I agree, another beginner guitar won't be substantial. Getting him a processor is definately a great idea if he is serious about playing the guitar. If he insists on getting a new guitar I would suggest raising your price range a little bit to about $270? ESP makes some great guitars for their price range and their sound is full-bodied and heavy.
This is probably the best bargain with ESPs:

http://www.musiciansfriend.com/product/ESP-LTD-EC100QM-Electric-Guitar?sku=516637