EXHIBIT 10.12

AFFYMAX INC.

EXECUTIVE EMPLOYMENT AGREEMENT  for  Steven Love

This Employment Agreement ("Agreement") is entered into by and between Steven Love ("Executive") and Affymax Inc., (the "Company"), effective as of
July 21, 2007.

WHEREAS, the Company desires to employ Executive to provide personal services to the Company, and wishes to provide Executive with certain
compensation and benefits in return for his services; and

WHEREAS, Executive wishes to be employed by the Company and provide personal services to the Company in return for certain compensation
and benefits;

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, it is hereby agreed by and between the parties
hereto as follows:

1.EMPLOYMENT BY THE COMPANY.

1.1Position.Subject to terms set forth herein, the Company
agrees to employ Executive in the position of Vice President, Finance hereby accepts such employment effective as of August 20, 2007 (the "Employment Date"). During the term of his employment
with the Company, Executive will devote his best efforts and substantially all of his business time and attention to the business of the Company, except for vacation periods as set forth herein and
reasonable periods of illness or other incapacities permitted by the Company's general employment policies.

1.2Duties and Location.Executive shall serve in an executive
capacity and shall perform such duties as are customarily associated with his then current title, consistent with the Bylaws of the Company and as required by the Company's Board of Directors (the
"Board"). Executive will report to the Chief Financial Officer and Executive Vice President, Corporate Development. Executive's primary office location shall be the Company's corporate headquarters,
currently located in Palo Alto, California. The Company reserves the right to reasonably require Executive to perform his duties at places other than its corporate headquarters from time to time, and
to require reasonable business travel.

1.3Policies and Procedures.The employment relationship between
the parties shall also be governed by the general employment policies and practices of the Company, including those relating to protection of confidential information and assignment of inventions,
except that when the terms of this Agreement differ from or are in conflict with the Company's general employment policies or practices, this Agreement shall control.

2.COMPENSATION.

2.1Salary.Executive shall receive for services to be rendered
hereunder an annualized base salary of $240,000, payable on a semi-monthly basis, subject to payroll withholding and deductions and payable in accordance with the Company's regular payroll
schedule. Such salary shall be reviewed annually and may be increased as approved by the Board.

2.2Bonus.Executive will be eligible to earn an annual bonus of
up to 30% of base salary as determined by the Board of Directors upon the recommendations of its Compensation Committee and Chief Executive Officer and provided that Executive remains employed by the
Company as of the date the bonus is calculated. Fifty percent (50%) of the bonus amount will be based on the Company's performance in meeting its planned operating objectives and fifty percent (50%)
of the bonus amount will be based on the Executive's performance against expectations of his position, as determined by the Company in its sole discretion.

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2.3Standard Company Benefits.Executive shall be entitled to
all rights and benefits for which he is eligible under the terms and conditions of the standard Company benefits and compensation practices which may be in effect from time to time and provided by the
Company to its employees generally.

2.4Equity Compensation.Subject to the approval of the Board,
Executive shall be granted an option to purchase 40,000 shares of Company Common Stock (the "Option"), at fair market value as determined by the Board as of the date of grant, pursuant to the
Company's 2006 Equity Incentive Plan (the "Plan"). The Option shares will vest as follows: with twenty-five percent (25%) of the shares covered by the Option vesting on the first year
anniversary of the vesting commencement date and the remaining seventy-five percent (75%) of the shares covered by the Option vesting in thirty-six (36) equal monthly
installments thereafter, in accordance with the Company's standard vesting policy, as long as the Executive remains in continuous service with the Company. The Option shall be governed by the terms
and conditions set forth in the Plan, and in the applicable stock option agreement and grant document.

3.PROPRIETARY INFORMATION OBLIGATIONS.

3.1Agreement.As a condition of employment, Executive agrees to
execute and abide by the Proprietary Information and Inventions Agreement attached hereto as Exhibit A.

3.2Remedies.Executive's duties under the Employee Proprietary
Information and Inventions Agreement shall survive termination of his employment with the Company. Executive acknowledges that a remedy at law for any breach or threatened breach by him of the
provisions of the Proprietary Information and Inventions Agreement would be inadequate, and he therefore agrees that the Company shall be entitled to injunctive relief in case of any such breach or
threatened breach.

3.3Third Party Agreements and Information.Executive represents
and warrants that Executive's employment by the Company will not conflict with any prior employment or consulting agreement or
other agreement with any third party, and that Executive will perform his duties to the Company without violating any such agreement. Executive represents and warrants that Executive does not possess
confidential information arising out of prior employment, consulting, or other third party relationships, which would be used in connection with Executive's employment by the Company, except as
expressly authorized by that third party. During Executive's employment by the Company, Executive will use in the performance of Executive's duties only information which is generally known and used
by persons with training and experience comparable to Executive's own, common knowledge in the industry, otherwise legally in the public domain, or obtained or developed by the Company or by Executive
in the course of Executive's work for the Company.

4.OUTSIDE ACTIVITIES DURING EMPLOYMENT.

4.1Non-Company Business.Except with the prior
written consent of the Company's Board of Directors, Executive will not during the term of this Agreement undertake or engage in any other employment, occupation or business enterprise, other than
ones in which Executive is a passive investor,provided thatExecutive agrees not to become engaged in any other business activity which, in the
reasonable judgment of the Board, is likely to interfere with Executive's ability to discharge his duties and responsibilities to the Company. Executive may engage in civic and
not-for-profit activities so long as such activities do not materially interfere with the performance of his duties hereunder.

4.2No Adverse Interests.Except as permitted by
Section 4.3, Executive agrees not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by him to be adverse or antagonistic to the Company,
its business or prospects, financial or otherwise.

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4.3Noncompetition.During the term of his employment by the
Company, except on behalf of the Company, Executive will not directly or indirectly, whether as an officer, director, stockholder, partner, proprietor, associate, representative, consultant, or in any
capacity whatsoever engage in, become financially interested in, be employed by or have any business connection with any other person, corporation, firm, partnership or other entity whatsoever which
were known by him to compete directly with the Company, throughout the world, in any line of business engaged in (or planned to be engaged in) by the Company;provided,
however, that anything above to the contrary notwithstanding, he may own, as a passive investor, securities of any competitor corporation, so long as his direct holdings in any
one such corporation shall not in the aggregate constitute more than one percent (1%) of the voting stock of such corporation.

5.TERMINATION OF EMPLOYMENT.

5.1At-Will Relationship.Executive's employment
relationship is at-will. Either Executive or the Company may terminate the employment relationship at any time, with or without cause or advance notice.

5.2Termination Without Cause.



5.3Termination for Cause.



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5.4Termination for Good Reason.



5.5Voluntary or Mutual Termination.



5.6Change in Control.



6.RELEASE.

Upon
the termination of Executive's employment, Executive shall provide the Company with an executed and effective general release substantially in the form attached hereto as
Exhibit B (the "Release"), as a condition of receipt of any severance benefits, extended exercise period, or accelerated vesting under Section 5 of this Agreement.

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7.NONINTERFERENCE.

While employed by the Company, and for two (2) years immediately following the Termination Date, Executive agrees not to interfere with the business of the
Company by:

(a)   soliciting,
attempting to solicit, inducing, or otherwise causing any employee of the Company to terminate employment in order to become an employee, consultant or
independent contractor to or for any other person or entity of the Company; or

(b)   directly
or indirectly soliciting the business of any customer of the Company which at the time of termination or one year immediately prior thereto was listed on the
Company's customer list.

8.COOPERATION WITH COMPANY.

8.1Cooperation Obligation.During and after the term of
Executive's employment, Executive will cooperate with the Company in responding to the reasonable requests of the Company's Chairman of the Board, CEO or General Counsel, in connection with any and
all existing or future litigation, arbitrations, mediations or investigations brought by or against the Company, or its or their respective affiliates, agents, officers, directors or employees,
whether administrative, civil or criminal in nature, in which the Company reasonably deems Executive's cooperation necessary or desirable. In such matters, Executive agrees to provide the Company with
reasonable advice, assistance and information, including offering and explaining evidence, providing sworn statements, and participating in discovery and trial preparation and testimony. Executive
also agrees to promptly send the Company copies of all correspondence (for example, but not limited to, subpoenas) received by Executive in connection with any such legal proceedings, unless Executive
is expressly prohibited by law from so doing. The failure by Executive to cooperate fully with the Company in accordance with this Section 9 will be a material breach of the terms of this
Agreement which will result in all commitments of the Company to make additional payments to Executive under Section 5 becoming null and void.

8.2Expenses and Fees.The Company will reimburse Executive for
reasonable out-of-pocket expenses incurred by Executive as a result of his cooperation with the obligations described in Section 8.1, within thirty (30) days of
the presentation of appropriate documentation thereof, in accordance with the Company's standard reimbursement policies and procedures. After termination of Executive's employment, the Company will
also pay Executive a reasonable fee in the amount of $200 per hour for the time Executive devotes to matters as requested by the Company under Section 8.1 ("the Fees"). The Company will not
deduct or withhold any amount from the Fees for taxes, social security, or other payroll deductions, but will instead issue an IRS Form 1099 with respect to the Fees. Executive acknowledges
that in cooperating in the manner described in Section 8.1, he will be serving as an independent contractor, not a Company employee, and he will be entirely responsible for the payment of all
income taxes and any other taxes due and owing as a result of the payment of Fees. Executive hereby indemnifies the Company and its officers, directors, agents, attorneys, employees, shareholders,
subsidiaries, and affiliates and holds them harmless from any liability for any taxes, penalties, and interest that may be assessed by any taxing authority with respect to the Fees, with the exception
of the employer's share of employment taxes subsequently determined to be applicable, if any.

9.DISPUTE RESOLUTION.To ensure rapid
and economical resolution of any disputes which may arise under this Agreement, Executive and the Company agree that any and all disputes, claims, or demands in any way arising out of or relating to
this Agreement, Executive's employment with the Company, or the termination of Executive's employment with the Company, shall be resolved by confidential, final and binding arbitration conducted
before a single arbitrator with Judicial Arbitration and Mediation Services, Inc. ("JAMS") in San Francisco, California, under the then-applicable JAMS rules. The parties acknowledge that by agreeing to this arbitration
procedure, they waive the right to resolve any such dispute through a trial by jury, judge or administrative
proceeding. The Company

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shall
bear JAMS' arbitration fees and administrative costs. The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief
as would otherwise be permitted by law; and (b) issue a written arbitration decision including the arbitrator's essential findings and conclusions and a statement of the award. The arbitrator,
and not a court, shall also be authorized to determine whether the provisions of this paragraph apply to a dispute, controversy, or claim sought to be resolved in accordance with these arbitration
procedures. Notwithstanding the foregoing, Executive and the Company shall each have the right to resolve any dispute or cause of action involving Company trade secrets, proprietary information, or
intellectual property (including, without limitation, inventions assignment rights under California Labor Code Section 2870, and rights under patent, trademark, or copyright law) by court
action instead of arbitration. Nothing in this Agreement is intended to prevent either Executive or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the
conclusion of any such arbitration.

10.GENERAL PROVISIONS.

10.1Notices.Any notices provided hereunder must be in writing
and shall be deemed effective upon the earlier of personal delivery (including personal delivery by fax) or the next day after sending by overnight carrier, to the Company at its primary office
location and to Executive at his address as listed on the Company payroll.

10.2Severability.Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect
under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be
reformed, construed and enforced in such jurisdiction to the extent possible in keeping with the intent of the parties.

10.3Waiver.If either party should waive any breach of any
provisions of this Agreement, he or it shall not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement.

10.4Complete Agreement.This Agreement and Exhibit A,
constitute the entire agreement between Executive and the Company and it is the complete, final, and exclusive embodiment of their agreement with regard to this subject matter. It is entered into
without reliance on any promise or representation other than those expressly contained herein, and it cannot be modified or amended except in a writing signed by an officer of the Company.

10.5Counterparts.This Agreement may be executed in separate
counterparts, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same Agreement.

10.6Headings.The headings of the sections hereof are inserted
for convenience only and shall not be deemed to constitute a part hereof nor to affect the meaning thereof.

10.7Successors and Assigns.This Agreement is intended to bind
and inure to the benefit of and be enforceable by Executive and the Company, and their respective successors, assigns, heirs, executors and administrators, except that Executive may not assign any of
his duties hereunder and he may not assign any of his rights hereunder without the written consent of the Company, which shall not be withheld unreasonably.

10.8Attorneys' Fees.If either party hereto brings any action
to enforce his or its rights hereunder, the prevailing party in any such action shall be entitled to recover his or its reasonable attorneys' fees and costs incurred in connection with such action.

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10.9Choice of Law.All questions concerning the construction,
validity and interpretation of this Agreement will be governed by the law of the State of California.

IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written.

| |  | AFFYMAX INC.
| |  | ------------
| |  | By:         

| |  | Date: | July 21, 2007
| |  | ----- | -------------

Accepted
and agreed this
21st day of July, 2007.

/s/ Steven Love

Steven Love, an Individual

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EXHIBIT AEMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

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EXHIBIT BRELEASE AGREEMENT

1.Consideration.I understand that my position with
Affymax Inc. (the "Company") terminated effective            , 20 (the "Separation Date"). The Company has agreed that if I choose to sign this Release, the Company will pay me certain
severance or consulting benefits pursuant to the terms of the Executive Employment Agreement (the "Agreement") between myself and the Company, and any agreements incorporated therein by reference. I
understand that I am not entitled to such benefits unless I sign this Release and it becomes fully effective. I understand that, regardless of whether I sign this Release, the Company will pay me all
of my accrued salary and vacation through the Separation Date, to which I am entitled by law.

2.General Release.In exchange for the consideration provided
to me under the Agreement that I am not otherwise entitled to receive, I hereby generally and completely release the Company and its directors, officers, employees, shareholders, partners, agents,
attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that arise out of
or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Release. This general release includes, but is not limited to: (a)all claims arising out of or in any
way related to my employment with the Company or the termination of that employment; (b)all claims related to my compensation or benefits from the Company, including salary, bonuses, commissions,
vacation pay, expense reimbursements,
severance pay, fringe benefits, stock, stock options, or any othis ownership interests in the Company;(c)all claims for breach of contract, wrongful
termination, and breach of the implied covenant of good faith and fair dealing;(d)all tort claims, including claims for fraud, defamation, emotional
distress, and discharge in violation of public policy; and(e)all federal, state, and local statutory claims, including claims for discrimination,
harassment, retaliation, attorneys' fees, or othis claims arising under the federal Civil
Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) ("ADEA"), and the California Fair Employment
and Housing Act (as amended). Notwithstanding the release in the preceding sentence, I am not releasing any right of indemnification I may have in my capacity as an employee, officer and/or director
of the Company pursuant to any express indemnification agreement, nor am I releasing any rights I may have as an owner and/or holder of the Company's common stock and stock options.

3.ADEA Waiver.I acknowledge that I am knowingly and
voluntarily waiving and releasing any rights I may have under the ADEA ("ADEA Waiver"). I also acknowledge that the consideration given for the ADEA Waiver is in addition to anything of value to which
I was already entitled. I further acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) my ADEA Waiver does not apply to any rights or claims that arise after
the date I sign this Release; (b) I should consult with an attorney prior to signing this Release; (c) I have twenty-one (21) days to consider this Release (although I
may choose to voluntarily sign it sooner); (d) I have seven (7) days following the date I sign this Release to revoke the ADEA Waiver; and (e) the ADEA Waiver will not be
effective until the date upon which the revocation period has expired unexercised, which will be the eighth day after I sign this Release ("Effective Date"). Nevertheless, my general release of
claims, except for the ADEA Waiver, is effective immediately, and not revocable.

4.Section 1542 Waiver.In giving the general release
hisein, which includes claims which may be unknown to me at present, I acknowledge that I have read and understand Section 1542 of the California Civil Code, which reads as follows:



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I
hereby expressly waive and relinquish all rights and benefits under that section and any law of any other jurisdiction of similar effect with respect to my release of any unknown or
unsuspected claims herein.

Agreed:

|Affymax Inc. |                                                        | Steven Love, an Individual
|------------ | ------------------------------------------------------ | --------------------------
|By:          | Arlene M. Morris
President and Chief Executive Officer |                           
|Date:        |                                                        | Date:                     

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