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EXHIBIT 10.9    
    

 
 

FIRST AMENDMENT TO REVOLVING CREDIT AGREEMENT    
    

        THIS FIRST AMENDMENT ("Amendment"), dated as of the 30th day of December, 2003, by and between  PAWNMART, INC. and XPONENTIAL, INC. (collectively, "Borrower"), and  COMERICA BANK, a Michigan banking corporation ("Bank"); 

WITNESSETH: 

        WHEREAS,
Borrower and Bank are parties to that certain Revolving Credit Agreement dated as of May 19, 2003 (the "Agreement"); 

        WHEREAS,
Borrower and Bank desire to amend the Agreement, as herein provided; 

        NOW,
THEREFORE, in consideration of the premises and the mutual promises herein contained, Borrower and Bank hereby agree as follows: 

        1.     The
following definitions in Section 1.1 of the Agreement are hereby deleted and replaced with the following: 

        "'Applicable
Interest Rate' shall mean the Fixed Rate. 

        'Commitment
Amount' shall mean Four Million Dollars ($4,000,000), or such base amount to which it is or may be reduced from time to time pursuant to Sections 2.12 and 2.13 hereof. 

        'Maturity
Date' shall mean June 30, 2004." 

        2.     The
following new definition is hereby added to the Agreement in appropriate alphabetical order: 

        'Fixed
Rate' shall mean a fixed rate of interest equal to 9% per annum." 

        3.     The
definitions of "Prime-based Loan", "Prime-based Rate" and "Prime Rate" are hereby deleted in their entirety from the Agreement. 

        4.     Any
and all references to the terms "Prime-based Loan", "Prime-based Rate" and "Prime Rate" are hereby deleted in their entirety from the Agreement and any reference to
the "Prime-based Rate" is hereby replaced with the "Fixed Rate". 

        5.     Section 2.10
of the Agreement is hereby deleted in its entirety and replaced with the following: 

        "2.10    Default Interest.    Notwithstanding anything herein to the contrary, in the event and so long as an Event of
Default shall exist, all principal outstanding under the Note shall bear interest, payable on demand, from the date of such Event of Default at a rate per annum equal to twelve percent (12%) (but in
no event in excess of the maximum rate permitted by law)." 

        6.     Section 2.11
of the Agreement is hereby deleted in its entirety and replaced with the following: 

        "2.13    Mandatory Commitment Reduction.    Commencing on February 1, 2004 and on the first day of each
calendar month thereafter, through and including June 1, 2004, the Commitment Amount shall be automatically reduced by One Hundred Thousand Dollars ($100,000), and in the event that the
Commitment Amount as so reduced is less than the amount of Loan then outstanding, Borrower shall immediately prepay the Loan in an amount, if any, by which Advances under the Loan exceed the
Commitment Amount as so reduced." 

        7.     Section 2.12
of the Agreement is hereby amended by amending the caption of such Section to read "Voluntary Commitment
Reduction". 

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        8.     Borrower
agrees to pay to Bank, upon demand by Bank, all fees and expenses, including, without limitation, attorneys' fees and expenses, whether of inside or outside
counsel, (including without limitation those of Miller, Canfield, Paddock and Stone, P.L.C. ("Miller, Canfield")) incurred by the Bank in connection with negotiations between the Borrower and the
Bank, the preparation of this Amendment, and the documents and instruments relating hereto. Borrower further agrees to pay to Bank a non-refundable origination fee in the amount of One
Hundred Ten Thousand Dollars ($110,000) with respect to the Loan. Such origination fee shall be deemed earned in full by Bank upon Borrower's execution and delivery of this Amendment to Bank. Eighty
Thousand Dollars ($80,000) of such amount shall be due and payable upon Borrower's execution hereof and the remaining Thirty Thousand Dollars ($30,000) shall be due and payable on or before
April 30, 2004. Notwithstanding the foregoing, Bank agrees to waive the remaining Thirty Thousand Dollars ($30,000) installment of the origination fee so long as Borrower irrevocably pays the
Indebtedness (as defined in the Agreement) in full on or before April 30, 2004 and the Indebtedness is not subject to being rescinded, disgorged or otherwise recovered from Bank under any
applicable law. Any breach of an obligation hereunder shall constitute an Event of Default under the Agreement. 

        9.     Borrower
hereby represents and warrants that, after giving effect to the amendments obtained herein, (a) the execution, delivery and performance of this Amendment
and any other documents and instruments required under this Amendment or the Agreement are within Borrower's powers and authorities, have been duly authorized, are not in contravention of law or the
terms of Borrower's organizational documents, and do not require the consent or approval any governmental body, agency, or authority; and this Amendment and any other documents and instruments
required under this Amendment or the Agreement to which Borrower is a party or by which it is otherwise bound, will be valid and binding in accordance with their terms; and (b) the continuing
representations and warranties of Borrower set forth in Sections 5.1 through 5.15 of the Agreement are true and correct on and as of the date hereof with the same force and effect as if made on and as
of the date hereof. 

        10.   Borrower
certifies that no Default or Event of Default (as defined in the Agreement) has occurred and is continuing as of the date hereof, except for the "Identified
Default". For purposes hereof, the "Identified Default" shall mean only the default for making a loan to American IronHorse Motorcycle Company, Inc. in the amount of $1,000,000 as evidenced by
a Secured Promissory Note dated as of October 3, 2003 (the "Motorcycle Note") in violation of Section 6.5 of the Agreement. Bank hereby waives any Default or Event of Default (as defined
in the Agreement) arising from the "Identified Default" so long as Borrower delivers to Bank the original Motorcycle Note and an assignment of the Motorcycle Note and all security therefor in form
acceptable to Bank. This Amendment shall not be construed as a waiver by Bank of any other Defaults or Events of Default (as defined in the Agreement) by Borrower that may exist under or in connection
with the Agreement or the Note. 

        11.   The
waivers provided herein shall extend to and cover only the matters expressly described herein and shall not act as or constitute waivers of or consents to any other
Default, Event of Default, transaction, act or omission, whether related or unrelated to the foregoing, and the Agreement, as amended hereby, and the Note, continues to be valid, binding and
enforceable according to the terms stated therein. Further, said waivers shall not extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly waived hereby, or
impair any right of Bank consequent therefrom. All terms and conditions of the Agreement, as so amended, and the Note, shall remain in full force and effect and are hereby acknowledged and ratified by
Borrower. 

        12.   All
the terms used herein which are defined in the Agreement shall have the same meanings as used therein, unless the context clearly requires otherwise. 

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        13.   Borrower
expressly acknowledges and agrees (a) that except as expressly amended herein, the Agreement and related documents shall remain in full force and effect
and the foregoing are hereby ratified, confirmed and restated, and (b) that there are no commitments by the Bank to amend, modify, or otherwise change the terms and conditions of the Agreement
and the documents related thereto. 

        IN
WITNESS WHEREOF, the parties hereto have executed this Amendment on the day and year first set forth above. 

	

 	
 	

PAWNMART, INC.
	

 	
 	

By:	
 	

/s/  ROBERT W. SCHLEIZER      
 Robert W. Schleizer,

Chief Financial Officer
	

 	
 	

XPONENTIAL, INC.
	

 	
 	

By:	
 	

/s/  ROBERT W. SCHLEIZER      
 Robert W. Schleizer,

Chief Financial Officer
	

 	
 	

COMERICA BANK
	

 	
 	

By:	
 	

/s/  JOSEPH SULLIVAN      
 Joseph Sullivan,

Senior Vice President,

Texas Division

3

 
 

REVOLVING NOTE    
    

	$4,000,000	 	Detroit, Michigan

December 30, 2003

        FOR VALUE RECEIVED, on or before the Maturity Date, PAWNMART, INC., a Nevada corporation and  XPONENTIAL,
 INC., a Delaware corporation (collectively, "Company") promises to pay to the order of COMERICA
BANK, a Michigan banking corporation ("Bank") at its main office at One Detroit Center, Detroit, Michigan, in lawful money of the United States of America so much of the
principal sum of FOUR MILLION DOLLARS ($4,000,000) as shall have been advanced and then be outstanding hereunder and all the accrued and unpaid interest thereon. Notwithstanding the foregoing, the
maximum amount available hereunder shall be reduced by One Hundred Thousand Dollars ($100,000) each calendar month, commencing on February 1, 2004 and on the first day of each calendar month
thereafter, through and including June 1, 2004, and in the event that the Commitment Amount as so reduced is less than the amount of the Loan then outstanding, Company shall immediately prepay
the Loan in an amount, if any, by which Advances under the Loan exceed the Commitment Amount as so reduced. 

        Capitalized
terms used herein and not defined to the contrary have the meanings given them in the Revolving Credit Agreement dated as of May 19, 2003, as amended, between Company
and Bank ("Agreement") to which reference is hereby made. 

        Interest
on the Advances from time to time outstanding shall bear interest at the Applicable Interest Rate; provided, however, that in the event and so long as there shall exist an Event
of Default, the principal balance from time to time outstanding shall bear interest at the rates provided in Section 2.5 of the Agreement.
Interest shall be computed on the basis of a 360 day year and assessed for the actual number of days elapsed. Interest shall be payable on all Advances, monthly, on the first Business Day of
each month, commencing on January 1, 2004. 

        This
Note is note under which advances, repayments and readvances may be made subject to the terms and conditions of the Agreement. This Note evidences borrowing under, is subject to, is
secured in accordance with, and may be matured under, the terms of the Agreement, to which reference is hereby made. As additional security for this Note, Company grants Bank a lien on all property
and assets including deposits and other credits of the Company, at any time in possession or control of or owing by Bank for any purpose. 

        Company
hereby waives presentment for payment, demand, protest and notice of dishonor and nonpayment of this Note and agrees that no obligation hereunder shall be discharged by reason of
any extension, indulgence, release, or forbearance granted by any holder of this Note to any party now or hereafter liable hereon or any present or subsequent owner of any property, real or personal,
which is now or hereafter security for this Note. Any transferees of, or endorser, guarantor or surety paying this Note in full may succeed to all rights of Bank, and Bank shall be under no further
responsibility for the exercise thereof or the loan evidenced hereby. Nothing herein shall limit any right granted Bank by other instrument or by law. 

        This
Note shall be governed by and construed in accordance with the laws of the State of Michigan. 

 

        This Note amends and restates (in part) that certain $4,500,000 Revolving Note dated as of May 19, 2003, executed and delivered by the undersigned in favor
of Bank, and constitutes replacement and renewal evidence of the indebtedness evidenced by such prior note.

	

 	
 	

PAWNMART, INC.
	

 	
 	

By:	
 	

/s/  ROBERT W. SCHLEIZER      
 Robert W. Schleizer,

Chief Financial Officer
	

 	
 	

XPONENTIAL, INC.
	

 	
 	

By:	
 	

/s/  ROBERT W. SCHLEIZER      
 Robert W. Schleizer,

Chief Financial Officer

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FIRST AMENDMENT TO SECURITY AGREEMENT    
    

        This First Amendment to Security Agreement ("First Amendment") is made this 30th day of December, 2003 by  XPONENTIAL, INC. ("Debtor")
in favor of Comerica Bank ("Bank"). 

        WHEREAS,
Debtor executed a certain Security Agreement (All Assets) in favor of Bank on May 19, 2003 (the "Security Agreement") to collaterally secure unto Bank payment and
performance when due, whether by stated maturity, demand, acceleration or otherwise, all existing and future indebtedness to Bank of Debtor and Pawnmart, Inc. ("Borrower"), which indebtedness
includes, without limit, any and all obligations of Debtor and Borrower to Bank, whether absolute or contingent, direct or indirect, voluntary or involuntary, liquidated or unliquidated, joint or
several, known or unknown; and 

        WHEREAS,
Debtor and Bank desire to amend the Security Agreement on the terms and conditions hereof; 

        NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, it is agreed as follows: 

        1.     Clause (e)
of Paragraph 1 of the Security Agreement is hereby deleted in its entirety and replaced with the following: 

	(e)
	all
of Debtor's right, title and interest in the securities account denominated as account no. BJX-169293 (the "Account") maintained at Comerica Securities, Inc.
and all cash, securities, bonds, investment property or financial assets now or hereafter deposited or maintained in, or credited to, the Account into which Debtor has deposited or will deposit Two
Million Five Hundred Thousand Dollars ($2,500,000). Any interest earned with respect to the funds in the Account will not constitute Collateral and Debtor shall be entitled to receive the interest
accrued at any time,". 

        2.     Paragraph 7
of the Security Agreement is hereby deleted in its entirety and replaced with the following: 

	"7.
	Special
Provisions Applicable to this Agreement.

	a.
	Debtor
shall at all times maintain a cash value of not less than Two Million Five Hundred Thousand Dollars ($2,500,000) (the "Minimum Amount") in the Account. In the event the balance
in the Account falls below the Minimum Amount, Debtor shall have forty eight (48) hours to increase the balance in the Account to at amount equal to least the Minimum Amount and failure to do
so shall constitute an Event of Default.

	b.
	Debtor
shall report the outstanding balance in the Account to Bank on the Borrowing Base Amount report required to be furnished to Bank pursuant to the Revolving Credit Agreement among
Debtor, Borrower and Bank dated as of May 19, 2003, as amended, and deliver such supporting information as Bank may reasonably require." 

        3.     All
capitalized terms herein, unless otherwise defined, shall have the meanings ascribed thereto in the Security Agreement. 

        4.     Except
as amended hereby, the Security Agreement shall remain unchanged and shall be in full force and effect, enforceable in accordance with its terms. 

 

        IN
WITNESS WHEREOF, this First Amendment has been executed as of the day first stated above. 

	

 	
 	

XPONENTIAL, INC.
	

 	
 	

By:	
 	

/s/  ROBERT W. SCHLEIZER      
 Robert W. Schleizer,

Chief Financial Officer
	

 	
 	

COMERICA BANK
	

 	
 	

By:	
 	

/s/  JOSEPH SULLIVAN      
 Joseph Sullivan,

Senior Vice President,

Texas Division

2

 
 

FIRST AMENDMENT TO ACCOUNT CONTROL AGREEMENT    
    

        This First Amendment to Account Control Agreement ("First Amendment") is made this 30th day of December, 2003 among COMERICA
BANK("Bank"), XPONENTIAL, INC. ("Pledgor") and COMERICA
SECURITIES, INC. ("Securities Intermediary"). 

        WHEREAS,
Bank, Pledgor and Securities Intermediary executed a certain Account Control Agreement in favor of Bank on May 19, 2003 (the "Account Control Agreement") in connection
with a Security Agreement dated as of May 19, 2003, as amended, by Pledgor to Bank; and 

        WHEREAS,
Pledgor, Bank and Securities Intermediary desire to amend the Account Control Agreement on the terms and conditions hereof; 

        NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, it is agreed as follows: 

        1.     Paragraph 4
of the Account Control Agreement is hereby deleted in its entirety and replaced with the following: 

        "4.   No Withdrawals. Notwithstanding the provisions of Section 3 above, Securities Intermediary shall neither accept
nor comply with any entitlement order from Pledgor withdrawing any financial assets from the Account or directing the transfer of any financial assets held in the Account to any other account
maintained at Securities Intermediary or any other entity other than Secured Party nor deliver any such financial assets to Pledgor nor pay any free credit balance or other amount owing, from
Securities Intermediary to Pledgor with respect to the Account without the prior written consent of Secured Party; provided, however Pledgor may withdraw financial assets from the Account so long as
Pledgor at all times maintains a cash value of not less than Two Million Five Hundred Thousand Dollars ($2,500,000) in the Account." 

        2.     All
capitalized terms herein, unless otherwise defined, shall have the meanings ascribed thereto in the Account Control Agreement. 

        3.     Except
as amended hereby, the Account Control Agreement shall remain unchanged and shall be in full force and effect, enforceable in accordance with its terms. 

 

        IN
WITNESS WHEREOF, this First Amendment has been executed as of the day first stated above. 

	

 	
 	

XPONENTIAL, INC.
	

 	
 	

By:	
 	

/s/  ROBERT W. SCHLEIZER      
 Robert W. Schleizer,

Chief Financial Officer
	

 	
 	

COMERICA BANK
	

 	
 	

By:	
 	

/s/  JOSEPH SULLIVAN      
 Joseph Sullivan,

Senior Vice President

Texas Division
	

 	
 	

COMERICA SECURITIES, INC.
	

 	
 	

By:	
 	

/s/  PAMELA K. COLLINS      
 Pamela K. Collins

Regional Operations Manager-Vice President

2

 
 

COLLATERAL ASSIGNMENT OF NOTE AND SECURITY AGREEMENT    
    

        This Collateral Assignment of Note and Security Agreement, dated as of the 30th day of December, 2003, by and from  XPONENTIAL, INC.("Xponential"), INVESTORS STRATEGIC PARTNERS I, LTD. AND CURTISWOOD CAPITAL,
LLC (collectively with Xponential, the "Creditors", DWAYNE A. MOYERS, AS AGENT FOR THE CREDITORS ("Agent", together with the
Creditors, the "Assignor"), to and for the benefit of COMERICA BANK, a Michigan banking corporation ("Assignee"). 

        FOR
VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, Assignor hereby agrees as follows: 

        1.    Assignment and Grant.    As security for any and all indebtedness and liabilities whatsoever of Xponential and
Pawnmart, Inc. (collectively, "Borrower") to Assignee, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and howsoever evidenced,
including obligations arising from applications or agreements for the issuance of letters of credit or otherwise (collectively, the "Indebtedness"), and to secure the performance by Assignor of its
covenants and warranties hereunder, Assignor does hereby sell, assign, transfer, grant and set over to Assignee all of Xponential's right, title and interest in and to that certain Secured Promissory
Note in the face amount of $1,000,000, dated as of October 3, 2003, from American IronHorse Motorcycle Company, Inc., a Texas corporation (the "Debtor") to Assignor (the "Motorcycle
Note") and all amounts payable by the maker thereunder, and the Security A as of October 3, 2003 from the Debtor to Assignor (the "Motorcycle Security Agreement") and all of Assignor's rights
and remedies under the Motorcycle Note and Motorcycle Security Agreement, and in all additions, attachments, accessions, replacements, substitutions, renewals and cash and non-cash
proceeds thereof or therefor, wherever situated, now owned or hereafter acquired (all the foregoing being collectively referred to as the "Collateral"). 

        This
Assignment and Security Agreement is made solely as collateral security for the Indebtedness and for the obligations of Assignor hereunder. Upon payment in full of the Indebtedness
and all other sums payable thereunder or hereunder, this Assignment and Security Agreement shall terminate and all rights and interests herein assigned and granted to the Assignee shall revert to the
Assignor. 

        2.    Representations and Warranties of Assignor.    The Assignor represents and warrants to the Assignee that: 

	(a)
	The
sole original Motorcycle Note and a true and complete copy of the Motorcycle Security Agreement have been delivered to Assignee;

	(b)
	The
Motorcycle Note and Motorcycle Security Agreement are genuine, enforceable and in full force and effect according to their terms, have not been amended or replaced and are not in
default (nor has there occurred any event which, with the giving of notice or the passage of time, or both, would constitute such a default);

	(c)
	As
of the date hereof there exists no other assignment or security interest of or in the Motorcycle Note or the collateral described in the Motorcycle Security Agreement, except as
set forth in that certain Subordination Agreement dated October 3, 2003 (the "Existing Subordination Agreement") among the Creditors, Agent, American IronHorse Motorcycle Company, Inc.
and Textron Financial Corporation ("Textron"), a true and complete copy of which has been delivered to Assignee. 

 

        3.    Covenants and Agreements of Assignor.    The Assignor covenants and agrees that the Assignee shall have all of
the rights and remedies with respect to the Collateral of a secured party under Article 9 of the Uniform Commercial Code of Michigan and under any and all security agreements, if any, from
Assignor to Assignee. For so long as this Assignment and Security Agreement is in effect, Assignor agrees (a) subject to the terms of the Existing Subordination Agreement, to endorse and
deliver to Assignee all payments on, or other proceeds of, the Collateral received by Assignor from any source, in the form received by Assignor without commingling with any funds belonging to
Assignor and forthwith to deliver to Assignee all property in Assignor's possession or hereafter coming into Assignor's possession through enforcement of any of Assignor's rights or interests in the
Collateral, and (b) except as set forth in the Existing Subordination Agreement, no into any agreement subordinating, amending, modifying or terminating the Motorcycle Note and the Motorcycle
Security Agreement, and any such attempted subordination, amendment, modification or termination shall be void. 

        4.    Covenants and Agreements of Assignee.    Assignee covenants and agrees that the Collateral is assigned to
Assignee subject to the terms, provisions and conditions of the Existing Subordination Agreement and Assignee shall be bound by the terms, provisions and conditions of the Existing Subordination
Agreement until the Senior Creditor Indebtedness (as defined in the Existing Subordination Agreement) has been fully, finally and indefeasibly paid in cash and all financing arrangements and
commitments between Creditors and Textron have been terminated. 

        5.    Waiver and Release.    Subject to the terms of the Existing Subordination Agreement, Assignor agrees that
Assignee may, in Assignor's name, endorse all notes or remittances received from the maker of the Motorcycle Note. 

        6.    Severability.    If any term or provision of this Agreement and Security Agreement or any application thereof
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Assignment and Security Agreement and of any other application of such term or
provision shall not in any way be affected or impaired thereby. 

        7.    Successors and Assigns.    This Assignment and Security Agreement shall be binding upon the parties hereto and
their respective successors and assigns. 

        8.    Governing Law.    This Assignment and Security Agreement shall in all respects be governed by and construed in
accordance with the laws of the State of Michigan. Section headings in this Assignment and Security Agreement are included for convenience only and shall not affect the meaning hereof for any purpose. 

2

 

        IN
WITNESS WHEREOF, Assignor has caused this Assignment and Security Agreement to be duly executed as of the date and year first above written. 

	

 	
 	
ASSIGNORS
	

 	
 	

XPONENTIAL, INC.
	

 	
 	

By:	
 	

/s/  ROBERT W. SCHLEIZER      
 Robert W. Schleizer,

Chief Financial Officer
	

 	
 	

INVESTORS STRATEGIC PARTNERS I, LTD.
	

 	
 	

By:	
 	

/s/  DWAYNE A. MOYERS      
 Dwayne A. Moyers, Agent
	

 	
 	

CURTISWOOD CAPITAL, LLC
	

 	
 	

By:	
 	

/s/  DWAYNE A. MOYERS      
 Dwayne A. Moyers, Agent
	

 	
 	

 Dwayne A. Moyers, as agent for Xponential, Inc., Investors Strategic Partners I, Ltd. and Curtiswood Capital, LLC
	

Acknowledged and Agreed to by:	
 	

 	
 	

 
	

TEXTRON FINANCIAL CORPORATION	
 	

 	
 	

 

	

By:	
 	

	
 	

 
	

Its:	
 	

	
 	

 

3

 
 

ASSIGNMENT SEPARATE FROM NOTE    
    

        Date: December 30, 2003 

        FOR
VALUE RECEIVED, the undersigned hereby assigns and transfers to COMERICA BANK, a Michigan banking corporation, whose address is 500
Woodward Avenue, Detroit, Michigan 48226, that certain Secured Promissory Note made as of October 3, 2003, in the original principal amount of $1,000,000 by American Iron Horse Motorcycle
Company to the order of the undersigned. 

	

 	
 	

XPONENTIAL, INC.
	

 	
 	

By:	
 	

/s/  ROBERT W. SCHLEIZER      
 Robert W. Schleizer,

Chief Financial Officer

QuickLinks

EXHIBIT 10.9

FIRST AMENDMENT TO REVOLVING CREDIT AGREEMENT

REVOLVING NOTE

FIRST AMENDMENT TO SECURITY AGREEMENT

FIRST AMENDMENT TO ACCOUNT CONTROL AGREEMENT

COLLATERAL ASSIGNMENT OF NOTE AND SECURITY AGREEMENT

ASSIGNMENT SEPARATE FROM NOTEQuickLinks
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EXHIBIT 10.10    
    

 
 

BEST EFFORTS SELLING AGREEMENT
  XPONENTIAL, INC.    
    

        This Best Efforts Selling Agreement (the "Agreement") is made and entered into this 31st day of December, 2003 by and between
Xponential, Inc., a Delaware corporation, whose address is 2175 Old Concord Road SE, Suite 200, Smyrna, Georgia 30080 (the "Company"), and Massie Capital, Ltd., a Texas limited
partnership, whose address is 7009 Riverport Road, Fort Worth, Texas 76116 (the "Selling Agent"). 

Recitals  

        A.    The
Company desires to offer and sell up to $20,000,000 in 8% Limited Recourse Secured Convertible Notes due December 31, 2014 to the public through Selling Agent
and participating broker-dealers. 

        B.    The
offering and sale will be made pursuant to the Registration Statement and Prospectus (as herein defined). 

        C.    Selling
Agent is willing to assist the Company in connection with the proposed issuance and sale of these securities on a best efforts basis on the terms and conditions
herein contained. 

Agreement  

        NOW, THEREFORE, in consideration of the foregoing, and of the mutual covenants, agreements, undertakings, representations, and warranties herein contained, the
Company and Selling Agent agree as follows: 

I. Representations and Warranties  

        The Company represents, warrants, and agrees with Selling Agent that: 

        1.     The Company is a corporation duly organized and validly existing as a corporation in good standing under the laws of the
State of Delaware. 

        2.     The Company shall issue, consistent with the terms and conditions of the Registration Statement, up to $20,000,000 in 8%
Limited Recourse Secured Convertible Subordinated Notes due December 31, 2014 ("the Notes") and up to 200,000 Series A Redeemable Common Stock Purchase Warrants (the "Selling Agent's
Warrants") (the Notes and the Selling Agent's Warrants are collectively referred to herein as the "Securities.") 

        3.     The Notes shall: 

        (a)   Bear interest at the rate of 8% per annum; 

        (b)   Pay interest monthly on the first of each month beginning with the second full calendar month after issuance; and 

        (c)   Pay principal at maturity on December 31, 2014. 

        4.     The Notes will be issued pursuant to the terms and conditions of a Trust Indenture (the "Indenture") entered into between
the Company and The Bank of New York Trust Company of Florida, N. A. as Indenture Trustee ("Trustee"). 

        5.     A Registration Statement on the appropriate form as prescribed by the Securities and Exchange Commission (the
"Commission"), together with a related Prospectus with respect to the Securities, will be filed with the Commission under the Securities Act of 1933, as amended (the "Act"). The Company will use its
best efforts to cause the Registration Statement and the Prospectus to become effective as soon as possible after the filing. As used in this Agreement, the term "Registration 

 

Statement"
refers to and means the Registration Statement and any and all amendments to the Registration Statement, including exhibits and financial statements, when the Registration Statement becomes
effective and, in the event of any amendments after the Effective Date (as herein defined), the Registration Statement as so amended; and the term "Prospectus" refers to and means the related
Prospectus in final form, and in the event of any amendment or supplement to the Prospectus after the Effective Date, also refers to and means the Prospectus as so amended or supplemented. 

        6.     The Securities shall also be registered or qualified for sale, to the extent required by law, with the state regulatory
agencies of any and all states where the Securities shall be offered. 

        7.     All expenses of registration and qualification shall be paid by the Company. 

        8.     The purchase price of the Notes shall be in minimum denominations of $1,000 and integral multiples thereof with a minimum
purchase amount of $10,000. 

        9.     When the Registration Statement becomes effective, it and the accompanying Prospectus will comply in all material respects
with the requirements of the Act and with the rules and regulations of the Commission promulgated under the Act; provided, however, the Company makes no representations or warranties as to information
contained or omitted from the Registration Statement or the Prospectus in reliance upon written information furnished to the Company by Selling Agent specifically for inclusion in the Registration
Statement or the Prospectus. 

        10.   The Company has the requisite corporate power and authority to enter into this Agreement. 

        11.   The financial statements to be filed with the Registration Statement will reflect all material liabilities of the
Company, contingent or otherwise, and will include adequate reserves for all federal and state tax liabilities incurred to their respective dates. 

        12.   All of the Notes to be sold under and pursuant to this Agreement, when issued and delivered, will be validly issued and
enforceable in accordance with their terms and conditions and free and clear of all claims and encumbrances, except as described in the Indenture. 

        13.   The certified public accountants who will certify to the financial statements to be filed with the Commission as a part
of the Registration Statement and to the financial statements incorporated in the Prospectus, and who, as experts, may certify or review other information of a financial or accounting nature contained
in the Registration Statement and the Prospectus, will be independent certified public accountants as required by the Act and the rules and regulations promulgated under the Act. 

        14.   All of the foregoing representations, warranties and agreements shall survive delivery of, and payment for, all of the
Securities covered by this Agreement. 

II. Retention of Selling Agent  

        Based upon the foregoing representations, warranties and agreements, and subject to the terms and conditions herein contained: 

        1.     The Company hereby retains Selling Agent as its agent to sell for its account the Notes. Selling Agent shall use its best
efforts as agent, promptly following the receipt of written notice of the Effective Date, to sell the Notes subject to the terms, provisions and conditions set forth below. There is no assurance that
any or all of the Notes to be offered by the Company will be sold, and Selling Agent is under no obligation to purchase or take down any of the Notes on its own behalf or on behalf of others. 

        2.     Selling Agent acknowledges that the Company may limit its acceptance of subscriptions in any manner it deems prudent in
order to provide for the timely use of subscriber funds and may reject any subscriptions for any reason, and Selling Agent agrees that any such rejection of a subscription 

2

 

obtained
by Selling Agent or by the Selling Group (as hereinafter defined) shall be deemed not to be a sale made by Selling Agent or by the Selling Group. Selling Agent further acknowledges that
(i) all subscription funds will be delivered to the Company with the subscription documents as required by the Company; and (ii) all subscribers' checks shall be made payable to the
Company. All subscribers' checks will be transmitted directly to the Company by noon of the next business day after receipt by Selling Agent. 

        3.     Selling Agent may offer the Notes itself or through registered securities dealers selected by it, and the Company will pay
such dealers and/or Selling Agent a commission equal to six percent (6%) of the funds received by the Company, as allocated by Selling Agent among one or more dealers and Selling Agent, and will pay
Selling Agent three percent (3%) of the funds received by the Company as manager's fee. Selling Agent may also act as a dealer and receive both the six percent (6%) commission and the three percent
(3%) manager's fee on the funds received by the Company for any sales made by Selling Agent acting as a dealer. Selling Agent and such securities dealers shall be collectively referred to herein as
the "Selling Group." 

        4.     In addition to the compensation set forth above, Selling Agent shall also receive, for each $10,000 in principal amount of
Notes sold to the public, one hundred (100) Selling Agent's Warrants, each exercisable to purchase one share of common stock of the Company at $11.00 per share. The Selling Agent's Warrants
will expire seven (7) years from the date of issuance. Selling Agent, in its discretion, may distribute a portion of such Selling Agent's Warrants to other members of the Selling Group as
additional compensation. 

        5.     The Company may terminate this Agreement at any time upon thirty (30) days' prior written notice to Selling Agent,
or immediately upon written notice where specifically allowed herein. 

        6.     Selling Agent represents that it and each member of the Selling Group are appropriately registered as a broker-dealer with
the Commission and in all states in which they conduct or will conduct business in connection with this offering and are members in good standing of the National Association of Securities
Dealers, Inc. Selling Agent also agrees not to solicit subscriptions for the Notes that will result in a violation of the securities laws of the United States, or of any state, or any rule or
regulation thereunder, or of any rules of the NASD or any securities exchange. 

        7.     Selling Agent represents that there is not now pending or threatened against Selling Agent any action or proceeding of
which Selling Agent has been advised, either in any court of competent jurisdiction, before the Commission or any state securities commission concerning activities as a broker or dealer, nor has
Selling Agent been named as a "cause" in any such action or proceeding. 

        8.     In the event any action or proceeding of the type referred to in  Paragraph 7 above shall be instituted or threatened against
Selling Agent at any time, or in the event there shall be filed by or against Selling
Agent in any court pursuant to any federal, state, local or municipal statute a petition in bankruptcy or insolvency or for reorganization or for the appointment of a receiver or trustee of assets, or
Selling Agent makes an assignment for the benefit of creditors, the Company shall have the right to immediately terminate this Agreement upon written notice to Selling Agent. 

        9.     Upon request, the Company will inform Selling Agent as to the states in which the Company has been advised by counsel that
the Notes have been qualified for sale under the respective state securities laws, but the Company does not assume any responsibility or obligation as to Selling Agent's right to sell the Notes in any
state. Selling Agent understands and agrees that under no circumstances will Selling Agent engage in any activities hereunder in any jurisdiction (a) in which the Company has not informed
Selling Agent that the Notes are qualified for sale under the applicable securities laws, or (b) in which Selling Agent may not lawfully so engage. 

        10.   Selling Agent confirms that its commitment to use its best efforts to solicit subscriptions for the Notes will not result
in a violation of the securities laws of the United States, including, but not 

3

 

limited
to, the Act or any rule or regulation thereunder, or the securities laws of any state in which Selling Agent will conduct business and the rules and regulations thereunder, or of any rules of
any securities exchange to which Selling Agent is subject or of any restriction imposed upon Selling Agent by the NASD or any such exchange or governmental authority and agrees to indemnify the
Company, its shareholders, directors, officers, employees or agents for any and all damages, liabilities and costs (including reasonable attorneys' fees and expenses) resulting from the same. 

        11.   Selling Agent represents that in connection with the offering: 

        (a)   Selling Agent will comply in all respect with the provisions of this Agreement. 

        (b)   Selling Agent shall file all required documentation and use its best efforts to obtain the approval of the NASD pursuant
to Rule 2710 of the Conduct Rules of the NASD with respect to this Agreement and the compensation arrangements set forth herein. 

        (c)   Selling Agent will comply with any applicable limitations on the manner of offering as required by the Act, applicable
state securities laws, and the NASD. 

        (d)   Prior to making any sale, Selling Agent will have reasonable grounds to believe, after making reasonable inquiry, that
each subscriber meets the requirements of the Act, the NASD and applicable state securities laws as to the suitability of the investment for such subscriber. 

        (e)   Except as otherwise disclosed to the Company, no owner, partner, director or officer of Selling Agent has within the last
five (5) years been subject to any of the following administrative or judicial actions (by the Commission or any state securities commission): 

        (1)   Registration Stop Order (Issuance of Securities); 

        (2)   Securities related felony conviction; 

        (3)   Securities related administrative order; 

        (4)   Any administrative order involving fraud or deceit; or 

        (5)   Securities related injunction. 

        (f)    Selling Agent has no current effective administrative order revoking a securities exemption. 

        (g)   Selling Agent has not been suspended, censured or expelled by the NASD. 

        Selling
Agent agrees to indemnify and hold the Company, its shareholders, officers, directors, employees, and agents harmless from any liabilities and costs (including reasonable
attorneys' fees and expenses) associated with claims arising or alleged to arise out of a breach of the foregoing representations. 

        12.   Selling Agent and any members of the Selling Group do hereby undertake to comply with NASD Rules 2710 through 2780
of the Conduct Rules of the NASD regarding Distributions of Securities. Furthermore, any and all Selling Group agreements or selected dealer agreements shall provide that any member of the Selling
Group shall agree to comply with said Rules. 

III. Further Agreements of the Company  

        The Company agrees, at its expense and without expense to Selling Agent, as follows: 

        1.     To give and to continue to give and supply whatever financial statements and other information that may be required by the
Commission or the proper public bodies in the states in which the Notes may be qualified. 

4

 

        2.     As soon as the Company is informed, to advise Selling Agent and to confirm the advice in writing: 

        (a)   When the Registration Statement becomes effective; 

        (b)   When any amendment to the Registration Statement filed subsequent to the Effective Date becomes effective; 

        (c)   Of any request of the Commission for amendments to the Registration Statement or the related Prospectus, or for
additional information; 

        (d)   Of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or of the
initiation of any proceeding for that purpose; or 

        (e)   Of any material adverse change in its financial position or operating condition and of any development materially
affecting the Company or rendering untrue or misleading any material statement in the Registration Statement or the Prospectus. 

        3.     To make every reasonable effort to prevent the issuance of any stop order suspending the effectiveness of the Registration
Statement; and, if a stop order is entered at any time, to use its best efforts to obtain withdrawal of the order at the earliest possible moment. 

        4.     To furnish, without cost, to Selling Agent one executed copy of the Registration Statement, including all exhibits and
amendments, and a reasonable number of copies of the Registration Statement (including Prospectus) and amendments. 

        5.     For the period after the Effective Date during which the Prospectus is required by law to be used, if any change occurs so
that the Prospectus includes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements in the Prospectus, in the light of the circumstances
under which they are made, not misleading, forthwith to prepare and furnish to Selling Agent, without cost, supplements to the Prospectus or an amended Prospectus correcting the untrue statement or
supplying the omission. 

        6.     If revision of the Prospectus pursuant to the provisions of Section 10 of the Act becomes necessary, to review the
Prospectus, to file copies of the Prospectus with the Commission, and to furnish copies of the revised Prospectus to Selling Agent in whatever reasonable quantity it requests. 

        7.     To use its best efforts to cause the Notes to be qualified for sale on terms consistent with those stated in the effective
Registration Statement under the state securities laws in such states as may be agreed upon. 

        8.     To provide to Selling Agent any reasonable additional information or documentation deemed by Selling Agent to be necessary
in the performance of Selling Agent's due diligence. 

        9.     To provide Selling Agent from time to time access to review operations and such other public information concerning the
Company as Selling Agent may reasonably request. 

IV. Indemnity Provisions  

        1.     The Company shall indemnify, defend and hold Selling Agent (including any underwriter, broker, or securities dealer
associated with Selling Agent), and each person, if any, who controls Selling Agent within the meaning of Section 15 of the Act, free and harmless from and against any and all losses, claims,
demands, liabilities, and expenses (including reasonable legal or other expense incurred by Selling Agent and any controlling person in connection with defending any claims or liabilities, whether or
not resulting in any liability to Selling Agent or to any controlling person) that Selling Agent or such controlling person may incur under the Act or at common law or otherwise, but only to the
extent that the losses, claims, demands, liabilities, and expenses arise out of or are based upon any 

5

 

untrue
statement or alleged untrue statement of a material fact contained in the Registration Statement or in the Prospectus, or in any amendment or amendments to the Registration Statement or the
Prospectus, or in any application or other papers executed by any selling agent or dealer with the written approval of the Company for filing in any state or states in order to qualify the Notes
covered by this Agreement under the securities laws of those states (the "Blue Sky Applications"), or arise out of or are based upon any omission or alleged omission to state in these documents a
material fact required to be stated in them or necessary to make the statements in them not misleading; provided, however, that this indemnity agreement shall not apply to any losses, claims, demands,
liabilities, or expenses arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or the Prospectus or in any amendment
or amendments to them or in any Blue Sky Applications, or arising out of or based upon the omission or alleged omission to state in these documents a material fact required to be stated in them or
necessary to make the statements in them not misleading, which statement or omission was made in reliance upon information furnished to the Company by Selling Agent in writing expressly for use in the
Registration Statement or the Prospectus or in any amendment or amendments to them, or was made by Selling Agent in a Blue Sky Application not in reliance upon information furnished by the Company. 

        2.     The foregoing indemnity of the Company in favor of Selling Agent shall not be deemed to protect Selling Agent against any
liability to the Company or its noteholders to which Selling Agent would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties, or by
reason of its reckless disregard of its obligations and duties under this Agreement. 

        3.     Selling Agent shall give the Company an opportunity to participate in the defense or preparation of the defense of any
action brought against Selling Agent or a controlling person of Selling Agent to enforce any claim or liability, and the Company may so participate. The Company's agreement under the foregoing
indemnity is expressly conditioned upon notice of any action being sent by Selling Agent or a controlling person, as the case may be, to the Company by letter or facsimile (addressed as provided
herein) promptly after the commencement of the action against Selling Agent or a controlling person. Such notice must either be accompanied by copies of papers served or filed in connection with the
action or by a statement of the nature of the action to the extent known to Selling Agent. Failure to notify the Company within a reasonable time of an action shall relieve the Company of its
liability under the foregoing indemnity, but failure to notify the Company shall not relieve the Company from any liability that the Company may have to Selling Agent or a controlling person other
than on account of the indemnity agreement contained in this Article IV. 

        4.     Selling Agent likewise shall indemnify, defend and hold harmless the Company against any and all losses, claims, expenses,
and liabilities to which it may become subject arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or the
Prospectus, or in any amendment or amendments to the Registration Statement or the Prospectus, or in any Blue Sky Application, or arising out of or based upon the omission or alleged omission to state
in these documents a material fact required to be stated in them or necessary to make the statements in them not misleading, resulting from the use of written information furnished to the Company by
Selling Agent expressly for use in the preparation of the Registration Statement or the Prospectus, or in any amendment or amendments to the Registration Statement or the Prospectus, or in any Blue
Sky Application, or arising out of or based on the failure by Selling Agent or a member of the Selling Group to comply with all requirements of federal or state securities laws or any provision of
this Agreement. 

        5.     The Company shall give Selling Agent an opportunity to participate in the defense or preparation of the defense of any
action brought against the Company to enforce any claim or liability, and Selling Agent shall have the right so to participate. The agreement of Selling Agent under the foregoing indemnity is
expressly conditioned upon notice of any action being sent by the Company to 

6

 

Selling
Agent by letter or by facsimile (addressed as provided in this Agreement) promptly after the commencement of the action against the Company. The notice must either be accompanied by copies of
papers served or filed in connection with the action or by a statement of the nature of the action to the extent known to the Company. Failure to notify Selling Agent of any action shall relieve
Selling Agent of its liability under the foregoing indemnity, but failure to notify Selling Agent shall not relieve Selling Agent from any liability which Selling Agent may have to the Company or its
stockholders otherwise than on account of the indemnity agreement contained in this Article IV. 

        6.     The provisions of this Article IV shall not in any way prejudice
any right or rights that Selling Agent may have against the Company, or that the Company may have against Selling Agent, under any statute other than the Act, at common law or otherwise. 

        7.     The indemnity agreements contained in this Article IV shall survive
the Effective Date and shall inure to the benefit of the successors of the Company and the successors of Selling Agent and shall be valid irrespective of any investigation made by or on behalf of
Selling Agent or the Company. 

V. Payment of Expenses  

        The Company shall, at its expense and without expense to Selling Agent, pay all costs and expenses incurred by the Company in connection with the offering,
including, but without limitation, all expenses in connection with the preparation, printing and filing of the Registration Statement and the Prospectus, as well as all amendments to them together
with all exhibits; pay all filing fees and costs, original issue taxes, Trustee's fees, charges, or disbursements connected with the issue and delivery of
the Securities; and pay all reasonable expenses incurred in connection with the qualification of the Notes for sale under the securities laws of such states as may be agreed upon. Notwithstanding the
foregoing, the Company shall not be responsible for any expenses of the Selling Agent or Selling Group incurred in connection with the offering, including, but without limitation, attorneys' fees,
operating expenses, travel expenses and other incidental expenses incurred by Selling Agent or the Selling Group. 

VI. Public Offering  

        Selling Agent shall make a public offering on a best efforts basis of the Notes covered hereby as soon after the Effective Date of the Registration Statement as
is advisable in accordance with and as set forth in the Registration Statement. The public offering may be made either in the open market or through securities dealers (acting as principals) selected
by Selling Agent, or partly in each manner, as determined by Selling Agent in its sole discretion. 

VII. Conditions Precedent to Selling Agent's Obligations  

        The obligations hereunder of Selling Agent are conditioned upon: 

        1.     The Company's performance in all material respects of all the obligations required by it to be performed hereunder and the
truth, completeness and accuracy of all statements and representations in all material respects contained herein or of any financial statements furnished hereunder. 

        2.     From the date hereof until the Effective Date, and during the term hereof, no material adverse change occurring in the
properties and assets of the Company, other than changes occurring in the ordinary course of business. 

        3.     No claim being made or legal action being instituted against the Company, which if adversely determined would have a
material adverse effect on the financial condition of the Company, taken as a whole, and no reasonable basis for a claim or an action of this nature being discovered. 

7

 

        4.     The Registration Statement becoming effective no later than June 30, 2004, or whatever later date that may be
agreed upon, and no amendment to the Registration Statement being filed to which Selling Agent reasonably has objected after having received reasonable notice; and no stop order suspending the
effectiveness of the Registration Statement being issued and no proceedings for that purpose being threatened or instituted. 

VIII. Effective Date  

        The Effective Date, as referred to in this Agreement, shall be the effective date of the Registration Statement. 

        1.     The representations and warranties in this Agreement shall survive the Effective Date and shall continue in full force and
effect regardless of any investigation made by the party relying upon any representation or warranty. 

        2.     This Agreement shall inure to the benefit of, and be binding upon, the Company and Selling Agent (including specifically
any dealer that Selling Agent associates with pursuant hereto) and their successors. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person other than
the persons mentioned in the preceding sentence any legal or equitable right, remedy or claim under or with respect hereto, or any provisions contained herein. This Agreement and all of its conditions
and provisions are for the sole and exclusive benefit of the foregoing persons and for the benefit of no other person, except that the warranties, indemnities and agreements of the Company contained
herein also shall be for the benefit of any persons, if any, who control Selling Agent within the meaning of Section 15 of the Act, and except that the indemnification by Selling Agent shall be
for the benefit of the directors of the Company and the officers of the Company who have signed the Registration Statement. 

        3.     This Agreement sets forth the entire agreement between the parties hereto, and no representation, warranty, understanding,
or agreement not specifically set forth herein shall be implied from this Agreement. 

        4.     The proceeds received by Selling Agent from the sale of the Notes shall be remitted to the Company not later than noon of
the following business day. Commissions shall be paid by the Company within three (3) business days following acceptance of a paid subscription by the Company. 

        5.     Selling Agent shall comply with all of the rules and regulations of the Commission and the state regulatory agencies of
the states where the Notes shall be offered. If at any time during the term of this Agreement, Selling Agent should, for any reason, be disqualified or precluded from offering to the public these
Notes, the Company shall have the option to terminate this Agreement upon three (3) days' prior written notice to Selling Agent, in which event this Agreement shall be void and of no further
force and effect, except that Selling Agent shall be entitled to the commissions earned as of the date of termination. 

        6.     This Agreement, unless sooner terminated as herein provided, shall continue until all Notes registered under the
Registration Statement are either sold or withdrawn by the Company from registration, whichever event first occurs. 

IX. Selling Agent's Right to Terminate  

        Notwithstanding any of the terms and provisions hereof, this Agreement may be terminated by Selling Agent based on a material breach of this Agreement by the
Company. Selling Agent shall give fifteen (15) days' prior written notice to the Company of such material breach, and the Company shall have thirty (30) days to cure such material breach
before Selling Agent may terminate this Agreement. In the event of such termination, Selling Agent shall be entitled to any commissions to which it was entitled as of the date of termination. In the
event Selling Agent reasonably determines that the Notes 

8

 

are
not marketable, notwithstanding its best efforts to sell the Notes, Selling Agent may terminate this Agreement with thirty (30) days' prior written notice to the Company. 

 
 

X. Post-Effective Amendments    
    

        1.     The Company shall prepare and file under the Act any required post-effective amendments to the Registration
Statement and related Prospectus or new Registration Statements and new related Prospectuses. 

        2.     The Company agrees with respect to these post-effective amendments and related Prospectuses and with respect
to these new Registration Statements and new Prospectuses to observe all of the terms and conditions of this Agreement as set forth in Article III, Paragraphs 1, 2, 3,
4, 5 and 6 and Article IV. 

XI. Notice  

        Any notice required or permitted to be given under or pursuant to this Agreement may be given in writing by depositing the notice in the United States mail,
postage prepaid, by hand-delivery or by courier, or by facsimile, addressed as follows: 

        To
Selling Agent: 

Massie
Capital, Ltd.

7009 Riverport Road

Fort Worth, Texas 76116
 FAX—(817) 763-8063
  Attention: William R. Massie, General Partner 

        To
the Company: 

Xponential, Inc.

2175 Old Concord Road SE, Suite 200

Smyrna, Georgia 30080
 FAX—(678) 305-7213
  Attention: John R. Boudreau, Chief Executive Officer 

        Copy
to: 

Holland,
Johns, Schwartz and Penny, L.L.P.

306 West Seventh Street, Suite 500

Fort Worth, Texas 76102

Attention: Margaret E. Holland
 FAX—(817) 332-3140

        Notice
shall be deemed given to a party hereunder when actually received by such party. 

XII. Miscellaneous  

        1.     This Agreement may be modified only in writing and signed by the parties hereto. 

        2.     This Agreement shall be governed and construed in accordance with the laws of the state of Texas. 

        3.     This Agreement may be signed in various counterparts, which together shall constitute one and the same instrument. 

        4.     For purposes of any lawsuit or other proceeding in respect to this Agreement, the undersigned hereby submits and consents
to the jurisdiction of any court of competent jurisdiction sitting in the State of Texas, Tarrant County. 

9

 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the day, month and year first written above. 

	COMPANY:	 	XPONENTIAL, INC.
	

 	
 	
By:	

/s/  JOHN R. BOUDREAU      
 John R. Boudreau
 Chief Executive Officer
	

SELLING AGENT:	
 	
MASSIE CAPITAL, LTD.
	

 	
 	
By:	

/s/  WILLIAM R. MASSIE      
 William R. Massie
 General Partner

10

QuickLinks

EXHIBIT 10.10

BEST EFFORTS SELLING AGREEMENT XPONENTIAL, INC.

X. Post-Effective Amendments

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