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Exhibit 10.11    
    

PROMISSORY NOTE  

	Principal
	 	Loan Date
	 	Maturity
	 	Loan No
	 	Call
	 	Collateral
	 	Account
	 	Officer
	 	Initials

	$6,200,000.00	 	02-08-2001	 	 	 	610040016	 	BL 66	 	89	 	 	 	JL	 	 

References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item 

	Borrower:	 	AMPHASTAR PHARMACEUTICALS, INC.

33-0702205)

11570 6th STREET

RANCHO CUCAMONGA, CA 91730	 	(TIN: Lender:	 	CATHAY BANK, a California Banking Corporation

INTERNATIONAL DEPARTMENT

777 NORTH BROADWAY

LOS ANGELES, CA 90012

	
Principal Amount: $6,200,000.00	
 	
Initial Rate: 8.500%	
 	
Date of Note: February 8, 2001

        PROMISE TO PAY. AMPHASTAR PHARMACEUTICALS, INC. ("Borrower") promises to pay to CATHAY BANK, a California Banking Corporation ("Lender"), or order, in
lawful money of the United States of America, the principal amount of Six Million Two Hundred Thousand & 00/100 Dollars ($6,200,000.00), together with interest on the unpaid principal balance
from February 8, 2001, until paid in full.

        PAYMENT. Subject to any payment changes resulting from changes in the Index, Borrower will pay this loan in accordance with the following payment
schedule:

            /    Initials See "TWO PAYMENT SCHEDULES DURING THE TERM OF THE NOTE" Section below.

        The
annual interest rate for this Note is computed on a 365/360 basis; that is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the
outstanding principal balance,
multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. Unless
otherwise agreed or required by applicable law, payments will be applied first to accrued unpaid interest, then to principal, and any remaining amount to any unpaid collection costs and late charges. 

        *during
the Interest Only period and MONTHLY on the Mini—Term period. 

        VARIABLE INTEREST RATE.    The interest rate on this Note is subject to change from time to time based on changes in an
independent index which is the PUBLISHED WALL STREET JOURNAL PRIME RATE (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable
during the term of this loan, Lender may designate a substitute index after notice to Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. Borrower understands that
Lender may make loans based on other rates as welt. The interest rate change will not occur more often than each DAY.* The Index currently is 8.500%. The interest rate to be
applied to the unpaid principal balance of this Note will be at a rate equal to the Index, resulting in a current rate of
8.500%. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. Whenever increases occur in the interest
rate, Lender, at its option, may do one or more of the following: (a) increase Borrower's payments to ensure Borrower's loan will pay off by its original final maturity date,
(b) increase Borrower's payments to cover accruing interest, (c) increase the number of Borrower's payments, and (d) continue Borrower's payments at the same amount and increase
Borrower's final payment. 

        PREPAYMENT.    Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan
and will not be subject to refund upon early payment (whether 

 

voluntary
or as a result of default), except as otherwise required by law, Except for the foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early
payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments under the payment schedule. Rather, they will reduce the principal
balance due and may result in Borrower making fewer payments. 

        DEFAULT.    Borrower will be in default if any of the following happens: (a) Borrower fails to make any payment when due.
(b) Borrower breaks any promise Borrower has made to Lender, or Borrower fails to comply with or to perform when due any other term, obligation, covenant, or condition contained in this Note or
any agreement related to this Note, or in any other agreement or loan Borrower has with Lender. (c) Any representation or statement made or furnished to Lender by Borrower or on
Borrower's behalf is false or misleading in any material respect either now or at the time made or furnished. (d) Borrower becomes insolvent, a receiver is appointed for any part of Borrower's
property, Borrower makes an assignment for the benefit of creditors, or any proceeding is commenced either by Borrower or against Borrower under any bankruptcy or insolvency laws. (e) Any
creditor tries to take any of Borrower's property on or in which Lender has a lien or security interest. This includes a garnishment of any of Borrower's accounts with Lender, (f) Any guarantor
dies or any of the other events described in this default section occurs with respect to any guarantor of this Note, (g) A material adverse change occurs in Borrower's financial condition, or
Lender believes the prospect of payment or performance of the Indebtedness is impaired. 

        LENDER'S RIGHTS.    Upon default, Lender may declare the entire unpaid principal balance on this Note and all accrued unpaid
interest immediately due, without notice, and then Borrower will pay that amount. Upon Borrower's failure to pay all amounts declared due pursuant to this section, including failure to pay upon final
maturity, Lender, at its option, may also, if permitted under applicable law, increase the variable interest rate on this Note to 3.000 percentage points over the Index. Lender may hire or pay
someone else to help collect this Note if Borrower does not pay. Borrower also will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and
Lender's legal expenses whether or not there is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or
injunction), appeals, and any anticipated post—judgment collection services, Borrower also will pay any court costs, in addition to all other sums provided by law.  This Note has been delivered to Lender and accepted by
Lender in the State of California. If there Is a lawsuit, Borrower agrees upon Lender's request to submit to the
Jurisdiction of the courts of LOS ANGELES County, the State of California, Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either
Lender or Borrower against the other. This Note shall be governed by and construed in accordance with the laws of the State of California.

        COLLATERAL.    Borrower acknowledges this Note is secured by property as described in a UCC—1 Financing Statement
and a Deed of Trust on property located in San Bernardino County, State of California. That agreement contains the following due on sale provision: Lender may, at its option, declare immediately due
and payable all sums secured by this Note upon the sale or transfer, without the Lender's prior written consent, of all or any part of the Real Property, or any interest in the Real Property. A "sale
or transfer" means the conveyance of Real Property or any right, title or interest therein; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed,
installment sale contract, land contract, contract for deed, leasehold Interest with a term greater than three (3) years, lease—option contract, or by sale, assignment, or transfer
of any beneficial interest in or to any land trust holding title to the Real Property, or by any other method of conveyance of Real Property interest, If any Trustor is a corporation, partnership or
limited liability company, transfer also includes any change in ownership of more than twenty—five percent (25%) of the voting stock, partnership interests or limited liability company
interests, as the case may be, of 

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Trustor.
However, this option shall not be exercised by Lender if such exercise is prohibited by applicable law, 

        WAIVER OF CONFIDENTIALITY OF BUSINESS ADDRESS.    Borrower hereby waives any rights to keep business address on file with the
Department of Motor Vehicles ("DMV") confidential from Lender. Borrower authorizes Lender, its agents, successors, and assigns to obtain business address from the DMV when Lender has legitimate need
for this information. 

        ARBITRATION.    Any dispute arising out of or related to the promissory note, commercial guaranty, or any loan evidenced thereby
or collateral security (including without limitation, deeds of trust) therefor, including any dispute in a bankruptcy proceeding filed by or against either party, shall be determined by arbitration
administered by the American Arbitration Association ("AAA") in accordance with its Commercial Arbitration Rules and Supplemental Procedures for Financial Services Disputes, except as modified by this
agreement. The parties to the agreement each agree to submit to jurisdiction in California for the enforcement of this agreement, and judgment on the award rendered in any arbitration may be entered
in any court having jurisdiction over the parties. 

        To
the extent not provided by this agreement, including the Rules incorporated herein, arbitration under this agreement shall be governed by California arbitration law. Arbitration under
this agreement shall be conducted in California in English and, unless otherwise agreed by the parties with respect to a particular dispute, shall be heard by a panel of three arbitrators. Disputes in
arbitration under this agreement shall be determined in accordance with the substantive law of the State of California, and statutes of limitations, waivers and estoppels which otherwise would apply
in a judicial proceeding shall apply. The arbitrators shall not have power to make an award of $1.0 million or more against any party to an arbitration under this agreement unless it is in the
form of a statement of decision as described in California Code of Civil Procedure Section 632, and the parties hereto specifically reserve the right, upon a petition to vacate, to have any
such award reviewed and vacated upon the same grounds as would result in reversal on appeal from a judgment after trial by court. 

        The
arbitrators in any arbitration under this agreement shall be experienced in the areas of law raised by the subject matter of the dispute. Lists of prospective arbitrators shall
include retired judges. Notwithstanding the AAA rules, (a) any party may strike from a list of prospective arbitrators any Individual who is regarded by that party as not appropriate for the
dispute; and (b), if the arbitrator appointment cannot be made from the initial list of prospective arbitrators circulated by the AAA, a second and, if necessary, a third list shall be circulated and
exhausted before the AAA is empowered to make the appointment. 

        BUSINESS LOAN AGREEMENT.    This Note is additionally subject to all the terms and conditions of a Business Loan Agreement of
even date herewith and any and all modifications and replacements thereof. 

        MINIMUM INTEREST CHARGE.    Borrower understands and agrees that even upon full prepayment of this Note, Lender is entitled to a
minimum interest charge of $100.00 

            /    INITIALS TWO PAYMENT SCHEDULES DURING THE TERM OF THE NOTE in.    Borrower will pay this
loan in
accordance with the following payment schedule: 

        1.     The
Interest Only Period. Twenty—four (24) monthly payments of accrued interest beginning MARCH 20, 2001 and continuing to and including FEBRUARY 20,
2003 at the interest rate as set forth in the "Variable Interest Rate" section below. From the date herewith, this Note evidences a straight line of credit. Advances may be requested orally by
Borrower or by an authorized person. All oral requests shall be confirmed in writing on the day of the request. All communications, instructions, or directions by telephone or otherwise to Lender are
to be directed to Lender's Office shown above. The following party or parties are authorized to request advances 

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under
the line of credit until Lender receives from Borrower at Lender's Office shown above written notice of revocation of their authority: JACK ZHANG, President and MARY LUO, Secretary. 

        2.     The
Mini—Term Loan Period. After FEBRUARY 20, 2003, Borrower is not entitled to further advances. And, as long as Borrower is not in Default under this Note
or any Related Loan Documents, Lender will calculate a minimum monthly payment of principal and interest. The initial minimum monthly payment will be calculated using the then outstanding principal
balance and the then interest rate in effect for a term of approximately 36 months including ONE final payment of all outstanding principal and accrued Interest on FEBRUARY 20, 2006 ("Final
Payment Date"). Borrower understands that the interest rate change will not occur more often than each MONTH during this Mini—Term Period. Borrower's first payment is due on MARCH 20,
2003, and each subsequent payment is due on the same day of each month thereafter, until the Final Payment Date. The initial monthly payment will be calculated as if the loan is for a term expiring
approximately 36 months after the Interest Only Period (the "Initial Amortization Period" and as if the loan was payable in equal monthly payments of principal and interest during the entire
Initial Amortization Period. The amount of the minimum monthly payment is subject to change at least once every six months during the term of the loan (Payment Change Date") beginning on the due date
of the 7th scheduled monthly payment, based on the interest rate effective the month preceding the Payment Change Date and the remaining principal balance as hereinafter provided. On each Payment
Change Date and beginning with that payment, the required minimum payment amount due on that date and on the due date of the monthly payment thereafter until the next payment Change Date (subject to
additional amounts to cover any shortfall in required interest payments as hereinafter provided), will be that amount which would be sufficient to repay the outstanding principal balance of the Note
as of the Payment Change Date, plus Interest accruing thereon at the annual rate in effect, in equal monthly payments as if the loan term was the remainder of the Initial Amortization Period; provided
that the full amount of unpaid principal and unpaid accrued interest will be due and payable on the Final Payment date. Borrower understands and agrees that the interest rate due on this Note may
change monthly and that in the event the interest rate increases at any time during the term of this Note, there s a possibility that such minimum monthly payments may not be sufficient to pay in full
all monthly accrued interest; in which event, Borrower agrees to pay to Lender, upon demand, such additional sums which, together with and in addition to the minimum monthly payment then in effect,
will be sufficient to pay in full all such accrued unpaid interest on the due date of each monthly payment hereunder. In the event of such increases in interest rate between Payment Change Dates,
Borrower understands that unpaid principal due on the Note may not be reduced by Borrower's monthly payments and that the amount of the final payment due on the Note may be greater than any prior
estimate. For purposes of computing the amount of interest accruing during the month preceding each payment due date, the annual interest rate computed as set forth above and the interest rate change
will not occur more often than each MONTH AS OF THE 20TH AND BASED ON THE INDEX AS OF THE 10TH. 

        PAYMENTS APPLICATION.    Nothwithstanding anything contained in this Note to the contrary, interest payable on the outstanding
principal balance shall be calculated, and each payment shall be applied by Lender, as it received on the specified due date for such payment. Borrower acknowledges and agrees that Lender will not
make any adjustments to the allocation of any payments made hereunder, even if such payments are not actually received on the applicable payment due date. 

        GENERAL PROVISIONS.    Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them.
Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive any applicable statute of limitations, presentment, demand for payment, protest and
notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, 

4

 

accommodation
maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan, or release any party or
guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice
to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. 

        PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE
TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE.

	BORROWER:	 	 	 	 
	
AMPHASTAR PHARMACEUTICALS, INC.
	
By:	

 	
 	

 	
 	

 
	 	
JACK ZHANG, PRESIDENT	 	 

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CHANGE IN TERMS AGREEMENT  

	Principal
	 	Loan Date
	 	Maturity
	 	Loan No
	 	Call
	 	Account
	 	Officer
	 	Initials

	$6,200,000.00	 	04-06-2004	 	05-31-2005	 	18408074	 	BL 62/89	 	 	 	JL	 	 

        References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any
item above containing "***" has been omitted due to text length limitations 

	Borrower:	 	AMPHASTAR PHARMACEUTICALS, INC.

11570 6th STREET

RANCHO CUCAMONGA, CA 91730	 	Lender:	 	CATHAY BANK, a California Bank Corp.

CORPORATE COMMERCIAL LOAN DEPT.

777 NORTH BROADWAY

LOS ANGELES, CA 90012

	
Principal Amount: $6,200,000.00	
 	
Date of Agreement: April 6,2004

        DESCRIPTION OF EXISTING INDEBTEDNESS.    This is a modification of that certain $6,200,000.00 Promissory Note executed by the
undersigned and dated February 8, 2001 (the "Note") subject to a Change In Terms Agreements dated April 26, 2002 and April 30, 2003 and any and all renewals, extensions,
modifications, refinancings, consolidations and substitutions thereof. 

        The
Note is additionally subject to all the terms and conditions of a Business Loan Agreement dated February 8, 2001, subject to a Modification of Business Loan Agreement dated
April 26, 2002, April 30, 2003 and of even date herewith and any and all modifications and replacements thereof. 

        DESCRIPTION OF COLLATERAL.    The Note continues to be secured by property as described In a UCC—1 Financing
Statement and a Deed of Trust executed by respective Trustors on real property located in San Bernardino County, State of California. 

        DESCRIPTION OF CHANGE IN TERMS.    For good and valuable consideration, Lender and Borrower hereby agree to modify the Note as
follows: 

        1.     The
maturity date of the Note is hereby extended to May 31, 2005, at which time the entire unpaid principal balance and accrued interest will be due and payable.
The next scheduled monthly payment of accrued interest is due April 30, 2004, and all subsequent payments are due on the same day of each month after that 

        2.     The
following minimum interest rate is added to the Note: NOTICE: Under no circumstances will the interest rate on the Note be less than 4.000% (the "Interest Rate
Floor") or more than the maximum rate allowed by applicable law; provided, however, that if this Change in Terms Agreement changes the amount of the Interest Rate Floor, the new amount of the Interest
Rate Floor will not be effective until such time (a) all conditions to the effectiveness of this Change in Terms Agreement are satisfied, (b) all documents required by Lender in
connection with this Change in Terms Agreement have been received, and (c) Lender's internal loan department has made such adjustments to the Lender's automated loan system as may be necessary
to change the amount of the Interest Rate Floor. 

        CONTINUING VALIDITY.    Except as expressly changed by this Agreement, the terms of the original obligation or obligations,
including all agreements evidenced or securing the obligation(s), remain unchanged and in full force and effect. Consent by Lender to this Agreement does not waive Lender's right to strict performance
of the obligation(s) as changed, nor obligate Lender to make any future change in terms. Nothing in this Agreement will constitute a satisfaction of the obligation(s). It 

6

 

is
the intention of Lender to retain as liable parties all makers and endorsers of the original obligation(s), including accommodation parties, unless a party is expressly released by Lender in
writing. Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement. If any person who signed the original obligation does not sign this Agreement below,
then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non—signing party consents to the changes and
provisions of this Agreement or otherwise will not be released by it. This waiver applies not only to any Initial extension, modification or release, but also to all such subsequent actions. 

        PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT. BORROWER AGREES TO THE TERMS OF THE
AGREEMENT.

	BORROWER:	 	 	 	 
	
AMPHASTAR PHARMACEUTICALS, INC.
	
By:	

 	
 	

 	
 	

 
	 	
JACK ZHANG, President of AMPHASTAR PHARMACEUTICALS INC.	 	 

7

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Exhibit 10.12    
    

COMMERCIAL SECURITY AGREEMENT  

	Principal

$6,200,000.00
	 	Loan Date

02-08-2001
	 	Maturity
	 	Loan No

610040016
	 	Call

BL 66
	 	Collateral

89
	 	Account
	 	Officer

JL
	 	Initials

	

	 References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item

	Borrower:	 	AMPHASTAR PHARMACEUTICALS, INC.	 	(TIN: Lender:	 	CATHAY BANK, a California Banking Corporation
	 	 	33-0702205)	 	 	 	INTERNATIONAL DEPARTMENT
	 	 	11570 6th STREET	 	 	 	777 NORTH BROADWAY
	 	 	RANCHO CUCAMONGA, CA 91730	 	 	 	LOS ANGELES, CA 90012

        THIS COMMERCIAL SECURITY AGREEMENT is entered into between AMPHASTAR PHARMACEUTICALS, INC. (referred to below as "Grantor"); and CATHAY
BANK, a California Banking Corporation (referred to below as "Lender"). For valuable consideration, Grantor grants to Lender a security interest in the Collateral to secure the Indebtedness and agrees
that Lender shall have the rights stated in this Agreement with respect to the Collateral, In addition to all other rights which Lender may have by law.    

        DEFINITIONS.    The following words shall have the following meanings when used in this Agreement. Terms not otherwise defined
in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code. All references to dollar amounts shall mean amounts in lawful money of the United States of America. 

        Agreement.    The word "Agreement" means this Commercial Security Agreement, as this Commercial Security Agreement may be
amended or modified from time to time, together with all exhibits and schedules attached to this Commercial Security Agreement from time to time. 

        Collateral.    The word "Collateral" means the following described property of Grantor, whether now owned or hereafter acquired,
whether now existing or hereafter arising, and wherever located: 

        All Accounts Receivable, inventory and Leasehold Improvements on the property located at 11570 6th Street, Rancho Cucamonga, CA 91730  

        In
addition, the word "Collateral" includes all the following, whether now owned or hereafter acquired, whether now existing or hereafter arising, and wherever located: 

        (a)   All
attachments, accessions, accessories, tools, parts, supplies, increases, and additions to and all replacements of and substitutions for any property described above, 

        (b)   All
products and produce of any of the property described in this Collateral section. 

        (c)   All
accounts, general intangibles, instruments, rents, monies, payments, and all other rights, arising out of a sale, lease, or other disposition of any of the property
described in this Collateral section. 

        (d)   All
proceeds (including insurance proceeds) from the sale, destruction, loss, or other disposition of any of the property described in this Collateral section. 

        (e)   All
records and data relating to any of the property described in this Collateral section, whether In the form of a writing, photograph, microfilm, microfiche, or
electronic 

1

 

media,
together with all of Grantor's right, title, and interest in and to all computer software required to utilize, create, maintain, and process any such records or data on electronic media. 

        Some
or all of the Collateral may be located on the following described real estate: 

        PARCEL 4 OF PARCEL MAP 12338, IN THE CITY OF RANCHO CUCAMONGA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 155 OF PARCEL MAPS,
PAGES 66, 67, AND 68, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

        Event of Default.    The words "Event of Default" mean and include without limitation any of the Events of Default set forth
below in the section titled "Events of Default." 

        Grantor.    The word "Grantor" means AMPHASTAR PHARMACEUTICALS, INC., its successors and assigns 

        Guarantor.    The word "Guarantor" means and includes without limitation each and all of the guarantors, sureties, and
accommodation parties in connection with the Indebtedness. 

        Indebtedness.    The word "Indebtedness" means and includes without limitation all promissory notes and credit agreements and
any renewals, extensions, modifications, consolidations and substitutions thereof. 

        Lender.    The word "Lender" means CATHAY BANK, a California Banking Corporation, its successors and assigns. 

        Note.    The word "Note" means the note or credit agreement dated February 8, 2001, in the principal amount of
$6,200,000.00 from AMPHASTAR PHARMACEUTICALS, INC. to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of and substitutions for the note
or credit agreement. 

        Related Documents.    The words "Related Documents" mean and include without limitation all promissory notes, credit agreements,
loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, and all other instruments, agreements and documents, whether now or hereafter existing, executed
in connection with the Indebtedness. 

        OBLIGATIONS OF GRANTOR.    Grantor warrants and covenants to Lender as follows: 

        Perfection of Security Interest.    Grantor agrees to execute such financing statements and to take whatever other actions are
requested by Lender to perfect and continue Lender's security interest in the Collateral, Upon request of Lender, Grantor will deliver to Lender any and all of the documents evidencing or constituting
the Collateral, and Grantor will note Lender's interest upon any and all chattel paper if not delivered to Lender for possession by Lender. Grantor hereby appoints Lender as its irrevocable
attorney—in—fact the purpose of executing any documents necessary to perfect or to continue the security interest granted in this Agreement. Lender may at any time, and without
further authorization from Grantor, file a carbon, photographic or other reproduction of any financing statement or of this Agreement for use as a financing statement. Grantor will reimburse
Lender for all expenses for the perfection and the continuation of the perfection of Lender's
security interest in the Collateral. Grantor promptly will notify Lender before any change in Grantor's name including any change to the assumed business names of Grantor. 

        No Violation.    The execution and delivery of this Agreement will not violate any law or agreement governing Grantor or to
which Grantor is a party, and its certificate or articles of incorporation and bylaws do not prohibit any term or condition of this Agreement. 

2

 

        Enforceability of Collateral.    To the extent the Collateral consists of accounts, chattel paper, or general intangibles, the
Collateral is enforceable in accordance with its terms, is genuine, and complies with applicable laws concerning form, content and manner of preparation and execution, and all persons appearing to be
obligated on the Collateral have authority and capacity to contract and are in fact obligated as they appear to be on the Collateral. 

        Location of the Collateral.    Grantor, upon request of Lender, will deliver to Lender in form satisfactory to Lender a schedule
of real properties and Collateral locations relating to Grantor's operations, including without limitation the following: (a) all real property owned or being purchased by Grantor;
(b) all real property being rented or leased by Grantor; (c) all storage facilities owned, rented, leased, or being used by Grantor; and (d) all other properties where Collateral
is or may be located. Except In the ordinary course of its business, Grantor shall not remove the Collateral from its existing locations without the prior written consent of Lender. 

        Removal of Collateral.    Grantor shall keep the Collateral (or to the extent the Collateral consists of intangible property
such as accounts, the records concerning the Collateral) at Grantor's address shown above, or at such other locations as are acceptable to Lender, Some or all of the Collateral may be located at the
real property described above. Except in the ordinary course of its business, including the sales of inventory, Grantor shall not remove the Collateral from its existing locations without the prior
written consent of Lender. To the extent that the Collateral consists of vehicles, or other titled property, Grantor shall not take or permit any action which would require application for
certificates of title for the vehicles outside the State of California, without the prior written consent of Lender. 

        Transactions Involving Collateral.    Except for inventory sold or accounts collected in the ordinary course of Grantor's
business, Grantor shall not sell, offer to sell, or otherwise transfer or dispose of the Collateral. While Grantor is not in default under this Agreement, Grantor may sell inventory, but only in the
ordinary course of its business and only to buyers who quality as a buyer in the ordinary course of business. A sale in the ordinary course of Grantor's business does not include a transfer in partial
or total satisfaction of a debt or any bulk sale. Grantor shall not pledge, mortgage, encumber or otherwise permit the Collateral to be subject to any lien, security interest, encumbrance, or change,
other than the security interest provided for in this Agreement, without prior written consent of Lender. This includes security interests even if junior in right to the right to the security
interests granted under this
Agreement. Unless waived by Lender, all proceeds from any disposition of the Collateral (for whatever reason) shall be held in trust for Lender and shall not be commingled with any other funds:
provided however, this requirement shall not constitute consent by Lender to any sale or other disposition. Upon receipt, Grantor shall immediately deliver any such proceeds to Lender. 

        Title.    Grantor represents and warrants to Lender that it holds good and marketable title to the Collateral, free and clear of
all liens and encumbrances except for the lien of this Agreement. No financing statement covering any of the Collateral is on file in any public office other than those which reflect the security
interest created by this Agreement or to which Lender has specifically consented. Grantor shall defend Lender's rights in the Collateral against the claims and demands of all other persons. 

        Collateral Schedules and Locations.    Insofar as the Collateral consists of inventory, Grantor shall deliver to Lender, as
often as Lender shall require, such lists, descriptions, and designations of such Collateral as Lender may require to identify the nature, extent, and location of such Collateral. Such information
shall be submitted for Grantor and each of its subsidiaries or related companies. 

        Maintenance and Inspection of Collateral.    Grantor shall maintain all tangible Collateral in good condition and repair.
Grantor will not commit or permit damage to or destruction of the 

3

 

Collateral
or any part of the Collateral. Lender and its designated representatives and agents shall have the right at all reasonable times to examine, inspect, and audit the Collateral wherever
located. Grantor shall immediately notify Lender of all cases involving the return, rejection, repossession, loss or damage of or to any Collateral; of any request for credit or adjustment or of any
other dispute arising with respect to the Collateral; and generally of all happenings and events affecting the, Collateral or the value or the amount of the Collateral. 

        Taxes, Assessments and Liens.    Grantor will pay when due all taxes, assessments and liens upon the Collateral, its use or
operation, upon this Agreement, upon any promissory note or notes evidencing the Indebtedness, or upon any of the other Related Documents. Grantor may withhold any such payment or may elect to contest
any lien if Grantor is in good faith conducting an appropriate proceeding to contest the obligation to pay and so long as Lender's interest in the Collateral is not jeopardized in Lender's sole
opinion. If the Collateral is subjected to a lien which is not discharged within fifteen (15) days, Grantor shall deposit with Lender cash, a sufficient corporate surety bond or other security
satisfactory to Lender in an amount adequate to provide for the discharge of the lien plus any interest, costs, attorneys' fees or other charges that could accrue as a result of foreclosure or sale of
the Collateral. In any contest Grantor shall defend itself and Lender and shall satisfy any final adverse judgment before enforcement against the Collateral. Grantor shall name Lender as an additional
obligee under any surety bond furnished in the contest proceedings. 

        Compliance With Governmental Requirements.    Grantor shall comply promptly with all laws, ordinances, rules and regulations of
all governmental authorities, now or hereafter in effect, applicable to the ownership, production, disposition, or use of the Collateral. Grantor may contest in good faith any such law, ordinance or
regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Lender's interest in the Collateral, In Lender's opinion, is not jeopardized. 

        Hazardous Substances.    Grantor represents and warrants that the Collateral never has been, and never will be so tong as this
Agreement remains a lien on the Collateral, used for the generation, manufacture, storage, transportation, treatment, disposal, release or threatened release of any hazardous waste or substance, as
those terms are defined in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments
and Reauthorization Act of 1986, Pub. L. No. 99—499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and
Recovery Act, 42 U.S.C. Section 6901, et seq., Chapters 6.5 through 7.7 of Division 20 of the California Health and Safety Code, Section 25100, et seq., or other applicable state or
Federal laws, rules, or regulations adopted pursuant to any of the foregoing. The terms "hazardous waste" and "hazardous substance" shall also include, without limitation, petroleum and petroleum
by—products or any fraction thereof and asbestos. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Collateral for hazardous
wastes and substances. Grantor hereby (a) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under
any such laws, and (b) agrees to indemnify and hold harmless Lender against any and all claims and losses resulting from a breach of this provision of this Agreement. This obligation to
Indemnify shall survive the payment of the Indebtedness and the satisfaction of this Agreement. 

        Maintenance of Casualty Insurance.    Grantor shall procure and maintain all risks insurance, including without limitation fire,
theft and liability coverage together with such other insurance as Lender may require with respect to the Collateral, in form, amounts, coverages and basis reasonably acceptable to Lender and issued
by a company or companies reasonably acceptable to Lender. Grantor, upon request of Lender, will deliver to Lender from time to time the policies or 

4

 

certificates
of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least thirty (30) days' prior written notice to
Lender and not including any disclaimer of the insurer's liability for failure to give such a notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender
will not be impaired in any way by any act, omission or default of Grantor or any other person. In connection with all policies covering assets in which Lender holds or is offered a security interest,
Grantor will provide Lender with such loss payable or other endorsements as Lender may require. If Grantor at any time fails to obtain or maintain any insurance as required under this Agreement,
Lender may (but shall not be obligated to) obtain such insurance as Lender deems appropriate, including if it so chooses "single interest insurance1' which will cover only Lender's interest in the
Collateral. 

        Application of Insurance Proceeds.    Grantor shall promptly notify Lender of any loss or damage to the Collateral. Lender may
make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. All proceeds of any insurance on the Collateral, including accrued proceeds thereon, shall be held by
Lender as part of the Collateral. If Lender consents to repair or replacement of the damaged or destroyed Collateral, Lender shall, upon satisfactory proof of expenditure, pay or reimburse Grantor
from the proceeds for the reasonable cost of repair or restoration, If Lender does not consent to repair or replacement of the Collateral, Lender shall retain a sufficient amount of the proceeds to
pay all of the Indebtedness, and shall pay the balance to Grantor. Any proceeds which have not been disbursed within six (6) months after their receipt and which Grantor has not committed to
the repair or restoration of the Collateral shall be used to prepay the Indebtedness. 

        Insurance Reserves.    Lender may require Grantor to maintain with Lender reserves for payment of insurance premiums, which
reserves shall be created by monthly payments from Grantor of a sum estimated by Lender to be sufficient to produce, at least fifteen (15) days before the premium due date, amounts at least
equal to the Insurance premiums to be paid. If fifteen (15) days before payment is due, the reserve funds are insufficient, Grantor shall upon demand pay any deficiency to Lender. The reserve
funds shall be held by Lender as a general deposit and shall constitute a non—interest—bearing account which Lender may satisfy by payment of the insurance premiums required to
be paid by Grantor as they become due. Lender does not hold the reserve funds in trust for Grantor, and Lender is not the agent of Grantor for payment of the insurance premiums required to be paid by
Grantor. The responsibility for the payment of premiums shall remain Grantor's sole responsibility. 

        Insurance Reports.    Grantor, upon request of Lender, shall furnish to Lender reports on each existing policy of insurance
showing such information as Lender may reasonably request including the following: (a) the name of the insurer; (b) the risks insured; (c) the amount of the policy; (d) the
property insured; (e) the then current value on the basis of which Insurance has been obtained and the manner of determining that value; and (f) the expiration date of the policy. In
addition, Grantor shall upon request by Lender (however not more often than annually) have an independent appraiser satisfactory to Lender determine, as applicable, the cash value or replacement cost
of the Collateral. 

        GRANTOR'S RIGHT TO POSSESSION.    Until default, Grantor may have possession of the tangible personal property and beneficial
use of all the Collateral and may use it in any lawful manner not inconsistent with this Agreement or the Related Documents, provided that Grantor's right to possession and beneficial use shall not
apply to any Collateral where possession of the Collateral by Lender is required by law to perfect Lender's security interest in such Collateral. If Lender at any time has possession of any
Collateral, whether before or after an Event of Default, Lender shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral if Lender takes such action for that
purpose as Grantor shall request or as Lender, in Lender's sole discretion, shall deem 

5

 

appropriate
under the circumstances, but failure to honor any request by Grantor shall not of itself be deemed to be a failure to exercise reasonable care. Lender shall not be required to take any
steps necessary to preserve any rights in the Collateral against prior parties, nor to protect, preserve or maintain any security interest given to secure the Indebtedness. 

        EXPENDITURES BY LENDER.    If not discharged or paid when due, Lender may (but shall not be obligated to) discharge or pay any
amounts required to be discharged or paid by Grantor under this Agreement, including without limitation all taxes, liens, security interests, encumbrances, and other claims, at any time levied or
placed on the Collateral. Lender also may (but shall not be obligated to) pay all costs for insuring, maintaining and preserving the Collateral. All such expenditures incurred or paid by Lender for
such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses shall become a part of the
Indebtedness and, at Lenders option, will (a) be payable on demand, (b) be added to the balance of the Note and be apportioned among and be payable with any installment payments to
become due during either (i) the term of any applicable insurance policy or (ii) the remaining term of the Note, or (c) be treated as a balloon payment which will be due and
payable at the Note's maturity. This Agreement also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon the
occurrence of an Event of Default. 

        EVENTS OF DEFAULT.    Each of the following shall constitute an Event of Default under this Agreement: 

        Default on Indebtedness.    Failure of Grantor to make any payment when due on the Indebtedness. 

        Other Defaults.    Failure of Grantor to comply with or to perform any other term, obligation, covenant or condition contained
in this Agreement or in any of the Related Documents or in any other agreement between Lender and Grantor. 

        False Statement.    Any warranty, representation or statement made or furnished to Lender by or on behalf of Grantor under this
Agreement, the Note or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished. 

        Defective Collateralization.    This Agreement or any of the Related Documents ceases to be in full force and effect (including
failure of any collateral documents to create a valid and perfected security interest or lien) at any time and for any reason. 

        Insolvency.    The dissolution or termination of Grantor's existence as a going business, the Insolvency of Grantor, the
appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against Grantor. 

        Creditor or Forfeiture Proceedings.    Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding,
self—help, repossession or any other method, by any creditor of Grantor or by any governmental agency against the Collateral or any other collateral securing the Indebtedness. This
includes a garnishment of any of Grantor's deposit accounts with Lender. 

        Events Affecting Guarantor.    Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or
such Guarantor dies or becomes incompetent. 

        Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or
performance of the Indebtedness is impaired. 

        Insecurity.    Lender, in good faith, deems itself insecure. 

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        RIGHTS AND REMEDIES ON DEFAULT.    If an Event of Default occurs under this Agreement, at any time thereafter, Lender shall have
all the rights of a secured party under the California Uniform Commercial Code. In addition and without limitation, Lender may exercise any one or more of the following rights and remedies: 

        Accelerate Indebtedness.    Lender may declare the entire Indebtedness, including any prepayment penalty which Grantor would be
required to pay, immediately due and payable, without notice. 

        Assemble Collateral.    Lender may require Grantor to deliver to Lender all or any portion of the Collateral and any and all
certificates of title and other documents relating to the Collateral. Lender may require Grantor to assemble the Collateral and make it available to Lender at a place to be designated by Lender.
Lender also shall have full power to enter upon the property of Grantor to take possession of and remove the Collateral. If the Collateral contains other goods not covered by this Agreement at the
time of repossession, Grantor agrees Lender may take such other goods, provided that Lender makes reasonable efforts to return them to Grantor after repossession. 

        Sell the Collateral.    Lender shall have full power to sell, lease, transfer, or otherwise deal with the Collateral or proceeds
thereof in its own name or that of Grantor. Lender may sell the Collateral at public auction or private sale. Unless the Collateral threatens to decline speedily in value or is of a type customarily
sold on a recognized market, Lender will give Grantor reasonable notice of the time after which any private sale or any other intended disposition of the Collateral is to be made. The requirements of
reasonable notice shall be met if such notice is given at least ten (10) days, or such lesser time as required by state law, before the time of the sale or disposition. All expenses relating to
the disposition of the Collateral, including without limitation the expenses of retaking, holding, insuring, preparing for sale and selling the Collateral, shall become a part of the Indebtedness
secured by this Agreement and shall be payable on demand, with interest at the Note rate from date of expenditure until repaid. 

        Appoint Receiver.    To the extent permitted by applicable law, Lender shall have the following rights and remedies regarding
the appointment of a receiver: (a) Lender may have a receiver appointed as a matter of right, (b) the receiver may be an employee of Lender and may serve without bond, and (c) all
fees of the receiver and his or her attorney shall become part of the Indebtedness secured by this Agreement and shall be payable on demand, with interest at the Note rate from date of expenditure
until repaid. 

        Collect Revenues, Apply Accounts.    Lender, either itself or through a receiver, may collect the payments, rents, income, and
revenues from the Collateral. Lender may at any time in its discretion transfer any Collateral into its own name or that of its nominee and receive the payments, rents, Income, and revenues therefrom
and hold the same as security for the Indebtedness or apply it to payment of the Indebtedness in such order of preference as Lender may determine. Insofar as the Collateral consists of accounts,
general intangibles, insurance policies, instruments, chattel paper, chooses in action, or similar property, Lender may demand, collect, receipt for, settle, compromise, adjust, sue for, foreclose, or
realize on the Collateral as Lender may determine, whether or not Indebtedness or Collateral is then due, For these purposes, Lender may, on behalf of and in the name of Grantor, receive, open and
dispose of mail addressed to Grantor; change any address to which mail and payments are to be sent; and endorse notes, checks, drafts, money orders, documents of title, instruments and items
pertaining to payment, shipment, or storage of any Collateral, To facilitate collection, Lender may notify account debtors and obligors on any Collateral to make payments directly to Lender. 

        Obtain Deficiency.    If Lender chooses to sell any or all of the Collateral, Lender may obtain a judgment against Grantor for
any deficiency remaining on the Indebtedness due to Lender after 

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application
of all amounts received from the exercise of the rights provided in this Agreement. Grantor shall be liable for a deficiency even if the transaction described in this subsection is a sale
of accounts or chattel paper. 

        Other Rights and Remedies.    Lender shall have all the rights and remedies of a secured creditor under the provisions of the
Uniform Commercial Code, as may be amended from time to time. In addition, Lender shall have and may exercise any or all other rights and remedies it may have available at law, in equity, or
otherwise. 

        Cumulative Remedies.    All of Lender's rights and remedies, whether evidenced by this Agreement or the Related Documents or by
any other writing, shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make
expenditures or to take action to perform an obligation of Grantor under this Agreement, after Grantor's failure to perform, shall not affect Lender's right to declare a default and to exercise its
remedies. 

        MISCELLANEOUS PROVISIONS.    The following miscellaneous provisions are a part of this Agreement: 

        Amendments.    This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the
parties as to the matters set forth in this Agreement. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the party or parties sought to be
charged or bound by the alteration or amendment. 

        Applicable Law.    This Agreement has been delivered to Lender and accepted by Lender in the State of California. If there is a
lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of the State of California. Lender and Grantor hereby waive the right to any jury trial in any action,
proceeding, or counterclaim brought by either Lender or Grantor against the other. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 

        Attorneys' Fees; Expenses.    Grantor agrees to pay upon demand all of Lender's costs and expenses, including attorneys' fees
and Lender's legal expenses, incurred in connection with the enforcement of this Agreement. Lender may pay someone else to help enforce this Agreement, and Grantor shall pay the costs and expenses of
such enforcement, Costs and expenses Include Lender's attorneys' fees and legal expenses whether or not there is a lawsuit, including attorneys' fees and legal expenses for
bankruptcy proceedings (and including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post—judgment collection services. Grantor also shall pay
all court costs and such additional fees as may be directed by the court. 

        Caption Headings.    Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or
define the provisions of this Agreement. 

        Multiple Parties; Corporate Authority.    All obligations of Grantor under this Agreement shall be joint and several, and all
references to Grantor shall mean each and every Grantor. This means that each of the persons signing below is responsible for all obligations in this Agreement. 

        Notices.    All notices required to be given under this Agreement shall be given in writing, may be sent by telefacsimile
(unless otherwise required by law), and shall be effective when actually delivered or when deposited with a nationally recognized overnight courier or deposited in the United States mall, first class,
postage prepaid, addressed to the party to whom the notice is to be given at the address shown above. Any party may change its address for notices under this Agreement by giving formal written notice
to the other parties, specifying that the purpose of the notice is to change the party's address. To the extent permitted by applicable law, if there is more 

8

 

than
one Grantor, notice to any Grantor will constitute notice to all Grantors. For notice purposes, Grantor will keep Lender informed at all times of Grantor's current address(es). 

        Power of Attorney.    Grantor hereby appoints Lender as its true and lawful attorney—in—fact,
irrevocably, with full power of substitution to do the following: (a) to demand, collect, receive, receipt for, sue and recover all sums of money or other property which may now or hereafter
become due, owing or payable from the Collateral; (b) to execute, sign and endorse any and all claims, instruments, receipts, checks, drafts or warrants issued in payment for the Collateral;
(c) to settle or compromise any and all claims arising under the Collateral, and, in the place and stead of Grantor, to execute and deliver its release and settlement for the claim; and
(d) to file any claim or claims or to take any action or institute or take part in any proceedings, either In its own name or in the name of Grantor, or otherwise, which in the discretion of
Lender may seem to be necessary or advisable. This power is given as security for the Indebtedness, and the authority hereby conferred is and shall be irrevocable and shall remain in full force and
effect until renounced by Lender. 

        Preference Payments.    Any monies Lender pays because of an asserted preference claim in Borrowing's bankruptcy will become a
part of the indebtedness and, at Lender's option, shall be payable by Borrower as provided above in the "EXPENDITURES BY LENDER" paragraph. 

        Severability.    If a court of competent jurisdiction finds any provision of this Agreement to be invalid or unenforceable as to
any person or circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances. If feasible, any [rest of this sentence and the
next line missing] 

cannot
be so modified, it shall be stricken and all other provisions of this Agreement In all other respects shall remain valid and enforceable. 

        Successor Interests.    Subject to the limitations set forth above on transfer of the Collateral, this Agreement shall be
binding upon and inure to the benefit of the parties, their successors and assigns. 

        Waiver.    Lender shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and
signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Agreement
shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any
course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent of Lender is
required under this Agreement, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases
such consent may be granted or withheld in the sole discretion of Lender. 

        Waiver of Co-obligor's Rights.    If more than one person is obligated for the Indebtedness, Borrower irrevocably
waives, disclaims and relinquishes all claims against such other person which Borrower has or would otherwise have by virtue of payment of the Indebtedness or any part thereof, specifically including
but not limited to all rights of indemnity, contribution or exoneration. 

        GRANTOR ACKNOWLEDGES HAVING READ ALL. THE PROVISIONS OF THIS COMMERCIAL SECURITY AGREEMENT, AND GRANTOR AGREES TO ITS TERMS. THIS AGREEMENT IS DATED
FEBRUARY 8,2001.

9

 

GRANTOR:  

AMPHASTAR PHARMACEUTICALS, INC.  

	By:	 	 
	 	 	

	 	 	JACK ZHANG, PRESIDENT

10

QuickLinks

Exhibit 10.12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]