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Exhibit 4.2  

As of May 1, 2002 

 
 

ABGENIX, INC.
  
    CANADIAN EMPLOYEE STOCK PURCHASE PLAN    
  

The
following constitute the provisions of the Canadian Employee Stock Purchase Plan of Abgenix, Inc. 

1.    Purpose.    The purpose of the Plan is to provide employees of the Company's Designated Subsidiaries with an opportunity to
purchase Common Stock of the Company through accumulated payroll deductions. 

2.    Definitions.    

	(a)
	"Administrator"
has the meaning set out in Section 14 of this Plan.

	(b)
	"Board"
shall mean the Board of Directors of Abgenix, Inc.

	(c)
	"Code"
shall mean the Internal Revenue Code of 1986 of the United States of America, as amended.

	(d)
	"Common
Stock" shall mean the Common Stock of the Company.

	(e)
	"Company"
shall mean Abgenix, Inc.

	(f)
	"Compensation"
shall mean all base straight time gross earnings, overtime, commissions, incentive payments, bonuses and other cash compensation.

	(g)
	"Designated
Subsidiary" shall mean Abgenix Biopharma Inc. and any Subsidiary which has been designated by the Board from time to time in its sole discretion as eligible to
participate in the Plan.

	(h)
	"Employee"
shall mean any individual who is (1) an employee in Canada for tax purposes of a Designated Subsidiary; or (2) an individual who is an employee of a
Designated Subsidiary and is not resident in Canada for tax purposes but is designated by the Administrator as an "Employee" for the purpose of this Plan; and whose customary employment with the
Designated Subsidiary is at least twenty (20) hours per week and more than five (5) months in any calendar year. For purposes of the Plan, the employment relationship shall be treated as
continuing intact while the individual is on sick leave or other leave of absence approved by the Designated Subsidiary. Where the period of leave exceeds 90 days and the individual's right to
reemployment is not guaranteed either by statute or by contract, for the purposes of the Plan, the employment relationship shall be deemed to have terminated on the 91st day of such leave.

	(i)
	"Enrollment
Date" shall mean the first day of each Offering Period.

	(j)
	"Exercise
Date" shall mean the last day of each Purchase Period.

	(k)
	"Fair
Market Value" shall mean, as of any date, the value of a share of Common Stock determined as follows:

	(i)
	If
the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of
The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market
Trading Day on the date of such determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 

 

	(ii)
	If
the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean of the closing bid and asked
prices for the Common Stock on the date of such determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

	(iii)
	In
the absence of an established market for the Common Stock, the Fair Market Value thereof shall be such amount as is determined in good faith by the Administrator to be the fair
market value of such share. 

	(l)
	"Offering
Period" shall mean the period of approximately twenty-four (24) months during which an Option granted pursuant to the Plan may be exercised, commencing on
May 1 or November 1 of each year and terminating on the last day in the period ending twenty-four months later; provided, however, that the first Offering Period under the
Plan shall commence on May 1, 2002 or such period with commencement date and duration as changed by the Board pursuant to Section 4 of this Plan.

	(m)
	"Option"
has the meaning set out in Section 7 hereunder.

	(n)
	"Plan"
shall mean this Canadian Employee Stock Purchase Plan.

	(o)
	"Purchase
Period" shall mean a period of six (6) months within an Offering Period. The Purchase Periods for the first offering Period shall be as follows: 

        May 1,
2002 through October 31, 2002 

        November 1,
2002 through April 30, 2003 

        May 1,
2003 through October 31, 2003 

        November 1,
2003 through April 30, 2004 

	(p)
	"Purchase
Price" shall mean the Fair Market Value of a Share of Common Stock on the Enrollment Date or on the Exercise Date, whichever is lower.

	(q)
	"Reserves"
shall mean the aggregate number of shares of Common Stock covered by each Option under the Plan which have not yet been exercised and the number of shares of Common Stock
which have been authorized for issuance under the Plan but not yet placed under Option.

	(r)
	"Subsidiary"
shall mean a corporation, domestic or foreign, of which more than 50% of the voting shares are held by the Company or a Subsidiary, whether or not such corporation now
exists or is hereafter organized or acquired by the Company or a Subsidiary.

	(s)
	"Trading
Day" shall mean a day on which U.S. stock exchanges and the Nasdaq System are open for trading.

	(t)
	"U.S.
Dollar Equivalent" of a participant's payroll deductions accumulated on or before a certain date shall mean such participant's payroll deductions converted into U.S. dollars
based on the noon buying rate in New York City for cable transfers in Canadian dollars as certified for customs purposes by the Federal Reserve Bank of New York on the third business day in New York
immediately before the relevant date. 

3.    Eligibility.    

	(a)
	Any
Employee who shall be employed by a Designated Subsidiary on a given Enrolment Date shall be eligible to participate in the Plan, subject to the requirements of
Section 5(a); provided however that eligible Employees may not participate in more than one Offering Period at a time and may not participate in the Company's 1998 Employee Stock Purchase Plan. 

2

 

	(b)
	Any
provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an Option under the Plan (i) to the extent that, immediately after the grant, such
Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding Options to
purchase such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company, or (ii) to the extent that his or her
rights to purchase stock under all employee stock purchase plans of the Company and its subsidiaries accrues at a rate which exceeds Twenty-Five Thousand U.S. Dollars (US$25,000) worth of
stock of the Company (determined at the Fair Market Value of the shares at the time such Option is granted) for each calendar year in which such Option is outstanding at any time. 

4.    Offering Periods and Purchase Periods.    

	(a)
	Offering Periods. The Plan shall be implemented by consecutive, overlapping Offering Periods with a new Offering Period commencing on
May 1 and November 1 each year, or on such other date as the Board shall determine, and continuing thereafter until terminated in accordance with Section 20 hereof; provided,
however, that the first Offering Period under the Plan shall commence on May 1, 2002. The Board shall have the power to change the duration of Offering Periods (including the commencement dates
thereof) with respect to future offerings without approval from Employees or participants under the Plan if such change is announced at least five (5) days prior to the scheduled beginning of
the first Offering Period to be affected thereafter.

	(b)
	Purchase Periods. Each Offering Period shall consist of four (4) consecutive Purchase Periods of approximately six
(6) month's duration. The last day of each Purchase Period shall be the Exercise Date for such Purchase Period. A Purchase Period commencing on May 1 shall end on the next
October 31. A Purchase Period commencing on November 1 shall end on the next April 30. Notwithstanding the foregoing, the Administrator may change the duration and/or frequency of
any Purchase Period in its sole discretion, upon the commencement of any new Purchase Period, subject to all applicable federal and provincial laws. 

5.    Participation.    

	(a)
	An
Employee may become a participant in the Plan by completing a subscription agreement authorizing payroll deductions in the form of Exhibit A to this Plan and filing it with
the Company or the Designated Subsidiary's payroll office prior to the applicable Enrolment Date.

	(b)
	Payroll
deductions for a participant shall commence on the first payroll following the Enrolment Date and shall end when terminated by the participant as provided in Section 10
hereof. 

6.    Payroll Deductions.    

	(a)
	At
the time a participant files his or her subscription agreement, he or she shall elect in the subscription agreement to have payroll deductions made on each pay day during the
Offering Period in an amount being a whole percentage not exceeding fifteen percent (15%) of the Compensation which he or she is entitled to receive on each pay day during the Offering Period.

	(b)
	All
payroll deductions made for a participant shall be credited to his or her account under the Plan and shall be withheld in whole percentages only. A participant may not make any
additional payments into such account. 

3

 

	(c)
	A
participant may either (i) discontinue his or her participation in the Plan as provided in Section 10 hereof, or, (ii) increase or decrease (including to zero
percent (0%)) the rate of his or her payroll deductions during the Offering Period without discontinuing his or her participation in the Plan by completing and filing with the Company a new
subscription agreement authorizing a change in payroll deduction rate. The Administrator may, in its discretion, limit the number of participation rate changes during any Offering Period. The change
in rate shall be effective with the first full payroll period following five (5) business days after the Company's receipt of the new subscription agreement unless the Company elects to process
a given change in participation more quickly. A participant's subscription agreement shall remain in effect for successive Offering Periods unless changed in accordance with this section or terminated
as provided in Section 10 hereof. For clarification purposes, a participant may participate in only one Offering Period at any time.

	(d)
	At
the time the Option is exercised, in whole or in part, or at the time some or all of the Company's Common Stock issued under the Plan is disposed of, the participant must make
adequate provision for the Company's and the Designated Subsidiary's federal, state, provincial or other tax withholding obligations, if any, which arise upon the exercise of the Option or the
disposition of the Common Stock. At any time, the Company and / or the Designated Subsidiary may, but shall not be obligated to, withhold from the participant's compensation the amount necessary for
the Company and the Designated Subsidiary to meet applicable withholding obligations, including any withholding required to make available to the Company or the Designated Subsidiary any tax
deductions or benefits attributable to sale or early disposition of Common Stock by the Employee. The Company or the Designated Subsidiary may also require the participant to provide cash payment or
cleared funding to the Company or the Designated Subsidiary to satisfy any or all of such withholding obligations before the Company issues any Common Stock to such participant. 

7.    Grant of Option.    On the Enrolment Date of each Offering Period, each Employee participating in such Offering Period shall
be granted an Option (the "Option") exercisable on each Exercise Date during such Offering Period to purchase at the applicable Purchase Price up to the maximum full number of shares of the Company's
Common Stock determined by dividing such Employee's U.S. Dollar
Equivalent of payroll deductions accumulated on or before such Exercise Date and retained in the Participant's account as of such Exercise Date by the applicable Purchase Price provided that in no
event shall an Employee be permitted to purchase during each Purchase Period more than 10,000 shares of the Company's Common Stock (subject to any adjustment pursuant to Section 19), and
provided further that such purchase shall be subject to the limitations set forth in Sections 3(b) and 13 hereof. Exercise of the Options shall occur as provided in Section 8 hereof, unless the
participant has withdrawn pursuant to Section 10 hereof. The Option if not exercised shall expire on the last day of the relevant Offering Period. 

8.    Exercise of Option.    Unless a participant withdraws from the Plan as provided in Section 10 hereof and subject to
provisions under Section 19 hereof, his or her Option shall be deemed to be exercised automatically on each Exercise Date of an Offering Period, and the maximum number of full shares subject to
such Option shall be purchased for such participant at the applicable Purchase Price with the U.S. Dollar Equivalents of accumulated payroll deductions in his or her account. No fractional shares
shall be purchased; to the extent any payroll deductions accumulated in a participant's account are not sufficient to purchase a full share, such payroll deduction shall be retained in the
participant's account for the next Purchase Period or Offering Period, as the case may be, subject to earlier withdrawal by the participant as provided in Section 10 hereof. During a
participant's lifetime, a participant's Option to purchase shares hereunder is exercisable only by him or her for his or her benefit. 

4

 

9.    Delivery.    

	(a)
	As
promptly as practicable after each Exercise Date on which a purchase of shares occurs, the Company shall arrange delivery of a certificate (or proof of title) representing the
shares purchased upon exercise of his or her Option to each participant or pursuant to the direction set out in the subscription agreement or the sale request, as applicable.

	(b)
	If
a participant gives a sale request to the Company in a form specified from time to time by the Administrator and such other documents as deemed necessary by the Administrator on or
before ten days prior to an Exercise Date indicating that the participant wishes to sell all of the Common Stock purchased by him or her pursuant to the exercise of his or her Option on such Exercise
Date ("Sale Stock"), the Company shall forward, on behalf of the participant, such sale request to a broker selected by the Administrator (the "Selected Broker"), who upon receipt of such request will
arrange for the sale of the Sale Stock as an open market order for and on behalf of such participant on the Exercise Date or as soon as practical thereafter and pay the proceeds of such sale to the
participant, net of all brokerage and other applicable fees less any amount necessary to meet applicable withholding obligations of the Company or the Designated Subsidiary in respect of the exercise
of the participant's Option and the disposition of the Sale Stock. By executing a sale request, the participant shall be deemed to have irrevocably authorized the Selected Broker to pay to the Company
or the Designated Subsidiary from the sale proceeds of the Sale Stock such amount specified by the Company or the Designated Subsidiary necessary to meet the applicable withholding obligation of the
Company or the Designated Subsidiary referred to above. Notwithstanding the above, each participant who gives a sale
request to the Company shall be responsible for ensuring that he or she opens an account with the Selected Broker and, unless such participant has done so, no sale request will or can be processed. 

10.    Withdrawal.    

	(a)
	A
participant may withdraw all but not less than all of the payroll deductions credited to his or her account and not yet used to exercise his or her Option under the Plan at any time
by giving written notice to the Company in the form of Exhibit B to this Plan. All of the participant's payroll deductions credited to his or her account shall be paid to such participant
promptly after receipt of notice of withdrawal and such participant's Option for the Offering Period shall be automatically terminated, and no further payroll deductions for the purchase of shares
shall be made for such Offering Period. If a participant withdraws from an Offering Period, payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the
participant delivers to the Company a new subscription agreement.

	(b)
	A
participant's withdrawal from an Offering Period shall not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the
Company or in succeeding Offering Periods which commence after the termination of the Offering Period from which the participant withdraws. 

11.    Termination of Employment.    Upon a participant's ceasing for any reason to be an Employee, he or she shall be deemed to
have elected to withdraw from the Plan and the payroll deductions credited to such participant's account during the Offering Period but not yet used to exercise the Option shall be returned to such
participant or, in the case of his or her death, to the person or persons entitled thereto under Section 15 hereof, and such participant's Option shall be terminated automatically. The
preceding sentence notwithstanding, a participant who receives payment in lieu of notice of termination of employment shall be treated as continuing to be an Employee for the participant's customary
number of hours per week of employment during the period in respect of which such payment in lieu of notice relates. 

5

 

12.    Interest.    A participant shall not be entitled to any interest on the payroll deductions of such participant under the Plan
under any circumstances. 

        13.    Stock.    

	(a)
	The
maximum number of shares of the Company's Common Stock which shall be made available for sale under the Plan shall be 200,000 shares, subject to adjustment upon changes in
capitalization of the Company as provided in Section 19 hereof. If, on a given Exercise Date, the number of shares with respect to which Options are to be exercised by all participants on such
Exercise Date exceeds the number of shares then available under the Plan, the Company shall make a pro rata allocation of the shares remaining available for purchase in as equitable a manner as shall
be practicable and as it shall determine to be equitable in its sole discretion and funds not used to purchase shares on such Exercise Date shall be returned, in cash, without interest, to the
participants.

	(b)
	The
participant shall have no interest or voting right in shares covered by his or her Option until such Option has been exercised.

	(c)
	Shares
to be delivered to a participant under the Plan shall be registered in the name of a registered dealer for the benefit of the participant or in the name of the participant
pursuant to the subscription agreement executed by the participant and accepted by the Company. 

14.    Administration.    The Plan shall be administered by the Board or a committee of members of the Board appointed by the Board
(in either case referred to herein as the "Administrator"). The Administrator shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine
eligibility and to adjudicate all disputed claims under the Plan. Every finding, decision and determination made by the Administrator shall, to the full extent permitted by law, be final and binding
upon all parties. 

        15.    Designation of Beneficiary.    

	(a)
	A
participant may file a written designation of beneficiary who is to receive any shares and cash, if any, from the participant's account under the Plan in the event of such
participant's death subsequent to an Exercise Date on which the Option is exercised but prior to delivery to such participant of such shares and cash. In addition, a participant may file with the
Company a written designation of a beneficiary who is to receive any cash from the participant's account under the Plan in the event of such participant's death prior to exercise of the Option. If a
participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective.

	(b)
	Such
designation of beneficiary may be changed by the participant at any time by written notice to the Company. In the event of the death of a participant and in the absence of a
beneficiary validly designated under the Plan who is living at the time of such participant's death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate of
the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, and without liability to any person, may deliver such
shares and/or cash to the spouse or to any one or more dependants or relatives of the participant, or if no spouse, dependant or relative is known to the Company, then to such other person as the
Company may designate. 

16.    Transferability.    Neither payroll deductions credited to a participant's account nor any rights with regard to the exercise
of an Option or to receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in
Section 15 hereof) by the participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may in its sole discretion treat 

6

 

such act as an election to withdraw funds from an Offering Period in accordance with Section 10 hereof. 

17.    Use of Funds.    All payroll deductions received or held by the Company under the Plan may be used by the Company for any
corporate purpose, and the Company shall not be obligated to segregate such payroll deductions. 

18.    Reports.    Individual participation record accounts shall be maintained for each participant in the Plan. Statements of
account shall be given to participating Employees at intervals determined by the Administrator but at least annually, which statements shall set forth the amounts of payroll deductions, the Purchase
Price, the number of shares purchased and the remaining cash balance, if any. 

19.    Adjustments Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Asset Sale    

	(a)
	Changes
in Capitalization. Subject to any required action by the stockholders of the Company, the Reserves, the maximum number of shares each participant may purchase during each
Purchase Period (pursuant to Section 7), as well as the price per share and the number of shares of Common Stock covered by each Option under the Plan which has not yet been exercised shall be
adjusted proportionately for any increase or decrease in the number of issued shares of such Common Stock resulting from a stock split, reverse stock split, stock dividend, reorganization,
recapitalization, merger, consolidation, spin-off, combination exchange of shares or other corporate exchange, reclassification of the Common Stock, any distribution to stockholders of
shares other than regular cash dividends or any other increase or decrease in the number of shares of Common Stock effected without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration". Such adjustment shall be made by the Board, whose determination in
that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option.

	(b)
	Dissolution
or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Offering Period then in progress shall be shortened by setting a new Exercise
Date (the "New Exercise Date"), and shall terminate immediately prior to the consummation of such proposed dissolution or liquidation, unless otherwise provided by the Board. The New Exercise Date
shall be
before the date of the Company's proposed dissolution or liquidation. The Board shall notify each participant in writing at least fifteen (15) business days prior to the New Exercise Date, that
the Exercise Date for the participant's Option has been changed to the New Exercise Date and that the participant's Option shall be exercised automatically on the New Exercise Date, unless prior to
such date the participant has withdrawn from the Offering Period as provided in Section 10 hereof.

	(c)
	In
the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation (a "Change in Control"), then,
as determined by the Administrator in its sole discretion and without liability to any person (i) the Administrator may take such actions, if any, as it deems necessary or desirable with
respect to any Option or Offering Period as of the date of the consummation of the Change in Control, (ii) any surviving or acquiring corporation may assume outstanding Options or substitute
similar Options for those under the Plan, (iii) such Options may continue in full force and effect, or (iv) the participants' accumulated payroll deductions may be used to purchase
shares immediately prior to the effective date of the Change in Control transaction and the participants' Options under the ongoing Offering Period(s) terminated. 

7

 

20.    Amendment or Termination.    

	(a)
	The
Board may at any time and for any reason terminate or amend the Plan. Except as provided in Sections 19 or 20 hereof, no such termination can affect or amend any Options
previously granted, provided however that an Offering Period may be terminated by the Board of Directors on any Exercise Date if the Board determines that the termination of the Plan is in the best
interests of the Company and its stockholders. Furthermore, except as provided in Sections 19 or 20 hereof, neither the Plan nor any Options granted under the Plan may be amended if such amendment, in
the view of the Board, would adversely affect the rights of any participant, unless such participant consents.

	(b)
	Without
stockholder consent and without regard to whether any participant's rights may be considered to have been "adversely affected," the Administrator shall be entitled to change
the Offering Periods, limit the frequency and/or the number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other
than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company's processing of properly completed
withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each
participant properly correspond with amounts withheld from the participant's Compensation, and establish such other limitations or procedures as the Administrator determines in its sole discretion to
be advisable and consistent with the Plan.

	(c)
	Notwithstanding
any other provision of the Plan, if the Administrator determines, in its sole discretion, that the application of a particular provision or provisions of the Plan
would result in
inappropriate or unfair treatment of a participant or prospective participant, the Administrator may waive such provision or provisions as they apply to that participant or prospective participant.
Such actions by the Administrator shall not constitute an amendment of the Plan and shall not establish a precedent or in any way restrict the Administrator's ability to act in similar or dissimilar
situations that may arise in the future. 

21.    Notices.    All notices or other communications by a participant to the Company and the Designated Subsidiary under or in
connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company and the Designated Subsidiary at the location, or by the person, designated by the
Company and the Designated Subsidiary for the receipt thereof. 

22.    Conditions Upon Issuance of Shares.    Shares shall not be issued with respect to an Option unless the exercise of such
Option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933,
as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, the requirements of any stock exchange upon which the shares may then be listed, and all
applicable Canadian and provincial securities legislation, orders and policies and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

        As
a condition to the exercise of an Option pursuant to Section 8, on or before the time of such exercise, the Company may require the participant whose options are so exercised
to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion
of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law. 

23.    Term of Plan.    The Plan shall become effective upon its adoption by the Board of Directors, and shall continue in effect
unless sooner terminated under Section 20 hereof. 

8

 

24.    Automatic Transfer to Low Price Offering Period.    To the extent permitted by any applicable laws, regulations, or stock
exchange rules, if the Fair Market Value of the Common Stock on any Exercise Date (other than the final Exercise Date) in an Offering Period is lower than the Fair Market Value of the Common Stock on
the Enrolment Date of such Offering Period, all participants remaining enrolled in the Plan on such Exercise Date of that Offering Period shall, immediately after the exercise of their Option on such
Exercise Date be automatically withdrawn from participation in respect of such Offering Period and, unless the participant otherwise directs, shall be automatically re-enrolled in the
immediately following Offering Period as of the first day thereof. 

25.    Right to Continued Employment.    Nothing in the Plan shall be construed as creating any employment relationship between the
Company and the Employee or as giving any Employee the right to be retained in the employ of the Company or any Designated Subsidiary or any right to any payment whatsoever except to the extent of the
benefits provided for by the Plan. The participant acknowledges that neither of the Company nor the Designated Subsidiary shall incur any liability as a result of the termination of an Employee's
participation under this Plan by reason of the dismissal of such Employee by the Company or any Designated Subsidiary. 

9

QuickLinks

ABGENIX, INC. CANADIAN EMPLOYEE STOCK PURCHASE PLAN<Page>
                                                                     EXHIBIT 4.5

                             DIVIDEND REINVESTMENT
                            AND SHARE PURCHASE PLAN

                               OFFERING CIRCULAR

                                [TRANSALTA LOGO]

                               FEBRUARY 25, 2002
<Page>
                               TABLE OF CONTENTS

<Table>
<S>                                                           <C>
Summary.....................................................     1
Price.......................................................     1
  Reinvestment Prices.......................................     2
The Plan....................................................     2
  Shares Offered............................................     2
  Eligible Participants.....................................     2
  Eligible Funds............................................     3
  Price of Common Shares Acquired...........................     3
  Administration............................................     3
  Fractional Shares.........................................     3
  Optional Cash Payments....................................     3
  Reports to Participants...................................     4
  Dividends.................................................     4
  Certificates for Common Shares............................     4
  Termination from Participation in the Plan................     4
Income Tax Consequences.....................................     4
  Voting of Common Shares Held by the Trustee...............     4
  Rights Offerings and Stock Splits.........................     5
  Amendment and Termination.................................     5
  Shareholders Outside Canada...............................     5
Use of Proceeds.............................................     5
Share Capital...............................................     5
  Details of Common Shares..................................     5
  Price Range of Transalta Common Shares....................     6
  Dividend Record on Transalta Common Shares................     6
</Table>

    All dollar figures contained in this offering circular are stated in
Canadian dollars.

    INQUIRIES:

    CIBC Mellon Trust Company
    Dividend Reinvestment Services
    P.O. Box 7010
    Adelaide Street Station
    Toronto, Ontario M5C 2W9

    www.cibcmellon.com
    email: inquiries@cibcmellon.com

    TOLL FREE:
      1-800-387-0825
<Page>
                                    SUMMARY

    TransAlta Corporation's Dividend Reinvestment and Share Purchase Plan
provides a convenient opportunity for holders of its outstanding common shares
to purchase common shares of TransAlta Corporation. At the option of TransAlta
Corporation, purchases of such shares will be made in the open market or shares
will be issued by TransAlta Corporation from treasury. All brokerage or
administration costs of the plan will be paid by TransAlta Corporation.
Investments may be made at the prices and from the funds outlined below. For
details please refer to the following pages of this circular.

                                     PRICE

    For purchases of common shares on the open market, 100% of average market
price(1) for TransAlta Corporation common shares acquired from:

    (i) cash dividends on TransAlta Corporation common shares; and

    (ii) optional cash payments up to $5,000 per quarter.

    For purchases of common shares issued by TransAlta Corporation from
treasury, 95% of averaged market price(1) for TransAlta Corporation commmon
Shares aquired from:

    (i) cash dividends on TransAlta Corporation common shares; and

    (ii) optional cash payments up to $5,000 per quarter.

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

(1) Average market price will be based on trade prices of TransAlta Corporation
    common shares on The Toronto Stock Exchange as described on page 4 under the
    title Price of Common Shares Acquired.

                                       1
<Page>
                             REINVESTMENT PRICES(2)

<Table>
<Caption>
                                                              JANUARY     APRIL       JULY     OCTOBER
                                                              --------   --------   --------   --------
<S>                                                           <C>        <C>        <C>        <C>
1977........................................................   5.4150     5.1538     5.5714     5.3536
1978........................................................   5.7673     5.8405     6.0681     6.2166
1979........................................................   6.3630     6.6678     7.2022     7.1566
1980........................................................   7.3526     6.7252     8.6212     8.6925
1981........................................................   8.5382     9.8860     9.1794     7.1428
1982........................................................   8.4075     8.2294     7.5822     8.7340
1983........................................................  10.3194    10.4500     9.1378     9.8147
1984........................................................  10.0581     9.7968    10.0700     9.9868
1985........................................................  12.1938    12.4438    13.0625    12.5562
1986........................................................  13.7875    13.7312    14.0438    14.3688
1987........................................................  14.4000    15.5375    14.7125    14.0062
1988........................................................  14.2062    14.3625    13.8375    14.1250
1989........................................................  13.8374    13.4875    14.8500    13.9625
1990........................................................  14.2125    13.3875    12.2875    11.5250
1991........................................................  12.0819    12.1818    12.1992    12.5157
1992........................................................  13.4535    12.3441    13.3969    13.6749
1993........................................................  13.6475    13.5406    14.7164    14.6338
1994........................................................  15.1319    14.7831    13.7250    14.4860
1995........................................................  14.1748    14.1140    14.2542    14.1617
1996........................................................  14.7147    14.5977    14.7534    15.9433
1997........................................................  17.0564    16.6752    16.4645    18.2263
1998........................................................  22.2695    24.2278    23.8314    22.7020
1999........................................................  22.7022    22.2866    21.1850    19.0550
2000........................................................  14.6422    14.1718    16.0281    19.1388
2001........................................................  21.7879    23.1158    25.8830    20.6405
2002........................................................  20.4295
</Table>

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

(2) Adjusted for 2 for 1 stock split February 1, 1988 and 3 for 1 stock split
    May 8, 1980. Pursuant to a court approved arrangement effective December 31,
    1992, holders of TransAlta Utilities Corporation common shares exchanged
    their shares for common shares issued by TransAlta Corporation. TransAlta
    Utilities Corporation became a subsidiary of TransAlta Corporation pursuant
    to this reorganization. Since January 1, 1993, TransAlta Corporation common
    shares have been issued to participants in the Plan.

                                    THE PLAN

    TransAlta Corporation ("TransAlta") is offering an opportunity for holders
of its outstanding common shares (the "common shares") to purchase common shares
of TransAlta. This opportunity is provided through the Dividend Reinvestment and
Share Purchase Plan ("Plan").

SHARES OFFERED

    The common shares to be acquired on the dividend payment dates by a
participant in the Plan ("Participant") will be, at the option of TransAlta,
(i) issued from treasury, or (ii) purchased in the open market on a stock
exchange. The dividend payment dates for common shares are January 1, April 1,
July 1 and October 1.

ELIGIBLE PARTICIPANTS

    All holders of record of common shares are eligible to participate in the
Plan at any time. Any registered holder of record wishing to join the Plan as
described in the Offering Circular should complete an Authorization Form and
return it to CIBC Mellon Trust ("the Trustee").

                                       2
<Page>
    A person who is a beneficial owner of common shares and not an owner of
record (i.e. whose shares are held and registered in a nominee account) is able
to participate in the plan through CDS and Co. These holders should contact
their investment dealers to participate.

    Participation in the Plan is continuous until termination of participation
and shareholders currently participating need not re-enroll. Enrollments in the
Plan will be recorded on February 15, May 15, August 15 and November 15 of each
year and will be effective on the dividend payment date following the enrollment
date. Authorization Forms received by the Trustee after one of the enrollment
dates mentioned above will not be recorded until the next succeeding enrollment
date. The right to participate in and to acquire common shares under the Plan is
not assignable by the holders of common shares.

ELIGIBLE FUNDS

    A Participant in the Plan may invest in common shares using funds from any
of the following sources:

    (i) cash dividends on common shares of TransAlta owned by the Participant;

    (ii) optional cash payments up to $5,000 per quarter.

PRICE OF COMMON SHARES ACQUIRED

    The price of common shares purchased in the open market on behalf of
Participants with eligible funds on the dividend payment dates will be 100% of
the weighted average price of the common shares traded on The Toronto Stock
Exchange during the last five trading days preceding the relevant dividend
payment dates (as used herein "trading day" means a day on which not less than
500 common shares were traded). Participants will not be charged any brokerage
or administration costs. These costs will be paid by TransAlta.

    The price of common shares issued from treasury on behalf of Participants
with eligible funds on the dividend payment dates will be 95% of the weighted
average price of the common shares, determined in the manner set forth above.

ADMINISTRATION

    The Plan will be administered on behalf of TransAlta and the Participants by
the Trustee. The Trustee will receive eligible funds, purchase and hold the
common shares acquired under the Plan and report regularly to the Participants.

    In the case of stock exchange purchases, the Trustee, as soon as reasonably
prudent, will purchase common shares for the Plan. Such purchases may be made on
any stock exchange where such shares are traded and may be on such terms as to
cost, delivery and otherwise as the Trustee may determine.

FRACTIONAL SHARES

    The Trustee will credit the account of a Participant with fractions of
common shares and dividends in respect of such fractions. This allows full
investment of eligible funds.

OPTIONAL CASH PAYMENTS

    On each dividend payment date any funds derived from optional cash payments
received by the Trustee from the Participants not less than five business days
prior to such dividend payment date, will be applied by the Trustee to the
purchase of common shares.

    The option to make cash payments is available to holders of record each
quarter but cannot exceed $5,000 per quarter. Optional cash payments may be made
through the use of the CASH PAYMENT FORM or the tear-off form attached to each
quarterly statement sent to Participants. Optional cash payments must be
received by the Trustee no later than five business days preceding the dividend
payment date. The same amount of money need not be sent each quarter and there
is no obligation to make an optional cash payment each quarter. Holders of
shares purchased through the Plan will be holders of record for the next
dividend payment.

                                       3
<Page>
For example, shares purchased prior to the record date for the January 1
dividend will pay dividends to the holders on April 1.

    It should be noted that optional cash payments received by the Trustee later
than five business days preceding a dividend payment date will be held by the
Trustee until the next dividend payment date.

    No interest will be paid by TransAlta or by the Trustee on any funds
received prior to a dividend payment date. Any interest earned on such funds
will be applied by TransAlta to defray the costs of the Plan.

REPORTS TO PARTICIPANTS

    Each Participant will receive timely confirmation of purchases. These
statements will constitute a continuing record of the cost of common shares and
MUST BE RETAINED FOR INCOME TAX PURPOSES.

DIVIDENDS

    Participants will be credited with dividends on full shares and on fractions
of shares acquired under the Plan. The accumulated dividends will be reinvested
in common shares. The date of acquisition for such shares will be the dividend
payment date on which funds are reinvested.

CERTIFICATES FOR COMMON SHARES

    Common shares purchased under the Plan will be initially held in the name of
the Trustee. This convenience protects against loss, theft or destruction of
share certificates. The number of common shares credited to an account under the
Plan (less any shares delivered to the Participant) will be shown on the
Participant's statement of account. Certificates for any number of whole common
shares purchased under the Plan will be issued to a Participant upon written
request; however, certificates for less than five shares will not be issued
except upon termination of the Plan.

TERMINATION FROM PARTICIPATION IN THE PLAN

    To terminate participation in the Plan before the next dividend payment
date, a Participant must notify the Trustee in writing prior to the 15th day of
February, May, August or November. Following receipt by the Trustee of the
notice of termination, certificates for whole common shares credited to the
Participant's account will be issued and a cash payment will be made for any
fraction of a share.

                            INCOME TAX CONSEQUENCES

    The reinvestment of cash dividends does not relieve a Participant of any
liability for income taxes that may be otherwise payable on such amounts. A
Participant will be treated for tax purposes as having received, on the dividend
payment date, a dividend equal to the full amount of the cash dividend payable
on such date.

    A Participant who disposes of common shares acquired under the Plan and held
as capital property will be taxed on a capital gains basis. For capital gains
tax purposes, generally the cost to a Participant of each common share owned by
him is the average cost to him of all such shares. For this purpose, the cost of
a common share credited to the Participant's account in respect of the
investment of eligible funds will equal the cost of such shares.

VOTING OF COMMON SHARES HELD BY THE TRUSTEE

    Pursuant to the provisions of the Canada Business Corporations Act, a
Participant will be entitled to direct the voting of full common shares credited
to the Participant. Fractional common shares cannot be voted by
the Participant.

                                       4
<Page>
RIGHTS OFFERINGS AND STOCK SPLITS

    In the event TransAlta makes available to its holders of common shares
rights to subscribe for additional common shares or other securities, a
Participant's entitlement will be based on his total holdings on the
record date.

    Any stock splits effected by TransAlta on the common shares will be credited
to the accounts of the Participants, excluding fractional shares.

AMENDMENT AND TERMINATION

    TransAlta reserves the right to amend, suspend or terminate the Plan at any
time. No such amendment or termination shall have retroactive effect.

SHAREHOLDERS OUTSIDE CANADA

    Shareholders resident outside Canada, in countries other than the United
States of America, will be eligible to participate in the Plan. However, funds
to be reinvested by such shareholders will continue to be subject to withholding
or applicable non-resident tax and the amount to be invested will be reduced by
the amount of tax withheld.

    The common shares to be issued to Participants are not registered under the
Securities Act of 1933 of the United States of America. Accordingly, the common
shares are not being offered for sale in the United States of America or in any
of the territories or possessions thereof, and participation in the Plan will
not be accepted from any person or his agent who appears to be or who the
Trustee or TransAlta have reason to believe is a resident of the United States
of America or any of the territories or possessions thereof.

                                USE OF PROCEEDS

    The net proceeds to TransAlta from the sale to Participants from treasury of
common shares under the Plan cannot be determined; however, such net proceeds,
as and when received, will be used by TransAlta and its subsidiaries, to:

    (i) reduce bank loans from time to time outstanding and repay short term
        promissory notes incurred for working capital purposes.

    (ii) provide financing for the capital expenditure and investment
         programs; and

   (iii) retire current maturities of bonds and debentures and redeem
         preferred shares.

                                 SHARE CAPITAL

    The authorized capital of TransAlta consists of an unlimited number of first
preferred shares and common shares, each without nominal or par value. The first
preferred shares rank in priority to the common shares. TransAlta has only
common shares outstanding as of the date of the Offering Circular, and the
outstanding common shares of TransAlta are fully paid and non-assessable.

DETAILS OF COMMON SHARES

    The common shares of TransAlta carry one vote per share. Subject to the
prior rights of holders of first preferred shares of TransAlta (if any), the
holders of the common shares share rateably in any dividends or distributions
to shareholders.

                                       5
<Page>
PRICE RANGE OF TRANSALTA COMMON SHARES

    The common shares of TransAlta are listed on The Toronto Stock Exchange.
Prior to the court approved arrangement becoming effective on December 31, 1992,
the common shares of Utilities were listed on the Alberta, Montreal and Toronto
stock exchanges, with the most active trading being on The Toronto Stock
Exchange. The common shares of TransAlta began trading on the New York Stock
Exchange on July 31, 2001.

<Table>
<Caption>
                                                                                NUMBER OF
YEAR                                                      HIGH       LOW      SHARES TRADED
----                                                    --------   --------   -------------
<S>                                                     <C>        <C>        <C>
1992..................................................  14 1/2         12       51,109,181
1993..................................................  15 1/2     12 5/8       60,875,983
1994..................................................  16 1/4     13 1/8       47,276,370
1995..................................................  14 7/8         13       53,943,377
1996..................................................   18.20      14.25       65,690,346
1997..................................................   22.85      15.10      103,723,211
1998..................................................   25.40      18.20       82,442,903
1999..................................................   25.15      12.25      116,408,817
2000..................................................   22.55      13.20      101,185,953
</Table>

DIVIDEND RECORD ON TRANSALTA COMMON SHARES

<Table>
<Caption>
YEAR                                                          DIVIDEND
----                                                          --------
<S>                                                           <C>
1992........................................................    0.98
1993........................................................    0.98
1994........................................................    0.98
1995........................................................    0.98
1996........................................................    0.98
1997........................................................    0.98
1998........................................................    0.99
1999........................................................    1.00
2000........................................................    1.00
</Table>

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

*   The quarterly dividend was increased January 1, 1999 from $0.245 to
    $0.25 per share.

                                                                [TRANSALTA LOGO]

                                                                    S. G. Snyder
                                                                   President and
                                                         Chief Executive Officer

                                                                   Rodger Conner
                                                             Corporate Secretary

                                       6
<Page>
[TRANSALTA LOGO]

Box 1900, Station "M"
110 - 12th Avenue S.W.
Calgary, Alberta T2P 2M1

Recycled Paper
Printed in Canada

                                                                        02.02.48

                                       7

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