UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On March 3, 2026 (the “Effective Date”), Amphastar Pharmaceuticals, Inc. (“Amphastar” or, the “Company”), entered into executive employment agreements with each of Jacob Liawatidewi, the Company’s Executive Vice President of Corporate Administration Center, Secretary and a member of the board of directors (the “Liawatidewi Employment Agreement”) and Rong Zhou, the Company’s Senior Executive Vice President of Production Center (the “Zhou Employment Agreement” and together with the Liawatidewi Employment Agreement, the “Employment Agreements”).
The Employment Agreements provide for an initial term of one year and will be automatically extended for successive one-year periods, unless notice of non-renewal is given by the Company or applicable executive at least 90 days prior to the expiration of the initial term or any annual renewal term. Each Employment Agreement is terminable by the Company or the applicable executive at any time, with or without “good reason” (as defined in the executive’s Employment Agreement), with or without “cause” (as defined in the executive’s Employment Agreement), or due to the executive’s disability or death.
Pursuant to the Liawatidewi Employment Agreement, Mr. Liawatidewi will receive an annual base salary of $525,800 and be eligible to earn a performance-based annual cash bonus with a target amount equal to 55% of his base salary. Pursuant to the Zhou Employment Agreement, Mr. Zhou will receive an annual base salary of $590,000 and be eligible to earn a performance-based annual cash bonus with a target amount equal to 53% of his base salary. Each executive also will be eligible to receive equity incentive compensation, as determined by the Company’s Board of Directors or its Compensation Committee, and participate in the Company’s benefit plans as in effect from time to time made available to the executive.
If the Company terminates the executive’s employment without cause or does not renew an Employment Agreement at the end of the initial term or any renewal term, or if the executive resigns for good reason (collectively, a “qualifying termination”), then under the executive’s Employment Agreement, conditioned upon execution of a release in form and substance satisfactory to the Company, the executive will receive:
| ● | a lump-sum payment in an amount equal to two times the sum of (a) the highest annual base salary in effect during the 12 months immediately prior to the date of termination, plus (b) the average annual bonus earned by the executive for the most recent two fiscal years ending prior to the date of termination; |
| ● | continued payment of health insurance premiums for coverage for the executive and eligible dependents under the Company’s group health, dental and vision benefits, for up to 12 months following such termination; and |
| ● | accelerated vesting of 100% of any then unvested stock options, restricted stock units, performance stock units, or other equity awards granted by the Company to such executive. |
If the executive experiences a qualifying termination during the period beginning on the date of a change in control and ending on the date one year after such change in control, then, under the executive’s Employment Agreement, conditioned upon execution of a release in form and substance satisfactory to the Company and in addition to the severance payments described above, the executive will be entitled to:
| ● | a lump-sum payment in an amount equal to two times the sum of (a) the highest annual base salary in effect during the 12 months immediately prior to the date of termination, plus (b) the average annual bonus earned by the executive for the most recent two fiscal years ending prior to the date of termination; and |
| ● | an additional 12-month extension of continued payment of health insurance premiums for coverage for the executive and eligible dependents under the Company’s group health, dental and vision benefits. |
Each Employment Agreement also provides that, if the executive resigns for good reason, the Company terminates his employment without cause, or the executive’s employment terminates due to his death or disability, the executive will receive (a) any applicable prorated bonus, based on actual performance for the year of termination, and (b) any accrued but unpaid annual bonus for the fiscal year immediately preceding the year of termination.
Under the executive’s Employment Agreement, if a “change in control” (as defined in the Company’s 2015 Equity Incentive Plan) occurs during the executive’s employment, then 100% of any then unvested stock options, restricted stock units, performance stock units, or other equity awards granted by the Company to such executive will accelerate vesting as of immediately prior to the change in control.
Each Employment Agreement provides that in the event any payments and benefits (including the severance benefits) provided to the applicable executive would constitute “parachute payments” within the meaning of Section 280G of the
Internal Revenue Code and could be subject to the related excise tax, the executive would receive either the full amount of such payments and benefits or such lesser amount which would result in no portion of the benefits being subject to the excise tax, whichever results in the greater after-tax amount of payments and benefits to the executive.
The foregoing is a brief description of the material terms of the Employment Agreements, do not purport to be a complete description of the rights and obligations of the parties thereunder, and is qualified in its entirety by reference to the copy of the form of Employment Agreement, which is filed as Exhibit 10.1 hereto and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit |
| Description |
10.1 |
| Form of Employment Agreement for Jacob Liawatidewi and Rong Zhou |
104 |
| Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AMPHASTAR PHARMACEUTICALS, INC. | ||
Date: March 6, 2026 |
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By: | /S/WILLIAM J. PETERS |
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| William J. Peters | ||
| Chief Financial Officer, Executive Vice President and Treasurer | ||
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Exhibit 10.1
EXECUTIVE EMPLOYMENT AGREEMENT
THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of March 3, 2026 (the “Effective Date”) between Amphastar Pharmaceuticals, Inc. (the “Company”), and __________ (“Executive”) (collectively referred to as the “Parties” or individually referred to as a “Party”).
R E C I T A L S
WHEREAS, the Company desires to continue to retain the services of Executive upon the terms and subject to the conditions set forth in this Agreement; and
WHEREAS, Executive desires to provide services to the Company pursuant to the terms and conditions set forth in this Agreement; and
WHEREAS, Executive previously entered into the Non-Disclosure Agreement (the “Existing Confidentiality Agreement”) with the Company on October 6, 2008, which the Parties wish to void and replace in its entirety with the Confidential Information, Invention Assignment, and Arbitration Agreement attached hereto as Exhibit A. Executive agrees that the new consideration provided herein, including the severance opportunity, constitute good and valuable consideration for the execution of the Confidentiality Agreement, including, without limitation, all restrictive covenants therein.
A G R E E M E N T
NOW, THEREFORE, in consideration of the premises and mutual covenants herein and for other good and valuable consideration, the Parties agree as follows:
In order for Executive’s termination of Executive’s employment to be for Good Reason, Executive must not terminate employment with the Company without first providing the Company with written notice of the
acts or omissions constituting the grounds for “Good Reason” within 90 days of the initial existence of the grounds for “Good Reason” and a cure period of 30 days following the date written notice is provided (the “Cure Period”), such grounds must not have been cured during such time, and Executive must terminate Executive’s employment within ten (10) business days following the expiration of the Cure Period.
[Remainder of page is intentionally blank; Signature page follows]
IN WITNESS WHEREOF, each of the Parties has executed this Agreement as of the day and year first above written.
“COMPANY” | |
Amphastar Pharmaceuticals, Inc. | |
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By: | |
Name: | |
Title: | |
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Address: | 11570 Sixth Street |
| Rancho Cucamonga, CA 91730 |
| U.S.A. |
“EXECUTIVE” | |
, an individual | |
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By: | |
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Address: | |
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EXECUTIVE EMPLOYMENT AGREEMENT
SIGNATURE PAGE
Exhibit A
“Confidentiality Agreement”
(attached)
INVENTION ASSIGNMENT, AND ARBITRATION AGREEMENT
As a condition of my employment with Amphastar Pharmaceuticals, Inc. (the “Company”), and in consideration of my employment with the Company and my receipt of the compensation now and hereafter paid to me by the Company, as well as consideration I may receive from the Company’s parents, subsidiaries, or affiliates (together, with the Company, the “Company Group”), I agree to the following provisions of this Confidential Information, Invention Assignment, and Arbitration Agreement (this “Agreement”):
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In the event that I leave the employ of the Company, I hereby grant consent to notification by the Company to my new employer about my obligations under this Agreement. I also agree to keep the Company advised of my home and business address for a period of three (3) years after termination of my employment with the Company, so that the Company can contact me regarding my continuing obligations provided by this Agreement.
Without limiting my obligations under Section 2.E above, I agree to execute any proper oath or verify any proper document required to carry out the terms of this Agreement. I represent and warrant that my performance of all the terms of this Agreement will not breach any agreement to maintain the confidentiality
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of information acquired by me in confidence or in trust prior to my employment by the Company. I hereby represent and warrant that I have not entered into, and I will not enter into, any oral or written agreement in conflict herewith.
I acknowledge that I have no reasonable expectation of privacy in any Company Group Electronic Media Equipment or Company Group Electronic Media Systems. All information, data, and messages created, received, sent, or stored in Company Group Electronic Media Equipment or Company Group Electronic Media Systems are, at all times, the property of the Company Group. As such, the Company Group has the right to audit and search all such items and systems, without further notice to me, to ensure that the Company Group is licensed to use the software on the Company Group’s devices in compliance with the Company Group’s software licensing policies, to ensure compliance with the Company Group’s policies, and for any other business-related purposes in the Company Group’s sole discretion. I understand that I am not permitted to add any unlicensed, unauthorized, or non-compliant applications to the Company Group’s technology systems, including, without limitation, open source or free software not authorized by the Company Group, and that I shall refrain from copying unlicensed software onto the Company Group’s technology systems or using non-licensed software or websites. I understand that it is my responsibility to comply with the Company’s policies governing use of the Company’s documents and the internet, email, telephone, and technology systems to which I will have access in connection with my employment. In addition, as to any personal Electronic Media Equipment or personal Electronic Media Systems or other personal property that I have used for Company Group purposes, I agree that the Company Group may have reasonable access to such personal Electronic Media Equipment or personal Electronic Media Systems or other personal property to review, retrieve, destroy, or ensure the permanent deletion of Company Group information from such equipment or systems or property or take such other actions that are needed to protect the Company Group or Company Group property, as determined by the Company Group reasonably and in good faith.
I am aware that the Company Group has or may acquire software and systems that are capable of monitoring and recording all Company Group network traffic to and from any Company Group Electronic Media Equipment or Company Group Electronic Media Systems. The Company Group reserves the right to access, review, copy, and delete any of the information, data, or messages accessed through Company Group Electronic Media Equipment or Company Group Electronic Media Systems, with or without notice to me and/or in my absence. This includes, but is not limited to, all e-mail messages sent or received, all website visits, all chat sessions, all news group activity (including groups visited, messages read, and postings by me), and all file transfers into and out of the Company Group’s internal networks. The Company Group further reserves the right to retrieve previously deleted messages from e-mail or voicemail and monitor usage of the Internet, including websites visited and any information I have downloaded. In addition, the Company Group may review Internet and technology systems activity and analyze usage patterns, and may choose to publicize this data to assure that technology systems are devoted to legitimate business purposes.
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I understand that nothing in this Agreement limits or prohibits me from filing and/or pursuing a charge or complaint with, or otherwise communicating or cooperating with or participating in any investigation or proceeding that may be conducted by, any federal, state or local government agency or commission, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”), including disclosing documents or other information as permitted by law. In addition, I understand that nothing in this Agreement, including its definition of Company Confidential Information, prevents me from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that I have reason to believe is unlawful. Notwithstanding the preceding, I agree to take all reasonable precautions to prevent any unauthorized use or disclosure of any Company trade secrets, proprietary information, or confidential information that does not involve unlawful acts in the workplace or the activity otherwise protected herein. I further understand that I am not permitted to disclose the Company’s attorney-client privileged communications or attorney work product. In addition, I hereby acknowledge that the Company has provided me with notice in compliance with the Defend Trade Secrets Act of 2016 regarding immunity from liability for limited disclosures of trade secrets. The full text of the notice is attached in Exhibit B. Finally, I understand that nothing in this Agreement, including its definition of Company Confidential Information, (i) limits employees’ rights to discuss or disclose wages, benefits, or terms and conditions of employment as protected by applicable law, including any rights under Section 7 of the National Labor Relations Act, or (ii) otherwise impairs employees from assisting other Company employees and/or former employees in the exercise of their rights under Section 7 of the National Labor Relations Act.
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Date: | | |
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| | | Signature | ||
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| | Name of Employee (typed or printed) | |||
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EXHIBIT A
LIST OF PRIOR INVENTIONS
AND ORIGINAL WORKS OF AUTHORSHIP
Title | Date | Identifying Number or Brief Description |
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___ No inventions or improvements
___ Additional Sheets Attached
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Date: | | | | |
| | | Signature | |
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| | Name of Employee (typed or printed) | ||
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EXHIBIT B
CALIFORNIA LABOR CODE SECTION 2870
INVENTION ON OWN TIME - EXEMPTION FROM AGREEMENT
“(a)Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either:
(1)Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or
(2)Result from any work performed by the employee for the employer.
(b)To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.”
SECTION 7 OF THE DEFEND TRADE SECRETS ACT OF 2016
“ . . . An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that—(A) is made—(i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. . . . An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual—(A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.”
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