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Exhibit 10.20.1    
    

 
 

PROMISSORY NOTE    
    

	Principal	 	Loan Date	 	Maturity	 	Loan No	 	Call/ Coll	 	Account	 	Officer	 	Initials
	$3,000,000.00	 	04-30-2008	 	04-29-2009	 	100847-1R	 	BA-O	 	 	 	9141	 	 
	

References in the boxes above 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:	 	Cydex Pharmaceuticals, Inc.

10513 W. 84th Terrace

Lenexa, KS 66214	 	Lender:	 	First National Bank of Kansas

6201 College Boulevard

Overland Park, KS 66211

	Principal Amount: $3,000,000.00	 	Initial Rate: 5.250%	 	Date of Note: April 30, 2008

PROMISE TO PAY. Cydex Pharmaceuticals, Inc. ("Borrower") promises to pay to First National Bank of Kansas ("Lender"), or order, in lawful money of the United States of
America, the principal amount of Three Million & 00/100 Dollars ($3,000,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each
advance. Interest shall be calculated from the date of each advance until repayment of each advance.

PAYMENT. Borrower will pay this loan in one payment of all outstanding principal plus all accrued unpaid interest on April 29, 2009. In addition, Borrower will pay
regular monthly payments of all accrued unpaid interest due as of each payment date, beginning May 31, 2008, with all subsequent interest payments to be due on the same day of each month after
that. Unless otherwise agreed or
required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any unpaid collection costs; and then to any late charges. 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.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an index which is the First National
Bank of Kansas prime rate (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its loans and is set by Lender in its sole discretion. If the Index becomes unavailable
during the term of this loan, Lender may designate a substitute index after notifying Borrower. Lender will tell Borrower the current index rate upon Borrower's request. The interest rate change will
not occur more often than each day. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 5.250% per
annum. The interest rate to be applied to the unpaid principal balance during this Note will be at a rate equal to the Index, resulting in an initial rate of 5.250% per annum.
NOTICE: Under no circumstances will the Interest rate on this Note be more than the maximum rate allowed by applicable law. 

PREPAYMENT; MINIMUM INTEREST CHARGE. In any event, even upon full prepayment of this Note, Borrower understands that Lender is entitled to a  minimum interest charge of
$7.50. Other than Borrower's obligation to pay any minimum interest charge, 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 of accrued unpaid
interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends
such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications
concerning disputed amounts, including any check or other payment instrument that indicates that the 

 

payment
constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: First
National Bank of Kansas, P.O. Box 7428 Shawnee Mission, KS 66207-9854. 

LATE CHARGE. If a payment is 20 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment or
$25.00, whichever is greater.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased by adding a
6.000 percentage point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to each succeeding interest rate change that would have applied had there been no default.
However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law. 

DEFAULT. Each of the following shall constitute an event of default ("Event of Default') under this Note: 

Payment Default. Borrower fails to make any payment when due under this Note. 

Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the
related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. 

Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales
agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's
obligations under this Note or any of the related documents. 

False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the
related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. 

Insolvency. The dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for
any part of Borrower'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
Borrower. 

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 Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's accounts,
including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the
basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or
forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. 

Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the
indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness
evidenced by this Note. 

Change In Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower. 

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

Insecurity. Lender in good faith believes itself insecure. 

LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due,
and then Borrower will pay that amount. 

ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else who is not Lender's salaried employee to help collect this Note if Borrower does not pay.
Borrower will be liable for all reasonable costs incurred in the collection of this Note, including but not limited to, court costs, attorneys' fees and collection agency fees, except that such costs
of collection shall not include recovery of both attorneys' fees and collection agency fees. 

GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Kansas without regard to
its conflicts of law provisions. This Note has been accepted by Lender in the State of Kansas.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $20.00 if Borrower makes a payment on Borrower's loan and the check or preauthorized charge
with which Borrower pays is later dishonored. 

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh
accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the
indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this
paragraph. 

COLLATERAL Borrower acknowledges this Note is secured by a pledge of all inventory, chattel paper, accounts, equipment, and general intangibles except
intellectual property rights. 

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note may be requested either orally or in writing by Borrower or as
provided in this paragraph. Lender may, but need not, require that all oral requests be confirmed in writing. All communications, instructions, or directions by telephone or otherwise to Lender are to
be directed to Lender's office shown above. The following person or persons are authorized to request advances and authorize payments under the line of credit until Lender receives from Borrower, at
Lender's address shown above, written notice of revocation of such authority: John M. Siebert, Chairman/CEO of Cydex, Inc.; and Allen K. Roberson, V.P. Finance and
Accounting of Cydex, Inc. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions of an authorized person or
(B) credited to any of Borrower's accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal
records, including daily computer print-outs. Lender will have no obligation to advance funds under this Note if: (A) Borrower or any guarantor is in default under the terms of this
Note or any agreement that Borrower or any guarantor has with Lender, including any agreement made in connection with the signing of this Note; (B) Borrower or any guarantor ceases doing
business or is insolvent; (C) any guarantor seeks, claims or otherwise attempts to limit, modify or revoke such guarantor's guarantee of this Note or any other loan with Lender;
(D) Borrower has applied funds provided pursuant to this Note for purposes other than those authorized by Lender; or (E) Lender in good faith believes itself insecure. 

CONSENT TO LOAN PARTICIPATION. Borrower agrees and consents to Lender's sale or transfer, whether now or later, or one or more participation interest in
this loan to one or more purchasers, 

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whether
related or unrelated to Lender. Lender may provide, without any limitation whatsoever, to any one or more purchasers, or potential purchasers, any information or knowledge Lender may have
about Borrower or about any other matter relating to the Loan, and Borrower hereby waives any rights to privacy it may have with respect to such matters. Borrower additionally waives any and all
notices of sale of participation interest, as well as all notices of any repurchase of such participation interests. Borrower also agrees that the purchasers of any such participation interest will be
considered as the absolute owners of such interests in the Loan and will have all the rights granted under the participation agreement or agreements governing the sale of such participation interests.
Borrower further waives all rights of offset or counterclaim that it may have now or later against Lender or against any purchaser of such a participation interest and unconditionally agrees that
either Lender or such purchaser may enforce Borrower's obligation under the Loan irrespective of the failure or insolvency of any holder of any interest in the Loan. Borrower further agrees that the
purchaser of any such participation interests may enforce its interest irrespective of any personal claims or defenses that Borrower may have against Lender. 

RECEIPT OF PAYMENTS. All payments must be made by a check, money order, or other instrument in U.S. Dollars and must be received by us at the remittance
address shown on your periodic billing statement. Payments received at that address prior to 5:00 p.m. Central Standard Time on any business day will be credited to your account as of the date
received. If we receive payments at other locations, such payments will be credited promptly to your account, but crediting may be delayed for up to five (5) days after receipt. 

PRIOR NOTE. This note is a renewal of the original Promissory Note dated April 6, 2006 in the original amount of $3,000,000.00 and previously
renewed by various renewal notes. 

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns,
and shall inure to the benefit of Lender and its successors and assigns. 

GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. 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 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,
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. The obligations under this Note are joint and several. 

	Borrower's Initials	 	NO ORAL AGREEMENTS. This written agreement is the final expression of the agreement between Lender and Borrower and may not be contradicted by evidence of any prior oral agreement or of a contemporaneous oral agreement
between Lender and Borrower.
	

	
 	

NONSTANDARD TERMS. The following space contains all nonstandard terms, including all previous oral agreements, if any, between Lender and Borrower:
	

Lender's Initials	
 	

 
	

	
 	

By initialing the boxes to the left, Lender and Borrower affirm that no unwritten oral agreement exists between them.

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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.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

CYDEX PHARMACEUTICALS, INC.  

	

By:	
 	

/s/  JOHN M. SIEBERT      
 Authorized Signer for Cydex Pharmaceuticals, Inc.

/s/  ALLEN K. ROBERSON      	
 	

 

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FR-5I 

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Exhibit 10.20.1

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Exhibit 10.21    
    

[CyDex
Pharmaceuticals, Inc. Letterhead] 

May 6,
2008 

Dr. Theron
E. Odlaug 

Dear
Ted: 

        I
am very pleased to confirm our offer to you for the position of President and Chief Operating Officer of CyDex Pharmaceuticals, Inc. ("the Company" or "CyDex"). You will be a
full time employee of the Company, although we have no objection to your continuing to serve on the boards of directors of Advance Life Sciences, Inc. and Wahl Clipper Corp. In this position,
you will report directly to me. This letter states the complete terms and conditions of your offer. If you agree to these terms and conditions, please initial the bottom of each page and sign at the
end of this letter in the spaces indicated. 

        The
major elements of your compensation package are as follows: 

	1.
	Base Salary.    Your base salary will be $24,166.67 per month, less applicable deductions and withholding, and which
annualizes to $290,000.00. Your first salary review will be January 1, 2009. You will be reviewed annually thereafter. The Compensation Committee will review and approve any increases and stock
option awards and recommend those to the board.

	2.
	Annual Bonus.    You will be eligible to participate in the company's 2008 bonus plan. Payout is determined by the achievement
of specific company and business objectives as well as satisfactory individual performance and will be prorated to reflect your hire date. The maximum bonus potential for this position is forty
percent (40%). To be eligible for any bonus, you must be employed by the Company at the time any bonus amount is to be paid. Bonuses are not earned until they are approved in writing by Compensation
Committee.

	3.
	Vacation.    You will be eligible for twenty-six (26) days of Personal Time Off (PTO) each year,
pro-rated the first year. There are eight paid holidays.

	4.
	Stock Awards.    I will recommend to the Compensation Committee of the Board at their next meeting that you be granted an
incentive stock option to purchase 1 million shares of CyDex common stock at an exercise price per share equal to the fair market value of the Company's common stock as determined by the Board
on the date the Board approves and grants such option ("Option"). The vesting schedule and all terms, conditions, and limitations of the Option are set forth in a stock option grant notice, the
Company's standard stock option agreement and the Company's 1997 Equity Compensation Plan, as amended.

	5.
	Board of Directors Seat.    We will recommend to the CyDex Board of Directors that you be elected as a member of the Board
effective six (6) months after your start date. This will require Board and shareholder approval.

	6.
	Benefits.    All other benefits will be in accordance with our employee benefit plans.

	7.
	Confidentiality Agreement.    One of the conditions of your employment with the Company is the maintenance of the
confidentiality of the Company's proprietary and confidential information. In your work for the Company, you will be expected not to use or disclose any confidential information, including trade
secrets, of any former employer or other person to whom you have an obligation of confidentiality. Rather, you will be expected to use only that information that is generally known and used by persons
with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain or which is otherwise provided or developed by the Company. You
also should not bring onto the Company 

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premises
any unpublished documents or property belonging to any former employer or other person to whom you have an obligation of confidentiality. During our discussions about your proposed job
duties, you assured us that you would be able to perform those duties within the guidelines described above. Before your start date, you must therefore execute the Company's Nondisclosure,
Noncompetition and Assignment of Intellectual Property Agreement, which you will find as Attachment A. However, your commencement of employment shall constitute acceptance of all the terms and
conditions in the Company's Nondisclosure, Noncompetition and Assignment of Intellectual Property Agreement. 

	8.
	Start Date.    Approximately May 19, 2008 or as we may arrange.

	9.
	Severance.    In the event you are terminated by the Company without Cause within the first eighteen (18) months of
your employment with the Company, and upon the execution of a general release of all claims by you in a form that is satisfactory to the Company ("Release"), you shall be entitled to receive severance
pay in an amount equal to nine (9) months of your Base Salary in effect as of the termination. The severance payment shall be paid no later than March 15th following the year of
such involuntary termination without cause, and is intended to be paid pursuant to the "short-term deferral rule" set forth in Treasury Regulation
Section 1.409A-1(b)(4). For purposes of this offer letter, "Cause" shall mean any of the following: (i) indictment or conviction of any felony or any crime involving
dishonesty or moral turpitude; (ii) participation in any fraud against CyDex or other dishonesty which is not the result of an innocent or inadvertent mistake by you with respect to the
Company; (iii) continued willful violation of your obligations to CyDex after there has been delivered to you a written demand for performance from CyDex which describes the basis for its
belief that you have not substantially satisfied your obligations to CyDex; (iv) damaging or misappropriating or attempting to damage or misappropriate any property of CyDex including
intellectual property of CyDex; or (v) dissolution, liquidation, insolvency, bankruptcy or other financial inability of CyDex to meet its normal payroll obligations at the time of termination.

	10.
	Change-of-Control Agreement.    You will receive the same change of control agreement as other
executives at CyDex. That agreement is included as Attachment B.

	11.
	Relocation.    The Company will relocate your family to the greater Kansas City area and provide reimbursement for periodic
travel to and from Chicago and Kansas City as well as temporary living expenses in Kansas City. This includes reimbursement for expenses associated with selling your home in Illinois and purchasing a
home in Kansas City, house hunting trips and movement and storage of household goods. Reimbursement will be capped at $100,000. This is based on an estimate of up to $60,000 for relocation expenses
and up to $40,000 for temporary living expenses. For reimbursement purposes no distinction will be made between relocation expenses and temporary living expenses.

	12.
	This offer of employment is contingent upon your passing a pre-employment background check and drug test. You may not
commence employment until the check and test have been completed and the results evaluated. 

Your
employment with the Company will be "at-will." This means that either you or the Company may terminate your employment at any time, with or without cause, with or without notice, and
for any reason or no reason. Any contrary representations or agreements, which may have been made to you, are superseded by this offer. The "at will" nature of your employment described in this offer
letter shall constitute the entire agreement between you and the Company concerning the nature and duration of your employment. In addition, the fact that the rate of your salary or other compensation
is stated in units of years or months and that your vacation and sick leave accrue annually or monthly does not alter the at-will nature of the employment, and does not mean and 

2

 

should
not be interpreted to mean that you are guaranteed employment to the end of any period of time or for any period time. 

	13.
	Miscellaneous.    This letter states the complete and exclusive terms and conditions of your employment and supersedes any
and all prior agreements, whether written or oral. By joining the Company, you are agreeing to abide by all laws and regulations, all Company policies and procedures, to acknowledge in writing that
you have read the Company's Employee Handbook and that you are bound by the terms and conditions of the Company's Nondisclosure, Noncompetition and Assignment of Intellectual
Property Agreement. Violations of these policies may lead to immediate termination of employment. As required by law, this offer is subject to satisfactory proof of your right
to work in the United States.

	14.
	Indemnification.    The Company hereby acknowledges and reaffirms its obligations to indemnify Employee to the extent set
forth in Article VI of the Bylaws of the Company in effect as of the Effective Date of this Agreement and any subsequent versions thereof that are adopted during Employee's employment with the
Company, which are incorporated by reference herein. 

        Let
me conclude by saying that the entire CyDex team, including the Board of Directors and me, are most anxious to have you join us. We look forward to the significant contributions that
we are confident you will make. Upon acceptance of this offer, please return a signed copy of this letter to me in the enclosed, self-addressed envelope for our files. If you have any
questions, please feel free to contact me at any time. My direct office number is 913-402-3550. 

Sincerely,

/s/
JOHN SIEBERT 

John
Siebert

Chairman and CEO 

	 	 	ACCEPTED
	

 	
 	

/s/ THERON E. ODLAUG
 Theron E. Odlaug
	

 	
 	

May 6, 2008
 Date

Attachment
A—Company Nondisclosure, Noncompetition and Assignment of Intellectual Property Agreement

Attachment B—Change of Control Agreement 

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Exhibit 10.21

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