ABGENIX INC
EX-10.4
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<p align="right" style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit 10.4</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ABGENIX, INC.</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;"><br>
1998 DIRECTOR OPTION PLAN</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">(As Amended and Restated Effective February 27,
2003)</font></b></p>

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<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Purposes of the Plan</u>.&#160; The purposes of this 1998 Director Option Plan are to attract and
retain the best available personnel for service as Outside Directors (as
defined herein) of the Company, to provide additional incentive to the Outside
Directors of the Company to serve as Directors, and to encourage their
continued service on the Board.</font></h1>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All options granted hereunder shall be nonstatutory
stock options.</font></p>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Definitions</u>.&#160;
As used herein, the following definitions shall apply:</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Board</u>&#148; means the Board of Directors of the
Company.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Code</u>&#148; means the Internal Revenue Code of 1986, as
amended.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Common Stock</u>&#148; means the Common Stock of the Company.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Company</u>&#148; means Abgenix, Inc., a Delaware
corporation.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Director</u>&#148; means a member of the Board.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Employee</u>&#148; means any person, including officers
and Directors, employed by the Company or any Subsidiary of the Company.&#160; Employees of the Parent of the Company shall
not be employees of the Company unless they are also employed by the
Company.&#160; The payment of a Director&#146;s
fee by the Company shall not be sufficient in and of itself to constitute
&#147;employment&#148; by the Company.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Exchange Act</u>&#148; means the Securities Exchange Act of
1934, as amended.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Fair Market Value</u>&#148; means, as of any date, the
value of Common Stock determined as follows:</font></h2>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If the Common Stock is listed on any established stock
exchange or a national market system, including with 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 market trading day at the time of determination, or if the determination is
not made on a market trading date, the last market trading day prior to the
time of determination) as reported in The Wall Street Journal or such other
source as the Administrator deems reliable;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of
a Share of Common Stock shall be the mean between the high bid and low asked
prices for the Common Stock on the date of determination, as reported in t) as
reported in the The Wall Street Journal or such other source as the Board deems
reliable, or;</font></h3>

<p align="center" style="line-height:200%;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Board.</font></h3>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Inside Director</u>&#148; means a Director who is an
Employee.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>New Outside Director</u>&#148; means an Outside Director
who becomes a Director after the effective date of the Plan, as amended and
restated.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Option</u>&#148; means a stock option granted pursuant to
the Plan.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Optioned Stock</u>&#148; means the Common Stock subject to
an Option.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Optionee</u>&#148; means a Director who holds an Option.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Outside Director</u>&#148; means a Director who is not an
Employee.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Parent</u>&#148; means a &#147;parent corporation,&#148; whether now
or hereafter existing, as defined in Section 424(e) of the Code.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Plan</u>&#148; means this 1998 Director Option Plan.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Share</u>&#148; means a share of the Common Stock, as
adjusted in accordance with Section 10 of the Plan.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Subsidiary</u>&#148; means a &#147;subsidiary corporation,&#148;
whether now or hereafter existing, as defined in Section 424(f) of the Internal
Revenue Code of 1986.</font></h2>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Stock Subject to the Plan</u>.&#160; Subject to the provisions of Section 10 of
the Plan, the maximum aggregate number of shares which may be optioned and sold
under the Plan is 1,000,000 Shares of Common Stock (the &#147;Pool&#148;).&#160; The Shares may be authorized, but unissued,
or reacquired Common Stock.</font></h1>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If an Option expires or becomes unexercisable
without having been exercised in full, the unpurchased Shares which were
subject thereto shall become available for future grant or sale under the Plan
(unless the Plan has terminated).&#160;
Shares that have actually been issued under the Plan shall not be
returned to the Plan and shall not become available for future distribution
under the Plan.</font></p>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Administration and Grants of Options under the Plan</u>.</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Procedure for Grants</u>.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;  All grants of Options to Outside Directors under this Plan
shall be automatic and nondiscretionary and shall be made strictly in
accordance with the following provisions:</font></h2>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No person shall have any discretion to select which
Outside Directors shall be granted Options or to determine the number of Shares
to be covered by Options granted to Outside Directors except as expressly
provided by the Plan.</font></h3>

<p align="center" style="line-height:200%;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


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<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each New Outside Director shall be automatically granted
an Option to purchase that number of Shares as shall be determined by the Board
in its sole discretion (the &#147;First Option&#148;) on the date on which such person
first becomes an Outside Director, whether through election by the stockholders
of the Company or appointment by the Board to fill a vacancy; provided,
however, that an Inside Director who ceases to be an Inside Director but who
remains a Director shall not receive a First Option.&#160; If the Board does not establish the number of Shares subject to
the First Option for a given New Outside Director prior to the date of grant
for such First Option, then the number shall be the same as the number of
Shares granted to the immediately preceding New Outside Director.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Commencing with the fiscal year beginning January 1, 2002,
each Outside Director shall be automatically granted an Option to purchase that
number of Shares as shall be determined by the Board in its sole discretion (a
&#147;Subsequent Option&#148;) on the date of the Company&#146;s Annual Meeting of
Stockholders upon such Outside Director&#146;s reelection, if on such date, he or
she shall have served on the Board for at least six (6) months.&#160; If the Board does not establish the number
of Shares subject to the Subsequent Option for a given fiscal year, then the
number shall be the same as the number of Shares subject to the Subsequent
Option for the immediately preceding fiscal year (as adjusted pursuant to
Section 10).</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Notwithstanding the provisions of subsections (ii) and
(iii) hereof, any exercise of an Option granted before the Company has obtained
stockholder approval of the Shares to be issued upon the exercise of such
Option shall be conditioned upon obtaining such stockholder approval.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The terms of a First Option granted hereunder shall be as
follows:</font></h3>

<h4 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(A)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the maximum term of a First Option shall be ten (10) years.</font></h4>

<h4 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(B)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the First Option shall be exercisable only while the
Outside Director remains a Director of the Company, except as set forth in
Sections 8 and 10 hereof.</font></h4>

<h4 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(C)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the exercise price per Share shall be 100% of the Fair
Market Value per Share on the date of grant of the First Option.&#160; In the event that the date of grant of the
First Option is not a trading day, the exercise price per Share shall be the
Fair Market Value on the next trading day immediately following the date of
grant of the First Option.</font></h4>

<h4 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(D)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; subject to Section 10 hereof, 1/48 of the Shares subject to
the First Option shall vest and become exercisable upon the last day of each
month following the date of grant of the First Option until all Shares subject
to the First Option are exercisable.</font></h4>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The terms of a Subsequent Option granted hereunder shall be
as follows:</font></h3>

<h4 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(A)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the maximum term of the Subsequent Option shall be ten (10)
years.</font></h4>

<p align="center" style="line-height:200%;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>


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<h4 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(B)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Subsequent Option shall be exercisable only while the
Outside Director remains a Director of the Company, except as set forth in
Sections 8 and 10 hereof.</font></h4>

<h4 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(C)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the exercise price per Share shall be 100% of the Fair
Market Value per Share on the date of grant of the Subsequent Option.&#160; In the event that the date of grant of the
Subsequent Option is not a trading day, the exercise price per Share shall be
the Fair Market Value on the next trading day immediately following the date of
grant of the Subsequent Option.</font></h4>

<h4 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(D)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; subject to Section 10 hereof, the Subsequent Option shall
be exercisable immediately, in whole or in part.</font></h4>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In the event that any Option granted under the Plan would
cause the number of shares subject to outstanding Options plus the number of
Shares previously purchased under Options to exceed the Pool, then the
remaining Shares available for Options grant shall be granted under Options to
the Outside Directors on a pro rata basis.&#160;
No further grants shall be made until such time, if any, as additional
Shares become available for grant under the Plan through action of the Board or
the stockholders to increase the number of Shares which may be issued under the
Plan or through cancellation or expiration of Options previously granted
hereunder.</font></h3>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Eligibility</u>.&#160;
Options may be granted only to Outside Directors.&#160; All Options shall be automatically granted
in accordance with the terms set forth in Section 4 hereof.</font></h1>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Plan shall not confer upon any Optionee any
right with respect to continuation of service as a Director or nomination to
serve as a Director, nor shall it interfere in any way with any rights which
the Director or the Company may have to terminate the Director&#146;s relationship
with the Company at any time.</font></p>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Term of Plan</u>.&#160;
The Plan shall become effective upon the earlier to occur of its
adoption by the Board or its approval by the stockholders of the Company.&#160; It shall continue in effect for a term of
ten (10) years ending in 2008 unless sooner terminated under Section 11 of the
Plan.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Form of Consideration.</u>&#160; The consideration to be paid for the Shares to be issued upon
exercise of an Option, including the method of payment, shall consist of (i)
cash, (ii) check, (iii) other shares which (x) in the case of Shares acquired
upon exercise of an Option, have been owned by the Optionee for more than six
(6) months on the date of surrender, and (y) have a Fair Market Value on the
date of surrender equal to the aggregate exercise price of the Shares as to
which said Option shall be exercised, or (iv) any combination of the foregoing
methods of payment.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Exercise of Option</u>.</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Procedure for Exercise, Rights as a Stockholder</u>.&#160;&#160; Any Option granted hereunder shall be
exercisable at such times as are set forth in Section 4 hereof and in
accordance with the schedule set forth in the agreement documenting an
individual Option.</font></h2>

<p align="center" style="line-height:200%;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;line-height:200%;margin:0in 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">An Option may not be exercised for a fraction of a
Share.</font></p>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">An Option shall be deemed to be exercised when
written notice of such exercise has been given to the Company in accordance
with the terms of the Option by the person entitled to exercise the Option and
full payment for the Shares with respect to which the Option is exercised has
been received by the Company.&#160; Full
payment may consist of any consideration and method of payment allowable under
Section 7 of the Plan.&#160; Until the
issuance (as evidenced by the appropriate entry on the books of the Company or
of a duly authorized transfer agent of the Company) of the stock certificate
evidencing such Shares, no right to vote or receive dividends or any other rights
as a stockholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option.&#160;
A share certificate for the number of Shares so acquired shall be issued
to the Optionee as soon as practicable after exercise of the Option. &#160;No adjustment shall be made for a dividend or
other right for which the record date is prior to the date the stock
certificate is issued, except as provided in Section 10 of the Plan.</font></p>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exercise of an Option in any manner shall result in
a decrease in the number of Shares which thereafter may be available, both for
purposes of the Plan and for sale under the Option, by the number of Shares as
to which the Option is exercised.</font></p>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination of Continuous Status as a Director</u>.&#160; Subject to Section 10 hereof, in the event
an Optionee&#146;s status as a Director terminates (other than upon the Optionee&#146;s
death or disability), the Optionee may exercise his or her Option, but only
within ninety (90) days following the date of such termination, and only to the
extent that the Optionee was entitled to exercise it on the date of such
termination (but in no event later than the expiration of its ten (10) year
term); provided, however, that in the event that a sale of the Option Stock
received upon exercise of this Option would subject the Director to liability
under Section 16(b) of the Securities and Exchange Act of 1934, as amended,
then the option will terminate on the earlier of (i) fifteenth day after the
last date upon which such sale would result in liability, or (ii) two hundred
ten (210) days following the date of such termination of status as a Director
(but in no event later than the expiration of its ten (10) year term).&#160; To the extent that the Optionee was not
entitled to exercise an Option on the date of such termination, and to the
extent that the Optionee does not exercise such Option (to the extent otherwise
so entitled) within the time specified herein, the Option shall terminate.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Disability of Optionee</u>.&#160;&#160; In the event Optionee&#146;s status as a Director terminates as a
result of disability, the Optionee may exercise his or her Option, but only
within twelve (12) months following the date of such termination, and only to
the extent that the Optionee was entitled to exercise it on the date of such
termination (but in no event later than the expiration of its ten (10) year
term).&#160; To the extent that the Optionee
was not entitled to exercise an Option on the date of the time specified
herein, the Option shall terminate.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Death of Optionee</u>.&#160;&#160; In the event of an Optionee&#146;s death, the Optionee&#146;s estate or a
person who acquired the right to exercise the Option by bequest or inheritance
may exercise the Option, but only within twelve (12) months following the date
of death, and only to the extent that the Optionee was entitled to exercise it
on the date of death (but in no event later than the expiration of its ten (10)
year term).&#160; To the extent that the
Optionee was not entitled to exercise an Option on the date of death, and to
the extent that the Optionee&#146;s estate or a person </font></h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">who acquired the right to exercise such Option does
not exercise such Option (to the extent otherwise so entitled) within the time
specified herein, the Option shall terminate.</font></h2>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Non-Tranferability of Options</u>.&#160;&#160; The Option may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Adjustments Upon Changes in Capitalization,
Dissolution, Merger or Asset Sale</u>.</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Changes in Capitalization</u>.&#160;&#160; Subject to any required action by the
stockholders of the Company, the number of Shares covered by each outstanding
Option, the number of Shares which have been authorized for issuance under the
Plan but as to which no Options have yet been granted or which have been
returned to the Plan upon cancellation or expiration of an Option, as well as
the price per Share covered by each such outstanding Option, and the number of
Shares issuable pursuant to the grant provisions of Section 4 hereof shall be
proportionately adjusted for any increase or decrease in the number of issued
Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued Shares 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
&#147;effected without receipt of consideration.&#148;&#160;
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 subject to an Option.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Dissolution or Liquidation</u>.&#160;&#160; In the event of the proposed dissolution or
liquidation of the Company, to the extent that an Option has not been
previously exercised, it shall terminate immediately prior to the consummation
of such proposed action.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Merger or Asset Sale</u>.&#160;&#160; In the event of a merger or consolidation of the Company with or
into another corporation or the sale of substantially all of the assets of the
Company, outstanding Options may be assumed or equivalent options may be
substituted by the successor corporation or a Parent or Subsidiary thereof (the
&#147;Successor Corporation&#148;).&#160; If an Option
is assumed or substituted for, the Option or equivalent option shall continue
to be exercisable as provided in Section 4 hereof for so long as the Optionee
serves as a Director or a director of the Successor Corporation.&#160; Following such assumption or substitution,
if the Optionee&#146;s status as a Director or director of the Successor
Corporation, as applicable, is terminated other than upon a voluntary
resignation by the Optionee, the Option or option shall become fully
exercisable, including as to Shares for which it would not otherwise be
exercisable.&#160; Thereafter, the Option or
option shall remain exercisable in accordance with Sections 8(b) through (d)
above.</font></h2>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the Successor Corporation does not assume an
outstanding Option or substitute for it an equivalent option, the Option shall
become fully vested and exercisable, including as to Shares for which it would
not otherwise be exercisable.&#160; In such
event the Board shall notify the </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=6,EFW="2106556",CP="ABGENIX, INC.",DN="4",CHK=617692,FOLIO='6',FILE="DISK038:[03PAL0.03PAL1230.EDGAR]EX10-4_1230.CHC",USER="ATOBAK",CD='Mar 25 05:55 2003' -->
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in 12.0pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Optionee that the Option
shall be fully exercisable for a period of thirty (30) days from the date of
such notice, and upon the expiration of such period the Option shall terminate.</font></p>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purposes of this Section 10(c), an Option shall
be considered assumed if, following the merger, consolidation or sale of
assets, the Option confers the right to purchase or receive, for each Share of
Optioned Stock subject to the Option immediately prior to the merger,
consolidation or sale of assets, the consideration (whether stock, cash, or
other securities or property) received in the merger, consolidation or sale of
assets by holders of Common Stock for each Share held on the effective date of
the transaction (and if holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding
Shares).&#160; If such consideration received
in the merger, consolidation or sale of assets is not solely common stock of
the successor corporation or its Parent, the Administrator may, with the
consent of the successor corporation, provide for the consideration to be
received upon the exercise of the Option, for each Share of Optioned Stock
subject to the Option, to be solely common stock of the successor corporation
or its Parent equal in fair market value to the per share consideration
received by holders of Common Stock in the merger, consolidation or sale of
assets.</font></p>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Amendment and Termination of the Plan</u>.</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Amendment and Termination</u>.&#160;&#160; Except as set forth in Section 4, the Board
may at any time amend, alter, suspend, or discontinue the Plan, but no
amendment, alteration, suspension or discontinuation shall be made which would
impair the rights of any Optionee under any grant theretofore made, without his
or her consent.&#160; In addition, to the
extent necessary and desirable to comply with any applicable law or regulation,
the Company shall obtain stockholder approval of any Plan amendment in such
manner and to such a degree as required.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Effect of Amendment or Termination</u>.&#160;&#160; Any such amendment or termination of the
Plan shall not affect Options already granted and such Options shall remain in
full force and effect as if this Plan had not been amended or terminated.</font></h2>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Time of Granting Options</u>.&#160;&#160; The date of grant of an Option shall, for all purposes, be the
date determined in accordance with Section 4 hereof.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Conditions Upon Issuance of Shares</u>.&#160;&#160; Shares shall not be issued pursuant to the
exercise of an Option unless the exercise of such Option and the issuance and
delivery of such Shares pursuant thereto shall comply with all relevant
provisions of law, including, without limitation, the Securities Act of 1933,
as amended, the Exchange Act, the rules and regulations promulgated thereunder,
state securities laws, and the requirements of any stock exchange upon which
the Shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.</font></h1>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As a condition to the exercise of an Option, the
Company may require the person exercising such Option 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 representation is required
by any of the aforementioned relevant provisions of law.</font></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=7,EFW="2106556",CP="ABGENIX, INC.",DN="4",CHK=970665,FOLIO='7',FILE="DISK038:[03PAL0.03PAL1230.EDGAR]EX10-4_1230.CHC",USER="ATOBAK",CD='Mar 25 05:55 2003' -->
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<p align="center" style="font-size:12.0pt;margin:0in 0in 12.0pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Inability of the Company to obtain authority from
any regulatory body having jurisdiction, which authority is deemed by the
Company&#146;s counsel to be necessary to the lawful issuance and sale of any Shares
hereunder, shall relieve the Company of any liability in respect of the failure
to issue or sell such Shares as to which such requisite authority shall not
have been obtained.</font></p>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Reservation of Shares</u>.&#160;&#160; The Company, during the term of this Plan, will at all times
reserve and keep available such number of Shares as shall be sufficient to
satisfy the requirements of the Plan.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Option Agreement</u>.&#160;&#160;
Options shall be evidenced by written option agreements in such form as
the Board shall approve.</font></h1>

<p style="line-height:200%;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:200%;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>


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