Document:

EXHIBIT 10.1

 

AMENDMENT
TO CONTINUING GUARANTY

 

This Amendment is attached to and made a part of
that certain Continuing Guaranty dated September 20, 2005 (the “Guaranty”)
executed by Rush Enterprises, Inc. (the “Guarantor”) and guarantying the
obligations of Rush Truck Centers of
Alabama, Inc.; Rush Truck Centers of Arizona, Inc.; Rush Truck
Centers of California, Inc.; Rush Truck Centers of Colorado, Inc.;
Rush Truck Centers of Florida, Inc.; Rush Truck Centers of New Mexico, Inc.;
Rush Truck Centers of Oklahoma, Inc.; Rush Truck Centers of Tennessee, Inc.
and Rush Truck Centers of Texas, LP to General
Electric Capital corporation (“GE Capital”).

 

For good and valuable consideration, the receipt of
which is hereby acknowledged, GE Capital and Guarantor agree that first
sentence of the Guaranty is hereby deleted and the following inserted in lieu
thereof effective as of January 3, 2006:

 

“For Valuable Consideration, the receipt and
sufficiency of which is hereby acknowledged, the undersigned, for themselves,
their successors and assigns (“Guarantor”) jointly and severally and in solido,
hereby unconditionally guarantee to General Electric Capital
Corporation and its successors, endorsees and assigns, (collectively
called “GE Capital”) that each of Rush Truck Centers of Alabama, Inc.; Rush Truck Centers of Arizona, Inc.;
Rush Truck Centers of California, Inc.; Rush Truck Centers of Colorado, Inc.;
Rush Truck Centers of Florida, Inc.; Rush Truck Centers of New Mexico, Inc.;
Rush Truck Centers of Oklahoma, Inc.; Rush Truck Centers of Tennessee, Inc.
and Rush Truck Centers of Texas, LP (individually and collectively
the “Company”); shall promptly and fully pay all of its present and future
liabilities, obligations and indebtedness to GE Capital, matured or unmatured,
which represent advances to the Company by GE Capital pursuant to that certain
Wholesale Security Agreement dated as of September 20, 2005, between GE
Capital and the Company (as now or hereafter amended), as well as all interest
which accrues thereon and all reasonable costs of collection of the same in the
event of a default by the Company in the payment of such advances and/or
accrued interest (all of which liabilities, obligations and indebtedness are
herein individually and collectively called the “Indebtedness” ), not to exceed
the total principal sum of Four Hundred and Fifty Million Dollars
($450,000,000.00) in principal outstanding at any given point in time, plus all
unpaid interest, which has or thereafter accrues thereon, plus all reasonable costs
incurred by GE Capital in the enforcement of its rights and remedies or the
collection of such principal and accrued interest.”

 

Except as expressly modified hereby, the Guaranty
shall remain in full force and effect.

 

	
  Dated:

  	
  March 6, 2006

  	
   

  
	
   

  
	
  RUSH ENTERPRISES, INC.

  
	
   

  
	
  By:

  	
  /s/ W.M. “Rusty” Rush

  	
   

  
	
   

  	
  W.M. “Rusty” Rush

  
	
  Title: President

  
	
   

  
	
  GENERAL ELECTRIC CAPITAL CORPORATION

  
	
   

  
	
  By:

  	
   

  	
  /s/ Daniel Clark

  	
   

  
	
   

  	
   

  	
  Daniel Clark

  
	
  Title:

  	
  General ManagerExhibit 10.13

 

Paligent Inc.

 

SALVATORE A. BUCCI

President and Chief Executive Officer

(212) 755-4989

sabucci@att.net

 

April 24,
2006

 

Mr. Gareb Shamus

Chief Executive Officer

International Fight League, Inc.

145 West 57th Street, 8th Floor

New York, New York 10019

 

Mr. Richard J. Kurtz

270 Sylvan Avenue

Englewood Cliffs, New Jersey 07632

 

Dear Messrs. Shamus and Kurtz:

 

This Letter Agreement sets
forth the principal terms upon which Paligent Inc., a Delaware corporation (“Paligent”
or the “Company”), is prepared to acquire 100% of the common stock and
preferred stock (collectively, the “Capital Stock”) of International Fight
League, Inc., a Delaware corporation (“IFL”) and Richard J. Kurtz is
prepared to invest $1.0 million in IFL in contemplation of the Acquisition (as
hereinafter defined). Subject to the provisions hereof, Paligent, IFL and Mr. Kurtz
mutually agree to negotiate in good faith towards the execution of mutually
satisfactory definitive agreement in an expeditious manner.

 

1.     Transaction
Terms.

 

•              Transaction Overview. Paligent proposes to
acquire (the “Acquisition”) all of the issued and outstanding Capital Stock of IFL
in consideration of the issuance to the stockholders of IFL (the “Sellers”) of shares
of common stock of Paligent (“Shares”) in an amount such that Sellers will own 95%
of the issued and outstanding Shares of the post-acquisition Company (“Survivor”).

 

•              Investment
by Richard J. Kurtz. Upon the execution of this
Letter Agreement, Richard J. Kurtz will acquire Series A Preferred Stock
of IFL having an initial liquidation preference equal to $1.0 million. The
shares of Series A Preferred Stock will constitute 14.23% of the
outstanding Capital Stock of IFL [after giving effect to the assumed conversion
(to common stock) of the 6,777,778 shares of Series A Preferred Stock of
IFL previously issued and the effect of the 2 million shares of common stock set
aside by IFL for

 

10 East 53rd
Street, 33rd Floor • New York, New York 10022

FAX (212)
755-5463

 

 

option grants]. The aggregate purchase price of the
shares of Series A Preferred Stock is $1.0 million.

 

•              Debt conversion by Richard J. Kurtz. Presently Mr. Kurtz is
owed approximately $600,000 from Paligent pursuant to a demand promissory note.
At the time of the Acquisition, Mr. Kurtz will convert this indebtedness
into f Shares of the Survivor such that Mr. Kurtz will acquire 3.78% of
the Shares of the Survivor (calculated on a fully diluted basis) in exchange
for converting such debt.

 

•              Directors. After the Acquisition, the Survivor’s board of
directors shall consist of five persons: 
Kurt Otto, Gareb Shamus, Michael Molnar, Richard J. Kurtz and Salvatore
A. Bucci. Each of Messrs. Otto, Shamus, Molnar, Kurtz and Bucci will agree
to vote their respective shares of Survivor Shares for the election of the
aforesaid directors (and for successors elected by their unanimous selection.

 

•              Reverse Stock Split. At the time of the
Acquisition, Survivor shall effect a 1 for 20 reverse split of the Shares.

 

•              Option Pool. Option grants by Paligent and IFL prior to the
Acquisition shall survive the merger, subject to the effect of the reverse
split of Shares.

 

•              Name Change. At the time of the Acquisition, Survivor shall change
its name to International Fight League, Inc.

 

2.             Conditions to Closing. The closing of the Acquisition will be subject to the
following conditions, which are expected to include, but not to be limited to, (a) completion
of satisfactory documentation, (b) completion of due diligence of IFL by
Paligent, (c) no material adverse change in either Paligent or IFL, (d) approval
of the board of directors of Paligent, (e) delivery of audited financial
statements of IFL for any fiscal years of operation prior to 2006 and unaudited
financial statements through the fiscal quarter preceding the Closing, (f) the
receipt by the Company of a fairness opinion, and (g) approval of the
stockholders of Paligent, to the extent required.

 

3.             Definitive Agreements. All of the terms and conditions of the proposed
Acquisition shall be set forth in definitive written agreements among the
parties containing, among other things, agreements, representations,
warranties, covenants, and indemnities, appropriate conditions to closing on
the part of both parties as set forth above and appropriate contractual
provisions customarily found in agreements of such type or as otherwise
appropriate. The parties shall simultaneously (i) commence negotiation and
preparation of definitive agreements embodying the foregoing and such other
matters as the parties deem appropriate and (ii) commence their due
diligence reviews so that the parties can simultaneously sign such definitive
agreements contemplated by this Letter Agreement within sixty (60) days of the
date hereof;

 

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provided, however, to the extent that the parties
are diligently conducting due diligence and negotiating definitive agreements
such sixty (60) days shall be extended for such period as agreed to by the
parties.

 

4.             Due Diligence; Confidentiality. It is agreed that the consummation of the
Acquisition shall in all respects be subject to the completion of a
satisfactory due diligence review by Paligent. It is further agreed that,
except as required by law or applicable rule or regulation, neither
Paligent nor IFL, without the consent of the other, shall (i) divulge,
directly or indirectly, to any person (other than to its respective directors,
officers, employees, representatives or agents) any non-public information
regarding the other company’s business, assets or operations, or (ii) use
such non-public information for any purpose other than evaluating the proposed
Acquisition and negotiating definitive agreements.

 

5.             Access. Each party shall be given access by the other party
to all information, documentation, and personnel it reasonably requires for the
carrying out of its due diligence effort. In connection therewith, it is
understood that, pending the execution of definitive agreement, that each
company and their directors, officers, agents, attorneys, accountants and other
representatives (upon reasonable prior notice and during normal business hours)
shall have full access to the employees and financial, legal and other
representatives of the other company with knowledge of the company’s business
and operations (which persons will be instructed by management to make full and
candid disclosure of all information reasonably requested), and to the books,
records and properties relating to the company’s business and operations.

 

6.             Public Announcements/Information. It is understood that the Company is subject to the
public reporting requirements of the Securities Exchange Act of 1934, as
amended, and, therefore, may be required to make appropriate public
announcements of this Letter Agreement and the transactions pertaining thereto.
No other announcements, except as may be required in the opinion of legal
counsel to the disclosing party to comply with applicable laws, shall be made
of the transaction by any party or their representatives without the express prior
written consent of the other party. IFL acknowledges that it, together with its
directors, officers, employees and representatives who are apprised of this
matter, have been advised that the United States securities laws prohibit any
person who possesses or is in privy with a person who possesses material non-public
information about a company from purchasing or selling securities of such
company.

 

7.             Conduct of Business. Upon acceptance hereof and pending the execution of
definitive agreements, each of the Company and IFL will conduct its businesses
diligently, in good faith and in the ordinary course of business consistent
with prior practice. Without limiting the foregoing, neither the Company nor IFL
shall, without the prior written consent of the other (which consent shall not
be unreasonably withheld or delayed):

 

3

 

(a)           declare or pay any dividend or other
distribution with respect to its shares of common stock;

 

(b)           amend its Certificate of Incorporation or
By-laws; or

 

(c)           issue or sell or agree to issue or sell any
of its securities or options (in excess of the 2 million common stock options
presently authorized), warrants or other rights to purchase such securities
except for shares issued upon exercise of options currently authorized or
outstanding and warrants currently outstanding.

 

8.             Exclusivity. The Company and IFL agree that, until such time as
this Letter Agreement has terminated in accordance with the provisions of
paragraph 11 hereof, neither they nor any of their representatives, officers,
directors, agents, equityholders or affiliates shall initiate, solicit,
entertain, negotiate, accept or discuss, directly or indirectly, any proposal
or offer, including any existing offer or proposal (an “Acquisition Proposal”),
to acquire all or any significant part of the business and properties of the
Company or IFL, whether by merger, purchase of units purchase of assets or
otherwise, or provide any non-public information to any third party in connection
with an Acquisition Proposal or enter into any agreement, arrangement or
understanding requiring them to abandon, terminate or fail to consummate the
Acquisition. The Company and IFL represent that neither they nor any of their
equityholders or affiliates is party to or bound by any agreement with respect
to an Acquisition Proposal other than under this Letter Agreement. IFL agrees
to immediately notify Paligent if IFL or any of its representatives, directors,
officers or agents receive any indications of interest or any Acquisition
Proposal, and will communicate to Paligent in reasonable detail the terms and
conditions of any such indication or Acquisition Proposal as well as the
identity of the person or entity making such indication or Acquisition Proposal.
Furthermore, IFL agrees that, until such time as this Letter Agreement has
terminated in accordance with the provisions of paragraph 11 hereof, neither it
nor any of its representatives, officers, directors, agents or affiliates shall
initiate, solicit, entertain, negotiate, accept or discuss, directly or
indirectly, any proposal or offer to raise capital for IFL through the issuance
of debt securities, capitalized leases, preferred or common interests or units
or any similar instruments except in connection with the Acquisition or with
the express written consent of Paligent.

 

9.             Paligent Agreements. Without the prior written consent of IFL (which
consent shall not be unreasonably withheld or delayed) Paligent shall not enter
into any agreement (written or oral) or transaction or waive, relinquish,
terminate or forebear the enforcement of any right including any agreement
involving the sale, acquisition, license or lease of any assets.

 

10.           Finders. Neither party hereto dealt with any finder, business
broker, or investment banker (“Finder”) in connection with the proposed
Acquisition and each party shall be solely responsible for, and shall indemnify
and hold the other party harmless from, any claims which

 

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may be made arising out of or in connection
with its own acts made or alleged to have been made with any Finder.

 

11.           Termination. Notwithstanding anything to the contrary herein, Paligent
has the right in its sole discretion for any reason whatsoever, or for no
reason, without prior notice to IFL, and without liability to IFL, to terminate
this Letter Agreement and abandon all discussions, negotiations and related
activities respecting the Acquisition.

 

12.           Binding and Non-Binding Effect. This Letter Agreement is binding upon the parties to
the extent set forth herein. The rights and obligations of the parties with
respect to the Acquisition shall only be as set forth herein and as set forth in
the acquisition agreement, if and when it is executed by the parties thereto,
and subject to the conditions set forth therein. If, due to no fault of
Paligent, the acquisition of IFL is not consummated within 270 days of the date
hereof, the shares of Series A Preferred Stock acquired by Mr. Kurtz
upon the execution of this Letter Agreement will constitute 25% of the
outstanding Capital Stock of IFL [after giving effect to the assumed conversion
(to common stock) of the 6,777,778 shares of Series A Preferred Stock of
IFL previously issued and the effect of the 2 million shares of common stock
set aside by IFL for option grants] with no additional consideration payable by
Mr. Kurtz. This Letter Agreement may be amended, modified, or
supplemented in writing by the parties.

 

13.           Governing Law. This Letter Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York,
without regard to the conflict of laws principles thereof.

 

14.           Arbitration. Any controversy or claim arising or relating to this
Letter Agreement and its formation, breach, performance and application shall
be submitted to binding arbitration under the Commercial Arbitration Rules of
the American Arbitration Association in the City of New York, New York. The
parties shall cooperate in good faith to agree on a single arbitrator to
preside over the proceeding. The decision of the arbitrator shall be binding on
the parties, and judgment in accordance with that decision may be entered
in any court having jurisdiction thereof. The arbitrator shall be empowered to
award specific performance, injunctive relief and damages (but not exemplary
damage). The prevailing party shall be entitled to collect reasonable attorneys’
fees and costs incurred in the course of prosecuting or defending the claim.

 

15.           Representations and Warranties. Each party hereby warrants and represents to the
other that (i) all necessary action has been taken to authorize the
execution of this Letter Agreement, (ii) the person executing this Letter Agreement
has been duly authorized to do so, and (iii) upon execution, this Letter Agreement
shall be the legal, valid and binding obligation of such party, enforceable
against it in accordance with its terms.

 

By signing a copy of this
Letter Agreement and returning it to the undersigned, you indicate that the
above is acceptable to you and has been approved by your (in the case of Mr.

 

5

 

Kurtz) or your Board of
Directors (in the case of IFL). This Letter Agreement will be void unless it is
fully executed and returned to the undersigned by 5:00 p.m. Eastern Time
on April 25, 2006.

 

This Letter Agreement may be
signed in counterparts, each of which is an original document, and all of which
form one agreement.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  PALIGENT INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Salvatore A. Bucci

  	
   

  
	
   

  	
   

  	
  Salvatore
  A. Bucci

  
	
   

  	
   

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  READ AND ACCEPTED

  	
  READ AND ACCEPTED

  
	
  this 25th day of April 2006

  	
  this 25th day of April 2006

  
	
   

  	
   

  
	
  INTERNATIONAL FIGHT LEAGUE, INC.

  	
  RICHARD J. KURTZ

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Gareb Shamus

  	
   

  	
  /s/ Richard J. Kurtz

  	
   

  
	
   

  	
  Gareb Shamus

  	
  Richard J. Kurtz

  
	
   

  	
  Chief Executive Officer

  	
   

  
						

 

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