Exhibit
10.2


 


SECURITIES
PURCHASE AGREEMENT


 


THIS
PURCHASE AGREEMENT (“Agreement”) is made as of the 2nd day of May, 2016 by and between THINSPACE TECHNOLOGY, INC.,
a Delaware corporation (the “Company”), and the Investor set forth on the signature page affixed hereto (the “Investor”).


 


Recitals


 


A.        The
Company and the Investor are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the provisions of Section 4(a)(2) and/or Regulation D (“Regulation D”), as promulgated by the U.S. Securities
and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended; and


 


B.        The
Investor wishes to purchase from the Company, and the Company wishes to sell and issue to the Investor, upon the terms and conditions
stated in this Agreement, an up to $360,000 principal amount of 8% Convertible Debentures due May 2, 2018, in the form attached
hereto as Exhibit A (the “Debenture”).


 


In
consideration of the mutual promises made herein and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:


 


1.        Definitions.
In addition to those terms defined above and elsewhere in this Agreement, for the purposes of this Agreement, the following terms
shall have the meanings set forth below:


 


“Affiliate”
means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries Controls,
is controlled by, or is under common control with, such Person.


 


“Business
Day” means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction
of business.


 


“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including without limitation, any debt, preferred stock, rights, options, warrants or other
instrument that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.


 


“Company’s
Knowledge” means the actual knowledge of the executive officers (as defined in Rule 405 under the 1933 Act) of the Company,
after due inquiry.


 


“Confidential
Information” means trade secrets, confidential information and know-how (including but not limited to ideas, formulae,
compositions, processes, procedures and techniques, research and development information, computer program code, performance specifications,
support documentation, drawings, specifications, designs, business and marketing plans, and customer and supplier lists and related
information).


 


“Control”
(including the terms “controlling”, “controlled by” or “under common control with”) means
the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise.


 






     


     

    

 


“Intellectual
Property” means all of the following: (i) patents, patent applications, patent disclosures and inventions (whether or
not patentable and whether or not reduced to practice); (ii) trademarks, service marks, trade dress, trade names, corporate names,
logos, slogans and Internet domain names, together with all goodwill associated with each of the foregoing; (iii) copyrights and
copyrightable works; (iv) registrations, applications and renewals for any of the foregoing; and (v) proprietary computer software
(including but not limited to data, data bases and documentation).


 


“Material
Adverse Effect” means a material adverse effect on (i) the assets, liabilities, results of operations, condition (financial
or otherwise), business, or prospects of the Company and its Subsidiaries taken as a whole, or (ii) the ability of the Company
to perform its obligations under the Transaction Documents.


 


“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.


 


“Purchase
Price” means up to Three Hundred Sixty Thousand Dollars ($360,000.00).


 


“SEC
Filings” has the meaning set forth in Section 4.6.


 


“SEC”
means the United States Securities and Exchange Commission.


 


“Securities”
means the Debentures and the Shares.


 


“Shares”
means the shares of Common Stock issuable upon conversion of the Debentures.


 


“Subsidiary”
of any Person means another Person, an amount of the voting securities, other voting ownership or voting partnership interests
of which is sufficient to elect at least a majority of its Board of Directors or other governing body (or, if there are no such
voting interests, 50% or more of the equity interests of which) is owned directly or indirectly by such first Person.


 


“Transaction
Documents” means this Agreement, the Debentures and the Transfer Agent Letter.


 


“Transfer
Agent Letter” means the letter dated May 2, 2016 from the Company to Olde Monmouth Stock Transfer & Trust setting
forth certain instructions as to the reserve and conversion of the Debentures.        


 


“1933
Act” means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated
thereunder.


 


“1934
Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations
promulgated thereunder.


 


2.        Purchase
and Sale of the Debenture. Subject to the terms and conditions of this Agreement, the Company shall sell and issue to the
Investor and the Investor shall purchase from the Company, a Debenture in the principal amount of up to $360,000.Subject to the
satisfaction of the terms hereof, including the Company not being in default or Event of Default under the Debentures, payments
for the Debenture shall be made as follows: (1) one hundred thirty thousand dollars ($130,000) shall be payable by wire transfer
to the Company on the Closing Date (as defined); and(2) an additional amount of up to two hundred thirty thousand dollars ($230,000)
may be paid by the Investor at its sole discretion by wire transfer to the Company during the 180-day period commencing after
the Closing Date.


 






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3.        Closing.
Upon confirmation that the other conditions to closing specified herein have been satisfied or duly waived by the Investor, the
Company shall deliver to the Investor, a Debenture registered the name of the Investor (the “Closing Date”). The closing
of the purchase and sale of the Debenture shall take place at the offices of Thinspace Technology, Inc.1925 E. Belt Line Road,
Suite 349, Carrollton, Texas 75006, or at such other location and on such other date as the Company and the Investor shall mutually
agree.


 


4.        Representations
and Warranties of the Company. The Company hereby represents and warrants to the Investor that, except as set forth in the
schedules delivered herewith (collectively, the “Disclosure Schedules”):


 


4.
1      Organization, Good Standing and Qualification. Each of the Company and
its Subsidiaries is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of
its incorporation and has all requisite corporate power and authority to carry on its business as now conducted and to own its
properties. Each of the Company and its Subsidiaries is duly qualified to do business as a foreign corporation and is in good
standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property makes such qualification
or leasing necessary unless the failure to so qualify has not and could not reasonably be expected to have a Material Adverse
Effect. The Company’s Subsidiaries are listed on Schedule 4.1 hereto.


 


4.2       Authorization.
The Company has full power and authority and, has taken all requisite action on the part of the Company, its officers, directors
and stockholders necessary for (i) the authorization, execution and delivery of the Transaction Documents, (ii) authorization
of the performance of all obligations of the Company hereunder or thereunder, and (iii) the authorization, issuance (or reservation
for issuance) and delivery of the Securities. The Transaction Documents constitute the legal, valid and binding
obligations of the Company, enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors’
rights generally.


 


4.3       Capitalization.
Schedule 4.3 sets forth (a) the authorized capital stock of the Company on the date hereof; (b) the number of shares of
capital stock issued and outstanding; (c) the number of shares of capital stock issuable pursuant to the Company’s stock
plans; and (d) the number of shares of capital stock issuable and reserved for issuance pursuant to securities (other than the
Securities) exercisable for, or convertible into or exchangeable for any shares of capital stock of the Company. All of the issued
and outstanding shares of the Company’s capital stock have been duly authorized and validly issued and are fully paid, non-assessable
and free of pre-emptive rights.


 


Except
as described on Schedule 4.3, all of the issued and outstanding shares of capital stock of each Subsidiary have been duly
authorized and validly issued and are fully paid, non-assessable and free of pre-emptive rights, were issued in full compliance
with applicable state and federal securities law and any rights of third parties and are owned by the Company, beneficially and
of record, subject to no lien, encumbrance or other adverse claim.


 


Except
as described on Schedule 4.3, no Person is entitled to pre-emptive or similar statutory or contractual rights with respect
to any securities of the Company.


 


Except
as described on Schedule 4.3, there are no outstanding warrants, options, convertible securities or other rights, agreements
or arrangements of any character under which the Company or any of its Subsidiaries is or may be obligated to issue any equity
securities of any kind and except as contemplated by this Agreement, neither the Company nor any of its Subsidiaries is currently
in negotiations for the issuance of any equity securities of any kind.


 






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Except
as described on Schedule 4.3, the issuance and sale of the Securities hereunder will not obligate the Company to issue
shares of Common Stock or other securities to any other Person (other than the Investor) and will not result in the adjustment
of the exercise, conversion, exchange or reset price of any outstanding security.


 


Except
as described on Schedule 4.3, the Company does not have outstanding stockholder purchase rights or “poison pill”
or any similar arrangement in effect giving any Person the right to purchase any equity interest in the Company upon the occurrence
of certain events.


 


4.4       Valid
Issuance. The Debenture has been duly and validly authorized and, when issued and paid for pursuant to this Agreement, shall
be free and clear of all encumbrances and restrictions (other than those created by the Investor), except for restrictions on
transfer set forth in the Transaction Documents or imposed by applicable securities laws. Upon the due conversion of the Debenture,
the Shares will be validly issued, fully paid and non-assessable free and clear of all encumbrances and restrictions, except for
restrictions on transfer set forth in the Transaction Documents or imposed by applicable securities laws and except for those
created by the Investor. The Company shall reserve a sufficient number of shares of Common Stock for issuance upon the exercise
of the Debenture, free and clear of all encumbrances and restrictions, except for restrictions on transfer set forth in the Transaction
Documents or imposed by applicable securities laws and except for those created by the Investor.


 


4.5       Consents.
The execution, delivery and performance by the Company of the Transaction Documents, and the offer, issuance and sale of the Securities
require no consent of, action by or in respect of, or filing with, any Person, governmental body, agency, or official other than
filings that have been made pursuant to applicable state securities laws, and post-sale filings pursuant to applicable state and
federal securities laws which the Company undertakes to file within the applicable time periods. Subject to the accuracy of the
representations and warranties of the Investor set forth in Section 5 hereof, the Company has taken all action necessary to exempt
(i) the issuance and sale of the Securities, (ii) the issuance of the Shares upon due conversion of the Debenture, and (iii) the
other transactions contemplated by the Transaction Documents from the provisions of any shareholder rights plan or other “poison
pill” arrangement, any anti-takeover, business combination or control share law or statute binding on the Company or to
which the Company or any of its assets and properties may be subject and any provision of the Company’s Articles of Incorporation
or By-laws that is or could reasonably be expected to become applicable to the Investor as a result of the transactions contemplated
hereby, including without limitation, the issuance of the Securities and the ownership, disposition or voting of the Securities
by the Investor or the exercise of any right granted to the Investor pursuant to this Agreement or the other Transaction Documents.


 


4.6       Delivery
of SEC Filings; Business. The Company has made available to the Investor through the EDGAR system, true and complete copies
of the Company’s most recent Annual Report on Form 10-K for its last fiscal year (the “10-K”), and all other
reports filed by the Company pursuant to the 1934 Act since the filing of the 10-K and prior to the date hereof (collectively,
the “SEC Filings”). The SEC Filings are the only filings required of the Company pursuant to the 1934 Act for such
period. The Company and its Subsidiaries are engaged in all material respects only in the business described in the SEC Filings
and the SEC Filings contain a complete and accurate description in all material respects of the business of the Company and its
Subsidiaries, taken as a whole.


 


4.7       Use
of Proceeds. The net proceeds of the sale of the Debenture hereunder shall be used by the Company for software development,
marketing, investor relations and general operating expenses.


 






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4.8        No
Conflict, Breach, Violation or Default. The execution, delivery and performance of the Transaction Documents by the Company
and the issuance and sale of the Securities will not conflict with or result in a breach or violation of any of the terms and
provisions of, or constitute a default under (i) the Company’s Articles of Incorporation or the Company’s Bylaws,
both as in effect on the date hereof (true and complete copies of which have been made available to the Investor through the EDGAR
system), or (ii)(a) any statute, rule, regulation or order of any governmental agency or body or any court, domestic or foreign,
having jurisdiction over the Company, any Subsidiary or any of their respective assets or properties, or (b) any agreement or
instrument to which the Company or any Subsidiary is a party or by which the Company or a Subsidiary is bound or to which any
of their respective assets or properties is subject. Holders of the Company’s other outstanding debt securities have been
notified of the Company’s need for capital and offered the right to finance the Company’s needs. Except for the Investor,
none of such other holders has offered to invest capital in the Company on any terms.


 


4.9       Brokers
and Finders. No Person will have, as a result of the transactions contemplated by the Transaction Documents, any valid right,
interest or claim against or upon the Company, any Subsidiary or an Investor for any commission, fee or other compensation pursuant
to any agreement, arrangement or understanding entered into by or on behalf of the Company.


 


4.10     No
Directed Selling Efforts or General Solicitation. Neither the Company nor any Person acting on its behalf has conducted any
general solicitation or general advertising (as those terms are used in Regulation D) in connection with the offer or sale of
any of the Securities.


 


4.11     No
Integrated Offering. Neither the Company nor any of its Affiliates, nor any Person acting on its or their behalf has, directly
or indirectly, made any offers or sales of any Company security or solicited any offers to buy any security, under circumstances
that would adversely affect reliance by the Company on Section 4(a)(2) for the exemption from registration for the transactions
contemplated hereby or would require registration of the Securities under the 1933 Act.


 


4.12     Private
Placement. The offer and sale of the Securities to the Investor as contemplated hereby is exempt from the registration requirements
of the 1933 Act.


 


5.        Representations
and Warranties of the Investor. The Investor hereby represents and warrants to the Company that:


 


5.1       Organization
and Existence. Such Investor is a validly existing corporation, limited partnership or limited liability company and has all
requisite corporate, partnership or limited liability company power and authority to invest in the Securities pursuant to this
Agreement.


 


5.2       Authorization.
The execution, delivery and performance by such Investor of the Transaction Documents to which such Investor is a party have been
duly authorized and will each constitute the valid and legally binding obligation of such Investor, enforceable against such Investor
in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability, relating to or affecting creditors’ rights generally.


 


5.3       Purchase
Entirely for Own Account. The Securities to be received by such Investor hereunder will be acquired for such Investor’s
own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the
1933 Act, and such Investor has no present intention of selling, granting any participation in, or otherwise distributing the
same in violation of the 1933 Act without prejudice, however, to such Investor’s right at all times to sell or otherwise
dispose of all or any part of such Securities in compliance with applicable federal and state securities laws. Nothing
contained herein shall be deemed a representation or warranty by such Investor to hold the Securities for any period of time.
Such Investor is not a broker-dealer registered with the SEC under the 1934 Act or an entity engaged in a business that would
require it to be so registered.


 






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5.4       Investment
Experience. Such Investor acknowledges that it can bear the economic risk and complete loss of its investment in the Securities
and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of
the investment contemplated hereby.


 


5.5       Disclosure
of Information. Such Investor has had an opportunity to receive all information related to the Company requested by it and
to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of the
offering of the Securities. Such Investor acknowledges receipt of copies of the SEC Filings. Neither such inquiries nor any other
due diligence investigation conducted by such Investor shall modify, amend or affect such Investor’s right to rely on the
Company’s representations and warranties contained in this Agreement.


 


5.6       Restricted
Securities. Such Investor understands that the Securities are characterized as “restricted securities” under the
U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering
and that under such laws and applicable regulations such securities may be resold without registration under the 1933 Act only
in certain limited circumstances.


 


5.7       Legends.
It is understood that, except as provided below, certificates evidencing the Securities may bear the following or any similar
legend:


 


(a)        “The
securities represented hereby and the securities into which such securities are convertible may not be transferred unless (i)
such securities have been registered for sale pursuant to the Securities Act of 1933, as amended, (ii) such securities may be
sold pursuant to Rule 144, or (iii) the Company has received an opinion of counsel reasonably satisfactory to it that such transfer
may lawfully be made without registration under the Securities Act of 1933 or qualification under applicable state securities
laws.”


 


(b)        If
required by the authorities of any state in connection with the issuance of sale of the Securities, the legend required by such
state authority.


 


5.8       Accredited
Investor. Such Investor is an accredited investor as defined in Rule 501(a) of Regulation D, as amended, under the 1933 Act.


 


5.9       No
General Solicitation. Such Investor did not learn of the investment in the Securities as a result of any public advertising
or general solicitation.


 


5.10     Brokers
and Finders. No Person will have, as a result of the transactions contemplated by the Transaction Documents, any valid right,
interest or claim against or upon the Company, any Subsidiary or an Investor for any commission, fee or other compensation pursuant
to any agreement, arrangement or understanding entered into by or on behalf of such Investor.


 






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6.        Conditions to Closing.


 


6.1       Conditions
to the Investor’s Obligations. The obligation of the Investor to purchase the Debenture on the Closing Date or subsequent
closing dates is subject to the fulfillment to such Investor’s satisfaction, on or prior to the Closing Date, of the following
conditions, any of which may be waived by the Investor:


 


(a)        The
representations and warranties made by the Company in Section 4 hereof qualified as to materiality shall be true and correct at
all times prior to and on the Closing Date or subsequent closing date, except to the extent any such representation or warranty
expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct as of such earlier
date, and, the representations and warranties made by the Company in Section 4 hereof not qualified as to materiality shall be
true and correct in all material respects at all times prior to and on the Closing Date or subsequent closing date, except to
the extent any such representation or warranty expressly speaks as of an earlier date, in which case such representation or warranty
shall be true and correct in all material respects as of such earlier date. The Company shall have performed in all material respects
all obligations and conditions herein required to be performed or observed by it on or prior to the Closing Date or subsequent
closing date.


 


(b)        The
Company shall have obtained any and all consents, permits, approvals, registrations and waivers necessary or appropriate for consummation
of the purchase and sale of the Securities, and the consummation of the other transactions contemplated by the Transaction Documents,
all of which shall be in full force and effect.


 


(c)        No
judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy
court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have
been instituted by any governmental authority, enjoining or preventing the consummation of the transactions contemplated hereby
or in the other Transaction Documents.


 


(d)        No
stop order or suspension of trading shall have been imposed by Nasdaq, the SEC or any other governmental or regulatory body with
respect to public trading in the Common Stock.


 


(e)        The
Investor shall have received an executed copy of this Agreement, the Debenture, the Transfer Agent Letter and other Transaction
Documents and any closing documents reasonably requested.


 


6.2        Conditions
to Obligations of the Company. The Company's obligation to sell and issue the Debenture on the Closing Date and subsequent
closing dates is subject to the fulfillment to the satisfaction of the Company on or prior to the Closing Date or subsequent closing
date of the following conditions, any of which may be waived by the Company:


 


(a)        The
representations and warranties made by the Investor in Section 5 hereof, other than the representations and warranties contained
in Sections 5.3, 5.4, 5.5, 5.6, 5.7, 5.8, 5.9 and 5.10 (the “Investment Representations”), shall be true and correct
in all material respects when made, and shall be true and correct in all material respects on the Closing Date or subsequent closing
date with the same force and effect as if they had been made on and as of said date. The Investment Representations shall be true
and correct in all respects when made, and shall be true and correct in all respects on the Closing Date or subsequent closing
date with the same force and effect as if they had been made on and as of said date. The Investor shall have performed in all
material respects all obligations and conditions herein required to be performed or observed by them on or prior to the Closing
Date or subsequent closing date.


 


(b)        The
Investor shall have executed this Agreement and paid the purchase price for the portion of Debenture to be purchased on such date.


 






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6.3        Termination
of Obligations to Effect Closing; Effects.


 


(a)        The
obligations of the Company, on the one hand, and the Investor, on the other hand, to effect the Closing or subsequent closings
shall terminate as follows:


 


(i)        Upon
the mutual written consent of the Company and the Investor;


 


(ii)        By
the Company if any of the conditions set forth in Section 6.2 shall have become incapable of fulfillment, and shall not have been
waived by the Company;


 


(iii)        By
the Investor if any of the conditions set forth in Section 6.1 shall have become incapable of fulfillment, and shall not have
been waived by the Investor; or


 


(iv)        By
either the Company or the Investor if the Closing has not occurred on or prior to May 6, 2016; provided, however, that, except
in the case of clause (i) above, the party seeking to terminate its obligation to effect the Closing shall not then be in breach
of any of its representations, warranties, covenants or agreements contained in this Agreement or the other Transaction Documents
if such breach has resulted in the circumstances giving rise to such party’s seeking to terminate its obligation to effect
the Closing.


 


7.        Survival,
Indemnification and Other Covenants.


 


7.1        Survival.
The representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing of the transactions
contemplated by this Agreement.


 


7.2        Indemnification.
The Company agrees to indemnify and hold harmless the Investor and its Affiliates and their respective directors, officers, employees
and agents from and against any and all losses, claims, damages, liabilities and expenses (including without limitation reasonable
attorneys’ fees and disbursements and other expenses incurred in connection with investigating, preparing or defending any
action, claim or proceeding, pending or threatened and the costs of enforcement thereof) (collectively, “Losses”)
to which such Person may become subject as a result of any breach of representation, warranty, covenant or agreement made by or
to be performed on the part of the Company under the Transaction Documents, and will reimburse any such Person for all such amounts
as they are incurred by such Person.


 


7.3        Conduct
of Indemnification Proceedings. Promptly after receipt by any Person (the “Indemnified Person”)
of notice of any demand, claim or circumstances which would or might give rise to a claim or the commencement of any action, proceeding
or investigation in respect of which indemnity may be sought pursuant to Section 7.2, such Indemnified Person shall promptly notify
the Company in writing and the Company shall assume the defense thereof, including the employment of counsel reasonably satisfactory
to such Indemnified Person, and shall assume the payment of all fees and expenses; provided, however, that the failure of any
Indemnified Person so to notify the Company shall not relieve the Company of its obligations hereunder except to the extent that
the Company is materially prejudiced by such failure to notify. In any such proceeding, any Indemnified Person shall have the
right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person
unless: (i) the Company and the Indemnified Person shall have mutually agreed to the retention of such counsel; or (ii) in the
reasonable judgment of counsel to such Indemnified Person representation of both parties by the same counsel would be inappropriate
due to actual or potential differing interests between them. The Company shall not be liable for any settlement of any proceeding
effected without its written consent, which consent shall not be unreasonably withheld, but if settled with such consent, or if
there be a final judgment for the plaintiff, the Company shall indemnify and hold harmless such Indemnified Person from and against
any loss or liability (to the extent stated above) by reason of such settlement or judgment. Without the prior written consent
of the Indemnified Person, which consent shall not be unreasonably withheld, the Company shall not effect any settlement of any
pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnity could
have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified
Person from all liability arising out of such proceeding.


 






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7.4        Acknowledgment
of Dilution. The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding shares
of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its
obligations under the Transaction Documents, including without limitation its obligation to issue the Common Shares underlying
the Debentures pursuant to the Transaction Documents, are unconditional and absolute and not subject to any right of set off,
counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company may have against any
Investor and regardless of the dilutive effect that such issuance may have on the ownership of the other stockholders of the Company.


 


7.5        Furnishing
of Information; Rule 144 Availability. As long as any Investor owns Securities, the Company covenants to timely file (or obtain
extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after
the date hereof pursuant to the Exchange Act. As long as any Investor owns Securities, if the Company is not required to file
reports pursuant to the Exchange Act, it will prepare and furnish to such Investor and make publicly available in accordance with
Rule 144(c) such information as is required for such Investor to sell the Securities under Rule 144. Notwithstanding the foregoing,
the parties agree that the Company shall have 180 days to regain compliance with its Exchange Act reporting requirements. The
Company further covenants that it will take such further action as any holder of Securities may reasonably request, all to the
extent required from time to time to enable such Person to sell such Securities without registration under the Securities Act
within the limitation of the exemptions provided by Rule 144. Additionally, the Company covenants to make reasonable efforts to
market the Company and hire an appropriate investor relations firm.


 


At all times from the
date hereof through and including the date none of the conversion shares are outstanding (the “Required Period”) the
Company shall ensure the Investor can sell the pursuant to and in accordance with Rule 144 under the Securities Act. If, (i) at
any time during the Required Period, the Company shall fail for any reason to satisfy the current public information requirement
under Rule 144(c) under the Securities Act (a “Public Information Failure”), or (ii) the Company shall fail to take
such action as is reasonably requested by the Investor to enable the Investor to sell any of the shares received in connection
with the Debentures pursuant to Rule 144 under the Securities Act (including, without limitation, delivering all such legal opinions,
consents, certificates, resolutions and instructions to the Company’s transfer agent as may be reasonably requested from
time to time by the Purchaser and otherwise fully cooperate with Investor and Investor’s broker to effect such sale of the
shares of common stock received in connection with the Debentures pursuant to Rule 144 under the Securities Act) (a “Process
Failure”) then, in either case, in addition to the Investor’s other available remedies, the Company shall pay to Investor,
as liquidated damages and not as a penalty, by reason of any such delay in or reduction of its ability to sell the Conversion
Shares, an amount in cash equal to two (2.0%) percent of the $360,000 aggregate principal amount of the Debentures on the day
of a Public Information Failure or Process Failure, as applicable, and on every thirtieth (30th) day (prorated for periods totaling
less than thirty (30) days), thereafter, until (a) in the case of a Process Failure, the date such Process Failure is cured, or
(b) in the case of a Public Information Failure, the date such Public Information Failure is cured. Notwithstanding anything to
the contrary provided herein, liquidated damages for each Process Failure or Public Information Failure shall not be applicable
or commence to accrue until such time as 180 days shall have elapsed since the signing of the up to $360,000 principal amount
of 8% Convertible Debentures due May 2 , 2018, in the form attached hereto as Exhibit A, and shall not (i) commence to accrue
for a period of 5 days from the date of any such Process Failure and/or Public Information Failure, and (ii) shall not exceed
ten (10%) percent of $360,000 in the aggregate for all such Process Failures or Public Information Failures. The payments to which
the Purchaser shall be entitled pursuant to this Section 7.5 are referred to herein as “Rule 144 Failure Payments”.
Rule 144 Failure Payments shall be paid on the earlier of (i) the last day of the calendar month during which such Rule 144 Failure
Payments are incurred and (ii) the third (3rd) Trading Day after the event or failure giving rise to the Rule 144 Failure Payments
is cured.


 






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7.6        Non-Public
Information. The Company covenants and agrees that neither it nor any other Person acting on its behalf will provide any Investor
or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior
thereto such Investor shall have executed a written agreement regarding the confidentiality and use of such information. The Company
understands and confirms that such Investor shall be relying on the foregoing representations in effecting transactions in securities
of the Company.


 


7.7        Reservation
and Listing of Securities. At all times and as long as the Investor owns any Debentures, the Company shall take all action
necessary (and/or reasonably requested by the Investor) to at all times have authorized, and reserved out of its authorized but
unissued shares of Common Stock for the purpose of issuance to the Investor upon conversions or in respect of interest on the
Debentures by the Investor, no less than two hundred (200%) percent of the sum of the maximum number of conversion shares issuable
(including interest, and without taking into account any limitations on the issuance thereof pursuant to the terms of the Debentures)
(the “Required Reserved Amount”). If at any time the number of shares of Common Stock authorized and reserved for
issuance is not sufficient to meet the Required Reserved Amount, the Company will promptly take all corporate action necessary
to authorize and reserve a sufficient number of shares, including, without limitation, calling a special meeting of stockholders
to authorize additional shares to meet the Company’s obligations under this Agreement and the Transaction Documents, in
the case of an insufficient number of authorized shares, obtain stockholder approval of an increase in such authorized number
of shares, and voting the management shares of the Company in favor of an increase in the authorized shares of the Company to
ensure that the number of authorized shares is sufficient to meet the Required Reserved Amount. The Company shall initially reserve
shares of Common Stock on its own books and records (the “Reserve”) for the issuance of Conversion Shares and any
other shares of Common Stock required to be issued by the Company to the Investor pursuant to the Transaction Documents, which
initial reservation shall be authorized by the unanimous written consent of the Company’s Board of Directors delivered at
Closing. From and after the date of this Agreement through and including the date all of the Company’s and each of its Subsidiaries’
indebtedness and all other obligations owed to the Investor pursuant to this Agreement and the other Transaction Documents, including,
but not limited to, the Debentures is paid and performed in full, confirmation of which must be obtained by in writing from the
Investor, the Company shall (a) issue or cause its Transfer Agent to issue the shares received on conversion or in respect of
interest and all other shares of Common Stock required to be issued to the Investor or its broker only (subject to the immediately
following clause (b)), (b) issue or cause its Transfer Agent to issue shares of Common Stock to the Investor or its broker under
the Debentures from sources other than the Reserve, unless the Investor delivers to the Company written pre-approval of such issuance
from the Reserve, and (c) not reduce the Reserve under any circumstances, unless the Investor delivers to the Company written
pre-approval of such reduction. The Company shall immediately add shares of Common Stock to the Reserve to ensure that the greater
of (i) 2,117,647,059 shares of Common Stock and (ii) Required Reserve Amount (the greater of (i) and (ii) being the “Reserve
Minimum”) are in the Reserve at all times. The Company shall increase the amount of shares of Common Stock in the Reserve
upon receipt of written notice, which may be in email form, by the Investor (and/or its assigns) in order to ensure that the Reserve
contains the Reserve Minimum and/or at any time the number of shares in the Reserve is less than the Reserve Minimum. Notwithstanding
to the contrary provided herein or elsewhere, if at any time the number of shares of Common Stock in the Reserve, is less than
the Required Reserved Amount, the Investor may send written notice to the Company’s then Transfer Agent to increase out
of the Borrower’s authorized but unissued shares of Common Stock such number of additional shares of Common Stock so the
Reserve consists of at least the Required Reserve Amount, provided, that the number of shares of Common Stock in the Reserve shall
never be decreased or used for any other purposes other than for issue to the Holder upon each conversion by the Investor of the
Debenture into shares of common stock. As a condition to Closing, all actions required by the Company in this Section 7.7 shall
be approved by the unanimous written consent of the Company’s Board of Directors which shall be delivered to the Investor
at Closing.


 






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7.8        Subsequent
Equity Sales. In addition to the limitations set forth herein, from the date hereof until such time as no Investor holds any
of the Securities, the Company shall be prohibited from effecting or entering into an agreement to effect any Subsequent Financing
involving a “Variable Rate Transaction” or an “MFN Transaction” (each as defined below). The term “Variable
Rate Transaction” shall mean a transaction in which the Company issues or sells (i) any debt or equity securities that are
convertible into, exchangeable or exercisable for, or include the right to receive additional shares of Common Stock either (A)
at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations
for the shares of Common Stock at any time after the initial issuance of such debt or equity securities, or (B) with a conversion,
exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity
security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company
or the market for the Common Stock or (ii) enters into any agreements, including but not limited to an equity line of credit,
whereby the Company may sell securities at a future determined price tied to the market price of the Common Stock. The term “MFN
Transaction” shall mean a transaction in which the Company issues or sells any securities in a capital raising transaction
or series of related transactions which grants to an investor the right to receive additional shares based upon future transactions
of the Company on terms more favorable than those granted to such investor in such offering. Any Investor shall be entitled to
obtain injunctive relief against the Company to preclude any such issuance, which remedy shall be in addition to any right to
collect damages.


 


8.        Miscellaneous.


 


8.1        Successors
and Assigns. This Agreement may not be assigned by a party hereto without the prior written consent of the Company. The Investor
may assign its rights and delegate its duties hereunder in whole or in part to an Affiliate or to a third party acquiring some
or all of its Securities in a private transaction without the prior written consent of the Company, after notice duly given by
such Investor to the Company. The provisions of this Agreement shall inure to the benefit of and be binding upon the respective
permitted successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any
party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities
under or by reason of this Agreement, except as expressly provided in this Agreement.


 


8.2        Counterparts;
Faxes. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. This Agreement may also be executed via facsimile, which shall be deemed
an original.


 


8.3        Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement.


 






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8.4.        Notices.
Unless otherwise provided, any notice required or permitted under this Agreement shall be given in writing and shall be deemed
effectively given as hereinafter described (i) if given by personal delivery, then such notice shall be deemed given upon such
delivery, (ii) if given by email, telex or telecopier, then such notice shall be deemed given upon receipt of confirmation of
complete transmittal, (iii) if given by mail, then such notice shall be deemed given upon the earlier of (A) receipt of such notice
by the recipient or (B) three days after such notice is deposited in first class mail, postage prepaid, and (iv) if given by an
internationally recognized overnight air courier, then such notice shall be deemed given one business day after delivery to such
carrier. All notices shall be addressed to the party to be notified at the address as follows, or at such other address as such
party may designate by ten days’ advance written notice to the other party:


 


If
to the Company:


 


THINSPACE
TECHNOLOGY, INC.


1925
E. Belt Line Road Suite 349


Carrollton, Texas 75006


 


If
to the Investor:


 


Rockwell
Capital Partners Inc


919
N Market St Ste 1401


Wilmington,
DE 19801


 


8.5        Expenses.
The parties hereto shall pay their own costs and expenses in connection herewith. In the event that legal proceedings are commenced
by any party to this Agreement against another party to this Agreement in connection with this Agreement or the other Transaction
Documents, the party or parties which do not prevail in such proceedings shall severally, but not jointly, pay their pro rata
share of the reasonable attorneys’ fees and other reasonable out-of-pocket costs and expenses incurred by the prevailing
party in such proceedings.


 


8.6        Amendments
and Waivers. Any term of this Agreement may be amended only with the written consent of the Company and the Investor. Any
term of this agreement may be waived (either generally or in a particular instance and either retroactively or prospectively)
only in writing by the party against whom such provision is sought to be enforced against. Any amendment or waiver effected in
accordance with this paragraph shall be binding upon each holder of any Securities purchased under this Agreement at the time
outstanding, each future holder of all such Securities, and the Company.


 


8.7        Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted
as if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable
in any respect.


 


8.8        Entire
Agreement. This Agreement, including the Exhibits and the Disclosure Schedules, and the other Transaction Documents constitute
the entire agreement among the parties hereof with respect to the subject matter hereof and thereof and supersede all prior agreements
and understandings, both oral and written, between the parties with respect to the subject matter hereof and thereof.


 


8.9        Further
Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other actions
as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements
herein contained.


 






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8.10      Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement and the rights and obligations of the parties hereto shall
be governed, construed and interpreted in accordance with the laws of the State of New York, without giving effect to principles
or conflicts of law and any proceedings arising among the parties in any manner pertaining or relating to this Agreement shall
be heard solely in the state and/or federal courts located in New York. Each party agrees that all legal proceedings concerning
the transactions contemplated hereby shall be commenced in the state and federal courts sitting in the City of New York, Borough
of Manhattan (the “New York Courts”). Each party hereto irrevocably submits to the exclusive jurisdiction of the New
York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that
is not personally subject to the jurisdiction of any court, or such New York Courts are improper or inconvenient venue for such
proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit,
action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it hereunder and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law,
any and all right to trial by jury in any legal proceeding arising out of or relating hereto. If either party shall commence an
action or proceeding to enforce any provisions hereof, then the prevailing party in such action or proceeding shall be reimbursed
by the other party for its attorneys’ fees and other costs and expenses incurred with the investigation, preparation and
prosecution of such action or proceeding.


 


[signature
page follows]


 






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IN
WITNESS WHEREOF, the parties have executed this Agreement or caused their duly authorized officers to execute this Agreement as
of the date first above written.


 





	The Company:	THINSPACE TECHNOLOGY, INC.
	 	 	 
	 	By:	/s/            
	 	Name:    	 
	 	Title:      	 
	 	 	 
	The Investor:	ROCKWELL CAPITAL PARTNERS, INC.
	 	 	 
	 	By: 	/s/
	 	Name:  	 
	 	Title:	 




 


 


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