Effective October 1, 2012, Karin L. Walker, age 49, was appointed Vice President of Finance and Chief Accounting Officer of Affymax, Inc. (the "Company"). In this position, Ms. Walker will earn an annual base salary of $265,000 and will be eligible to earn a target annual bonus of up to 30% of base salary based on performance (50% of the bonus amount will be based on the Company's achievement of its corporate objectives and 50% will be based on Ms. Walker's achievement of her individual objectives). On October 2, 2012, Ms. Walker was granted an option to purchase 60,000 shares of the Company's common stock at an exercise price of $21.27 per share, which was the closing price of the Company's common stock as reported by the NASDAQ Global Market on the grant date.

Under the terms of the employment agreement with Ms. Walker, if Ms. Walker is terminated without cause or she resigns following a material reduction in duties or compensation or other events constituting constructive termination, she will receive the following severance benefits: (i) a lump sum cash payment equal to 6 months of her then current annual base salary, (ii) reimbursement of up to 12 months of COBRA premiums, and (iii) the right to exercise any vested stock options that have been granted to her until the earlier of one year following the date of termination or the expiration of the term of any such options.

In the event of a change of control of the Company and involuntary termination within 12 months, Ms. Walker will receive the following severance benefits: (i) a lump sum cash payment equal to 6 months of her then current annual base salary, (ii) a lump sum cash payment equal to one-half (1/2) times her annual target bonus potential for the year in which the acquisition occurs, (iii) reimbursement for up to 12 months of COBRA premiums, (iv) acceleration of vesting of all outstanding options, and (v) the right to exercise any such stock options until the earlier of three years following the date of termination or the expiration of the term of any such option. The Company and Ms. Walker have agreed to reduce severance benefits in certain circumstances to achieve the best after-tax result for Ms. Walker.

Ms. Walker is eligible to participate in other compensation plans and programs available to the Company's officers and employees.

On October 2, 2012, the Company issued a press release announcing Ms. Walker's appointment. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

(d) Exhibits:

Exhibit No.                                Description
99.1          Press Release entitled "Affymax Appoints Karin L. Walker as Vice
              President of Finance and Chief Accounting Officer," dated October 2,
              2012