of the covenant of good faith and fair dealing,
violation of public policy, defamation, personal injury, emotional distress;
any claims under Title VII of the Civil Rights Act of 1964, as amended, the
Fair Labor Standards Act, the California Fair Employment and Housing Act, the
Equal Pay Act of 1963, the Americans With Disabilities Act, California Labor
Code Section 1197.5, the Civil Rights Act of 1991, the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”) as related to
severance benefits, any family and medical leave acts; and any claims under any
other federal, state, and local laws and regulations relating to employment or
employment discrimination. Employee agrees that the benefits provided to him
pursuant to this Agreement are in full satisfaction and settlement of any such
Released Claims.  Employee represents and
warrants that he has not filed, and he will not file, any lawsuit or institute
any proceeding, charge, complaint or action

 

6

 

asserting any such
claim before any federal, state, or local administrative agency or court
against any Released Party, concerning any event occurring prior to the signing
of the Agreement.  Nothing in the
Agreement, however, shall be construed as prohibiting Employee from filing a
charge or complaint with the Equal Employment Opportunity Commission (“EEOC”)
or participating in an investigation or proceeding conducted by the EEOC.  Employee also hereby agrees that nothing
contained in this Release shall constitute or be treated as an admission of
liability or wrongdoing by any of the Released Parties.

 

ADEA.  Employee represents that he is knowingly and
voluntarily waiving any and all rights that he currently may have arising under
the Age Discrimination in Employment Act of 1967, as amended.  Employee understands that he has the right to
consult with an attorney before signing this Agreement.  Employee also understands that he may have
twenty-one (21) days after his receipt of this Agreement within which he may
review and consider, discuss with an attorney of his own choosing, and decide
to execute or not execute it.  Employee
further understands that for a period of seven (7) days after he signs this
Agreement, he may revoke his release of all claims.   In order to revoke his release, Employee
must deliver to the President and Chief Executive Officer of the Company, by no
later than seven (7) days after he executes this Agreement, a letter stating
that he is revoking it.  Employee
understands and agrees that if he revokes his release, he will have no right to
receive, and the Company will have no obligation to provide, any of the benefits
described in this Agreement.  If Employee
does not deliver such a letter, then this Agreement shall become effective upon
the expiration of the seventh day after he executes this Agreement.  If Employee executes this Agreement prior to
the twenty-first (21) day after its delivery to him, Employee hereby
acknowledges that his decision to execute this Agreement prior to the
expiration of such twenty-one (21) day period was entirely voluntary.

 

Civil
Code Section 1542. 
Employee hereby expressly waives any and all rights and benefits
conferred upon him by the provisions of Section 1542 of the Civil Code of the
State of California (as well as under any other statute or common law
principles of similar effect), which states as follows:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT
THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR.”

 

Employee hereby executes this Release of All Claims on this 30th
day of August 2004.

 

 

	
  /s/ Raymond M. Withy

  	
   

  
	
   

  
	
  Raymond
  M. Withy

  

 

7

 

Exhibit B:

 

Stock Option Amendments and Stock Option Summary

 

 

[in the forms attached]

 

8

 

AGREEMENT AMENDING OPTIONS

 

This Agreement Amending Options (the “Agreement”) is entered into as of August 26, 2004 (the “Effective Date”),
by and between Abgenix, Inc., a Delaware corporation (the “Company”), and
Raymond M. Withy, Ph.D. (the “Employee”) (collectively, the “Parties”).

 

WHEREAS,
the Company previously has granted stock options to Employee under 1996
Incentive Stock Plan (the “Plan”) for the purpose of providing equity
compensation to Employee and aligning his interests with those of the
stockholders of the Company.

 

WHEREAS, the Parties desire to amend the
options listed in Attachment A hereto (the “Options”) to provide that the
Options shall continue to vest until December 31, 2004, but not thereafter.

 

NOW, THEREFORE, in consideration of the promises and
mutual covenants herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties agree as
follows:

 

1.                                                                                       All
terms with initial capitals that are used herein and that are not specifically
defined herein shall have the defined meanings set forth in the option
agreements for each Option.

 

2.                                                                                       Amendment
to Options.  Section 2(a) of the
option agreement for each of the Options is amended and restated in its entirety
as follows:

 

“(a)                            Right
of Exercise.  This Option may be
exercised during its term in accordance with the Vesting Schedule set out in
the Notice of Grant and the applicable provisions of the Plan and this Option
Agreement; provided, however,
that after December 31, 2004,  (i) no
additional shares subject to the Option shall become exercisable if such shares
are not exercisable on December 31, 2004, and (ii) this Option may not be
exercised with regard to any shares that are not exercisable on December 31,
2004.”

 

3.                                                                                       Continuing
Effect.  This Amendment shall be
effective for all purposes as of the Effective Date.  Except as otherwise expressly modified by
this Amendment, the Agreement shall remain in full force and effect in
accordance with its terms.

 

4.                                                                                       Governing
Law.  This Amendment shall be
governed by, interpreted and construed in accordance with the laws of the State
of California, without regard to conflicts of laws principles.

 

5.                                                                                       Counterparts.  This Amendment may be executed in
counterparts, each of which shall be deemed to be an original and together
shall be deemed to be one and the same document.

 

9

 

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

 

	
  COMPANY:

  	
   

  	
  EMPLOYEE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ R. Scott Greer

  	
   

  	
  /s/ Raymond M. Withy

  	
   

  
	
  [Name].

  	
   

  	
  [Name]

  	
   

  
	
  By:

  	
  R. Scott Greer

  	
   

  	
  By:

  	
  Raymond M. Withy

  	
   

  
	
  Title:

  	
  Chairman

  	
   

  	
   

  	
   

  
							

 

10

 

Attachment
A

 

The Options subject to this agreement to amend options are:

 

	
  1.

  	
  Incentive Stock Options to buy 2,089 shares granted
  1/8/2001

   

  
	
  2.

  	
  Non-Qualified Stock Options to buy 97,911 shares
  granted 1/8/2001

   

  
	
  3.

  	
  Incentive Stock Options to buy 2,607 shares granted
  2/11/2002

   

  
	
  4.

  	
  Non-Qualified Stock Options to buy 67,393 shares
  granted 2/11/2001

   

  
	
  5.

  	
  Incentive Stock Options to buy 5,172 shares granted
  5/6/2002

   

  
	
  6.

  	
  Non-Qualified Stock Options to buy 164,828 shares
  granted 5/6/2002

   

  
	
  7.

  	
  Incentive Stock Options to buy 2,919 shares granted
  4/2/2003

   

  
	
  8.

  	
  Non-Qualified Stock Options to buy 137,081 shares
  granted 4/2/2003

   

  
	
  9.

  	
  Incentive Stock Options to buy 6,401 shares granted
  1/14/2004

   

  
	
  10.

  	
  Non-Qualified Stock Options to buy 68,599 shares
  granted 1/14/2004

  

 

11

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