Document:

Omnicity Corp. - Exhibit 10.11 - Filed by newsfilecorp.com

10.11 

	 
	$0.35 UNIT FOR DEBT PRIVATE
      PLACEMENT 
	SUBSCRIPTION AGREEMENT
  
	 

 

 

 

Between: 

OMNICITY CORP.

 

 

And: 

THE UNDERSIGNED SUBSCRIBER

 

 

 

 

 

Omnicity Corp. 
720 N. Range Line Road,
Carmel, Indiana, U.S.A., 46032 
__________

-- $0.35 Unit For Debt Private Placement
Subscription Agreement -- 
-- Omnicity Corp.
-- 

SIGNATURE PAGE/SUBSCRIBER STATEMENT 

TO THE $0.35 UNIT FOR DEBT PRIVATE PLACEMENT
SUBSCRIPTION 
AGREEMENT OF OMNICITY CORP.

      
          
SUBSCRIBER’S STATEMENT – the within subscriber (the
“Subscriber”) is a sophisticated investor, the Subscriber has
sought such independent counsel as the Subscriber considers necessary and
the Subscriber has read the within and attached “$0.35 Unit For Debt
Private Placement Subscription Agreement” (the
“Agreement”) carefully and accepts, agrees and
acknowledges the representations and terms thereof in full and without exception
and agrees that such agreement constitutes the entire agreement between
Omnicity Corp. (the “Company”) and the Subscriber
and that there are no collateral representations or agreements between the
same. 

       
          The Company is
offering (collectively, the “Offering”), on a private placement
basis, units of the Company (each a
“Unit”) to eligible creditors of Omnicity, Inc.
(“Omnicty”); and each such creditor who
subscribes to this Offering by this document is hereinafter referred to
as the Subscriber) at a deemed settlement subscription price of U.S.
$0.35 per Unit, with each Unit consisting of
one common share in the capital of the Company (each a
“Share”) and one-half of one non-transferable
share purchase warrant in the capital of the Company (each a
“Warrant”) to acquire an additional common
share of the Company. 

     
            The
undersigned Subscriber is hereby acquiring certain restricted Units in the
capital of the Company under this Offering as a consequence of and in
accordance with the terms and conditions of a certain “Agreement and Plan
of Merger”, dated for reference December 28, 2008, together with any
formal share exchange/merger agreement resulting therefrom (collectively,
the “Acquisition Agreement”), as entered into and to be
entered into among each of the Company, Omnicity and all vendor
shareholders of Omnicity (each a “Vendor” therein
and a Subscriber herein), in consideration of each such Vendor’s anticipated
agreement therein to assign, sell and transfer all of such Vendor’s
respective right, entitlement and interest in and to all of the Vendor’s
common shares which are presently issued and outstanding in the share
capital of the Omnicity; this Agreement being contemplated as a matter for
closing under the Acquisition Agreement; and the certifications,
representations, warranties and understandings contained in this
Agreement being in addition to those certain certifications,
representations, warranties and understandings of the Vendors as
contained under the Acquisition Agreement. 

                 
  As at the date of this subscription by the Subscriber, Omnicity was indebted
  to the Subscriber in the aggregate sum which is set forth hereinbelow
  (collectively, the “Outstanding Debt”)
  and, as a consequence of such Outstanding Debt, and in conjunction with the
  anticipated closing of the Company’s Acquisition Agreement with
  the Vendors (herein and herein the “Closing”),
  the Company has agreed to issue and the Subscriber has agreed to accept an
  aggregate of that number of Units which are set forth hereinbelow, at a deemed
  settlement price of U.S. $0.35 per Unit, in full and complete satisfaction
  of such Outstanding Debt with Omnicity. The within private placement
  Offering of Units by the Company is not subject to any minimum subscription.
  In that respect the Company hereby offers, and the Subscriber hereby accepts,
  the Units in full and complete settlement of the Outstanding Debt with Omnicity
  and on the terms and conditions as set forth in this Agreement and as
  contemplated at Closing under the Acquisition Agreement. 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 2 - 

Number of Units subscribed for at U.S. $0.35 per Unit:                                                                            
  Units.

Total Outstanding Debt being settled: U.S. $0.35 x number
of Units =
U.S.                                                  
.. 

     
           
Dated at __________, __________, on this _____ day of
__________, 2009. 

________________________________________________________________________________________

  Name of Subscriber - please print 

By:                                                                Official Capacity or Title
- please print                                                                   

________________________________________________________________________________________

  Signature of Subscriber 

________________________________________________________________________________________

  Please print name of individual whose signature appears above if different
  than the Subscriber 

	Subscriber’s Address: 	 
	 	 
	Subscriber’s Telephone Number: 	 
	Subscriber’s Facsimile Number: 	 
	Subscriber’s E-mail address: 	 

IF THE SUBSCRIBER IS NOT A U.S.
RESIDENT, THE SUBSCRIBER MUST COMPLETE AND SIGN ATTACHMENT “I”
IMMEDIATELY FOLLOWING THIS SIGNATURE PAGE/SUBSCRIBER STATEMENT AND COMPLETE THE
MISSING INFORMATION AND CIRCLE THE APPLICABLE CATEGORY(IES) (A) THROUGH (P) AS
SET FORTH IN SECTION 3.4(af)(i) OF THE ATTACHED AGREEMENT. 

IF THE SUBSCRIBER IS A U.S.
RESIDENT, THE SUBSCRIBER MUST COMPLETE AND SIGN ATTACHMENT “II”
IMMEDIATELY FOLLOWING ATTACHMENT “I” AND CHECK THE APPROPRIATE BOX(ES) SET FORTH
IN SECTIONS 4.1 AND 4.2 OF THE AGREEMENT. 

                   
  Acceptance by the Company: 

       
          OMNICITY CORP.
hereby accepts the above subscription by the Subscriber on this
_____day of __________, 2009. 

	The COMMON SEAL of 	) 	  
	OMNICITY CORP., 	) 	  
	the Company herein, 	) 	  
	was hereunto affixed in the presence of: 	) 	(C/S) 
	  	) 	  
	  	) 	  
	  	) 	  
	Authorized Signatory 	) 	  

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

Attachment “I” 

TO THE $0.35 UNIT FOR DEBT PRIVATE PLACEMENT
SUBSCRIPTION 
AGREEMENT OF OMNICITY CORP.

SUBSCRIBER’S CERTIFICATE 

          
       In addition to the covenants,
representations and warranties contained in the “$0.35 Unit For Debt Private
Placement Subscription Agreement” of the Company, to which this Attachment “I” –
“Subscriber’s Certificate” is attached, the undersigned Subscriber
covenants, represents and warrants to the Company that the Subscriber is
purchasing the Units as principal, that the Subscriber is resident in the
jurisdiction set out on the signature page thereof and that the Subscriber: 

	1. 	
      is an “accredited investor”, as defined in
      National Instrument 45-106 – Prospectus and Registration Exemptions
      by virtue of being {please check the appropriate category or
      categories where applicable}:

	[  ]	(a) 	
      a Canadian financial institution, or an authorized
      foreign bank listed in Schedule III of the Bank Act
  (Canada);

	 	 	 
	[  ]	(b) 	
      the Business Development Bank incorporated under the
      Business Development Bank Act (Canada);

	 	 	 
	[  ]	(c) 	
      a subsidiary of a person referred to in paragraphs (a) or
      (b), if the person owns all of the voting shares of the subsidiary, except
      the voting securities required by law to be owned by directors of that
      subsidiary;

	 	 	 
	[  ]	(d) 	
      a person registered under the securities legislation of a
      jurisdiction of Canada as an adviser or dealer, other than a person
      registered solely as a limited market dealer under one or both of the
      Securities Act (Ontario) or the Securities Act (Newfoundland
      and Labrador);

	 	 	 
	[  ]	(e) 	
      an individual registered or formerly registered under the
      securities legislation of a jurisdiction of Canada as a representative of
      a person referred to in paragraph (d);

	 	 	 
	[  ]	(f) 	
      the Government of Canada or a jurisdiction of Canada, or
      any crown corporation, agency or wholly owned entity of the Government of
      Canada or a jurisdiction of Canada,;

	 	 	 
	[  ]	(g) 	
      a municipality, public board or commission in Canada and
      a metropolitan community, school board, the Comité de gestion de la taxe
      scolaire de l’île de Montréal or an intermunicipal management board in
      Québec;

	 	 	 
	[  ]	(h) 	
      any national, federal, state, provincial, territorial or
      municipal government of or in any foreign jurisdiction, or any agency of
      that government;

	 	 	 
	[  ]	(i) 	
      a pension fund that is regulated by either the Office of
      the Superintendent of Financial Institutions (Canada) or a pension
      commission or similar regulatory authority of a jurisdiction of
    Canada;

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 2 - 

	[  ]	(j) 	
      an individual who, either alone or with a spouse,
      beneficially owns, directly or indirectly, financial assets having an
      aggregate realizable value that before taxes, but net of any related
      liabilities, exceeds $1,000,000;

	 	 	 
	[  ]	(k) 	
      an individual whose net income before taxes exceeded
      $200,000 in each of the two most recent calendar years or whose net income
      before taxes combined with that of a spouse exceeded $300,000 in each of
      the two most recent calendar years and who, in either case, reasonably
      expects to exceed that net income level in the current calendar
    year;

	 	 	 
	[  ]	(l) 	
      an individual who, either alone or with a spouse, has net
      assets of at least $5,000,000;

	 	 	 
	[  ]	(m) 	
      a person, other than an individual or investment fund,
      that has net assets of at least $5,000,000 as shown on its most recently
      prepared financial statements;

	 	 	 
	[  ]	(n) 	
      an investment fund that distributes or has distributed
      its securities only to

	 	(i) 	
      a person that is or was an accredited investor at the
      time of the distribution;

	 	 	 
	 	(ii) 	
      a person that acquires or acquired securities in the
      circumstances referred to in sections 2.10 [Minimum amount investment] and
      2.19 of National Instrument 45-106 – Prospectus and Registration
      Exemptions [Additional investment in investment funds]; or

	 	 	 
	 	(iii) 	
      a person described in paragraph (i) or (ii) that acquires
      or acquired securities under section 2.18 of National Instrument 45-106 –
      Prospectus and Registration Exemptions [Investment fund
      reinvestment];

	[  ]	(o) 	
      an investment fund that distributes or has distributed
      securities under a prospectus in a jurisdiction of Canada for which the
      regulator or, in Québec, the securities regulatory authority, has issued a
      receipt,

	 	 	 
	[  ]	(p) 	
      a trust company or trust corporation registered or
      authorized to carry on business under the Trust and Loan Companies Act
      (Canada) or under comparable legislation in a jurisdiction of Canada
      or a foreign jurisdiction, acting on behalf of a fully managed account
      managed by the trust company or trust corporation, as the case may
    be;

	 	 	 
	[  ]	(q) 	
      a person acting on behalf of a fully managed account
      managed by that person, if that person

	 	(i) 	
      is registered or authorized to carry on business as an
      adviser or the equivalent under the securities legislation of a
      jurisdiction of Canada or a foreign jurisdiction, and

	 	 	 
	 	(ii) 	
      in Ontario, is purchasing a security that is not a
      security of an investment fund;

	[  ]	(r) 	
      a registered charity under the Income Tax Act
      (Canada) that, in regard to the trade, has obtained advice from an
      eligibility adviser or an adviser registered under the securities
      legislation of the jurisdiction of the registered charity to give advice
      on the securities being traded;

  -- $0.35 Unit For Debt Private Placement Subscription Agreement
  -- 

  -- Omnicity Corp. --  

- 3 - 

	[  ]	(s) 	
      an entity organized in a foreign jurisdiction that is
      analogous to any of the entities referred to in paragraphs (a) to (d) or
      paragraph (i) in form and function;

	 	 	 
	[  ]	(t) 	
      a person in respect of which all of the owners of
      interests, direct, indirect or beneficial, except the voting securities
      required by law to be owned by directors, are persons that are accredited
      investors;

	 	 	 
	[  ]	(u) 	
      an investment fund that is advised by a person registered
      as an adviser or a person that is exempt from registration as an adviser;
      or

	 	 	 
	[  ]	(v) 	
      a person that is recognized or designated by the
      securities regulatory authority or, except in Ontario and Québec, the
      regulator as:

	 	(i) 	
      an accredited investor; or

	 	 	 
	 	(ii) 	
      an exempt purchaser in Alberta or British
  Columbia.

OR 

	2. 	
      is resident in one of the Provinces of British Columbia,
      Alberta, Saskatchewan, Manitoba, Quebec, Prince Edward Island, Nova
      Scotia, New Brunswick, Newfoundland and Labrador, the Northwest
      Territories or the Yukon and is {please check the appropriate
      category or categories where applicable and complete the missing
      information as appropriate}:

	[  ]	(a) 	
      a director, senior officer or control person of the
      Company, or of an affiliate of the Company; or

	 	 	 
	[  ]	
      (b) 
	
      a spouse, parent, grandparent, brother, sister or child
      of ______________________ (insert name), a director, senior officer
      or control person of the Company, or of an affiliate of the Company;
    or

	 	 	 
	[  ]	(c) 	
      a close personal friend of ______________________
      (insert name), a director, senior officer or control person of the
      Company, or of an affiliate of the Company; or

	 	 	 
	[  ]	(d) 	
      a close business associate of ______________________
      (insert name), a director, senior officer or control person of the
      Company, or of an affiliate of the Company; or

	 	 	 
	[  ]	(e) 	
      a founder of the Company; or

	 	 	 
	[  ]	(f) 	
      a parent, grandparent, brother, sister, child, spouse,
      close personal friend or close business associate of
      ______________________ (insert name), a founder of the Company;
      or

	 	 	 
	[  ]	(g) 	
      a person or company that is wholly-owned by, or a
      majority of its board of directors is comprised of, any combination of
      persons or companies described in §(a) to (f) above; or

	 	 	 
	[  ]	(h) 	
      a trust or estate of which all of the beneficiaries or a
      majority of the trustees are persons or companies described in §(a) to (f)
      above.

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 4 - 

OR 

	3. 	
      is resident in the Province of Ontario and is
      {please check the appropriate category or categories where
      applicable and complete the missing information as
      appropriate}:

	[  ]	(a) 	
      a founder of the Company, or an affiliate of
      _______________________ (insert name), a founder of the Company;
      or

	 	 	 
	[  ]	
      (b) 
	
      a spouse, parent, brother, sister, grandparent or child
      of _________________________(insert name), an executive officer,
      director or founder of the Company; or

	 	 	 
	[  ]	(c) 	
      a control person of the Company.

OR 

	
      4. 
	
      as defined in National Instrument 45-106 - Prospectus
      and Registration Exemptions{please check the category where
      applicable}:

	[  ]	
      an employee, executive officer, director or consultant of
      the Company, of a related entity of the Company or of a permitted assign
      of one of those persons and the purchase of the Units is voluntary.
  

OR 

	5. 	
      {please check the appropriate category or
      categories where applicable}:

	[  ]	(a) 	
      an individual and will have an aggregate acquisition cost
      for the Units of not less than $150,000; or

	 	 	 
	[  ]	(b) 	
      not an individual but is a corporation, partnership,
      trust, fund, association or any other organized group of persons that was
      not created solely, nor used primarily, to permit a group of individuals
      to purchase securities without a prospectus which will have an aggregate
      acquisition cost of purchasing the Units of not less than
  $150,000.

     
           
Dated at __________, __________, on this _____ day of
__________, 2009. 

________________________________________________________________________________________

Name of Subscriber - please print 

By:                                                                    Official Capacity or Title - please print                                                                 

________________________________________________________________________________________

Signature of Subscriber 

________________________________________________________________________________________

  Please print name of individual whose signature appears above
if different than the Subscriber 

	Subscriber’s Address: 	 
	 	 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 5 - 

	Subscriber’s Telephone Number: 	 
	Subscriber’s Facsimile Number: 	 
	Subscriber’s E-mail address: 	 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. --  

  -- $0.35 Unit For Debt Private Placement Subscription Agreement
  -- 

  -- Omnicity Corp. --  

Attachment “II” 

TO THE $0.35 UNIT FOR DEBT PRIVATE PLACEMENT
SUBSCRIPTION 
AGREEMENT OF OMNICITY CORP.

SUBSCRIBER’S SUITABILITY QUESTIONNAIRE 

                  In
addition to the covenants, representations and warranties contained in the
“$0.35 Unit For Debt Private Placement Subscription Agreement” of the Company,
to which this Attachment “II” – “Subscriber’s Suitability Questionnaire”
is attached, the undersigned Subscriber covenants, represents and warrants to
the Company as follows. 

                  Name
of Subscriber:_________________________________________ . 

                 
Instructions:             
This “Subscriber’s Suitability Questionnaire” (the “Questionnaire”)
is being provided to each potential subscriber (each a “Subscriber”) who
has indicated an interest in purchasing “Units” in the capital stock of
Omnicity Corp., a Nevada corporation (the “Company”). The purpose of this
Questionnaire is, in part, to allow the Company to have complete information
about the Subscriber and, in addition, to assure the Company that it may rely
on, if applicable, the exemption from the registration requirements under the
United States Securities Act of 1933, as amended (the “U.S. Act”),
afforded by Section 4(2) of the U.S. Act and “Rule 501” and “Rule 506” of
“Regulation D” promulgated thereunder (the “Regulation”). The Regulation
requires that, in order for an issuer, such as the Company, of securities, such
as the Units, to rely on the exemption afforded thereby, the Company may only
sell the Units to “Accredited Investors”. Eligibility is determined, among other
things, by the ability of the Subscriber either alone or with his representative
to evaluate the merits and risks of an investment in the Units, based on his
knowledge and experience in financial and business matters, or by certain
financial criteria. 

                  If
the answer to any question is “None” or “Not Applicable” please so state. If you
are acting as agent for a corporation, partnership, trust or other entity, any
reference to the term “you” shall mean such corporation, partnership,
trust or other entity. 

                  Your
answers will at all times be kept strictly confidential. However, by signing
this Questionnaire the Subscriber agrees that the Company may present this
Questionnaire to such parties as may be appropriate if called upon to verify the
information provided or to establish the availability of an exemption from
registration of the private placement under the federal or state securities laws
or if the contents are relevant to issue in any action, suit or proceeding to
which the Company is a party or by which it is or may be bound. A false
statement by the Subscriber may constitute a violation of law, for which a claim
for damages may be made against the Subscriber and, if applicable, its
representative. Otherwise, your answers to this Questionnaire will be kept
strictly confidential. 

                  This
Questionnaire does not constitute an offer of Units by the Company, but is
merely a request for information. 

                  Please
  complete the following Questionnaire fully, attaching additional sheets if necessary.

 -- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 2 - 

1.              
Individuals 

                  Please
  complete the following information if you are investing as an individual or
  jointly with another individual:                    

                     Name:
  ___________________________________________________________________. 

                    Spouse’s
  full name, if jointly held: ______________________________________________.

                    Date
  of birth:______________________________________________________________. 

                    Citizenship:
  _______________________________________________________________. 

                    Permanent
  home address: _____________________________________________________

                                       
                       
  _____________________________________________________. 

                    Marital
  status: ______________________________________________________________. 

                    Address
  for notices: _________________________________________________________

                                                        _________________________________________________________.

                    Home
  telephone number: ______________________________________________________. 

                    Business
  telephone number: ____________________________________________________. 

                    Social
  security or tax identification number: ________________________________________.

                    Occupation
  or profession: ______________________________________________________. 

                    Are
  you purchasing Units for your own account?

                    Yes 
  _________          No  _________

                    If
  you are not purchasing Units for your own account, please complete the following:

	 	(a) 	
      capacity in which you are purchasing Units (e.g.,: agent,
      representative, administrator, trustee, etc.)

	 	 	 
	 		.
	 	 	 
	 	(b) 	
      name, address and home and business telephone numbers of
      person(s) you represent:

	 	 	 
	 	 	 
	 		.
	 	 	 
	 	(c) 	
      Please attach evidence of authority authorizing you to
      represent each person.

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 3 - 

2.                Corporations
and other entities 

                
    Please complete the following information if you are investing as
  a corporation, partnership, trust or other entity: 

                    Please
  complete the following information if you are investing as a corporation, partnership,
  trust or other entity: 

                    Name
  and address of entity:_____________________________________________________

                                                           
  __________________________________________________________  . 

                    State
  and year of organization: ___________________________________________________

                                                            
  __________________________________________________________  .

                    Employer
  identification number: _________________________________________________. 

                    Business
  activities: ___________________________________________________________

                                                          
  __________________________________________________________ . 

	 	(a) 	
      Has the corporation, partnership, trust or other entity
      been formed for the specific purpose of purchasing
Units?

Yes  _________         
  No  _________

	 	(b) 	
      Does the corporation, partnership, trust or other entity
      have total assets in excess of $5,000,000?

Yes  _________         
  No  _________

	 	(c) 	
      Has the corporation, partnership, trust or other entity
      been in existence for less than 90 days prior to the date
  hereof?

Yes  _________         
  No  _________

	 	(d) 	
      Indicate the number of shareholders, partners,
      beneficiaries or other holders of beneficial interest of the corporation,
      partnership, trust or other entity: .

	 	 	 
	 	(e) 	
      Does the Subscriber, any relative, spouse or relative of
      the Subscriber who has the same residence as the Subscriber and any trust
      or estate described in question “(f)” immediately hereinbelow collectively
      hold more than 50% of the equity securities (excluding directors’
      qualifying shares) or equity interests of the investing corporation,
      partnership or other entity?

Yes  _________         
  No  _________

	 	(f) 	
      Do the Subscriber and the persons and entities specified
      in question “(e)” immediately hereinabove above collectively hold more
      than 50% of the beneficial interest (excluding contingent interests) of
      the investing trust or estate?

Yes  _________         
  No  _________

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

3.               
All subscribers 

Please answer each of the following
questions: 

For purposes of this Questionnaire the
following definitions shall apply: 

	 	(i) 	
      “income” shall mean adjusted gross income as
      reported for federal tax purposes reduced by (a) any deduction for long
      term capital gain, (b) any deduction for depletion, (c) any exclusion for
      interest and (d) any losses allocated to purchaser as an individual;
      and

	 	 	 
	 	(ii) 	
      “net worth” shall mean the total assets in excess
      of liabilities, as determined in accordance with generally accepted
      accounting principles, except that if any such assets have been
      depreciated, then the amount of the depreciation regarding any particular
      asset may be added to the depreciated cost of that asset to determine
      total assets; provided, however, that the amount of any such depreciation
      may be added only to the extent that the amount resulting after adding
      such depreciation does not exceed the fair market value of that
    asset.

	 	(a) 	
      Is your net worth, excluding the value of your principal
      residence, home furnishings and automobiles, more than
  $200,000?

Yes  _________         
  No  _________

	 	(b) 	
      Is your net worth, jointly with your spouse and inclusive
      of the value of your principal residence, home furnishings and
      automobiles, at least $1,000,000?

Yes  _________         
  No  _________

	 	(c) 	
      If you are purchasing Units as an individual, has your
      income from all sources exceeded $200,000 in each of the two years
      preceding the date you will sign this
Questionnaire?

Yes  _________         
  No  _________

	 	(d) 	
      If you are purchasing Units as an individual, did you and
      your spouse have joint income from all sources exceeding $300,000 in each
      of the two years preceding the date you will sign this
    Questionnaire?

Yes  _________         
  No  _________

	 	(e) 	
      If you are purchasing Units as an individual and have had
      income from all sources of $200,000 for each of the two years preceding
      the date you will sign this Questionnaire, or you and your spouse have had
      joint income of $300,000 for each of the two years preceding the date you
      will sign this Questionnaire, do you reasonably expect your joint income
      from all sources to be equal to or exceed such amounts for the current
      year?

Yes  _________         
  No  _________

	 	(f) 	
      As a non-accredited investor, you have an individual or
      joint income in the prior two years and a projected income for the current
      year as follows:

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 5 - 

2007 $ __________; 2008 $ __________;
2009 $ __________

	 	(g) 	
      Do you anticipate that your current amount of income will
      change in the foreseeable future?

Yes  _________         
  No  _________

If so, when, why and to what amount
  will that income change?: 

________________________________________________________________

  _______________________________________________________________.

	 	(h) 	
      Does your proposed purchase of Units
  exceed:

____ 10% of your net worth (excluding
home, furnishings and automobiles)? 

____ 20% of your net worth (excluding
home, furnishings and automobiles)? 

	 	(i) 	
      Do you have a prior close business or personal
      relationship with the Company or any of its officers, directors or
      principal (10% or more) shareholders?

Yes  _________         
  No  _________

If “Yes,” please describe
  the nature of the relationship: 

________________________________________________________________

  ________________________________________________________________

  _______________________________________________________________.

	 	(j) 	
      Are you aware that the proposed offering of Units is
      intended to be a long-term investment?

Yes  _________         
  No  _________

	 	(k) 	
      Please indicate the general, business or professional
      education and degrees received by you (or, if the Subscriber is a
      corporation, partnership, trust or other entity, by the person completing
      this Questionnaire on its behalf).

	School 	Degree 	Year Received 
	  	  	           
                         
                         
           . 
	 	 	 
	 	 	 
	 	 	 

	 	(l) 	
      Investment experience:

	 	(i) 	
      Frequency of investment in market
  securities:

Often  _____  
Occasionally  _____   Seldom  _____   Never 
_____

	 	(ii) 	
      Frequency of investment in commodities
  futures:

Often  _____   Occasionally 
  _____   Seldom  _____   Never  _____

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 6 - 

	 	(iii) 	
      Frequency of investment in
options:

Often  _____  
Occasionally  _____   Seldom  _____   Never 
_____

	 	(iv) 	
      Frequency of investment in
options:

Often  _____  
Occasionally  _____   Seldom  _____   Never 
_____

	 	(v) 	
      Frequency of investment in securities purchased on
      margin:

Often  _____  
Occasionally  _____   Seldom  _____   Never 
_____

	 	(vi) 	
      Have you purchased securities sold in reliance on the
      private offering exemptions from registration pursuant to the U.S. Act or
      any state laws during the past three years?

Yes  _________         
  No  _________

If you answered “Yes,” please provide
the following information: 

	  	Nature of 	Business 	Total amount 
	Year 	Security 	of issuer 	invested 
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	 
    	 
    	 
                         
                     .

	 	(m) 	
      Please describe your principal business activities (or
      the business activities of the corporation, partnership, trust or entity)
      during the past five years:

	 	(n) 	
      Have you previously invested in a development stage
      company?

Yes  _________         
  No  _________

	 	(o) 	
      Do you believe you have sufficient knowledge and
      experience in financial and business affairs that you can evaluate the
      merits and risks of a purchase of Units?

Yes  _________         
  No  _________

	 	(p) 	
      Do you believe you have sufficient knowledge of
      investments in general, and investments similar to a purchase of Units in
      particular, to evaluate the risks associated with a purchase of
    Units?

Yes  _________         
  No  _________

	 	(q) 	
       

	 	(1) 	
      In evaluating the merits and risks of this investment, do
      you intend to rely upon the advice of a representative (the
      “Representative”)?

Yes  _________         
  No  _________

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 7 - 

If you answered “Yes,” please identify
such person and indicate his or her business address and telephone number. Any
person offering such advice must complete and return one copy of the
“Subscriber’s Representative Questionnaire” which immediately follows this
Questionnaire. 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	(2) 	
      You hereby acknowledge that the Representative identified
      above, if any, may receive a sales commission or other compensation in
      connection with your purchase of Units (if permitted by state and federal
      securities laws), and that you have been informed that you will receive
      written notification of such amounts to be paid before acceptance of this
      subscription.

	 	(r) 	
      Will any of the money you will use to purchase the Units
      be borrowed from lenders outside of the United States of
  America?

Yes  _________         
  No  _________

	 	(s) 	
      Do you understand that there will be substantial
      restrictions on your ability to resell any Units you purchase and that, in
      any event, you will not be able to resell any Units purchased unless an
      exemption from registration or qualification is available pursuant to the
      U.S. Act and the securities laws of the various states and other
      appropriate jurisdictions.

Yes  _________         
  No  _________

                  You
hereby acknowledge that the foregoing statements are true and accurate to the
best of your information and belief and that you will promptly notify the
Company of any changes in the foregoing answers. You further acknowledge that
you have requested and hereby authorize the individual named in question “(p)”
hereinabove, if any, to act as your Representative in connection with the
evaluation of the merits and risks of a prospective purchase of Units by you (or
the purchasing corporation, partnership, trust or other entity) and you have
read and understood the Subscriber’s Representative Questionnaire delivered to
you herewith. 

                   Dated
at __________, __________, on this _____ day of __________, 2009. 

________________________________________________________________________________________

  Name of Subscriber - please print 

By:                                                                 Official Capacity or Title
- please print                                                                    

________________________________________________________________________________________

  Signature of Subscriber 

________________________________________________________________________________________

  Please print name of individual whose signature appears above if different
  than the Subscriber 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 8 - 

	Subscriber’s Address: 	 
	 	 
	Subscriber’s Telephone Number: 	 
	Subscriber’s Facsimile Number: 	 
	Subscriber’s E-mail address: 	 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

$0.35 UNIT FOR DEBT PRIVATE PLACEMENT SUBSCRIPTION
  AGREEMENT 

  THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES

SECURITIES ACT OF 1933, AS AMENDED,
OR THE LAWS OF ANY STATE, AND ARE BEING ISSUED PURSUANT TO
AN EXEMPTION FROM REGISTRATION PERTAINING TO SUCH
SECURITIES AND PURSUANT TO A REPRESENTATION BY THE SECURITY
HOLDER NAMED HEREIN THAT SAID SECURITIES HAVE BEEN ACQUIRED
FOR PURPOSES OF INVESTMENT AND NOT FOR PURPOSES OF
DISTRIBUTION. THESE SECURITIES MAY NOT BE OFFERED, SOLD,
TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF
REGISTRATION, OR THE AVAILABILITY OF AN EXEMPTION FROM SUCH
REGISTRATION. THE STOCK TRANSFER AGENT HAS BEEN ORDERED TO
EFFECTUATE TRANSFERS ONLY IN ACCORDANCE WITH THE ABOVE
INSTRUCTIONS. 

(OR) 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED
  STATES SECURITIES ACT OF 1933,
  AS AMENDED (THE “ACT”), OR THE
  LAWS OF ANY STATE, AND ARE BEING ISSUED IN RELIANCE UPON
  REGULATION S PROMULGATED UNDER THE ACT. THESE SECURITIES
  MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED
  IN THE ABSENCE OF REGISTRATION, THE AVAILABILITY OF AN
  EXEMPTION FROM SUCH REGISTRATION OR COMPLIANCE WITH REGULATION
  S. THE STOCK TRANSFER AGENT HAS BEEN ORDERED TO EFFECTUATE
  TRANSFERS ONLY IN ACCORDANCE WITH THE ABOVE INSTRUCTIONS.

(AND, IF APPLICABLE) 

UNLESS PERMITTED UNDER APPLICABLE SECURITIES LEGISLATION,
  THE HOLDER OF THE SECURITIES REPRESENTED HEREBY SHALL NOT
  TRADE THE SECURITIES IN CANADA BEFORE THE EARLIER OF (I)
  THE DATE THAT IS FOUR MONTHS AND A DAY AFTER THE DATE THE
  COMPANY FIRST BECAME A REPORTING ISSUER IN ANY OF ALBERTA,
  BRITISH COLUMBIA, MANITOBA, NOVA SCOTIA, ONTARIO, QUEBEC
  AND SASKATCHEWAN, IF THE COMPANY IS A SEDAR FILER, AND
  (II) THE DATE THAT IS FOUR MONTHS AND A DAY AFTER THE LATER
  OF (A) THE DISTRIBUTION DATE, AND (B) THE DATE THE COMPANY
  BECAME A REPORTING ISSUER IN THE LOCAL JURISDICTION OF THE
  SUBSCRIBER OF THE SECURITIES THAT ARE THE SUBJECT OF THE TRADE.

(AND) 

UNLESS OTHERWISE PERMITTED UNDER SECURITIES LEGISLATION,
  THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY
  IN OR FROM BRITISH COLUMBIA UNLESS THE CONDITIONS IN SECTION
  12(2) OF BC INSTRUMENT 51-509 ISSUERS QUOTED IN THE U.S.
  OVER-THE-COUNTER MARKET ARE MET.

UNIT FOR DEBT PRIVATE PLACEMENT OFFERING

	
      To: 
	
      OMNICITY CORP. (the “Company”), with
      an address for notice and delivery located at 720 N. Range Line Road,
      Carmel, Indiana, U.S.A., 46032. 

                 
  The Company is offering (collectively, the “Offering”),
  on a private placement basis, units of the Company (each a “Unit”)
  to eligible creditors of Omnicity, Inc. (“Omnicty”); and each such creditor who subscribes to
this Offering by this document is hereinafter referred to as the
“Subscriber”) at a deemed settlement subscription price of U.S. $0.35
per Unit, with each Unit consisting of one common share in the
capital of the Company (each a “Share”) and one-half of one
non-transferable share purchase warrant in the capital of the Company (each
a “Warrant”) to acquire an additional common share of the Company. 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 2 - 

                 
The undersigned Subscriber is hereby acquiring certain restricted Units in
the capital of the Company under this Offering as a consequence of and in
accordance with the terms and conditions of a certain “Agreement and Plan of
Merger”, dated for reference December 28, 2008, together with any formal share
exchange/merger agreement resulting therefrom (collectively, the “Acquisition
Agreement”), as entered into and to be entered into among each of the
Company, Omnicity and all vendor shareholders of Omnicity (each a
“Vendor” therein and a Subscriber herein), in consideration of each such
Vendor’s anticipated agreement therein to assign, sell and transfer all of such
Vendor’s respective right, entitlement and interest in and to all of the
Vendor’s common shares which are presently issued and outstanding in the share
capital of the Omnicity; this Agreement being contemplated as a matter for
closing under the Acquisition Agreement; and the certifications,
representations, warranties and understandings contained in this Agreement being
in addition to those certain certifications, representations, warranties and
understandings of the Vendors as contained under the Acquisition Agreement. 

                  As
at the date of the execution of this “$0.35 Unit For Debt Private Placement
Subscription Agreement” (the “Agreement”) by the Subscriber, Omnicity was
indebted to the Subscriber in the aggregate sum which is set forth
hereinabove (collectively, the “Outstanding Debt”) and, as a
consequence of such Outstanding Debt, and in conjunction with the anticipated
closing of the Company’s Acquisition Agreement with the Vendors (herein and
herein the “Closing”), the Company has agreed to issue and the Subscriber
has agreed to accept an aggregate of that number of Units which are set forth
hereinabove, at a deemed settlement price of U.S. $0.35 per Unit, in full and
complete satisfaction of such Outstanding Debt with Omnicity. The within private
placement Offering of Units by the Company is not subject to any minimum
subscription. In that respect the Company hereby offers, and the Subscriber
hereby accepts, the Units in full and complete settlement of the Outstanding
Debt with Omnicity and on the terms and conditions as set forth in this
Agreement and as contemplated at Closing under the Acquisition Agreement. 

Article 1 
SUBSCRIPTION FOR UNITS

1.1             
Subscription for Units and settlement of Outstanding Debt.
Based upon the hereinafter terms, conditions, representations, warranties and
covenants given by each party to the other, the Subscriber hereto hereby
irrevocably subscribes for and agrees to purchase the number of Units of the
Company as set forth on the Signature Page/Subscriber Statement at the beginning
of this subscription Agreement, at the Closing of the Acquisition Agreement, at
a deemed settlement price of U.S. $0.35 per Unit and in consideration of the
settlement by the Subscriber of all of the Outstanding Debt presently due and
owing by Omnicity to the Subscriber at Closing (collectively, the
“Subscription Price” herein) as set forth on the Signature
Page/Subscriber Statement at the beginning of this subscription Agreement. 

1.2             
  Acceptance of subscription. The Company, upon acceptance by its
  Board of Directors (the “Board”) of all or part of this subscription
  Agreement, and only at Closing of the Acquisition Agreement, agrees to issue
  the accepted number of Units, as fully paid and non-assessable, and as consideration
  for the Subscriber’s subscription and for the Subscriber’s within
  acknowledgement of the full and complete settlement of the Outstanding Debt
  with Omnicity (collectively, the “Settlement”). 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 3 - 

1.3.             
Representations and warranties of the Subscriber respecting
the Outstanding Debt. The Subscriber hereby
acknowledges, represents and warrants to the Company, with the intent that the
Company will rely thereon in entering into this subscription Agreement and in
concluding the transactions contemplated herein, that, to the best of the
knowledge, information and belief of the Subscriber, after having made due
inquiry: 

	 	(a) 	
      Ownership of the Outstanding Debt: the Subscriber
      is the legal and beneficial owner of the Outstanding Debt; and

	 	 	 
	 	(b) 	
      No other interest in the Outstanding Debt: the
      Subscriber has granted no other person any prior right, title or interest
      in and to any of the Outstanding Debt.

1.4             
Warrants and exercise of Warrants. The Warrants forming part of
the Units will be registered in the name of the Subscriber and will be
non-transferable except in compliance with the United States Securities Act
of 1933, as amended (the “U.S. Act”), and each such whole Warrant
will entitle the Subscriber to purchase one additional common share of the
Company (each a “Warrant Share”), for the period commencing upon the date
of issuance of the within Units by the Board and ending at 5:00 p.m. (Carmel,
Indiana, time) on the day which is two years from the date of issuance of the
within Units (such time period being the “Warrant Exercise Period”
herein), at an exercise price of U.S. $0.50 per Warrant Share during the
Warrant Exercise Period. 

1.5             
Warrant certificates. The terms and conditions which govern the
Warrants will be referred to on the certificates representing the Warrants in
the form attached hereto as Exhibit “A” and will contain, among other things,
anti-dilution provisions and provisions for the appropriate adjustment in the
class, number and price of the Warrant Shares issuable on the exercise of the
Warrants upon the occurrence of certain events including any subdivision,
consolidation or reclassification of the common shares, the payment of stock
dividends and the amalgamation of the Company. 

1.6             
Other financings. The issue and terms of the Warrants will not
restrict or prevent the Company from obtaining any other financing or from
issuing additional securities or rights during the period within which the
Warrants are exercisable. 

1.7             
Replacement Warrant certificates. If the Subscriber exercises any
Warrants the Company will issue to the Subscriber the number of Warrant Shares
equal to the number of Warrants exercised and deliver to the Subscriber a
certificate representing the Warrant Shares. 1.8 Subscriber’s eligibility
for subscription. The Subscriber acknowledges and warrants (and has made
diligent inquiries to so determine or has the sophistication and knowledge to
know the Subscriber’s status without concern of error), on which the Company
relies, that the Subscriber is purchasing the Units on a private basis and
without infraction of or impedance by his domicile laws due to one or more of
the following: 

	 	(a) 	
      the Subscriber is an eligible and exempt investor under
      the laws of the Subscriber’s domicile by either being a person who
      complies with exemptions from prospectus requirements or is otherwise
      exempt by virtue of the Subscriber’s wealth, income and investment
      knowledge or capacity; or

	 	 	 
	 	(b) 	
      the Subscriber is subscribing for a value in Units
      constituting an exempt investment under the laws of the Subscriber’s
      domicile; or

	 	 	 
	 	(c) 	
      the Subscriber’s domicile laws do not restrict
      investment; and

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 4 - 

	 	(d) 	
      where the Subscriber has completed the appropriate
      portions of this Agreement and its related Attachments and the completion
      of the same, whether signed or not, constitute a true and accurate
      statement by the Subscriber.

                 
For the purposes of this Agreement it is hereby acknowledged and agreed that
“Securities” is hereinafter collectively defined to mean each of the
Units, Shares, Warrants and Warrant Shares. 

1.9             
Risks of subscription. The Subscriber acknowledges that no party
independent of the Company has made or will make any opinion or representations
on the merits or risks of an investment in any of the Securities unless sought
out by the Subscriber; which the Subscriber is encouraged to do. The Subscriber
is aware that this investment is a speculative and risky investment, the
Subscriber warrants that it could tolerate the full loss of the investment
without significant or material impact on the Subscriber’s financial condition
and the Subscriber waives all claim or liability of the Company for any loss in
value of this investment. 

Article 2 

  METHOD OF SUBSCRIPTION AND ACCEPTANCE BY THE COMPANY

2.1             
Method of subscription. It is hereby acknowledged and agreed
by the parties hereto that any subscription for Units shall be made by the
Subscriber: 

	 	(a) 	
      by faxing to the Company’s counsel, Lang Michener LLP
      (the “Company’s Counsel”), at (604) 893-2679 or (604) 685-7084, a
      completed and executed copy of this Agreement together with all applicable
      Appendices hereto; and

	 	 	 
	 	(b) 	
      by delivering to the Company, at 720 N. Range Line Road,
      Carmel, Indiana, U.S.A., 46032, or to the Company’s Counsel, at 1500 Royal
      Centre, 1055 West Georgia Street, Vancouver, British Columbia, Canada, V6E
      4N7, an originally executed and completed copy of this Agreement and all
      applicable Appendices hereto.

                  In
this regard, and should the Subscriber’s subscription be submitted to the
Company’s Counsel, then the Subscriber agrees that the Company’s Counsel shall
have no accountability to the Subscriber whatsoever and acknowledges that the
Company’s Counsel is merely a recipient for the Company and has no obligation of
any nature to the Subscriber. Under no circumstances shall the Company’s Counsel
be considered to be giving legal or other advice or services to the Subscriber
and no communication between the Subscriber and the Company’s Counsel shall be
considered advice (at the most only administrative subscription assistance on
behalf of the Company) but the Subscriber shall rely solely and exclusively on
the Subscriber’s own judgment and the advice of the Subscriber’s own counsel.

2.2             
  Acceptance of subscription or reinstatement of the deemed Subscription
  Price Outstanding Debt by the Company. The Subscriber acknowledges
  that the Company will be accepting subscriptions for Units on a first come,
  first serve, basis. As a consequence the Company, upon acceptance by its Board
  of all or part of this subscription Agreement (the “Acceptance”),
  hereby agrees to issue the accepted number of Units, as fully paid and non-assessable,
  and as consideration for the Subscriber’s subscription and within Settlement,
  and to reinstate any portion of the Subscription Price Outstanding Debt of any
  non-accepted portion of this subscription Agreement by the Board. In this regard
  the Subscriber acknowledges that, although Units may be issued to other subscribers
  concurrently with the Company’s Acceptance of all or part of this subscription
  Agreement, there may be other sales of Units by the Company, some or all of
  which may close before or after the Acceptance herein. The Subscriber further
  acknowledges that there is a risk that insufficient funds may be raised by the
  Company upon the Company’s Acceptance of all or part of this subscription
Agreement to fund the Company’s objectives and that further closings may not
take place after Acceptance herein. 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 5 - 

2.3.             
Securities issued at different prices and characteristics. The
Subscriber acknowledges that the Company will issue its securities at different
prices which may occur sequentially, from time-to-time, or at the same time and
prices in the future may be lower than now. The Company will also issue
offerings which have warrants, or other benefits, attached and some offerings
which do not. Not all subscribers will receive common shares, or other share
classes, of the Company at the same price and such may be issued at vastly
different prices to that of the Subscriber. For example, however, without
limitation, the Company will or may issue securities for developmental assets
(which cannot be valued and so may be assigned a nominal value on the Company’s
books) or for services or to attract expertise or management talent or other
circumstances considered advisable by the Board. Such issuance at different
prices are made by the Board in its judgment as to typical structuring for a
company such as the Company, to incentivise, reward and to provide a measure of
developmental control, to acquire assets or services which the Board considers
necessary or advisable for the Company’s development and success and other such
considerations in the Board’s judgment. The Company may or will acquire debt
and/or equity financings in the future required or advisable, as determined by
the Board, in the course of the Company’s business development. The Subscriber
acknowledges these matters, understands that the Subscriber’s investment is not
necessarily the most advantageous investment in the Company and authorizes the
Board now and hereafter to use its judgment to make such issuances whether such
issuances are at a lesser, equal or greater price than that of the Subscriber
and whether such is prior to, concurrent with or subsequent to the Subscriber’s
investment herein. 

2.4             
  Delivery of Share certificates. The Company, within 30 calendar
  days of the Acceptance by its Board of all or part of this subscription Agreement
  in accordance with the Closing of the Acquisition Agreement, agrees to deliver
  to the Subscriber a Share certificate for the accepted number of Shares purchased
  by the Subscriber under this subscription Agreement and registered in the name
  of the Subscriber.

Article 3 
INVESTMENT SUBSCRIPTION TERMS,
CORPORATE DISCLOSURE AND 
GENERAL SUBSCRIBER
ACKNOWLEDGEMENTS AND WARRANTIES 

3.1             
Description of the Units. The Company is issuing Units at a
deemed settlement Subscription Price of U.S. $0.35 per Unit. The Shares forming
part of the Units, together with the Warrant Shares which are issuable upon the
exercise of the Warrants, are a part of the common shares of the Company
presently authorized. Copies of the constating documents of the Company
describing the common shares and the rights of shareholders are available upon
request. 

3.2             
  Release of liability and indemnity. The Subscriber acknowledges
  and agrees that, in consideration, in part, of the Company’s within Acceptance
  of this subscription, the Subscriber hereby does hereby release, remise and
  forever discharge each of the Company and its respective subsidiaries, directors,
  officers, employees, attorneys, agents, executors, administrators, successors
  and assigns and the Company’s Counsel, of and from all manner of action
  and actions, causes of action, suits, debts, dues, accounts, bonds, covenants,
  contracts, claims, damages and demands, whether known or unknown, suspected
  or unsuspected and whether at law or in equity, which against either of the
  Company and/or any of its respective subsidiaries, directors, officers, employees,
  attorneys, agents, executors, administrators, successors and assigns and the
  Company’s Counsel, the Subscriber ever had, now has, or which any of the
  Subscriber’s respective successors or assigns, or any of them hereafter
  can, shall or may have by reason of any matter arising from the within subscription
  or the use of funds or the operation of the Company (collectively, the “Release”)
  except only for gross negligence or fraud (and such shall constitute only objective
  willful act of objective material wrongdoing). The Subscriber shall hold harmless
  and indemnify the Company from and against, and shall compensate and reimburse
  the same for, any loss, damage, claim, liability, fee (including reasonable
  attorneys’ fees), demand, cost or expense (regardless of whether or not
  such loss, damage, claim, liability, fee, demand, cost or expense relates to
  a third-party claim) that is directly or indirectly suffered or incurred by
  the Company, or to which the Company becomes subject, and that arises directly
  or indirectly from, or relates directly or indirectly to, any inaccuracy in
  or breach of any representation, warranty, covenant or obligation of the Subscriber
  contained in this Agreement. This Release is irrevocable and will not terminate
  in any circumstances.

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 6 - 

3.3             
The Subscriber’s understandings and acknowledgments. The
Subscriber hereby acknowledges and agrees that: 

	 	(a) 	
      Further financings: the Company may issue further
      offerings similar to the within Offering which may be at higher or lower
      prices (as determined by the Company in accordance with its appreciation
      of market conditions). The Company may, and will, acquire debt and/or
      equity financings in the future required or advisable in the course of the
      Company’s business development;

	 	 	 
	 	(b) 	
      Withdrawal or revocation: this Agreement is given
      for valuable consideration and shall not be withdrawn or revoked by the
      Subscriber once tendered to the Company;

	 	 	 
	 	(c) 	
      Agreement to be bound: the Subscriber hereby
      specifically agrees to be bound by the terms of this Agreement as to all
      particulars hereof and hereby reaffirms the acknowledgments,
      representations and powers as set forth in this Agreement;

	 	 	 
	 	(d) 	
      Reliance on Subscriber’s representations: the
      Subscriber understands that the Company will rely on the acknowledgments,
      representations and covenants of the Subscriber contained herein in
      determining whether a sale of the Units to the Subscriber is in compliance
      with applicable securities laws. The Subscriber warrants that all
      acknowledgments, representations and covenants are true and accurate;
      and

	 	 	 
	 	(e) 	
      Waiver of pre-emptive rights: the Subscriber
      hereby grants, conveys and vests unto the President of the Company, or
      unto such other nominee or nominees of the President of the Company as the
      President of the Company may determine, from time to time, in the
      President’s sole and absolute discretion, as the Subscriber’s power of
      attorney solely for the purpose of waiving any prior or pre- emptive
      rights which the Subscriber may have to further issues of equity by the
      Company under applicable corporate and securities
laws.

3.4             
The Subscriber’s representations and warranties. The Subscriber
hereby represents and warrants that: 

	 	(a) 	
      Not a U.S. Person: if the Subscriber is not a
      resident of the United States, the Subscriber: (i) is not a U.S. Person
      (as defined in “Rule 902” of “Regulation S” (“Regulation S”) under
      the United States Securities Act of 1933, as amended (the “U.S.
      Act”)), which definition includes, but is not limited to, any natural
      person resident in the United States, any corporation or partnership
      incorporated or organized under the laws of the United States or any
      estate or trust of which any executor, administrator or trustee is a U.S.
      Person; (ii) is not purchasing any of the Securities for the account or benefit of any U.S.
      Person or for offering, resale or delivery for the account or benefit of
      any U.S. Person or for the account of any person in any jurisdiction other
      than the jurisdiction set out in the name and address of the Subscriber
      set forth hereinbelow; and (iii) was not offered any Units in the United
      States and was outside the United States at the time of execution and
  delivery of this Agreement;

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 7 - 

	 	(b) 	
      No registration and sales under Regulation S: if
      the Subscriber is not a resident of the United States: (i) the Subscriber
      acknowledges that the Securities have not been registered under the U.S.
      Act; (ii) the Subscriber agrees to resell the Securities only in
      accordance with the provisions of Regulation S, pursuant to a registration
      under the U.S. Act or pursuant to an available exemption from such
      registration, and that hedging transactions involving the Securities may
      not be conducted unless in compliance with the U.S. Act; (iii) the
      Subscriber understands that any certificate representing the Securities
      may bear a legend setting forth the foregoing restrictions; and (iv) the
      Subscriber understands that the Securities are restricted within the
      meaning of “Rule 144” promulgated under the U.S. Act; that the
      exemption from registration under Rule 144 will not be available in any
      event for at least one year from the date of purchase and payment of the
      Securities by the Subscriber, and even then will not be available unless
      (i) a public trading market then exists for the common stock of the
      Company, (ii) adequate information concerning the Company is then
      available to the public and (iii) other terms and conditions of Rule 144
      are complied with; and that any sale of the Securities may be made by the
      Subscriber only in limited amounts in accordance with such terms and
      conditions;

	 	 	 
	 	(c) 	
      No U.S. beneficial interest: if the Subscriber is
      not a resident of the United States, no U.S. Person, either directly or
      indirectly, has any beneficial interest in any of the Securities acquired
      by the Subscriber hereunder, nor does the Subscriber have any agreement or
      understanding (written or oral) with any U.S. Person
  respecting:

	 	(i) 	
      the transfer or any assignment of any rights or interest
      in any of the Securities;

	 	 	 
	 	(ii) 	
      the division of profits, losses, fees, commissions or any
      financial stake in connection with this subscription; or

	 	 	 
	 	(iii) 	
      the voting of the Securities;

	 	(d) 	
      Experience: the Subscriber has the requisite
      knowledge and experience in financial and business matters for properly
      evaluating the risks of an investment in the Company;

	 	 	 
	 	(e) 	
      Information: the Subscriber has received all
      information regarding the Company reasonably requested by the
      Subscriber;

	 	 	 
	 	(f) 	
      Risk: the Subscriber understands that an
      investment in the Company involves certain risks of which the Subscriber
      has taken full cognizance, and which risks the Subscriber fully
      understands;

	 	 	 
	 	(g) 	
      Adequacy of information: the Subscriber has been
      given the opportunity to ask questions of, and to receive answers from,
      the Company concerning the terms and conditions of the Offering and to
      obtain additional information necessary to
verify the accuracy of the information contained in the
      information described in paragraph (e) above, or such other information as
      the Subscriber desired in order to evaluate an investment in the
  Company;

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 8 - 

	 	(h) 	
      Residency: the residence of the Subscriber as set
      forth hereinabove is the true and correct residence of the Subscriber and
      the Subscriber has no present intention of becoming a resident or
      domiciliary of any other jurisdiction;

	 	 	 
	 	(i) 	
      Independent investigation: in making a decision to
      invest in the Company the Subscriber has relied solely upon independent
      investigations made by the Subscriber;

	 	 	 
	 	(j) 	
      Principal: the Subscriber is purchasing the Units
      as principal for the Subscriber’s own account and not for the benefit of
      any other person, except as otherwise stated herein, and not with a view
      to the resale or distribution of all or any of the Units;

	 	 	 
	 	(k) 	
      Decision to purchase: the decision of the
      Subscriber to enter into this Agreement and to purchase Units pursuant
      hereto has been based only on the representations of this Agreement. It is
      not made on other information relating to the Company and not upon any
      oral representation as to fact or otherwise made by or on behalf of the
      Company or any other person. The Subscriber agrees that the Company
      assumes no responsibility or liability of any nature whatsoever for the
      accuracy, adequacy or completeness of any business plan information which
      has been created based upon the Company’s management experience. In
      particular, and without limiting the generality of the foregoing, the
      decision to subscribe for Units has not been influenced
  by:

	 	(i) 	
      newspaper, magazine or other media articles or reports
      related to the Company or its business;

	 	 	 
	 	(ii) 	
      promotional literature or other materials used by the
      Company for sales or marketing purposes; or

	 	 	 
	 	(iii) 	
      any representations, oral or otherwise, that the Company
      will become a listed company, that any of the Securities will be
      repurchased or have any guaranteed future realizable value or that there
      is any certainty as to the success of the Company or the liquidity or
      value of any of the Securities;

	 	(l) 	
      Advertisements: the Subscriber acknowledges that
      the Subscriber has not purchased Units as a result of any general
      solicitation or general advertising, including advertisements, articles,
      notices or other communications published in any newspaper, magazine or
      similar media or broadcast over radio or television, or any seminar or
      meeting whose attendees have been invited by general solicitation or
      general advertising;

	 	 	 
	 	(m) 	
      Information not received: the Subscriber has not
      received, nor has the Subscriber requested, nor does the Subscriber have
      any need to receive, any offering memorandum or any other document (other
      than financial statements or any other document the content of which is
      prescribed by statute or regulation) describing the business and affairs
      of the Company which has been prepared for delivery to, and review by,
      prospective subscribers in order to assist them in making an investment
      decision in respect of the Units, and the Subscriber has
  not become aware of any advertisement in printed media of
      general and regular paid circulation, radio or television with respect to
  the distribution of the Units;

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 9 - 

	 	(n) 	
      Information received: the Subscriber has had
      access to such additional information, if any, concerning the Company as
      the Subscriber has considered necessary in connection with the
      Subscriber’s investment decision to acquire the Units;

	 	 	 
	 	(o) 	
      Satisfaction with information received: the
      Subscriber acknowledges that, to the Subscriber’s
  satisfaction:

	 	(i) 	
      the Subscriber has either had access to or has been
      furnished with sufficient information regarding the Company and the terms
      of this investment transaction to the Subscriber’s satisfaction;

	 	 	 
	 	(ii) 	
      the Subscriber has been provided the opportunity to ask
      questions concerning this investment transaction and the terms and
      conditions thereof and all such questions have been answered to the
      Subscriber’s satisfaction; and

	 	 	 
	 	(iii) 	
      the Subscriber has been given ready access to and an
      opportunity to review any information, oral or written, that the
      Subscriber has requested concurrent with or as a part of this
      Agreement;

	 	(p) 	
      Economic risk: the Subscriber has such knowledge
      and experience in financial and business affairs as to be capable of
      evaluating the merits and risks of the Subscriber’s investment in and to
      the Securities, and the Subscriber is able to bear the economic risk of a
      total loss of the Subscriber’s investment in and to any of the
      Securities;

	 	 	 
	 	(q) 	
      Speculative investment: the Subscriber understands
      that an investment in the Securities is a speculative investment and that
      there is no guarantee of success of the Company’s management’s plans.
      Management’s plans are an effort to apply present knowledge and experience
      to project a future course of action which is hoped will result in
      financial success employing the Company’s assets and with the present
      level of management’s skills and of those whom the Company will need to
      attract (which cannot be assured). Additionally, all plans are capable of
      being frustrated by new or unrecognized or unappreciated present or future
      circumstances which can typically not be accurately, or at all,
      predicted;

	 	 	 
	 	(r) 	
      Risk and resale restriction: the Subscriber is
      aware of the risks and other characteristics of the Securities and of the
      fact that the Subscriber will not be able to resell the Securities except
      in accordance with the applicable securities legislation and regulatory
      policy;

	 	 	 
	 	(s) 	
      Representations as to resale: no person has made
      to the Subscriber any written or oral
representations:

	 	(i) 	
      that any person will resell or repurchase any of the
      Securities;

	 	 	 
	 	(ii) 	
      that any person will refund the purchase of any of the
      Securities;

	 	 	 
	 	(iii) 	
      as to the future price or value of any of the Securities;
      or

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 10 - 

	 	(iv) 	
      that any of the Securities will be listed and posted for
      trading on any stock exchange, over-the-counter or bulletin board market,
      or that application has been made to list and post any of the Securities
      for trading on any stock exchange, over-the-counter or bulletin board
      market; and

	 		
      the Subscriber will not resell any of the Securities
      except in accordance with the provisions of applicable securities
      legislation and stock exchange, over-the- counter and/or bulletin board
      market rules;

	 	 	 
	 	(t) 	
      Reports and undertakings: if required by
      applicable securities legislation, policy or order or by any securities
      commission, stock exchange or other regulatory authority, the Subscriber
      will execute and otherwise assist the Company in filing such reports,
      undertakings and other documents as may be reasonably required with
      respect to the issue of the Units;

	 	 	 
	 	(u) 	
      Resale restrictions: the Subscriber has been
      independently advised as to the applicable hold period imposed in respect
      of the Securities by securities legislation in the jurisdiction in which
      the Subscriber’s resides and confirms that no representation has been made
      respecting the applicable hold periods for the Securities and is aware of
      the risks and other characteristics of the Securities and of the fact that
      the Subscriber may not be able to resell the Securities except in
      accordance with the applicable securities legislation and regulatory
      policy;

	 	 	 
	 	(v) 	
      Age of majority: the Subscriber, if an individual,
      has attained the age of majority and is legally competent to execute this
      Agreement and to take all actions required pursuant hereto;

	 	 	 
	 	(w) 	
      Authorization and formation of Subscriber: the
      Subscriber, if a corporation, partnership, trust or other form of business
      entity, is authorized and otherwise duly qualified to purchase and hold
      the Securities, and such entity has not been formed for the specific
      purpose of acquiring Securities in this issue. If the Subscriber is one of
      the aforementioned entities it hereby agrees that, upon request of the
      Company, it will supply the Company with any additional written
      information that may be requested by the Company. In addition, the
      entering into of this Agreement and the transactions contemplated hereby
      will not result in the violation of any of the terms of and provisions of
      any law applicable to, or the constating documents, if a corporation, of,
      the Subscriber or of any agreement, written or oral, to which the
      Subscriber may be a party or by which the Subscriber may be
  bound;

	 	 	 
	 	(x) 	
      Legal obligation: this Agreement has been duly and
      validly authorized, executed and delivered by and constitutes a legal,
      valid, binding and enforceable obligation of the Subscriber;

	 	 	 
	 	(y) 	
      Legal and tax consequences: the Subscriber
      acknowledges that an investment in the Securities of the Company may have
      tax consequences to the Subscriber under applicable law, which the
      Subscriber is solely responsible for determining, and the Subscriber also
      acknowledges and agrees that the Subscriber is responsible for obtaining
      its own legal and tax advice;

	 	 	 
	 	(z) 	
      Compliance with applicable laws: the Subscriber
      knows of no reason (and is sufficiently knowledgeable to determine the
      same or has sought legal advice) why the delivery of this Agreement, the
      acceptance of it by the Company and the issuance of the Units to the
      Subscriber will not comply with all applicable laws
of the Subscriber’s jurisdiction of residence or domicile,
      and all other applicable laws, and the Subscriber has no reason to believe
      that the Subscriber’s subscription hereby will cause the Company to become
      subject to or required to comply with any disclosure, prospectus or
      reporting requirements or to be subject to any civil or regulatory review
      or proceeding. In addition, the Subscriber will comply with all applicable
      securities laws and will assist the Company in all reasonable manner to
  comply with all applicable securities laws; 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 11 - 

	 	(aa) 	
      Encumbrance or transfer of Securities: the
      Subscriber will not sell, assign, gift, pledge or encumber in any manner
      whatsoever any of the Securities herein subscribed for without the prior
      written consent of the Company and in accordance with applicable
      securities legislation; 

	 	  	
       

	 	(ab) 	
      Regulation S: if the Subscriber is not a resident
      of the United States, the Subscriber further represents and warrants that
      the Subscriber was not specifically formed to acquire any of the
      Securities subscribed for in this Agreement in violation of the provisions
      of Regulation S; 

	 	  	
       

	 	(ac) 	
      Finders’ fees: the Subscriber has not retained,
      employed or introduced any broker, finder or other person who would be
      entitled to a brokerage commission or finder’s fee arising out of the
      transactions contemplated hereby; 

	 	  	
       

	 	(ad) 	
      Additional Subscriber acknowledgements: the
      Subscriber also acknowledges (on its own behalf and, if applicable, on
      behalf of those for whom the Subscriber is contracting hereunder) as set
      forth below: 

	 	(i) 	
      it has been furnished with all information, financial and
      otherwise, concerning the business, affairs and financial position of the
      Company necessary to make an informed decision to purchase the Units and
      the Subscriber agrees that such information has not been furnished
      pursuant to any form of written material which is, or may be construed as,
      an offering memorandum as that term is defined in the securities
      legislation of any Province of Canada or any State of the United States,
      the securities legislation in the jurisdictions in which the Company is
      incorporated and conducts business and the securities legislation in the
      jurisdiction in which the Subscriber is resident (collectively, the
      “Applicable Securities Legislation” herein) as such legislation is
      from time to time amended, and the regulations and rules prescribed
      thereto;

	 	 	 
	 	(ii) 	
      the issue of the Units will be made pursuant to
      exemptions from the registration and prospectus requirements of the
      Applicable Securities Legislation and
therefore:

	 	(A) 	
      the Subscriber my be restricted from using certain of the
      civil remedies available under such legislation and certain protections,
      rights and remedies provided in such legislation, including statutory
      rights of rescission or damages, may not be available to the
      Subscriber;

	 	 	 
	 	(B) 	
      the Subscriber may not receive information that might
      otherwise be required to be provided to the Subscriber under such
      legislation;

	 	 	 
	 	(C) 	
      the Company may be relieved from certain obligations that
      would otherwise apply under such legislation;

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 12 - 

	 	(D) 	
      no securities commission or similar regulatory authority
      has reviewed or passed on the merits of the Securities;

	 	 	 
	 	(E) 	
      there is no government or other insurance covering the
      Securities; and

	 	 	 
	 	(F) 	
      there are risks associated with the purchase of the
      Securities;

	 	(iii) 	
      no prospectus has been filed by the Company with any
      regulatory authority in connection with the issuance of the Securities and
      the Company has already issued or may issue units or shares for
      significantly lesser consideration per unit or share than is being paid by
      the Subscriber for Units hereunder;

	 	 	 
	 	(iv) 	
      this subscription forms part of a larger Offering and is
      subject only to the Company’s Acceptance of this subscription
      Agreement;

	 	 	 
	 	(v) 	
      the sale and delivery of the Units to the Subscriber or
      to any subscriber on whose behalf the Subscriber is contracting is
      conditional upon such sale being exempt from the requirement to file a
      prospectus or to prepare and deliver an offering memorandum under any
      applicable legislation relating to the sale of the Units or upon the
      issuance of such orders, consents or approvals as may be required to
      permit such sale without the requirement of filing a prospectus or
      preparing and delivering an offering memorandum;

	 	 	 
	 	(vi) 	
      the Company may be required to provide applicable
      securities regulatory authorities with a list setting forth the identities
      of the beneficial purchasers of the Units and the Subscriber acknowledges
      and agrees that the Subscriber will provide, on request, particulars as to
      the identity of such beneficial purchasers as may be required by the
      Company in order to comply with the foregoing; and

	 	 	 
	 	(vii) 	
      the Subscriber (or others for whom the Subscriber is
      contracting hereunder) has been advised to consult its own legal advisors
      with respect to the merits and risks of an investment in the Securities
      and with respect to applicable resale restrictions and the Subscriber (or
      others for whom the Subscriber is contracting hereunder) is solely
      responsible, and the Company is not in any way responsible, for compliance
      with applicable resale restrictions;

	 	
      (ae) 
	
      Additional Subscriber representations and warranties
      under Applicable Securities Legislation: if the Subscriber is
      not a resident of the United States, the Subscriber further represents and
      warrants to the Company and acknowledges and agrees that the Company will
      also rely upon the following representations and warranties in determining
      whether or not to accept this subscription under all Applicable Securities
      Legislation: 

	 	(i) 	
      the Subscriber is purchasing the Units as principal for
      its own account, not for the benefit of any other person and not with a
      view to the resale or distribution of all or any of the Units and, by
      signing and returning the attached Attachment “I” – “Subscriber’s
      Certificate”, certifies that it {please circle at least one of
the following categories and complete the missing information as
appropriate}:

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 13 - 

	 	(A) 	
      is resident in one of the Provinces of British Columbia,
      Alberta, Saskatchewan, Manitoba, Quebec, Prince Edward Island, Nova
      Scotia, New Brunswick, Newfoundland and Labrador, the Northwest
      Territories or the Yukon and is a director, senior officer or control
      person of the Company, or of an affiliate of the Company; or

	 	 	 
	 	(B) 	
      is resident in one of the Provinces of British Columbia,
      Alberta, Saskatchewan, Manitoba, Quebec, Prince Edward Island, Nova
      Scotia, New Brunswick, Newfoundland and Labrador, the Northwest
      Territories or the Yukon and is a spouse, parent, grandparent, brother,
      sister or child of _____________________ {insert name}, a director,
      senior officer or control person of the Company, or of an affiliate of the
      Company; or

	 	 	 
	 	(C) 	
      is resident in one of the Provinces of British Columbia,
      Alberta, Saskatchewan, Manitoba, Quebec, Prince Edward Island, Nova
      Scotia, New Brunswick, Newfoundland and Labrador, the Northwest
      Territories or the Yukon and is a close personal friend of
      _____________________ {insert name}, a director, senior officer or
      control person of the Company, or of an affiliate of the Company;
  or

	 	 	 
	 	(D) 	
      is resident in one of the Provinces of British Columbia,
      Alberta, Saskatchewan, Manitoba, Quebec, Prince Edward Island, Nova
      Scotia, New Brunswick, Newfoundland and Labrador, the Northwest
      Territories or the Yukon and is a close business associate of
      _____________________ {insert name}, a director, senior officer or
      control person of the Company, or of an affiliate of the Company;
  or

	 	 	 
	 	(E) 	
      is resident in one of the Provinces of British Columbia,
      Alberta, Saskatchewan, Manitoba, Quebec, Prince Edward Island, Nova
      Scotia, New Brunswick, Newfoundland and Labrador, the Northwest
      Territories or the Yukon and is a founder of the Company; or

	 	 	 
	 	(F) 	
      is resident in one of the Provinces of British Columbia,
      Alberta, Saskatchewan, Manitoba, Quebec, Prince Edward Island, Nova
      Scotia, New Brunswick, Newfoundland and Labrador, the Northwest
      Territories or the Yukon and is a parent, grandparent, brother, sister,
      child, spouse, close personal friend or close business associate of
      _____________________ {insert name}, a founder of the Company;
      or

	 	 	 
	 	(G) 	
      is a person or company that is wholly-owned by, or a
      majority of its board of directors is comprised of, any combination of
      persons or companies described in §3.4(ae)(i)(A) to §3.4(ae)(i)(F)
      hereinabove; or

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 14 - 

	 	(H) 	
      is a trust or estate of which all of the beneficiaries or
      a majority of the trustees are persons or companies described in
      §3.4(ae)(i)(A) to §3.4(ae)(i)(F) hereinabove; or

	 	 	 
	 	(I) 	
      is resident in the Province of Ontario and is a founder
      of the Company, or an affiliate of _____________________ {insert
      name}, a founder of the Company; or

	 	 	 
	 	(J) 	
      is resident in the Province of Ontario and is a spouse,
      parent, brother, sister, grandparent or child of _____________________
      {insert name}, an executive officer, director or founder of the
      Company; or

	 	 	 
	 	(K) 	
      is resident in the Province of Ontario and is a control
      person of the Company; or

	 	 	 
	 	(L) 	
      is an “accredited investor” as defined in National
      Instrument 45- 106 – Prospectus and Registration Exemptions (“NI
      45-106”); or

	 	 	 
	 	(M) 	
      is an individual and will have an aggregate acquisition
      cost for the Units of not less than Cdn. $150,000; or

	 	 	 
	 	(N) 	
      is not an individual but is a corporation, partnership,
      trust, fund, association or any other organized group of persons that was
      not created solely, nor used primarily, to permit a group of individuals
      to purchase securities without a prospectus which will have an aggregate
      acquisition cost of purchasing the Units of not less than Cdn. $150,000;
      or

	 	 	 
	 	(O) 	
      is an employee, executive officer, director or consultant
      as defined in NI 45-106 of the Company, of a related entity of the Company
      or of a permitted assign of one of those persons and the purchase of the
      Units is voluntary; or

	 	 	 
	 	(P) 	
      is resident in an “International Jurisdiction”
      (being a jurisdiction outside of Canada and the United States)
  and:

	 	(I) 	
      the Subscriber is knowledgeable of, or has been
      independently advised as to, the Applicable Securities Legislation of such
      International Jurisdiction which would apply to this Agreement;

	 	 	 
	 	(II) 	
      the Subscriber is purchasing the Units pursuant to an
      applicable exemption from any prospectus, registration or similar
      requirements under the Applicable Securities Legislation of such
      International Jurisdiction, or, if such is not applicable, the Subscriber
      is permitted to purchase the Units under the Applicable Securities
      Legislation of the International Jurisdiction without the need to rely on
      exemptions; and

	 	 	 
	 	(III) 	
      the Applicable Securities Legislation of the
      International Jurisdiction do not require the Company to make any filings
      or seek any approvals of any kind whatsoever
from any regulatory authority of any kind
whatsoever in the International Jurisdiction; 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 15 - 

	 	(ii) 	
      the Subscriber has not relied upon the Company or its
      directors and officers, or the Company’s Counsel or advisors, for
      investment, legal or tax advice, including advice with respect to the hold
      period and resale restrictions imposed upon the Securities by the
      securities legislation in the jurisdiction in which the Subscriber
      resides, and has, if desired, in all cases sought the advice of the
      Subscriber’s own personal investment advisor, legal counsel and tax
      advisors, and the Subscriber is either experienced in or knowledgeable
      with regard to the affairs of the Company or, either alone or with its
      professional advisors, is capable by reason of knowledge and experience in
      financial and business matters in general, and investments in particular,
      of evaluating the merits and risks of an investment in the Securities, and
      it is able to bear the economic risk of an investment in the Securities
      and can otherwise be reasonably assumed to have the capacity to protect
      its own interest in connection with the investment; and

	 	 	 
	 	(iii) 	
      the Subscriber understands and acknowledges that the
      Company is not currently a reporting issuer or reporting company in every
      applicable jurisdiction and as a result the hold period to which the
      Securities are subject may be indefinite in certain jurisdictions in which
      the Securities are issued until the Company becomes a reporting issuer or
      reporting company in such jurisdiction. The Subscriber further understands
      that the certificates representing the Securities will bear a legend
      describing the resale restrictions and the Subscriber agrees to comply
      with such resale restrictions; and

	 	
      (af) 
	
      Additional Subscriber covenants and agreements:
      the Subscriber further covenants and agrees that the Company will also
      rely upon the following covenants and agreements in determining whether or
      not to accept this subscription under all Applicable Securities
      Legislation: 

	 	(i) 	
      the Subscriber acknowledges and consents to the
      collection and retention by the Company of certain information, including
      personal information, regarding the Subscriber and the Subscriber’s
      subscription, including the Subscriber’s name, address, telephone number
      and e-mail address, the number of Securities purchased and any control
      persons of the Subscriber. The Subscriber acknowledges and agrees that
      this information will be retained on the share register of the Company
      which may be available for inspection by the public. The Subscriber
      further consents and agrees to the release of this information to the
      securities regulatory authorities as required by law and regulatory
      policies; and

	 	 	 
	 	(ii) 	
      the Subscriber agrees that this Agreement will in no way
      restrict the Company from obtaining further funds through the sale of
      equity securities of the Company or otherwise.

3.5             
  Company Confidential Information. The Subscriber acknowledges
  that the Company is presently engaged in the business of mineral exploration
  and development, however, and with proposed acquisition and merger with Omnicity,
  Inc., proposes to be engaged in the further business of the build-out and expansion
  into full broadband solutions, including a rollup and consolidation of the United
  States rural WISP market. The Subscriber recognizes the importance of protecting the Company’s trade secrets,
confidential information and other proprietary information and related rights
acquired through the Company’s expenditure of time, effort and money. Therefore,
in consideration of the Company permitting the Subscriber to submit this
subscription and have access to Company information and/or Company confidential
information otherwise coming to the Subscriber, the Subscriber agrees to be
bound by the following terms and conditions: 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 16 - 

	 	(a) 	
      Definitions: for all purposes of this Agreement,
      except as otherwise expressly provided or unless the context otherwise
      requires, the following words and phrases shall have the following
      meanings:

	 	(i) 	
      “Confidential Information” includes any of the
      following:

	 	(A) 	
      any and all versions of the trade names, trade-mark,
      business plans, products, software, all Developments (as defined below)
      and all other matters owned or marketed by the Company;

	 	 	 
	 	(B) 	
      information regarding the Company’s business operation,
      methods and practices, including marketing strategies, product pricing,
      margins and hourly rates for staff and information regarding the financial
      affairs of the Company;

	 	 	 
	 	(C) 	
      the names of the Company’s clients and the names of the
      suppliers to the Company, and the nature of the Company’s relationships
      with these clients and suppliers; and

	 	 	 
	 	(D) 	
      any other trade secret or confidential or proprietary
      information in the possession or control of the
Company;

	 		
      however, Confidential Information does not include
      information which is or becomes generally available to the public without
      the Subscriber’s fault; and

	 	 	 
	 	(ii) 	
      “Developments” include all the following related
      to the products or business of the Company:

	 	(A) 	
      copyright works, software, documentation, data, designs,
      scripts, photographs, music, reports, flowcharts, trade-marks,
      specifications, source codes, product designs or formula and any related
      works, including any enhancements, modifications or additions to the
      products owned, marketed or used by the Company; and

	 	 	 
	 	(B) 	
      inventions, devices, discoveries, concepts, ideas,
      algorithms, formulae, know-how, processes, techniques, systems and
      improvements, whether patentable or not;

developed, created, acquired,
generated or reduced to practice by the Company or any person by or for the
Company, including the Subscriber; 

	 	(b) 	
      Maintaining confidentiality: at all times the
      Subscriber shall keep in strictest confidence and trust the Confidential
      Information. The Subscriber shall take all necessary precautions against
      unauthorized disclosure of the Confidential Information, and, except as
      required by applicable law, judicial process
or regulatory investigation, the Subscriber shall not,
      directly or indirectly disclose, allow access to, transmit or transfer the
      Confidential Information to a third party, nor shall the Subscriber use,
      copy or reproduce the Confidential Information except as may be reasonably
  required for the Subscriber with the permission of the Company;

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 17 - 

	 	(c) 	
      Return of Confidential Information: at the request
      of the Company the Subscriber shall immediately return to the Company all
      materials, including all copies in whatever form, containing the
      Confidential Information which are in the Subscriber’s possession or under
      the Subscriber’s control; and

	 	 	 
	 	(d) 	
      No rights to Confidential Information: the
      Subscriber acknowledges and agrees that the Subscriber shall not acquire
      any right, title or interest in or to the Confidential Information. Should
      any interest in the Confidential Information come into the possession of
      the Subscriber by any means, other than specific written transfer by the
      Company, the Subscriber hereby assigns and transfers, now and in the
      future, to the Company, and agrees that the Company shall be the exclusive
      owner of, all of the Subscriber’s right, title and interest to any such
      throughout the world, including all trade secrets, patent rights,
      copyrights and all other intellectual property rights therein. The
      Subscriber further agrees to cooperate fully at all times with respect to
      signing further documents and doing such acts and other things required by
      the Company to confirm such transfer of ownership of rights. The
      Subscriber agrees that the obligations in this section shall continue
      beyond the issue of any Securities hereunder, beyond the ownership of any
      Securities acquired hereunder and beyond the termination of the
      Subscriber’s employment, engagement or association with the Company, for a
      period of five years from the date that the Subscriber delivers this
      Agreement to the Company.

3.6             
Reliance on Subscriber’s representations and warranties and
indemnification. The Subscriber understands that the Company
will rely on the representations and warranties of the Subscriber herein in
determining whether a sale of the Units to the Subscriber is in compliance with
federal and applicable state and provincial securities laws. The Subscriber
hereby agrees to indemnify the Company and its affiliates and hold the Company
and its affiliates harmless from and against any and all liability, damage, cost
or expense (including reasonable attorney’s fees) incurred on account of or
arising out of: (i) any inaccuracy in the Subscriber’s acknowledgements,
representations or warranties set forth in this Agreement; (ii) the disposition
of any of the Securities which the Subscriber will receive, contrary to the
Subscriber’s acknowledgements, representations or warranties in this Agreement
or otherwise; (iii) any suit or proceeding based upon the claim that such
acknowledgments, representations or warranties were inaccurate or misleading or
otherwise cause for obtaining damages or redress from the Company or its
affiliates; and (iv) the Subscriber’s failure to fulfill any or all of the
Subscriber’s obligations herein. 

3.7             
Change in Subscriber’s representations and warranties. All of the
information set forth hereinabove with respect to the Subscriber and including,
without limitation, the acknowledgements, representations and warranties set
forth hereinabove, is correct and complete as of the date hereof and, if there
should be any material change in such information prior to the acceptance of
this subscription Agreement by the Company, the Subscriber will immediately
furnish the revised or corrected information to the Company. 

3.8             
  The Company’s representations and warranties. The Company
  hereby represents and warrants as follows and hereby acknowledges and agrees
  that the Subscriber will rely on the following representations and warranties in
effecting the subscription contemplated hereby: 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 18 - 

	 	(a) 	
      Organization and Qualification of the Company: the
      Company is a corporation duly organized, validly existing and in good
      standing under the laws of the State of Nevada and has the requisite
      corporate power to own its properties and to carry on its business as now
      being conducted. The Company is duly qualified as a foreign corporation to
      do business and is in good standing in each jurisdiction where the nature
      of the business conducted or property owned by it makes such qualification
      necessary, other than those jurisdictions in which the failure to so
      qualify would not have a material adverse effect on the business,
      operations or condition (financial or otherwise) of the Company;

	 	 	 
	 	(b) 	
      Authority: the Company has the requisite corporate
      power and authority to execute and deliver this Agreement and to
      consummate the Offering and the other transactions contemplated hereby.
      The execution and delivery of this Agreement by the Company and the
      consummation by the Company of the transactions contemplated hereby have
      been duly authorized by all necessary action on the party of the Company,
      and no further consent or action is required;

	 	 	 
	 	(c) 	
      Enforceability: this Agreement has been duly
      executed and delivered by the Company and constitutes the valid and
      binding obligations of the Company enforceable against the Company in
      accordance with its terms, subject as to enforceability to general
      principles of equity and to bankruptcy, insolvency, moratorium, and other
      similar laws affecting the enforcement of creditors’ rights
    generally;

	 	 	 
	 	(d) 	
      No Conflicts: the execution, delivery and
      performance of this Agreement by the Company and the consummation of the
      Offering by the Company do not and will not conflict with or violate (i)
      any provision of the Articles of Incorporation or bylaws of the Company,
      as amended, or (ii) any judgment, order, decree, statute, law, ordinance,
      rule or regulation applicable to the Company, except where such conflict
      or violation would not have a material adverse effect on the business,
      operations or condition (financial or otherwise) of the Company. No
      material consent, waiver, approval order or authorization of, or
      registration, declaration or filing with, any court, administrative agency
      or commission or other federal, state, county, local or foreign
      governmental authority, instrumentality, agency or commission or any third
      party, including a party to any material agreement with the Company, is
      required in connection with the execution, delivery and performance of
      this Agreement or the consummation of the Offering by the
  Company;

	 	 	 
	 	(e) 	
      The Shares: The Shares and the Warrant Shares been
      duly authorized, and when issued and paid for in accordance with this
      Agreement and the Warrant, will be duly and validly issued, fully paid and
      non-assessable. The Company has reserved from its duly authorized capital
      stock the number of Warrant Shares issuable upon exercise of the Warrant.
      The Shares have not been issued in violation of, and are not subject to,
      any preemptive or subscription rights;

	 	 	 
	 	(f) 	
      SEC Filings: the Company has filed all reports
      required to be filed by it under the U.S. Act and under the United States
      Securities Exchange Act of 1934, as amended (the “Exchange
      Act”), including pursuant to Section 13(a) or 15(d) thereof, for the
      18 months preceding the date hereof (collectively, the “SEC
      Reports”) on a timely basis or has received a valid extension of such
      time of filing. At the time they were filed, the SEC Reports
      complied in all material respects with the requirements of the U.S. Act
      and the Exchange Act and the rules and regulations promulgated thereunder.
      At the time when they were filed, none of the SEC Reports contained any
      untrue statement of a material fact or omitted to state any material fact
      required to be stated therein or necessary to make the statements made
      therein in light of the circumstances under which they were made, not
      misleading. The financial statements of the Company contained in the SEC
      Reports comply in all material respects with all applicable accounting
      requirements of the United States Securities and Exchange Commission (the
      “SEC”), were prepared in accordance with generally accepted
      accounting principles, and fairly present in all material respects the
      financial condition of the Company as of the dates thereof. The number and
      type of all authorized, issued and outstanding shares of capital stock of
  the Company is as set forth in the SEC Reports; and

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 19 - 

	 	(g) 	
      Absence of Certain Changes: Since the date of the
      last audited financial statement contained in the SEC Reports, there has
      been no material adverse change and no material adverse development in the
      business, properties, operations, condition (financial or otherwise), or
      results of operations of the Company, except as disclosed in the SEC
      Reports.

Article 4 

  UNITED STATES DECLARATIONS 

4.1             
Subscriber’s declarations as an “Accredited Investor” if resident in
the United States. If applicable and the Subscriber
is a resident of the United States, the undersigned Subscriber also warrants and
certifies that the Subscriber is an “Accredited Investor”, as that term
is defined in “Rule 501” of “Regulation D” promulgated under
Section 4(2) of the U.S. Act, by virtue of the Subscriber’s qualification under
one or more of the following categories {please check the appropriate
category or categories where applicable}: 

	 	[  ]	
      The Subscriber is a natural person whose individual net
      worth, or joint net worth with that person’s spouse, exceeds U.S.
      $1,000,000. 

	 		
       

	 	[  ]	
      The Subscriber is a natural person who had an individual
      income in excess of U.S. $200,000 in each of the two most recent years or
      joint income with the Subscriber’s spouse in excess of U.S. $300,000 in
      each of those years and has a reasonable expectation of reaching the same
      income level in the current year. 

	 		
       

	 	[  ]	
      The Subscriber is a corporation, organization described
      in section 501(c)(3) of the United States Internal Revenue Code,
      Massachusetts, or similar business trust or partnership, not formed for
      the specific purpose of acquiring the Units, with total assets in excess
      of U.S. $5,000,000. 

	 		
       

	 	[  ]	
      The Subscriber is a trust, with total assets in excess of
      U.S. $5,000,000, not formed for the specific purpose of acquiring the
      Units, whose purchase is directed by a sophisticated person. 

	 		
       

	 	[  ]	
      The Subscriber is a director or executive officer of the
      Company. 

	 		
       

	 	[  ]	
      The Subscriber is a “private business development
      company” as that term is defined in section 202(a)(22) of the United
      States Investment Advisers Act of 1940.

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 20 - 

	 	[  ]	
      The Subscriber is either: (a) a “bank” as defined in
      section 3(a)(2) of the U.S. Act, or a “savings and loan association or
      other institution” as defined in section 3(a)(5)(A) of the U.S. Act,
      whether acting in its individual or fiduciary capacity; or (b) a broker or
      dealer registered pursuant to section 15 of the United States
      Securities Exchange Act of 1934; or (c) an “insurance
      company” as defined in section 2(13) of the U.S. Act; or (d) an investment
      company registered under the United States Investment Company
      Act of 1940 or a “business development company” as defined in section
      2(a)(48) of the United States Investment Company Act of 1940; or
      (e) a small business investment company licensed by the United States
      “Small Business Administration” under either of subsections 301(c) or (d)
      of the United States Small Business Investment Act of 1958;
      or (f) a plan established and maintained by a state, its political
      subdivisions, or any agency or instrumentality of a state or its political
      subdivisions, for the benefit of its employees, if such plan has total
      assets in excess of U.S. $5,000,000; or (g) an employee benefit plan
      within the meaning of the United States Employee Retirement Income
      Security Act of 1974, if the investment decision is made by a plan
      fiduciary as defined in section 3(21) of the United States Employee
      Retirement Income Security Act of 1974 which is either a bank, savings
      and loan association, insurance company or registered investment adviser,
      or if the employee benefit plan has total assets in excess of U.S.
      $5,000,000 or, if a self- directed plan, with investment decisions made
      solely by persons that are accredited investors. 

	 		
       

	 	[  ]	
      The Subscriber is an entity in which all of the equity
      owners are accredited investors under one or more of the categories set
      forth hereinabove. 

                 
In this regard the Subscriber hereby acknowledges and agrees that one of the
requirements of the above-referenced exemption is that the Company and the
persons involved in the offering and sale of the relevant securities; and in
this case the Units; must have reasonable grounds to believe and, in fact,
believe that the Subscriber, whether alone or together with the Subscriber’s
representative, if any, has such knowledge and experience in financial and
business matters that the Subscriber is capable of evaluating the merits and
risks of the prospective investment. As a result, and in order to be assured
that the offer and sale of Units to the Subscriber as an Accredited Investor
will not result in violation of that certain exemption from the registration and
prospectus delivery requirement of the U.S. Act specified by the provisions of
Rule 501 and “Rule 506” of Regulation D promulgated under Section 4(2) of
the U.S. Act, the Subscriber is being requested to hereby provide the Company
with a completed and executed copy of the Attachment “II” – “Subscriber’s
Suitability Questionnaire” which is attached hereto. 

4.2             
Subscriber’s declarations as a non-Accredited Investor. If
applicable and the Subscriber is a resident of the United States, the
undersigned Subscriber also warrants and certifies that the Subscriber is not an
Accredited Investor, as that term may be interpreted in accordance with Rule 501
of Regulation D promulgated under Section 4(2) of the of the U.S. Act, however,
the Subscriber also warrants and certifies that the Subscriber satisfies one or
more of the following categories {please check the appropriate category or
categories where applicable}: 

	 	[  ]	
      The Subscriber has an annual gross income of at least
      U.S. $50,000 and a net worth (exclusive of home, home furnishings and
      automobiles) of at least U.S. $100,000; 

	 	 	
       

	 	[  ]	
      The Subscriber has, irrespective of annual gross income,
      a net worth of U.S. $200,000 (determined with the same exclusions
      specified immediately above); or 

	 	 	
       

	 	[  ]	
      The Subscriber represents and warrants, in the event of
      sales to fiduciary accounts, that such conditions are satisfied by the
      fiduciary, the fiduciary account or the contributor who directly or indirectly
furnished the funds for the purchase of the Units. 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 21 - 

                 
In this regard the Subscriber hereby again acknowledges and agrees that one
of the requirements of the above-referenced exemption is that the Company and
the persons involved in the offering and sale of the relevant securities; and in
this case the Units; must have reasonable grounds to believe and, in fact,
believe that the Subscriber, whether alone or together with the Subscriber’s
representative, if any, has such knowledge and experience in financial and
business matters that the Subscriber is capable of evaluating the merits and
risks of the prospective investment. As a result, and in order to be assured
that the offer and sale of Units to the Subscriber as a non-Accredited Investor
will not result in violation of that certain exemption from the registration and
prospectus delivery requirement of the U.S. Act specified by the provisions of
Rules 501 and 506 of Regulation D promulgated under Section 4(2) of the U.S.
Act, the Subscriber is being requested to hereby provide the Company with a
completed and executed copy of the Attachment “II” – “Subscriber’s
Suitability Questionnaire” which is attached hereto. 

Article 5 

  RESTRICTED SECURITIES AND REGISTRATION

5.1             
No initial registration. The Subscriber acknowledges and
understands that neither the sale of the Units which the Subscriber is acquiring
nor any of the Securities themselves have been registered under any Applicable
Securities Legislation and, furthermore, that the Securities must be held
indefinitely unless subsequently registered under Applicable Securities
Legislation or an exemption from such registration is available. 

5.2             
Legending of the Securities. The Subscriber also acknowledges and
understands that the certificates representing the Securities will be stamped
with the following legend (or substantially equivalent language) restricting
transfer in the following manner: 

“These securities have not been
registered under the United States Securities Act of 1933, as amended, or
the laws of any state, and are being issued pursuant to an exemption from
registration pertaining to such securities and pursuant to a representation by
the security holder named hereon that said securities have been acquired for
purposes of investment and not for purposes of distribution. These securities
may not be offered, sold, transferred, pledged or hypothecated in the absence of
registration, or the availability of an exemption from such registration. The
stock transfer agent has been ordered to effectuate transfers only in accordance
with the above instructions.” 

(or) 

“These securities have not been
registered under the United States Securities Act of 1933, as amended
(the “Act”), or the laws of any state, and are being issued in reliance
upon Regulation S promulgated under the Act. These securities may not be
offered, sold, transferred, pledged or hypothecated in the absence of
registration, the availability of an exemption from such registration or
compliance with Regulation S. The stock transfer agent has been ordered to
effectuate transfers only in accordance with the above instructions. 

(and, if applicable) 

“Unless permitted under applicable
  securities legislation, the holder of the securities represented hereby shall
  not trade the securities in Canada before the earlier of (i) the date that is
  four months and a day after the date the company first became a reporting issuer
  in any of Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec
  and Saskatchewan, if the company is a sedar filer, and (ii) the date that is
  four months and a day after the later of (a) the distribution date, and (b)
  the date the company became a reporting issuer in the local jurisdiction of
  the subscriber of the securities that are the subject of the trade.” 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 22 - 

(and) 

“Unless otherwise permitted under
securities legislation, the holder of this security must not trade the security
in or from British Columbia unless the conditions in section 12(2) of BC
Instrument 51-509 Issuers Quoted in the U.S. Over-the-Counter Market are met.”.

                 
The Subscriber hereby consents to the Company making a notation on its
records or giving instructions to any transfer agent of the Securities in order
to implement the restrictions on transfer set forth and described hereinabove.

5.3             
Disposition under Rule 144. The Subscriber also acknowledges and
understands that: 

	 	(a) 	
      the Securities are restricted securities within the
      meaning of Rule 144 promulgated under the U.S. Act;

	 	 	 
	 	(b) 	
      the exemption from registration under Rule 144 will not
      be available in any event for at least one year from the date of purchase
      and payment of the Securities by the Subscriber, and even then will not be
      available unless: (i) a public trading market then exists for the common
      stock of the Company; and (ii) other terms and conditions of Rule 144 are
      complied with; and

	 	 	 
	 	(c) 	
      any sale of the Securities may be made by the Subscriber
      only in limited amounts in accordance with such terms and
    conditions.

                 
In this regard the Subscriber further acknowledges and understands that,
without in anyway limiting the acknowledgements and understandings as set forth
hereinabove, the Subscriber agrees that the Subscriber shall in no event make
any disposition of all or any portion of the Securities which the Subscriber is
acquiring hereunder unless and until: 

	 	(a) 	
      there is then in effect a “Registration Statement”
      under the U.S. Act covering such proposed disposition and such disposition
      is made in accordance with said Registration Statement; or

	 	 	 
	 	(b) 	
      (i) the Subscriber shall have notified the Company of the
      proposed disposition and shall have furnished the Company with a detailed
      statement of the circumstances surrounding the proposed disposition, (ii)
      the Subscriber shall have furnished the Company with an opinion of the
      Subscriber’s own counsel to the effect that such disposition will not
      require registration of any such Securities under the U.S. Act and (iii)
      such opinion of the Subscriber’s counsel shall have been concurred in by
      counsel for the Company and the Company shall have advised the Subscriber
      of such concurrence.

5.4             
Disposition under BCI 51-509. The Subscriber further
acknowledges and understands that, in accordance with and subject to the
provisions of BC Instrument 51-509 - Issuers Quoted in the U.S.
Over-the-Counter Market promulgated by the British Columbia Securities
Commission (“BCI 51-509”), if the Company is and continues to be an “OTC
reporting issuer” as defined under BCI-509, the first trade by the Subscriber of
the Securities distributed to the Subscriber by the Company under this Agreement
is deemed to be a distribution and shall not be traded unless the following
conditions are satisfied: 

	 	(a) 	
      a four-month period has passed from the date that the
      Company distributed the Securities;

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 23 - 

	 	(b) 	
      if the Subscriber is a “control person”, the control
      person has held the Securities for at least six months;

	 	 	 
	 	(c) 	
      the number of Securities that the Subscriber proposes to
      trade, plus the number of securities of the Company of the same class that
      the Subscriber has traded in the preceding 12-month period, does not
      exceed five percent of the Company’s outstanding securities of the same
      class;

	 	 	 
	 	(d) 	
      the Subscriber trades the security through an investment
      dealer;

	 	 	 
	 	(e) 	
      there is no unusual effort made to prepare the market or
      create a demand for the security;

	 	 	 
	 	(f) 	
      no extraordinary commission or other commission is paid
      to a person for the trade;

	 	 	 
	 	(g) 	
      if the Subscriber is an “insider” of the Company, the
      Subscriber reasonably believes that the Company is not in default of
      securities legislation; and

	 	 	 
	 	(h) 	
      the certificate(s) representing the Securities carries a
      legend, or the ownership statement issued under a direct registration
      system or other electronic book entry system relating to the Securities
      bears a legend notation, stating the following:

“Unless otherwise permitted under
securities legislation, the holder of this security must not trade the security
in or from British Columbia unless the conditions in section 12(2) of BC
Instrument 51-509 Issuers Quoted in the U.S. Over-the-Counter Market are met.”.

                 
The Subscriber further acknowledges and understands that, in accordance with
and subject to the provisions of BCI 51-509, sections 2.3, 2.4, 2.5 and 2.6 of
National Instrument 45-102 – Resale of Securities do not apply to the
trade of a security of the Company distributed under an exemption from the
prospectus requirement. 

5.5             
Registration of the Securities. The Company hereby covenants and
agrees that: 

	 	(a) 	
      within 180 days from the date of Acceptance by the
      Company for any Units subscribed for hereunder, the Company shall use its
      reasonable best efforts to file a Registration Statement under the U.S.
      Act with the SEC covering the proposed registration and disposition of not
      less than fifty percent (50%) of the Securities (including any shares
      issued as a dividend or other distribution with respect to or in exchange
      for or in replacement of the shares issued to the Subscriber hereunder or
      under the Warrant) to be acquired hereunder by the Subscriber;

	 	 	 
	 	(b) 	
      upon the filing of said Registration Statement with the
      SEC, the Company shall use its reasonable best efforts to obtain an
      effective date from the SEC for the Registration Statement (the
      “Effective Date”) within nine months from the initial date of
      Acceptance by the Company for any Units subscribed for
hereunder;

	 	 	 
	 	(c) 	
      upon the receipt by the Company from the SEC of an
      Effective Date for said Registration Statement, the Company shall use its
      reasonable best efforts to maintain the effectiveness of the Registration
      Statement for a period of not less than two years months from the
      Effective Date in order to coincide with the Warrant Exercise Period of
      the Warrants hereunder, including the filing of such amendments and
      supplements to the Registration Statement and the prospectus used in
      connection with such registration statement as may be necessary to
  comply with the provisions of the U.S. Act;

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 24 - 

	 	(d) 	
      if the Company proposes to register or list any of its
      shares of common stock under applicable law in Canada, either for its own
      account or for the account of any other stockholder of the Company, then
      the Company will give written notice thereof to the Subscriber at least 30
      days prior to the commencement of the registration or listing process and
      shall use its commercially reasonable efforts to include the Securities in
      such registration or listing; provided that the Company may exclude the
      Securities from any underwritten public offering in Canada to the extent
      the underwriter of such offering advises the Company in writing that
      marketing factors require a limitation of the amount of securities to be
      underwritten.

	 	 	 
	 	(e) 	
      the Company (i) will keep the Subscriber advised in
      writing as to the initiation of the registration and as to the completion
      thereof, (ii) will give the Subscriber, its underwriters, if any, and
      their respective counsel, the opportunity to participate in the
      preparation of the Registration Statement, each prospectus included
      therein or filed with the SEC, and each amendment thereof or supplement
      thereto, (iii) will give each of them such access to its books and records
      and such opportunities to discuss the business of the Company with its
      officers, its counsel and the independent public accountants who have
      certified its financial statements as shall be necessary, in the opinion
      of the Subscriber’s and such underwriters’ respective counsel, to conduct
      a reasonable due diligence investigation within the meaning of the U.S.
      Act, and (iv) will furnish the Subscriber with a copy of all documents
      filed with and all correspondence from or to the SEC in connection with
      the Registration Statement;

	 	 	 
	 	(f) 	
      the Company will furnish the Subscriber with such number
      of prospectuses and other documents incident thereto, including
      supplements and amendments, as Subscriber may reasonably
request;

	 	 	 
	 	(g) 	
      the Company will list all Securities covered by the
      Registration Statement on any securities exchange or quotation system on
      which the Company’s securities are then listed;

	 	 	 
	 	(h) 	
      the Company shall pay, and shall reimburse the Subscriber
      for paying, any fees and expenses incurred in connection with filing of
      the Registration Statement, registration of the Securities, and obtaining
      the Effective Date, including, without limitation, all registration,
      filing, qualification, printing and accounting fees and all fees and
      disbursements of counsel for the Company and the reasonable fees and
      disbursements of the Subscriber’s counsel (not to exceed $30,000), but not
      any underwriting or brokerage fees or commissions nor any expenses of
      underwriters or brokers; and

	 	 	 
	 	(i) 	
      the Company hereby agrees to indemnify and hold harmless
      the Subscriber, each of its directors, officers and controlling persons,
      if any, each other person who participates as an underwriter in the
      offering or sale of such securities and each other person who controls any
      such underwriter within the meaning of the U.S. Act, against any losses,
      claims, damages or liabilities, joint or several, to which the Subscriber
      or any such person, underwriter or controlling person may become subject
      under the U.S. Act or otherwise, insofar as such losses, claims, damages
      or liabilities (or actions or proceedings, whether commenced or
      threatened, in respect thereof) arise out of or are based upon any untrue
      statement or alleged untrue statement of any material fact
contained in the Registration Statement under which such Securities were
registered under the U.S. Act, any preliminary prospectus, final prospectus or
summary prospectus contained therein, or any amendment or supplement thereto, or
any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, and the Company will
reimburse the Subscriber and each such person, underwriter and controlling
person for any reasonable legal or any other expenses reasonably incurred by
them in connection with investigating or defending any such loss, claim,
liability, action or proceeding; provided, however, that the Company shall not
be liable in any such case to the extent that any such loss, claim, damage,
liability (or action or proceeding in respect thereof) or expense arises out of
or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in such registration statement, any such preliminary
prospectus, final prospectus, summary prospectus, amendment or supplement in
reliance upon and in conformity with written information furnished to the
Company by the Subscriber or any other person who participates as an underwriter
in the offering or sale of such securities, in either case, specifically stating
that it is for use in the preparation thereof; and provided, further, that the
Company shall not be liable to any person who participates as an underwriter in
the offering or sale of Securities or any other person, if any, who controls
such underwriter within the meaning of the U.S. Act in any such case to the
extent that any such loss, claim, damage, liability (or action or proceeding in
respect thereof) or expense arises out of such person’s failure to send or give
a copy of the final prospectus or supplement to the persons asserting an untrue
statement or alleged untrue statement or omission or alleged omission at or
prior to the written confirmation of the sale of Securities to such person if
such statement or omission was corrected in such final prospectus or supplement.
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Subscriber or any such underwriter or
controlling person and shall survive the transfer of such securities by the
Subscriber.

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. --

- 25 - 

Article 6 

  GENERAL PROVISIONS

6.1             
Address for delivery. Each notice, demand or other communication
required or permitted to be given under this Agreement shall be in writing and
shall be sent by delivery (electronic or otherwise) or prepaid registered mail
deposited in a post office addressed to the Subscriber or the Company at the
address specified in this Agreement. The date of receipt of such notice, demand
or other communication shall be the date of delivery thereof if delivered, or,
if given by registered mail as aforesaid, shall be deemed conclusively to be the
fifth calendar day after the same shall have been so mailed, except in the case
of interruption of postal services for any reason whatsoever, in which case the
date of receipt shall be the date on which the notice, demand or other
communication is actually received by the addressee. Either party may at any
time and from time to time notify the other party in writing of a change of
address and the new address to which notice shall be given to it thereafter
until further change. 

6.2             
  Severability and construction. Each Article, section, sub-section,
  paragraph, sub-paragraph, term and provision of this Agreement, and any portion
  thereof, shall be considered severable, and if, for any reason, any portion
  of this Agreement is determined to be invalid, contrary to or in conflict with
  any applicable present or future law, rule or regulation, that ruling shall
  not impair the operation of, or have any other effect upon, such other portions
  of this Agreement as may remain otherwise intelligible (all of which shall remain
  binding on the parties and continue to be given full force and agreement as of
the date upon which the ruling becomes final). 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 26 - 

6.3             
Gender and number. This Agreement is to be read with all
changes in gender or number as required by the context. 

6.4             
Governing law. This Agreement shall be governed by and construed
in accordance with the laws of the State of Nevada, U.S.A., and the federal laws
of the United States applicable therein. Any dispute regarding matters as
between the Subscriber and the Company, whether as a subscriber or shareholder
and whether arising under this Agreement or pursuant to shareholder rights
pursuant to the constating documents of the Company or applicable law, shall be
adjudicated in the Courts of the State of Nevada, U.S.A., unless the Company
shall permit otherwise. 

6.5             
Representation and costs. It is hereby acknowledged by each of
the parties hereto that the Company’s Counsel acts solely for the Company, and,
correspondingly, that the Subscriber has been required by each of the Company’s
Counsel and the Company to obtain independent legal advice with respect to the
Subscriber’s review and execution of this Agreement. In addition, it is hereby
further acknowledged and agreed by the parties hereto that the Company’s
Counsel, and certain or all of its principal owners or associates, from time to
time, may have both an economic or shareholding interest in and to the Company
and/or a fiduciary duty to the same arising from either a directorship,
officership or similar relationship arising out of the request of the Company
for certain of such persons to act in a similar capacity while acting for the
Company as counsel. Correspondingly, and even where, as a result of this
Agreement, the consent of each party hereto to the role and capacity of the
Company’s Counsel and its principal owners and associates, as the case may be,
is deemed to have been received, where any conflict or perceived conflict may
arise, or be seen to arise, as a result of any such capacity or representation,
each party hereto acknowledges and agrees to, once more, obtain independent
legal advice in respect of any such conflict or perceived conflict and,
consequent thereon, the Company’s Counsel, together with any such principal
owners or associates, as the case may be, shall be at liberty at any time to
resign any such position if it or any party hereto is in any way affected or
uncomfortable with any such capacity or representation. Each party to this
Agreement will also bear and pay its own costs, legal and otherwise, in
connection with its respective preparation, review and execution of this
Agreement and, in particular, that the costs involved in the preparation of this
Agreement, and all documentation necessarily incidental thereto, by the
Company’s Counsel, shall be at the cost of the Company. 

6.6             
Survival of representations and warranties. The covenants,
representations and warranties contained herein shall survive the closing of the
transactions contemplated hereby. 

6.7             
Counterparts. This Agreement may be signed by the parties hereto
in as many counterparts as may be necessary, each of which so signed shall be
deemed to be an original, and such counterparts together shall constitute one
and the same instrument and notwithstanding the date of execution will be deemed
to bear the execution date as set forth in this Agreement. This Agreement may
also be executed and exchanged by facsimile and such facsimile copies shall be
valid and enforceable agreements. 

6.8             
  Entire Agreement and amendments. This Agreement constitutes
  the only agreement between the parties with respect to the subject matter hereof
  and shall supersede any and all prior negotiations and understandings. There
  are no collateral agreements or understandings hereto and this Agreement, and
  the documents contemplated herein, constitutes the totality of the parties’
  agreement. This Agreement may be amended or modified in any respect by written
  instrument only. 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

- 27 - 

6.9        
     Corrections. The Subscriber hereby
authorizes the Company to correct any minor errors in, or complete any
minor information missing from, any of this Agreement and each of Attachment “I”
– “Subscriber’s Certificate” and Attachment “II” – “Subscriber’s
Suitability Questionnaire” to this Agreement, which may be required to be
completed and executed by the Subscriber and delivered to the Company in
accordance with the terms and conditions of this Agreement. 

6.10          
Successors and assigns. The terms and provisions of this
Agreement shall be binding upon and enure to the benefit of the Subscriber, the
Company and their respective successors and lawfully permitted assigns; provided
that, except as herein provided, this Agreement shall not be assignable by any
party without the written consent of the other. The benefit and obligations of
this Agreement, insofar as they extend to or affect the Subscriber, shall pass
with any assignment or transfer of any of the Units in accordance with the terms
of this Agreement. 

              
     IN WITNESS WHEREOF the parties
hereto have hereunto set their respective hands and seals in the presence of
their duly authorized signatories effective as at the dates as set forth in the
Signature Page/Subscriber Statement at the beginning of this Agreement. 

__________ 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. -- 

Exhibit “A” 

TO THE $0.35 UNIT FOR DEBT PRIVATE PLACEMENT
SUBSCRIPTION 

  AGREEMENT OF OMNICITY CORP. 

FORM OF WARRANT CERTIFICATE 

                   
      Attached is the form of Warrant certificate which is
  referred to in section 1.5 of the “$0.35 Unit Private Placement Subscription
  Agreement” of the Company to which this is Exhibit “A”. 

__________ 

End of $0.35 Unit For Debt Private Placement Subscription
  Agreement

__________ 

-- $0.35 Unit For Debt Private Placement Subscription
  Agreement -- 

  -- Omnicity Corp. --Omnicity, Inc. - Exhibit 10.15 - Filed by newsfilecorp.com

ASSET PURCHASE AGREEMENT

          This
ASSET PURCHASE AGREEMENT (“Agreement”) is made as of March 18, 2009 by and
between Cue Connex, LLC (“Seller”) and Omnicity, Incorporated, an Indiana
corporation (“Buyer”). 

RECITALS

	 	A. 	
      Seller owns and operates certain telecommunication
      systems located in and around Hartford City, Indiana.

	 	 	 
	 	B. 	
      Seller desires to sell and Buyer wishes to buy
      substantially all the assets used or useful in the operation of those
      telecommunication systems for the price and on the terms set forth in this
      Agreement.

AGREEMENTS

          In
consideration of the above recitals and of the mutual agreements and covenants
contained herein, Buyer and Seller agree as follows: 

SECTION 1. DEFINITIONS.

          The
following terms as used in this Agreement, shall have the meanings set forth in
this Section: 

          “Accounts
Receivable” means all rights of Seller to payment from the
Subscribers of the Systems arising from Seller’s operation of the Systems prior
to the Closing Date. 

          “Assets”
means all the tangible and intangible assets, real, personal, or mixed, owned or
held by Seller and used or useful in the business or operations of the Systems,
including the Personal Property, Real Property, the Assumed Contracts and Grants
of Authority, the Accounts Receivable, the Intangibles, and all Subscriber and
customer lists and other information relating to the Systems, but not including
the Excluded Assets. 

          “Assumed
Contracts and Grants of Authority” means (a) those Contracts and
Grants of Authority listed in Schedule E hereto designated by Buyer to indicate
that they will be assumed by Buyer at Closing, and (b) and Contracts and Grants
of Authority entered into by Seller in the ordinary course of business between
the date hereof and the Closing Date that Buyer expressly agrees to assume at
Closing. 

          “Closing”
means the consummation of the transaction contemplated by this Agreement in
accordance with the provisions of Section 9. 

          “Closing
Date” means the date on which the Closing occurs, as determined
pursuant to Section 9. 

          “Common
Stock” means the common stock of Omnicity Corp, a Nevada
corporation, par value $.001 per share, after completion of the merger or share
exchange transaction contemplated by Section 8.1(f) below. 

          “Consents”
means the consents, permits, or approvals of third parties, including
governmental authorities, necessary to transfer any of the Assets to Buyer or
otherwise to consummate the transaction contemplated hereby. 

          “Contracts”
means all contracts, leases, non-governmental licenses, and other agreements
(including leases for personal or real property and employment agreements),
written or oral, including any amendments or other modifications thereto, that
relate to the Assets or the operation of any of the Systems, including, without
limitation, those described in Schedule E hereto, together with any additions
thereto between the date hereof and the Closing Date. 

“Effective
Time” means 12:01 a.m. local Indiana time, on the Closing
Date.

“Environmental
Law” has the meaning set forth in Section 3.5 below. 

“Excluded
Assets” means:

	 	(a) 	
      Seller’s cash on hand or in any of Seller’s bank accounts
      as of the Effective Time;

	 	 	 
	 	(b) 	
      Any insurance policies, bonds, letters of credit, or
      other similar items of Seller, and any cash surrender value in regard
      thereto;

	 	 	 
	 	(c) 	
      All books and records that Seller is required by law to
      retain or that relate solely to internal corporate matters;

	 	 	 
	 	(d) 	
      All claims, rights, and interest in and to any refund for
      federal, state, or local franchise, income, or other taxes or fees of any
      nature whatsoever for periods prior to the Effective Time; and

	 	 	 
	 	(e) 	
      Any pension, profit sharing, or employee benefit
      plans.

“FCC” means
the Federal Communications Commission. 

“Grants of
Authority” means all municipal, state, and federal grants of
authority and applications therefore, which are used or useful in connection
with the operation of the Systems, including those listed on Schedule E,
together with any additions thereto between the date hereof and the Closing
Date. 

“Governmental
Licenses” means all licenses, permits, and other authorizations
issued by federal, state, or local governmental authorities to Seller in
connection with the business operations of the
Systems, including those set forth in Schedule B, together with any additions
thereto between the date hereof and the Closing Date. 

2

“Hazardous
Material” has the meaning set forth in Section 3.5 below. 

“Intangibles” means all copyrights,
trademarks, service marks, trade names, licenses, patents, permits, privileges,
proprietary information, technical information and data, trade secrets,
machinery and equipment warranties, and all other intangible property rights and
interests, whether or not applied for by, or issued to, Seller or under which
Seller is licensed or franchised and used or which are, or may be, useful in, or
in any way related to, the business and operations of the Systems, including
those listed in Schedule G hereto, together with any additions thereto between
the date hereof and the Closing Date, and all goodwill relating to all of the
foregoing and the Systems. 

“Per Share
Price” means the average of the last transaction prices for the
15 trading days immediately prior to the date of determination for a share of
Common Stock of Omnicity Corp on a national securities exchange or the NASDAQ
National Market System on which the Common Stock is then principally trading,
or, in case a sale does not take place on a trading day during such
15-trading-day period, the average of the last reported representative bid and
asked prices quoted by such national securities exchange or the NASDAQ National
Market System on which the Common Stock is then principally trading. 

“Personal
Property” means all machinery, equipment, modems and related
equipment, tools, vehicles, furniture, leasehold improvements, office equipment,
plant, lines, cable, transmitters, repeaters, cable, inventory, and other
tangible personal property used or useful in the operation of the Systems,
including the property identified and described in Schedule D hereto and all
computer discs and tapes, plans, diagrams, blueprints, schematics, and books and
records relating to the operation of the Systems, filings with governmental
agencies, and executed copies of the Contracts and Grants of Authority, together
with any additions thereto between the date hereof and the Closing Date. 

“Purchase Price”
  has the meaning set forth in Section 2.2 below.

“Real
Property” means all real estate and all interest in real
property, including all leaseholds, easements, licenses, rights to access, and
rights of way, and all improvements thereon, used or useful in the operation of
the Systems, including the property identified and described in Schedule C
hereto, together with any additions thereto between the date hereof and the
Closing Date. 

“Securities Act”
  has the meaning set forth in Section 3.17 below.

“Shareholders” means Laurie Byall and
David Weddell. 

“Shares”
has the meaning set forth in Section 2.3(b) (3) below. 

3

      
   “Subscribers” means, at any time
(a) those active subscribers to a System at the regular monthly subscription
rates for a single household who have subscribed and paid for at least sixty
days of continuous service and who are not forty-five days or more past due with
respect to any amounts owed to Seller, and who have paid all applicable
installation fees, plus (b) the result obtained by dividing the total
subscription revenues received by Seller during the last full calendar month
preceding the month in which the Closing Date occurs for service to bulk or
commercial accounts by the standard average service rate charged to individual
residential subscribers of such System. 

“Systems”
means the telecommunication systems and basic aggregated delivery platforms
Buyer is buying from Seller, including the market (the serviceable homes), the
subscribers, and the minimum acceptable signal strength at each of the
serviceable homes with a tower site footprint or a hard wire or fiber feeder, as
further described on Schedule A. 

SECTION 2. SALE AND PURCHASE OF
ASSETS.

	2.1. 	
      Agreement to Sell and Buy. Subject
      to the terms and conditions set forth in this Agreement, Seller hereby
      agrees to transfer and deliver to Buyer on the Closing Date, and Buyer
      agrees to purchase, the Assets, free and clear of any liabilities, liens,
      security interests, pledges, conditions or encumbrances (except for those
      permitted in accordance with Sections 3.5 and 3.6 below).

	 	 	 
	2.2 	
      Purchase Price. The total consideration to
      be paid for the Assets shall be Ninety- Four Thousand Dollars ($94,000.00)
      (the “Purchase Price”), plus the forgiveness of $10,000 in debt owed by
      Seller to Buyer in Section 2.2 (d), subject to adjustments as provided
      below:

	 	 	 
		(a) 	
      Purchase Price and Prorations. The Purchase Price
      shall be adjusted as provided in this Section to give effect to the
      proration between Buyer and Seller of all revenues and expenses arising
      from the operation of the Systems. The expenses to be prorated shall
      include business, franchise, and license fees (including any retroactive
      adjustments thereof), utility charges, real and personal property taxes
      and assessments levied against the Assets, property and equipment rentals,
      amounts due under any of the Assumed Contracts and Grants of Authority and
      taxes. The proration shall be made in accordance with the principle that
      Seller shall receive all revenues and be responsible for all expenses,
      costs, and liabilities allocable to the period prior to the Effective
      Time, and Buyer shall receive all revenues and be responsible for all
      expenses, costs, and obligations allocable to the period after the
      Effective Time, except that there shall be no adjustment and Seller shall
      remain solely liable with respect to any obligation or liability not being
      assumed by Buyer in accordance with Section 2.4.

	 	 	 
		(b) 	
      Adjustments for Subscriber Deposits and
      Prepayments. The Purchase Price shall be adjusted further by deducting
      therefrom the amount of Subscribers’ deposits and prepayments, the responsibility for which is assumed
  by Buyer under this Agreement.

4

		(c) 	
      System Adjustments. If the number of Subscribers
      is less than 94 at the Effective Time, and Buyer has waived the condition
      of Closing in Section 8.1(e) below, the Purchase Price shall be reduced by
      $500 for each Subscriber less than 94. If the number of Subscribers is
      more than 94 at the Effective Time, the Purchase price shall be increased
      by $500 for each Subscriber more than 94 Subscribers, subject to a maximum
      of an additional $5,000 added to the Purchase Price pursuant to this
      provision.

	 	 	 	 
		(d) 	
      Forgiveness of Debt. Buyer hereby agrees to
      forgive a $10,000 loan made to Seller, along with any associated interest
      due thereon.

	 	 	 	 
	2.3 	
      Payment of Purchase Price. The
      Purchase Price shall be determined, insofar as feasible, on the Closing
      Date, and paid as follows:

	 	 	 	 
		(a) 	
      Payment at Closing. Buyer shall pay to Seller at
      Closing (except for cash amounts, subject to Section 2.3(c) below) the
      Purchase Price, as determined on the Closing Date, in the following
      manner:

	 	 	 	 
			(1) 	
      Cash consideration of Five Thousand Dollars ($5,000.00)
      by check or federal wire transfer to a bank which shall be designated by
      Seller.

	 	 	 	 
			(2) 	
      Eighty-Nine Thousand Dollars ($89,000.00), payable in the
      form of in that number of the shares (the “Shares”) of the Common Stock
      determined by dividing Eighty-Nine Thousand Dollars ($89,000.00) by the
      Per Share Price for the Common Stock as of the close of business on date
      that is sixty (60) days after the Closing Date. Said Shares will be
      transferred to the Seller after the Closing in accordance with written
      instructions provided to counsel for Buyer by counsel for
Seller.

	 	 	 	 
			(3) 	
      The remaining Purchase Price due, if any, or to be
      refunded, if any, after giving effect to the adjustments in Section 2.2
      (c) above will be paid or refunded pursuant to the provisions of Section
      2.3 (b) below.

(b) Final Determination of Purchase
Price. The Purchase Price, taking into account all adjustments and
prorations, will be determined finally, and additional payment by Buyer to
Seller or refund by Seller to Buyer, as appropriate, will be made, in accordance
with the following procedures: 

	 	(1) 	
      Within 60 days after the Closing Date, Buyer will deliver
      to Seller a statement setting forth Buyer’s determination of the amount of
      the Purchase Price and the calculation thereof, taking into account all
      prorations. If Seller disputes the amount of the Purchase Price determined
      by Buyer, Seller shall deliver to Buyer within 30 days after his receipt
      of Buyer’s statement a statement setting forth his determination of the amount thereof. If Seller notifies
      Buyer of his acceptance of Buyer’s statement, or if Seller otherwise fails
      to deliver his own statement within the 30 day period specified in the
      preceding sentence, Buyer’s determination shall be final and payment shall
      be made thereon. Debit adjustments, if any, to the Purchase Price, shall
      be applied first to cash consideration due to Seller and then to the
  Note.

5

	 	(2) 	
      Buyer and Seller shall use their good faith efforts to
      resolve any dispute involving the determination of the Purchase Price. If
      the parties are unable to resolve the dispute within 15 days following the
      delivery of Seller’s statement, each of Buyer and Seller shall select an
      independent arbitrator who shall be knowledgeable and experienced in the
      operation of telecommunication systems, and the two arbitrators so chosen
      shall attempt to resolve the dispute. If they are not able to do so within
      45 days following the delivery of Seller’s statement, the two arbitrators
      shall agree upon a third arbitrator and the dispute shall be resolved by
      the decision of the majority of the arbitrators, which shall be conclusive
      and binding on the parties. Any fees of the arbitrators shall be split
      equally between the parties.

     (c)
Allocation of Purchase Price. The Purchase Price shall be allocated as
set forth on Form 8594, attached hereto as Exhibit A. 

	2.4 	
      Assumption of Liabilities and
      Obligations.

	 	 	 
		(a) 	
      Assumption. Except as provided in paragraph (b) of
      this Section 2.4, as of the Effective Time, Buyer shall assume and
      undertake to pay, discharge, and perform all obligations and liabilities
      arising out of events occurring after the Effective Time related to
      Buyer’s ownership of the Assets or its operation of the Systems after the
      Effective Time, including, insofar as they relate to the period after the
      Effective Time and arise out of events occurring after the Effective Time,
      all the obligations and liabilities of Seller under the Assumed Contracts
      and Grants of Authority. Buyer shall also assume Seller’s obligations and
      liabilities as of the Effective Time with respect to customer deposits and
      prepayments from Subscribers. Other than as specified herein, Buyer shall
      assume no obligations or liabilities of Seller.

	 	 	 
		(b) 	
      Limitation. Notwithstanding any provision of this
      Agreement to the contrary, Buyer shall not assume: (1) any obligations or
      liabilities under any Contract or Grant of Authority not included in the
      Assumed Contracts and Grants of Authority; (2) any obligations or
      liabilities under the Assumed Contracts and Grants of Authority relating
      to the time period prior to the Effective Time; (3) any claims or pending
      litigation or proceedings relating to any action with respect to the
      operation of the Systems prior to the Effective Time; (4) any obligation
      or liabilities arising under capitalized leases or other financing
      agreements; (5) any obligations or liabilities of Seller under collective
      bargaining agreements, multi-employer plans or any other employee
      benefit plan of Seller; and (6) any
obligations or liabilities caused by, arising out of, or resulting from any
action or omission of Seller prior to the Effective Time, and all such
obligations and liabilities shall remain and be the obligations and liabilities
solely of Seller.

6

	2.5 	
      Employees. To the extent Seller has
      employees, Seller shall terminate such employees working in the business
      effective as the close of business the day before the Closing and Seller
      shall be responsible without exception for all compensation, taxes,
      insurance, accrued sick and vacation days and other benefits and amounts
      relating to such employees, and Seller shall indemnify, defend and hold
      harmless Buyer from any claims made against Buyer with respect to such
      obligations. Buyer shall not assume or in any way become responsible or
      liable for any compensation, taxes, insurance or other benefits and
      amounts payable by Seller on account of such employees. Seller and Buyer
      shall coordinate their efforts with respect to Seller’s termination of the
      employees so that the employees will receive notice of their termination
      by Seller and the possibility of employment with Buyer (if applicable) at
      substantially the same time. Prior to the Closing, but without any
      obligation to do so, Buyer shall endeavor to enter into employment
      agreements with all such employees whom Buyer desires to employ following
      the Closing.

SECTION 3. REPRESENTATIONS AND WARRANTIES OF
SELLER

          Seller represents and warrants to Buyer as follows: 

	3.1 	
      Organization, Standing, and Authority.
      Seller is a limited liability company organized, validly existing, and
      in good standing under the laws of the State of Indiana. Seller has the
      requisite corporate power and authority to: (a) own, lease, and use the
      Assets as now owned, leased, and used; (b) conduct the business of
      operating the Systems as now conducted; (c) execute, deliver, and perform
      this Agreement and the documents contemplated hereby according to their
      respective terms; and (d) transfer the Assets in accordance with the terms
      and conditions of this Agreement. Seller is not a participant in any joint
      venture or partnership with any other person or party with respect to the
      Systems or any part of the Assets.

	 	 
	3.2 	
      Authorization and Binding Obligation.
      The execution, delivery, and performance of this Agreement by Seller
      have been duly authorized by all necessary corporate actions, including
      stockholder approval if required, on the part of Seller. This Agreement
      has been duly executed and delivered by Seller and constitutes the legal,
      valid, and binding obligation of Seller, enforceable against Seller in
      accordance with its terms except as the enforceability hereof may be
      affected by bankruptcy, insolvency, or similar law affecting creditors’
      rights generally and by judicial discretion in the enforcement of
      equitable remedies.

	 	 
	3.3 	
      Absence of Conflicting Agreements or
      Consents. Subject to obtaining those Consents listed on Schedule
      F, the execution, delivery, and performance of this Agreement, the Shares
      and the documents contemplated hereby (with or without
  the giving of notice, the lapse of time, or both): (a) do not
      require the consent of any third party; (b) will not conflict with any
      provision of the Articles of Incorporation or By-Laws of Seller; (c) will
      not conflict with, result in a breach of, or constitute a default under
      any applicable law, judgment, order, ordinance, injunction, decree, rule,
      regulation, or ruling of any court or governmental instrumentality; (d)
      will not conflict with, constitute grounds for termination of, result in a
      breach of, constitute a default under, or accelerate or permit the
      acceleration of any performance requirement by the terms of any agreement,
      governmental authority, instrument, license, or permit to which Seller is
      a party or by which Seller is bound; and (e) will not create any claim,
  lien, charge, or encumbrance upon any of the Assets.

7

	3.4 	
      Governmental Licenses. Schedule B
      includes a true and complete list of the Governmental Licenses. Seller has
      delivered to Buyer true and complete copies of the Governmental Licenses.
      Seller is the authorized legal holder of the Governmental Licenses. The
      Governmental Licenses comprise all the licenses, permits, and other
      authorizations required from governmental and regulatory authorities for
      the lawful conduct of the business and operations of the Systems in the
      manner and to the full extent they are now conducted, and none of the
      Governmental Licenses is subject to any restriction or condition that
      would limit the operations of the Systems as they are now conducted. The
      Governmental Licenses are in full force and effect, and the operations of
      the Systems are in compliance therewith. Seller has no reason to believe
      that any of the Governmental Licenses would not be assignable to Buyer
      subject to any required approval of the granting authority in the ordinary
      course.

	 	 
	3.5 	
      Real Property. Schedule C contains a
      complete description of all Real Property and Seller’s interests therein,
      including street address, legal description, owner, and use. None of the
      Real Property is subject to any lien, mortgage, pledge, covenant,
      easement, restriction, encroachment, lease, charge, or other claim or
      encumbrance of any nature whatsoever that would adversely affect the use
      or usefulness of the Real Property in the operation of the Systems. Seller
      has delivered to Buyer true and complete copies of all leases or other
      instruments pertaining to the Real Property. All leases pertaining to the
      Real Property are, or prior to Closing will be, in recordable form. All
      Real Property is marketable, in good condition and repair consistent with
      its present use, and available for immediate use in the conduct of the
      business and operations of the Systems. Seller has full legal and
      practical access to all Real Property. All easements, rights of way, and
      real property licenses have been properly recorded in the appropriate
      public recording offices. The Real Property described in Schedule C
      includes all easements, rights of way, and other real property interests
      necessary to conduct the business and operations of the Systems as they
      are now conducted. No Hazardous Material (as defined below) has been used,
      generated, manufactured, stored, treated, released or disposed of by
      Seller, or to Seller’s actual knowledge without inquiry, by any other
      party, at, in, on or under the Real Property leased or owned by Seller for
      the business of operation of the Systems in violation of Environmental Law
      (as defined below). The term “Hazardous Material” means any substance or
      material that is or becomes regulated, defined or designated by any federal, state or local governmental
      authority as hazardous, extremely hazardous, imminently hazardous,
      dangerous or toxic, or as a pollutant, contaminant or waste, and shall
      include, without limitation, PCBs, asbestos, asbestos containing
      materials, oil and petroleum products and byproducts. The term,
      “Environmental Law” means all current and future federal, state and local
      statutes, regulations, ordinances and rules relating to (1) the emission,
      discharge, release or threatened release of Hazardous Material into the
      air, surface water, groundwater or land; (ii) the manufacturing,
      processing, use, generation, treatment, storage, disposal, transportation,
      handling, removal, remediation or investigation of Hazardous Material; or
      (iii) the protection of human health, safety or the indoor or outdoor
      environment, including without limitation, the Clean Air Act, the Federal
      Water Pollution Control Act, the Resource Conservation and Recovery Act,
      the Comprehensive Environmental Response, Compensation and Liability Act,
      the Occupational Safety and Health Act, all amendments thereto, all
      regulations promulgated thereunder, and their state statutory and
      regulatory counterparts. The zoning classifications of the leased
      properties on which the Systems operate permit the operation of the
      Systems. The improvements on such leased properties have been constructed
      and are presently used and operated in compliance with all licenses and
      all legal requirements, and with all covenants, easements and restrictions
      affecting those properties, and all obligations of Seller with regard to
      the legal requirements, covenants, easements and restrictions have been
      and are being performed in a proper and timely manner.

8

	3.6 	
      Personal Property. Without material
      exception, Schedule D contains descriptions of all Personal Property.
      Except as set forth in Schedule D, Seller owns and has good title to each
      item of Personal Property, and none of the Personal Property is subject to
      any security interest, mortgage, pledge, conditional sales agreement, or
      other lien or encumbrance, except for liens for current taxes not yet due
      and payable. The Personal Property is in good operating condition and
      repair (ordinary wear and tear excepted), and is available for immediate
      use in the business and operations of the Systems. The Personal Property
      listed in Schedule D includes all personal property necessary to conduct
      the business and operations of the Systems as they are now
    conducted.

	 	 
	3.7 	
      Contracts and Grants of Authority.
      The Contracts and Grants of Authority listed in Schedule E comprise
      all Contracts and Grants of Authority used or useful in the operation of
      the Systems, except Contracts entered into in the ordinary course of
      business that do not involve payments or receipts by Seller in excess of
      $1,000 individually or $5,000 in the aggregate. Seller has delivered to
      Buyer true and complete copies of all Contracts and Grants of Authority.
      Other than the Contracts and Grants of Authority listed on Schedule E,
      Seller requires no contract, grant of authority, permit, lease, or other
      agreement to enable it to carry on its business as now conducted. All the
      Contracts and Grants of Authority are, and all Assumed Contract and Grants
      of Authority will be, as of the Closing Date, in full force and effect and
      are valid, binding, and enforceable in accordance with their terms. There
      is not under any Contract of Grant of Authority any default by any party
      thereto (including Seller) or any event that, after notice or
      lapse of time or both, would constitute a default. Seller is not aware of
      any intent by any party to any Contract or Grant of Authority: (a) to
      terminate or amend the terms thereof; (b) to refuse to renew the Contract
      or Grant of Authority upon expiration of its terms; or (c) to renew the
      Contract or Grant of Authority upon expiration only on terms and
      conditions that could be less advantageous to the Systems than those
      currently pertaining. Except for the need to obtain those Consents listed
      in Schedule F, Seller has full legal power and authority to assign its
      rights under the Contracts and Grants of Authority to Buyer in accordance
      with this Agreement, and the assignment of the Contracts and Grants of
      Authority to Buyer will not affect the validity, enforceability, or
      continuation of any of the Contracts or Grants of Authority. Except as set
      forth on Schedule F, no Contract contains any unfulfilled requirement that
      Seller make any capital expenditures.

9

	3.8 	
      Consents. Except for those Consents
      listed in Schedule F, no consent, approval, permit, or authorization or
      declaration to or filing with any governmental or regulatory authority or
      any other third party is required: (a) to render this Agreement and the
      transactions contemplated hereby valid and effective; (b) to permit this
      Agreement and the transactions contemplated hereby to be consummated; (c)
      to permit Seller to assign or transfer the Assets (including each of the
      Contracts and Grants of Authority) to Buyer; or (d) to enable Buyer to
      operate the Systems and the business of Seller in essentially the same
      manner that they are now conducted. Seller reasonably believes that all
      Consents will be obtained.

	 	 
	3.9 	
      Intangibles. Schedule G is a true and
      complete list of all the Intangibles (exclusive of those required to be
      listed in Schedule B), all of which are valid, in good standing, and
      uncontested. Seller has delivered to Buyer copies of all documents
      establishing the Intangibles. Seller is not infringing upon or otherwise
      acting adversely to any trademarks, trade names, copyrights, patents,
      patent applications, know-how, methods, or processes owned by any other
      person or persons, and there is no claim or action pending, or to the
      knowledge of Seller threatened, with respect thereto.

	 	 
	3.10 	
      Financial Statements and Tax Returns.
      Schedule H contains copies of the following financial statements of
      Seller, all of which are complete and correct, have been prepared from the
      books and records of Seller in accordance with generally accepted
      accounting principles consistently applied and maintained throughout the
      periods indicated, accurately reflect the books, records, and accounts of
      the Systems, and present fairly the financial condition, assets,
      liabilities, and results of operation of the Systems as at their
      respective dates and the results of operations for the periods then
      ended:

	 	(a) 	
      Balance Sheets, as at December 31, 2008 and March 31,
      2009;

	 	 	 
	 	(b) 	
      Statements of Income and Expense, for the twelve-month
      period ended December 31, 2008 and each of the months of January through
      March, 2009; and

10

	 	(c) 	
      Tax returns for the years 2007 and
2008.

		
      None of the foregoing financial statements understates
      the true costs and expenses of conducting the business and operations of
      the Systems, fails to disclose any material contingent liability, or
      inflates the revenues of the Systems for any reason.

	 	 
		
      Seller has filed, in accordance with applicable law, all
      federal, state, county and local income and franchise tax returns and all
      real and personal property tax returns that are required to be filed. The
      information shown on the federal income tax returns delivered to Buyer is
      true, accurate, and complete and fairly presents the information purported
      to be shown. Seller has paid, or shall pay prior to the date it is due,
      all taxes owed by Seller on account of the Business.

	 	 
	3.11 	
      Insurance. Schedule I is a true and
      complete list of all policies of insurance owned by Seller that insure any
      part of the Assets or the business of the Systems. All policies of
      insurance listed in Schedule I are in full force and effect. The insurance
      policies listed in Schedule I are adequate in amount with respect to, and
      for the full value (subject to customary deductibles) of the Assets, and
      insure the Assets and the business of the Systems against all foreseeable
      risk. No insurance policy of Seller has been canceled and no application
      of Seller for any insurance policy has been rejected during the past three
      years.

	3.12 	Personnel.

	 	 	 
		(a) 	Employees and Compensation. Schedule J contains a
      true and complete list of all persons employed or retained as independent
      contractors by Seller in connection with the Systems and a description of
      their compensation. Schedule J also lists all sales agency agreements or
      other sales agreements with independent contractors.

	 	 	 
		(b) 	Plans. Seller does not maintain, nor has it at any
      time established or maintained, nor has it at any time been obligated to
      make, nor has made, contributions to or under any plan which provides
      post-retirement medical or health benefits with respect to employees or
      former employees of Seller. Seller has complied, and will have, as of the
      Closing, complied with the Worker Adjustment and Retraining Notification
      Act (WARN Act) in connection with the termination of Seller’s employees.
      Seller will, at no cost to Seller, reasonably assist Buyer in obtaining
      health insurance and 401(k) applications for Seller’s employees that Buyer
      intends to hire so as to allow Buyer’s providers to waive any waiting
      periods as to such employees; provided, however, that Seller shall not be
      required to disclose personal information of Seller’s employees to the
      extent prohibited by law.

	 	 	 
		(c) 	Agreements and Collective Bargaining. Seller is
      not a party to or subject to any collective bargaining agreement,
      multi-employer pension fund or other labor union agreement with respect to
      any persons employed by Seller in connection with Seller’s operation of the Assets and with respect to
      the Systems. Seller has no written or oral contracts of employment with
      any employee of the Systems, other than those listed in Schedule E. No
      controversies, disputes, or proceedings are pending or, to the best of its
      knowledge, threatened, between it and any employees (singly or
      collectively) of the Systems. No labor union or other collective
      bargaining unit represents or claims to represent any of the employees of
      the Systems. There is no union campaign being conducted to solicit cards
      from employees to authorize a union to request a national labor Relations
      Board certification election with respect to any employees of the
      Systems.

11

	 	(d) 	
      Liabilities. Seller has no liability of any kind
      to or in respect of any employee benefit plan, including withdrawal
      liability under Section 4201 of ERISA. Seller has not incurred any
      accumulated funding deficiency within the meaning of ERISA or Section 4971
      of the Internal Revenue Code of 1986. Seller has not failed to make any
      required contributions to any employee benefit plan. The Pension Benefit
      Guaranty Corporation has not asserted that Seller has incurred any
      liability in connection with any such plan. No lien has been attached and
      no person has threatened to attach a lien on any property of the Seller as
      a result of a failure to comply with ERISA.

	3.13 	
      Claims and Legal Actions. Except as
      set forth in schedule K, and except for investigations and rulemaking
      proceedings affecting the telecommunications industry generally, there is
      no claim, legal action, counterclaim, suit, arbitration, governmental
      investigation, or other legal, administrative, or tax proceeding, nor any
      order, decree, or judgment, in progress or pending, or, to the knowledge
      of Seller, threatened, against or relating to Seller, its properties, the
      Assets, or the business of the Systems, nor does Seller know or have
      reason to be aware of any basis for the same. There are no governmental
      investigations or other legal, administrative, or tax proceedings pursuant
      to which Seller is or could be made liable for any taxes, penalties,
      interest, or other charges, the liability for which could extend to Buyer
      as transferee of the business of the Systems.

	 	 
	3.14 	
      Compliance with Laws. In its operation of
      the System and its ownership and maintenance of the Assets, Seller has
      complied and is complying fully with the terms of all Governmental
      Licenses and Grants of Authority and with all laws, rules, regulations,
      and ordinances, including all trademark, trade name, or copyright rules
      and regulations, all building and zoning laws, codes, and regulations, all
      rules and regulations of the Federal Aviation Administration relating to
      tower heights, and all laws relating to the employment of labor. Neither
      the ownership nor use of Seller’s properties nor the conduct of its
      business conflicts with the rights of any other person or
entity.

	 	 
	3.15 	
      Conduct of Business in Ordinary Course; Adverse
      Change. Since December 31, 2008, Seller has conducted the
      business of the Systems only in the ordinary course and has
  not:

12

	 	(a) 	
      Adverse Change. Suffered any material adverse
      change in the business, assets, properties, prospects, or condition
      (financial or otherwise) of Seller or the Systems, or any damage,
      destruction, or loss affecting any of the Assets used or useful in the
      conduct of the business of the Systems;

	 	 	 
	 	(b) 	
      Liens. Created, assumed, or suffered any mortgage,
      pledge, lien, or encumbrance on any of the Assets;

	 	 	 
	 	(c) 	
      Employee Compensation. Suffered any material
      increase in compensation payable or to become payable to any of the
      employees of Seller, or any bonus payment made or promised to any employee
      of Seller, or any material change in personnel policies, insurance
      benefits, or other compensation arrangements affecting the employees of
      Seller;

	 	 	 
	 	(d) 	
      Dispositions. Suffered any sale, assignment,
      lease, material depletion of inventory, or other transfer of any of
      Seller’s properties without suitable replacements being obtained
      therefore;

	 	 	 
	 	(e) 	
      Cancellation of Debts. Cancelled any debts owed to
      or claims held by Seller;

	 	 	 
	 	(f) 	
      Write-Down. Suffered any significant write-down of
      the value of any Assets or any significant write-off as uncollectible of
      any Accounts Receivable; and

	 	 	 
	 	(g) 	
      Rights. Transferred or granted any right under, or
      entered into any settlement regarding the breach or infringement of, any
      license, patent, copyright, trademark, trade name, grant of authority, or
      other intellectual property or proprietary right, or modified any existing
      right relating to the Systems.

3.16. Information Regarding the Systems.

	 	(a) 	
      Subscribers. The Systems have at least Ninety-Four
      (94) Subscribers.

	 	 	 
	 	(b) 	
      Rates; Fees; Reports; Signals. Schedule L sets
      forth or includes:

	 	(1) 	
      The rates being charged by Seller to Subscribers for each
      class of service for each of the Systems;

	 	(2) 	
      All fees for Grants of Authority and all fees or payments
      relating to the use of access points and/or tower sites;

	 	(3) 	
      A list of all reports filed by Seller with the FCC or any
      other governmental agency or municipal authority within the past three
      years in connection with the operation of the Systems;

	 	(4) 	
      A list of all signals and services carried and delivered
      by the Systems;

	 	(5) 	
      A list of all aeronautical frequencies (together with
      geographic coordinates, radius, and power levels) used by Seller in
      connection with the Systems; and

	 	(6) 	
      The number of Subscribers in each
  System.

13

	 	(c) 	
      Accounts. All the account balances of Subscribers
      to the Systems are actual and bona fide receivables representing
      obligations for the total dollar amount thereof, as shown on the books of
      Seller, resulted from the regular course of the Seller’s business, and are
      fully collectible in accordance with their terms, subject to no offset or
      reduction whatsoever. Seller has no monetary obligations or liabilities to
      any of its Subscribers except with respect to deposits. Uncollectable
      Accounts Receivable may be set off by Buyer from the Note at any time
      prior to payment of the Note in full.

	 	 	 
	 	(d) 	
      Operational Order. The Systems are fully
      operational with all required electronics, are in good working order, and
      are delivering a signal of good quality and strength to all Subscribers
      using only the Assets. The Systems, when fully loaded, will perform to
      minimum standards of FCC rules and regulations.

	 	 	 
	 		
      Signal Carriage; Aeronautical Frequencies. Seller
      has the legal right and authority, including all necessary authorizations
      from the FCC, to carry and continue to carry and use in the conduct of the
      business of the Systems all the signals and transmissions now being
      carried. No notices or demands (oral or written) have been received from
      the FCC, or from any other person or entity challenging the right of
      Seller to carry or deliver any signal. Seller has obtained all required
      FCC clearances for the operation of the Systems in all necessary
      aeronautical frequency bands.

3.17 Investment Representations.

        (a) Seller and each
of the Shareholders acknowledge and agree that the references to Buyer in this
Section 3.17 fully extend to Omnicity Corp inasmuch as Omnicity Corp is
specifically contemplated to succeed to all rights and obligations of Buyer
pursuant to this Agreement prior to the Closing Date and inasmuch as the Shares
will be an interest in Omnicity Corp. Seller is obtaining the Shares solely for
its own account and for investment and not with a view to, or for resale in
connection with, any distribution thereof within the meaning of the Securities
Act of 1933, as amended (the “Securities Act”). Seller further represents that
it does not have any present intention of selling, offering to sell or otherwise
disposing of or distributing the Shares or any portion thereof, other than any
distribution of Shares to its Shareholders within thirty (30) days of the
Closing; and that the entire legal and beneficial interest of the Shares it is
receiving will be held for the account of, itself only and neither in whole nor
in part for any other person. Each of the Shareholders adopts, individually for
each of such Shareholders receiving any Shares from Seller, and makes all
representations, warranties and covenants to Buyer that Seller makes in this
Section 3.17 for the benefit of Buyer. Each of the Shareholders agrees to be
bound by all of this Section 3.17 individually. 

     (b) Knowledge of Buyer’s
Business. Seller is aware of Buyer’s business affairs and financial
condition and as of the Closing Date, will have acquired sufficient information
about Buyer to reach an informed and knowledgeable decision to acquire the
Shares from Buyer. Seller further represents and warrants that it has discussed,
or has had the opportunity to discuss, Buyer and its plans, operations
and financial condition with its officers, has, or will have, as of the Closing
Date, received all such information as it deems necessary and appropriate to
enable it to evaluate the financial risk inherent in making an investment in the
Shares and has received satisfactory and complete information concerning the
business and financial condition of Buyer in response to all inquiries in
respect thereof.

14

     (c) Speculative
Investment. Seller realizes that its acquisition of the Shares will be a
highly speculative investment, and it is able, without impairing its financial
condition, to hold the Shares for an indefinite period of time and to suffer a
complete loss on its investment.

     (d) No Obligation to Register.
Buyer has disclosed to Seller that:

     (i) The
Shares have not been registered under the Securities Act, and the Shares must be
held indefinitely unless a transfer of such Shares is subsequently registered
under the Securities Act or an exemption from such registration is available,
and that Buyer is under no obligation to register the Shares; and 

     (ii)
Buyer will make a notation in its records of the aforementioned restrictions on
transfer and legends.

     (e) Rule 144. Seller and
each of the Shareholders is aware of the provisions of Rule 144, promulgated
under the Securities Act, which, in substance, permits limited public resale of
“restricted securities” acquired, directly or indirectly, from the issuer
thereof (or an affiliate of such issuer), in a non-public offering subject to
the satisfaction of certain conditions, including among other things: the resale
occurring not less than one year from the date Seller receives the Shares; the
availability of certain public information concerning Buyer; the sale being
through a broker in an unsolicited “broker’s transaction” or in a transaction
directly with a market maker (as said term is defined under the Securities
Exchange Act of 1934); and that any sale of the Shares may be made by it only in
limited amounts during any three-month period not exceeding specified
limitations. Seller and each of the Shareholders further represent that they
understands that at the time it wishes to sell the Shares there may be no public
market upon which to make such a sale, and that, even if such a public market
then exists, Buyer may not be satisfying the current public information
requirements of Rule 144, and that, in such event, it would be precluded from
selling the Shares under Rule 144 even if the one-year minimum holding period
had been satisfied. Seller and each of the Shareholders represent that they
understands that in the event all of the requirements of Rule 144 are not
satisfied, registration under the Securities Act or compliance with an exemption
from registration will be required; and that, notwithstanding the fact that Rule
144 is not exclusive, the staff of the Securities Exchange Commission has
expressed its opinion that persons proposing to sell private placement
securities other than in a registered offering and otherwise than pursuant to
Rule 144 will have a substantial burden of proof in establishing that an
exemption from registration is available for such offers or sales, and that such
persons and their respective brokers who participate in such transactions do so
at their own risk.

15

        
 (f)      Acknowledgement of Legends.
Seller and each of the Shareholders acknowledge that the certificate
representing the Shares will bear the following restrictive legends: 

THE SHARES REPRESENTED HEREBY HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “1933 ACT”) OR UNDER THE
SECURITIES LAWS OF ANY STATE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON
TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS
PERMITTED UNDER THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO
REGISTRATION OR AN EXEMPTION THEREFROM. THE ISSUER OF THESE SECURITIES MAY
REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER
TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE
1933 ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 

THE SHARES RERESENTED HEREBY ARE
SUBJECT TO CERTAIN REPURCHASE RIGHTS AND RIGHTS OF FIRST REFUSAL GRANTED TO
OMNICITY, INC., ITS SUCCESSORS AND ASSIGNS, AND MAY NOT BE SOLD, ASSIGNED,
TRANSFERRED OR IN ANY MANNER DISPOSED OF EXCEPT IN CONFORMITY WITH THE TERMS OF
THE ASSET PURCHASE AGREEMENT DATED MARCH 18, 2009, A COPY OF WHICH AGREEMENT IS
MAINTAINED AT THE PRINCIPAL CORPORATE OFFICES OF OMNICITY, INC. 

(g) Right of First Refusal.
Seller and each of the Shareholders acknowledge that the Buyer shall have, and
they hereby grant, to Buyer a right of first refusal to acquire any of the
Shares that the Seller or any of the Shareholders wish to sale, transfer or
otherwise dispose of, upon the following terms: 

(1) Seller and Shareholders shall
deliver to Buyer a notice stating (i) Seller’s or Shareholder’s bona fide intent
to sell or otherwise transfer the Shares; (ii) the number of Shares and the bona
fide price or other consideration to be paid for the Shares (“Offered Price”),
and Seller and Shareholders shall offer the Shares at the Offered Price to the
Buyer or its assignees. 

(2) At any time within ten (10) days after receipt of the
notice, Buyer or its assignees may, by giving notice to Seller or the
Shareholders, elect to purchase the Shares proposed to be sold or transferred
for the Offered Price. Payment of the Offered Price by Buyer shall be made by
check or as otherwise agreed by the Buyer and Seller or Shareholders, and shall
be made within thirty (30) days after receipt of the notice from Seller or
Shareholders

3.18 Broker. Neither Seller nor any
person or entity acting on its behalf has agreed to pay a commission, finder’s
fee, or similar payment in connection with this Agreement or any matter related
hereto to any person or entity, nor has it or any person or entity acting on its
behalf taken any action on which a claim for any such payment could be based.

16

3.19 Full Disclosure. No
representation or warranty made by Seller or Shareholders in this Agreement or
in any certificate, document, or other instrument furnished or to be furnished
by Seller or Shareholders pursuant hereto contains or will contain any untrue
statement of a material fact, or omits or will omit to state any material fact
required to make any statement contained herein or therein not misleading.
Seller and Shareholders are not aware of any impending or contemplated event or
occurrence that would cause any of the foregoing representations not to be true
and complete on the date of such event or occurrence as if made on that date.

SECTION 4. REPRESENTATIONS AND WARRANTIES OF
BUYER

         Buyer
represents and warrants to Seller as follows: 

	4.1 	
      Organization, Standing, and Authority.
      Buyer is a corporation duly organized, validly existing, and in good
      standing under the laws of the State of Indiana. On the Closing Date,
      Buyer will be duly qualified to conduct its business in the State of
      Indiana, subject to any permitted transfer, in particular, the transfer to
      Omnicity Corp, which is a Nevada corporation. Buyer has the requisite
      power and authority to execute, deliver, and perform this Agreement and
      the documents contemplated hereby according to their respective
    terms.

	 	 
	4.2 	
      Authorization and Binding Obligation. The
      execution, delivery, and performance of this Agreement by Buyer have been
      duly authorized by all necessary action on the part of Buyer. This
      Agreement has been duly executed and delivered by Buyer and constitutes a
      legal, valid, and binding obligation of Buyer, enforceable against Buyer
      in accordance with its terms except as the enforceability hereof may be
      affected by bankruptcy, insolvency, or similar laws affecting creditors’
      rights generally and by judicial discretion in the enforcement of
      equitable remedies.

	 	 
	4.3 	
      Absence of Conflicting Agreements and Required
      Consents. Subject to obtaining the Consents, the execution,
      delivery, and performance of this Agreement and the documents contemplated
      hereby (with or without the giving of notice, the lapse of time, or both):
      (a) do not require the consent of any third party,;(b) will not conflict
      with the by-laws of the Buyer; (c) will not conflict with, result in a
      breach of, or constitute a default under, any applicable law, judgment,
      order, ordinance, injunction, decree, rule, regulation, or ruling of any
      court or governmental instrumentality; and (d) will not conflict with,
      constitute grounds for termination of, result in a breach of, constitute a
      default under, or accelerate or permit the acceleration of any performance
      required by the terms of any agreement, instrument, license or permit to
      which Buyer is a party or by which Buyer may be bound, such that Buyer
      could not acquire or operate the Assets.

	 	 
	4.4 	
      Broker. Neither Buyer nor any person or
      entity acting on its behalf has agreed to pay a commission, finder’s fee,
      or similar payment in connection with this Agreement or any matter related
      hereto to any person or entity, nor has it or any

17

		
      person or entity acting on its behalf taken any action on
      which a claim for any such payment could be based.

	 	 
	4.5 	
      Full Disclosure. No representation or
      warranty made by Buyer in this Agreement or in any certificate, document,
      or other instrument furnished or to be furnished by Buyer pursuant hereto
      contains or will contain any untrue statement of a material fact, or omits
      or will omit to state any material fact required to make any statement
      contained herein or therein not misleading. Buyer is not aware of any
      impending or contemplated event or occurrence that would cause any of the
      foregoing representations not to be true and complete on the date of such
      event or occurrence as if made on that date.

SECTION 5. COVENANTS OF SELLER

	5.1 	
      Pre-Closing Covenants. Seller
      covenants and agrees that from and after the close of the financial period
      ending December 31, 2008 as reflected by the financial statements provided
      pursuant to Section 3.10 above and between the date hereof and the Closing
      Date, Seller has conducted, and will conduct, its business diligently, in
      the ordinary course, and in such a manner so that the representations and
      warranties contained in Section 3 shall continue to be true on and as of
      the Closing Date as if made on and as of the Closing Date, and, except
      with the prior written consent of Buyer, Seller has acted, and will act,
      in accordance with the following:

	 	 	 
		(a) 	
      Contracts. Seller will not enter into any contract
      or commitment relating to the Systems or the Assets, or amend or terminate
      any Contract of Grant of Authority (or waive any substantial right
      thereunder), or incur any obligation (including obligations relating to
      the borrowing of money or guarantee of indebtedness).

	 	 	 
		(b) 	
      Encumbrances. Seller will not create, assume, or
      permit to exist any mortgage, pledge, lien, or other charge or encumbrance
      of rights affecting any of the Assets, except for those in existence on
      the date of this Agreement and disclosed in Schedules B and C and except
      for mechanics’ liens and other similar liens which will be discharged
      prior to the Closing Date.

	 	 	 
		(c) 	
      Dispositions. Seller will not sell, assign, lease,
      or otherwise transfer or dispose of any of the Assets except in the
      ordinary course of business where no longer used or useful or in
      connection with the acquisition of replacement property of equivalent kind
      and value.

	 	 	 
		(d) 	
      Governmental Licenses and Grants of Authority.
      Seller will not cause or permit, by any act or failure to act, any of the
      Governmental Licenses or Grants of Authority to expire or to be
      surrendered or modified, or take any action that would cause any
      governmental authority to institute proceedings for the suspension,
      revocation, or adverse modification of any of the Governmental Licenses or
      Grants of Authority, or fail to prosecute with due diligence any pending
      applications to any governmental authority in connection with
  the operation of the Systems, or take any other action within
      its control that would result in the Systems being in noncompliance with
      the requirements of any law, the rules and regulations of any governmental
      authority, or the terms of any Governmental License or Grant of
  Authority.

18

	 	(e) 	
      Consents. Seller will obtain the Consents, without
      any change in the terms or conditions of any Contract that could be less
      advantageous to the Systems than those pertaining under the Contract as in
      effect on the date hereof. Seller will promptly advise Buyer of any
      difficulties experienced in obtaining any of the Consents and of any
      conditions proposed, considered, or requested for any of the
    Consents.

	 	 	 
	 	(f) 	
      Books. Seller will maintain the books and records
      of the Systems in accordance with prior practice.

	 	 	 
	 	(g) 	
      Access to Information. Seller will give to Buyer
      and its counsel, accountants, engineers, and other authorized
      representatives, reasonable access to the Assets, to the officers,
      employees, and agents of Seller, and to all books and records relating
      thereto, and will furnish or cause to be furnished to Buyer and its
      authorized representatives all information relating to the Assets and
      Seller that they reasonably request (including any financial reports and
      operations reports produced with respect to the Systems).

	 	 	 
	 	(h) 	
      Notification. Seller will give Buyer prompt
      written notice of any material change in any of the information contained
      in its representations and warranties in this Agreement or in the
      Schedules referred to herein and of any occurrence involving the Systems
      or any Assets and not arising in the ordinary course of the Systems’
      business.

	 	 	 
	 	(i) 	
      Maintenance of Assets. Seller will maintain all of
      the Systems’ property and Assets or replacements thereof in their present
      condition as represented in this Agreement, ordinary wear and tear
      excepted. Seller will maintain supplies of inventory and spare parts
      consistent with past practice. If any loss, damage, impairment,
      confiscation, or condemnation to any of the Assets occurs, Seller shall
      repair, replace, or restore the Assets to their prior condition as
      represented herein as soon thereafter as possible, and Seller will use the
      proceeds of any claim under any insurance policy solely to repair,
      replace, or restore any of the Assets that are lost, damaged, impaired, or
      destroyed.

	 	 	 
	 	(j) 	
      Compliance with Laws. Seller will comply with all
      laws, rules, and regulations. Upon receipt of notice of violation of any
      law, rule, or regulation, Seller will contest in good faith or cure the
      violation prior to the Closing Date.

	 	 	 
	 	(k) 	
      Insurance. Seller will maintain in force the
      existing hazard and liability insurance policies, or comparable coverage,
      for the Systems and the Assets as set forth in Schedule I hereto, and it
      will use the proceeds of any claims for loss payable under those insurance
      policies to repair, replace, or restore any of the
Assets destroyed by fire or other casualty to their former
  condition as soon as possible after the loss.

19

	 	(l) 	
      Financial Information. Within fifteen days after
      the close of each calendar month, Seller will furnish to Buyer an
      unaudited statement of income and expense of Seller for the month and an
      unaudited balance sheet of Seller as at the close of the month. The
      financial statements to be delivered hereunder shall be complete and
      correct, shall be prepared in accordance with generally accepted
      accounting principles applied and maintained on a basis consistent with
      prior periods, shall accurately reflect the books, records, and accounts
      of the Systems, and shall present fairly the financial condition, assets,
      liabilities, and results of operations of the Systems as of the dates and
      for the periods indicated. Seller shall furnish to Buyer as it becomes
      available any other information prepared by Seller concerning the
      financial condition of the Systems.

	 	 	 
	 	(m) 	
      Preservation of Business. Seller will preserve the
      business and organization of the Systems intact and use its best efforts
      to keep available to the Systems their present employees and to preserve
      for the Systems their present relationships with suppliers and customers
      and others having business relations with them, to the end that the
      business, operations, and prospects of the Systems shall be unimpaired at
      the Closing Date. The ordinary and customary operating, marketing,
      promotional, sales, and advertising practices of the Systems shall be
      maintained.

	 	 	 
	 	(n) 	
      Collection of Accounts Receivable. Seller shall
      collect its Accounts Receivable only in the ordinary course consistent
      with its past practices and without extraordinary efforts of any
    kind.

	 	 	 
	 	(o) 	
      Rates. Seller will not directly or indirectly
      modify or amend any rate, charge, deposit, or other material condition
      under which it does business with its Subscribers and potential
      Subscribers.

	 	 	 
	 	(p) 	
      No Inconsistent Action. Seller will not take any
      action that is inconsistent with its obligations under this Agreement or
      that could hinder or delay the consummation of the transactions
      contemplated by this Agreement.

	 	 	 
	 	(q) 	
      Financing Leases. Seller will satisfy prior to
      Closing all outstanding obligations under capital and financing leases
      with respect to any of the Assets and obtain good title to the Assets
      leased by Seller pursuant to those leases so that those Assets shall be
      transferred to Buyer at Closing free of any interest of the
  lessors.

	5.2 	
      Closing Covenant. On the Closing Date, if the
      conditions set forth in Section 8.2 have been satisfied, Seller shall
      transfer, convey, assign, and deliver to Buyer the Assets as provided in
      Section 2 of this Agreement and make the deliveries provided in Section
      9.3 of this Agreement.

20

SECTION 6. CLOSING COVENANT OF BUYER

         On the Closing
Date, if the conditions set forth in Section 8.1 have been satisfied, Buyer
shall purchase the Assets from Seller as provided in Section 2 of this Agreement
and shall make the deliveries provided in Section 9.2 of this Agreement. 

SECTION 7. SPECIAL COVENANTS AND
AGREEMENTS

	7.1 	
      Risk of Loss. The risk of any loss,
      damage, impairment, confiscation, or condemnation of any of the Assets
      from any cause whatsoever shall be borne by Seller at all times prior to
      the Closing.

	 	 
	7.2 	
      Bulk Sales Law. If applicable, the
      bulk sales law of the State of Indiana shall be complied with by Seller.
      Any loss, liability, obligation, or cost suffered by Seller or Buyer as
      the result of the failure of any party to comply with the provisions of
      any bulk sales law applicable to the transfer of the Assets as
      contemplated by this Agreement shall be borne by Seller.

	 	 
	7.3 	
      Confidentiality. Each party hereto will
      keep confidential any information obtained from the other party in
      connection with the transactions contemplated by this Agreement, except as
      and to the extent required by applicable law and, in the case of Buyer, as
      disclosure may be reasonably required in connection with Buyer’s review
      and financing of this transaction. If this Agreement is terminated, each
      party will return to the other party all information obtained from the
      other party in connection with the transactions contemplated
  hereby.

	 	 
	7.4 	
      Cooperation. Buyer and Seller shall
      cooperate fully with each other and their respective counsel and
      accountants in connection with any actions required to be taken as part of
      their obligations under this Agreement, and Buyer and Seller will use
      their best efforts to consummate the transactions contemplated hereby and
      to fulfill their obligations hereunder.

	 	 
	7.5 	
      Access. For a period of five years
      after the Closing Date, Seller shall provide Buyer access and the right to
      copy any books and records relating to the Assets that are not included in
      the Assets, and Buyer will provide Seller access to any books and records
      relating to the Assets that are included in the Assets.

	 	 
	7.6 	
      Covenants Not to
  Compete.

	 	(a) 	
      Seller. In consideration of the sums to be paid
      pursuant to the terms of this Agreement, and in order to protect the
      Assets (and the value of the Assets), Seller and its Shareholders agree
      that if the Closing occurs they shall not, either, directly or indirectly
      through other persons or their respective affiliates, engage in, carry on,
      or be connected to any telecommunications business in the State of Indiana
      (the “Restricted Territory”); provided, however, nothing herein shall
      prohibit Seller or any of the Shareholders from being a passive owner of
      not more than two percent (2%) of the outstanding stock of
      any class of any corporation that engages in such business, so long as (i)
      such Seller or Shareholders have no active participation in the business
      of such corporation, and (ii) such stock is traded on a
      nationally-recognized stock market or on NASDAQ. The provisions of this
      Section 7.6 shall be binding upon Seller and each of the Shareholders for
      a period of three (3) years from the date of the Closing and shall apply
      to the Restricted Territory. It is the intent and understanding of each
      party hereto that if, in any action before any court or agency legally
      empowered to enforce this Section 7.6, any term, restriction, covenant or
      promise shall be deemed modified to the extent necessary to make it
      enforceable to the greatest extent possible by such court or agency.
      Seller represents and warrants that the Shareholders signing this
      Agreement below as to this Section 7.6 comprise all of the shareholders of
  Seller.

21

	 	(b) 	
      Other Provisions. For purposes of this Section, an
      affiliate means (a) any partnership, corporation, or other entity directly
      or indirectly controlling, controlled by, or under common control with
      Seller or each of the individual Shareholders signing below, or (b) any
      officer, director, manager, trustee, or principal of Seller or of any
      partnership, corporation, or other entity that is an affiliate under this
      definition. The parties acknowledge and agree that the covenants set forth
      in this Section 7.6 are ancillary to the sale of the Assets and are
      reasonable and necessary to protect Seller’s purchase of the
  Assets.

SECTION 8. CONDITIONS TO OBLIGATIONS OF BUYER AND
SELLER 

8.1 Conditions to Obligations of Buyer.
All obligations of Buyer at the Closing hereunder are subject at Buyer’s
option to the fulfillment prior to or at the Closing Date of each of the
following conditions: 

	 	(a) 	
      Representations and Warranties. All
      representations and warranties of Seller contained in this Agreement shall
      be true and complete in all material respects at and as of the Closing
      Date as though made at and as of that time.

	 	 	 
	 	(b) 	
      Covenants and Conditions. Seller shall have
      performed and complied in all material respects with all covenants,
      agreements, and conditions required by this Agreement to be performed or
      complied with by it prior to or at the Closing Date.

	 	 	 
	 	(c) 	
      Consents. All Consents shall have been obtained
      and delivered to Buyer, without any change in the terms or conditions of
      any Contract that could be less advantageous to the Systems than those pertaining under
  the Contract as in effect on the date hereof.

22

	 	(d) 	
      Governmental Authorizations. Seller shall be the
      holder of all Grants of Authority and Governmental Licenses, and there
      shall not have been any modification of any of the Grants of Authority or
      Governmental Licenses that could have an adverse effect on the Systems or
      the conduct of its business and operations. No proceeding shall be
      pending, the effect of which would be to revoke, cancel, fail to renew,
      suspend, or modify adversely any of the Grants of Authority or
      Governmental Licenses.

	 	 	 
	 	(e) 	
      System. At the Effective Time, the Systems shall
      have at least Ninety-Four (94) Subscribers.

	 	 	 
	 	(f) 	
      Deliveries. Seller shall have made or stand
      willing to make all the deliveries to Buyer set forth in Section
    9.2.

	8.2. 	
      Conditions to Obligations of Seller.
      All obligations of Seller at the Closing hereunder are subject at
      Seller’s option to the fulfillment prior to or at the Closing Date of each
      of the following conditions:

	 	 	 
		(a) 	
      Representations and Warranties. All
      representations and warranties of Buyer contained in this Agreement shall
      be true and complete in all material respects at and as of the Closing
      Date as though made at and as of that time.

	 	 	 
		(b) 	
      Covenants and Conditions. Buyer shall have
      performed and complied in all material respects with all covenants,
      agreements, and conditions required by this Agreement to be performed or
      complied with by it prior to or at the Closing Date.

	 	 	 
		(c) 	
      Deliveries. Buyer shall have made or stand willing
      to make all the deliveries set forth in Section
9.3.

SECTION 9. CLOSING AND CLOSING
DELIVERIES

	9.1 	
      Closing.

	 	 	 
		(a) 	
      Closing Date. The Closing shall take place at
      10:00 a.m. on a date to be set by Buyer which is within thirty days
      following the satisfaction or waiver of all conditions to closing set
      forth in this Agreement.

	 	 	 
		(b) 	
      Closing Place. The Closing shall be held at the
      offices of the Buyer in either Rushville, Indiana or Carmel, Indiana, or
      any other place that is agreed upon by Buyer and
Seller.

23

	9.2 	
      Deliveries by Seller. Prior to or on the
      Closing Date, Seller shall deliver to Buyer the following, in form and
      substance reasonably satisfactory to Buyer and its counsel:

	 	 	 
		(a) 	
      Transfer Documents. Duly executed warranty deeds,
      bills of sale, assignments, and other transfer documents which shall be
      sufficient to vest good title to the Assets in the name of Buyer, free and
      clear of all mortgages, liens, restrictions, encumbrances, claims, and
      obligations except as permitted in this Agreement;

	 	 	 
		(b) 	
      Consents. A manually executed copy of each
      Consent;

	 	 	 
		(c) 	
      Resolutions. Copies of resolutions adopted by the
      Board of Directors and, if required, shareholders of Seller, authorizing
      and approving the execution of this Agreement and the consummation of the
      transactions contemplated hereby, certified by the Secretary of Seller as
      being true and complete on the Closing Date;

	 	 	 
		(d) 	
      Certificate of Compliance. A certificate, dated as
      of the Closing Date, executed by the President of Seller, certifying: (1)
      that Seller has obtained proper corporate authorization, including the
      consent of stockholders, necessary to the consummation of this Agreement;
      (2) that the representations and warranties of Seller contained in this
      Agreement are true and complete in all material respects as of the Closing
      Date as though made on and as of that date; and (3) that Seller has, in
      all material respects, performed and complied with all of its obligations,
      covenants, and agreements set forth in this Agreement to be performed and
      complied with on or prior to the Closing Date;

	 	 	 
		(e) 	
      Certificate as to Systems. A certificate, dated as
      of the Closing Date, executed by the President of Seller, certifying: (1)
      the number of Subscribers of the Systems as of the Closing Date; and (2)
      the standard average service rate charged to individual subscribers of
      such system during the last full calendar month preceding the month in
      which the Closing Date occurs;

	 	 	 
		(f) 	
      UCC Search. A search for UCC-1 filings in the
      records of the Secretary of State of the State of Indiana and any
      appropriate local filing office and in the records of each county in which
      any of the Assets are located;

	 	 	 
		(g) 	
      Title Insurance. A title insurance policy,
      obtained at Seller’s expense, from a title insurance company satisfactory
      to Buyer for an ALTA owner’s policy of title insurance covering each
      parcel of Real Property included in the Assets, insuring fee simple title
      subject only to liens and encumbrances expressly permitted by this
      Agreement, in an amount equal to the fair market value of the Real
      Property;

	 	 	 
		(h) 	
      Licenses, Contracts, Business Records, Etc. Copies
      of all Grants of Authority, Governmental Licenses, Contracts, blueprints,
      schematics, working drawings, plans, projections, statistics, engineering
      records, and all files and records used by Seller in the operations of the
      System;

24

		(i) 	
      Accounts Receivable. A complete and accurate list
      of the Accounts Receivable, including, with respect to each account
      Receivable, the account number, date of issuance, name and address of
      account debtor, aggregate amount, and balance due, together with any
      resolution or other documents that Buyer reasonably requests to permit
      Buyer to deposit any collections on any Accounts Receivable into its bank
      accounts; and

	 	 	 
	9.3 	
      Deliveries by Buyer. Prior to or on
      the Closing Date, or subsequent to the Closing Date as may be provided in
      Section 2.3(d) above, Buyer shall deliver to Seller the following, in form
      and substance reasonably satisfactory to Seller and its counsel:

	 	 	 
		(a) 	
      Consideration. The consideration for the Assets as
      provided in Section 2.3, subject to Section 2.3(b) above;

	 	 	 
		(b) 	
      Assumption Agreement. An assumption agreement,
      pursuant to which Buyer will assume and undertake to perform Seller’s
      obligations under the Assumed Contracts and Grants of Authority arising
      after the Effective Time, to the extent specified in Section 2.4;
    and

	 	 	 
		(c) 	
      Certificate of Compliance. A certificate, dated as
      of the Closing Date, executed on behalf of Buyer by its President,
      certifying (1) that the representations and warranties of Buyer contained
      in this Agreement are true and complete in all material respects as of the
      Closing Date as though made on and as of that date, and (2) that Buyer
      has, in all material respects, performed and complied with all of its
      obligations, covenants, and agreements set forth in this Agreement to be
      performed and complied with on or prior to the Closing
  Date.

SECTION 10. TERMINATION

         This Agreement may
be terminated by either Buyer or Seller, if the terminating party is not then in
material default, upon written notice to the other party, upon the occurrence of
any of the following: 

	 	(a) 	
      Conditions. If on the Closing Date any of the
      conditions precedent to the obligations of the terminating party set forth
      in this Agreement have not been satisfied or waived in writing by the
      terminating party.

	 	 	 
	 	(b) 	
      Judgments. If there shall be in effect on the
      Closing Date any judgment, decree, or order that would prevent or make
      unlawful the Closing of this Agreement.

	 	 	 
	 	(c) 	
      Upset Date. If the Closing shall not have occurred
      prior to April 30, 2009, provided, however that Buyer may elect to extend
      this date by 30 days upon giving written notice to Seller pursuant to
      section 13.2 herein.

25

SECTION 11. SURVIVAL OF REPRESENTATIONS AND
WARRANTIES AND

  INDEMNIFICATION. 

	11.1 	
      Representation and Warranties. All
      representations, warranties and covenants not to compete contained in this
      Agreement shall be deemed continuing representations, warranties and
      covenants and shall survive the Closing. Any investigations by or on
      behalf of any party hereto shall not constitute a waiver as to enforcement
      of any representation, warranty, or covenant contained herein. No notice
      or information delivered by Seller pursuant to Section 5.1(g) or Section
      5.1(h) shall modify or limit any of Seller’s representations and
      warranties, affect Buyer’s right to rely on any representation or warranty
      made by Seller, or relieve Seller of any obligations hereunder as the
      result of a breach of any of its representations and warranties.

	 	 	 
	11.2 	
      Indemnification by Seller. Notwithstanding
      the Closing, and regardless of any investigation made at any time by or on
      behalf of Buyer or any information Buyer may have, Seller agrees to
      indemnify and hold Buyer harmless against and with respect to, and shall
      reimburse Buyer for:

	 	 	 
		(a) 	
      Breach. Any and all losses, liabilities, or
      damages resulting from any untrue representation, breach of warranty, or
      nonfulfillment of any covenant by Seller contained herein or in any
      certificate, document, or instrument delivered to Buyer
  hereunder;

	 	 	 
		(b) 	
      Obligations. Any and all obligations of Seller not
      assumed by Buyer pursuant to the terms of this Agreement, including any
      and all liabilities arising at any time under any Contract or Grant of
      Authority not included in the Assumed Contracts and Grants of
      Authority;

	 	 	 
		(c) 	
      Ownership. Any and all losses, liabilities, or
      damages resulting from the operation or ownership of the Systems prior to
      the Effective Time, including any and all liabilities arising under the
      Grants of Authority, Governmental Licenses, or the Contracts which relate
      to events occurring prior to the Effective Time; and

	 	 	 
		(d) 	
      Legal Matters. Any and all actions, suits,
      proceedings, claims, demands, assessments, judgments, costs, and expenses,
      including reasonable legal fees and expenses, incident to any of the
      foregoing or incurred in investigating or attempting to avoid the same or
      to oppose the imposition thereof, or in enforcing this
indemnity.

	 	 	 
	11.3 	
      Indemnification by Buyer.
      Notwithstanding the Closing, and regardless of any investigation made
      at any time by or on behalf of Seller or any information Seller may have,
      Buyer hereby agrees to indemnify and hold Seller harmless against and with
      respect to, and shall reimburse Seller for:

26

	 	(a) 	
      Breach. Any and all losses, liabilities, or
      damages resulting from any untrue representation, breach of warranty, or
      nonfulfillment of any covenant by Buyer contained herein or in any
      certificate, document, or instrument delivered to Seller
  hereunder;

	 	 	 
	 	(b) 	
      Ownership. Any and all losses, liabilities, or
      damages resulting from the operation or ownership of the Systems after the
      Effective Time, including any and all liabilities arising under the
      Governmental Licenses or the Assumed Contracts and Grants of Authority
      which relate to events occurring after the Effective Time, but in all
      instances excluding any liabilities arising under any Excluded Assets;
      and

	 	 	 
	 	(c) 	
      Legal Matters. Any and all actions, suits,
      proceedings, claims, demands, assessments, judgments, costs and expenses,
      including reasonable legal fees and expenses, incident to any of the
      foregoing or incurred in investigating or attempting to avoid the same or
      to oppose the imposition thereof, or in enforcing this
  indemnity.

	11.4 	
      Procedure for Indemnification. The
      procedure for indemnification shall be as
follows:

	 	(a) 	
      Notice. The party claiming indemnification
      pursuant to this Agreement (the “Claimant”) shall promptly give notice to
      the party from whom indemnification is claimed (the “Indemnitor”) of any
      claim, whether solely between the parties or brought by a third party,
      specifying the factual basis for the claim, and the amount of the
      claim.

	 	 	 
	 	(b) 	
      Investigation. With respect to claims between the
      parties, following receipt of notice from the Claimant of a claim, the
      Indemnitor shall have thirty days to make any investigation of the claim
      that the Indemnitor deems necessary or desirable. For the purposes of this
      investigation, the Claimant agrees to make available to the Indemnitor
      and/or its authorized representatives the information relied upon by the
      Claimant to substantiate the claim. If the Claimant and the Indemnitor
      cannot agree as to the validity and amount of the claim within the 30-day
      period (or any mutually agreed upon extension thereof), the Claimant may
      seek appropriate legal remedy. In the event of any post-Closing claims by
      Seller, such amounts may be set-off against amounts payable under the
      Note.

	 	 	 
	 	(c) 	
      Control. With respect to any claim by a third
      party as to which the Claimant is entitled to indemnification hereunder,
      the Indemnitor shall have the right at its own expense to participate in
      or assume control of the defense of the claim, and the Claimant shall
      cooperate fully with the Indemnitor, subject to reimbursement for actual
      out-of-pocket expenses incurred by the Claimant as the result of a request
      by the Indemnitor. If the Indemnitor elects to assume control of the
      defense of any third-party claim, the Claimant shall have the right to
      participate in the defense of the claim at its own expense. If the
      Indemnitor does not elect to assume control or otherwise participate
in the defense of any third party claim, it shall be bound by the results
obtained by the Claimant with respect to the claim. 

27

SECTION 12. CERTAIN REMEDIES

	12.1 	
      Debt Forgiven and Liquidated Damages.
      The Debt forgiven by Buyer pursuant to Section 2.2(d) shall be
      reinstated, including any interest due thereon if this Agreement is
      terminated due to a breach by Seller of its representations, warranties,
      and covenants under this Agreement. If this Agreement is terminated by
      Seller due to a breach by Buyer of its representations, warranties, and
      covenants under this Agreement, then the Debt forgiven shall constitute
      liquidated damages, it being agreed that this amount shall constitute full
      payment for any and all damages suffered by Seller by reason of Buyer’s
      failure to close this Agreement. Buyer and Seller agree in advance that
      Seller’s actual damages if Buyer breaches its obligations hereunder would
      be difficult to ascertain and that the amount of the Debt forgiven is a
      fair and equitable amount to reimburse Seller for damages sustained from
      the termination of this Agreement for the above-stated reason.

	 	 
	12.2 	
      Specific Performance. The parties
      recognize that if Seller refuses to perform under the provisions of this
      Agreement, monetary damages alone would not be adequate to compensate
      Buyer for its injury. Buyer shall therefore be entitled, in addition to
      any other remedies that may be available, including money damages, to
      obtain specific performance of the terms of this Agreement. If any action
      is brought by Buyer to enforce this Agreement, Seller shall waive the
      defense that there is an adequate remedy at law.

	 	 
	12.3 	
      Attorneys’ Fees. In the event of a default
      by Seller which results in the filing of a lawsuit for damages, specific
      performance, or other remedy, Buyer shall be entitled to reimbursement by
      Seller of reasonable legal fees and expenses incurred by
  Buyer.

SECTION 13. MISCELLANEOUS

	13.1 	
      Fees and Expenses. Seller shall pay
      any filing fees, transfer taxes, sales taxes, document stamps, or other
      charges levied by any governmental entity on account of the transfer of
      the Assets from Seller to Buyer. Except as otherwise provided in this
      Agreement, each party shall pay its own expenses incurred in connection
      with the authorization, preparation, execution, and performance of this
      Agreement, including all fees and expenses of counsel, accountants,
      agents, and representatives.

	 	 
	13.2 	
      Notices. All notices, demands, and requests
      required or permitted to be given under the provisions of this Agreement
      shall be in writing and shall be deemed to have been duly delivered and
      received (a) on the date of personal delivery, or (b) on
  the earlier of the date of receipt (as
shown on the return receipt) or refusal of delivery if mailed by registered or
certified mail, postage prepaid and return receipt requested, in each case
addressed as follows:

28

	 	If to Seller: 	Cue Connex, LLC 
	 	 	_____________________
	 	  	Hartford City, Indiana
  ________
	 	  	Attention: Mr. David Weddell
  
	 	  	  
	 	If to Buyer: 	Omnicity, Inc. 
	 	  	P.O. Box 8 
	 	  	Rushville, Indiana 
	 	  	Attention: Mr. Gregory Jarman
  

		
      Or to any other or additional persons and addresses as
      the parties may from time to time designate in a writing delivered in
      accordance with this Section 13.2

	 	 
	13.3 	
      Benefit and Binding Effect. Neither party
      hereto may assign this Agreement without the prior written consent of the
      other party hereto, except that, without the prior written consent of
      Seller, Buyer may assign its rights under this Agreement to any entity
      controlling, controlled by or under common control with Buyer or any
      successor of Buyer by way of merger, acquisition, reorganization or other
      similar corporate transaction (including, without limitation, Omnicity
      Corp), and, upon the assumption by such assignee of all liabilities and
      obligations of Buyer hereunder, Buyer shall be released from all
      liabilities and obligations to Seller pursuant to this Agreement. This
      Agreement shall be binding upon and inure to the benefit of the parties
      hereto and their respective successors and permitted assigns.

	 	 
	13.4 	
      Further Assurances. The parties
      shall take any actions and execute any other documents that may be
      necessary or desirable to the implementation and consummation of this
      Agreement, including, in the case of Seller, any additional bills of sale,
      deeds, or other transfer documents that, in the reasonable opinion of
      Buyer, may be necessary to ensure, complete, and evidence the full and
      effective transfer of the Assets to Buyer pursuant to this
    Agreement.

	 	 
	13.5 	
      Governing Law. This Agreement shall be
      governed, construed, and enforced in accordance with the laws of the State
      of Indiana (without regard to the choice of law provisions
  thereof).

	 	 
	13.6 	
      Headings. The headings herein are included
      for ease of reference only and shall not control or affect the meaning or
      construction of the provisions of this Agreement.

	 	 
	13.7 	
      Gender and Number. Words used herein
      regardless of the gender and number specifically used, shall be deemed and
      construed to include any other gender,

29

		
      masculine, feminine, or neuter, and any other number,
      singular or plural, as the context requires.

	 	 
	13.8 	
      Entire Agreement. This Agreement,
      all schedules and exhibits hereto, and all documents, certificates, and
      other documents to be delivered by the parties pursuant hereto,
      collectively represent the entire understanding and agreement between
      Buyer and Seller with respect to the subject matter hereof. This Agreement
      supersedes all prior negotiations between the parties and cannot be
      amended, supplemented, or changed except by an agreement in writing that
      makes specific reference to this agreement and which is signed by the
      party against which enforcement of any such amendment, supplement, or
      modification is sought.

	 	 
	13.9 	
      Counterparts. This Agreement may be
      signed in counterparts with the same effect as if the signature on each
      counterpart were upon the same instrument.

IN WITNESS WHEREOF, this Agreement has been executed by Buyer
and Seller as of the date first written above. 

 

OMNICITY, INC. 

 

By: /s/Richard
L. Beltzhoover
       Richard
L. Beltzhoover, CEO 

 

SELLER: 

CUE CONNEX, LLC 

 

By:/s/ David
Weddell   
       David
Weddell, President 

30

SCHEDULES

	 	A. 	
      Systems ( One paragraph defining each of the
      following):

	 		1. 	
      A description of the Systems as defined in the Agreement,
      showing the number of serviceable homes, subscribers and signal strengths
      associated with each tower or hard wire or fiber feeder (e.g. System A is
      tower located at (coordinates and address), covering (100) homes with a
      minimum signal level of - xxx dbmv, serving 25 subscribers (list number at
      each level of service and rate).

	 		2. 	
      Monitoring

	 		3. 	
      Billing

	 		4. 	
      Email

	 		5. 	
      Hosting

	 		6. 	
      Ticketing

	 		7. 	
      any other automation

	 	 	 	 
	 	B. 	
      Governmental Licenses (List if any)

	 	 	 	 
	 	C. 	
      Real Property

	 	 	 	 
	 		1. 	
      Rented Office/Storage Contracts

	 	 	 	 
	 		2. 	
      Owned Towers

	 	 	 	 
	 	D. 	
      Personal Property (Fixed Asset Listing, Inventory
      Listing)

	 	 	 	 
	 		1. 	
      Fixed Asset Listing

	 	 	 	 
	 		2. 	
      Inventory Listing

	 	 	 	 
	 	E. 	
      Assumed Contracts and Grants of Authority

	 	 	 	 
	 		1. 	
      Tower Contracts

	 	 	 	 
	 		2. 	
      Access Contracts (fiber, Internet)

	 	 	 	 
	 		3. 	
      Subscribers Contracts

	 	 	 	 
	 	F. 	
      Consents - Board

	 	 	 	 
	 	G. 	
      Intangibles – [List all]

31

	 	H. 	
      Financials – Current month and YTD financials

	 	 	 	 
	 	I. 	
      Insurance – Copies of all current insurance
  plans

	 	 	 	 
	 	J. 	
      Employees and Plans

	 	 	 	 
	 		1. 	
      Name

	 	 	 	 
	 		2. 	
      Address

	 	 	 	 
	 		3. 	
      Pay

	 	 	 	 
	 		4. 	
      Job Description

	 	 	 	 
	 		5. 	
      Insurance Packages

	 	 	 	 
	 	K. 	
      Claims and Legal Actions – Listing any and all

	 	 	 	 
	 	L. 	
      Rates, Fees, Reports, and Signals

	 	 	 	 
	 		1. 	
      List current rates in use

EXHIBITS

	 	A. 	
      Form 8594

32

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}]]