Document:

Exhibit 10.9

 

DEFINITIVE AGREEMENT

THIS DEFINITIVE
AGREEMENT (“Agreement”) is dated as of February 2, 2006 between Triton Distribution Systems, Inc., a Nevada corporation
(the “Company”), TDS Acquisition, LLC, a Colorado
limited liability company (“TDS”), and Gregory Lykiardopoulos
(“GL”) (the Company, TDS and GL
collectively, the “Parties”).

EXPLANATORY STATEMENT

A.            GL
was a principal and an officer and director of GRS Network, Inc. (“GRS”).

B.            TDS purchased from the Connecticut
Development Authority of the State of Connecticut (“CDA”) all of the CDA’s
right, title and interest in and to a certain indebtedness of GRS (Debt
Instrument”) and a security interest in the assets of GRS (the “Assets’)
collateralizing the Debt Instrument and TDS foreclosed on the Assets.

C.            The Company has purchased
certain of the Assets from TDS (consisting of certain equipment and furniture
but not the accounts or contracts or business of GRS) for a purchase price of
$200,000 and desires to assist in funding the commercialization of the Assets
through $100,000 already invested plus up to an additional $2,500,000 in
revolving debt or direct equity investment as further set forth in this
Agreement, with GL being employed by the Company to coordinate such
commercialization and with GL owning 40% of the equity of the Company.

D.            The Company and GL desire to formalize their
arrangement pursuant to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the foregoing Explanatory
Statement that is made a substantive part of this Agreement and the mutual
covenants and promises contained herein, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
Company and GL agree as follows:

ARTICLE
1

DEFINITIONS

1.1          Definitions. In addition to the terms defined elsewhere in this Agreement, the
following terms have the meanings indicated:

(a)                           “Assets” means all of the assets of GRS
that had collateralized the loan by the CDA to GRS and that are now owned by
the Company, including but not limited to all of the technology, patent rights,
tangible assets, intangible assets, contract rights, receivables inventory and
all other assets of whatever kind and nature owned by GRS.

(b)                           “Business Day” means any day other than
Saturday, Sunday or other day on which commercial banks in the City and County
of Denver, Colorado are authorized or required by law to remain closed.

(c)                           “Common Stock” means the common stock of
the Company with a par value of $0.001 per share.

 

 

(d)                           “EBITDA” means the earnings before interest, taxes,
depreciation and amortization.

(e)                           “GAAP” means United States generally accepted accounting
principles, consistently applied, adjusted to not account for expensing any
equity or options issued for services to GL.

 

 

“Governmental Entity” means any:

(f)            nation, state, county, city, town, village, district, or
other political jurisdiction of any nature;

(g)           federal, state, local, municipal, foreign, or other
government;

(h)           governmental or quasi-governmental authority of any nature
(including any governmental agency, branch, department, official, or entity and
any court or other tribunal);

(i)            multi-national organization or body; or

(j)            body exercising, or entitled to exercise, any
administrative, executive, judicial, legislative, police, regulatory, or taxing
authority or power of any nature.

(k)                           “Loss or Losses” means any and all losses,
claims, damages, liabilities, settlement costs and expenses, including, without
limitation, costs of preparation and reasonable attorneys’ fees.

(l)                            “Person” means any individual, corporation
(including any non-profit corporation), general or limited partnership, limited
liability company, joint venture, estate, trust, association, organization,
labor union, or other entity or Governmental Entity.

(m)                          “Proceeding” means an action, claim, suit, investigation or
proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

(n)

(o)                           “Securities” means, collectively, the
shares of Common Stock, the Warrants and the shares of Common Stock underlying
the Warrants as set forth in Section 3.2.

ARTICLE 2

STRUCTURE OF THE COMPANY

2.1          Entity
Formation.
The Company has been formed as a Nevada corporation.

2.2          Authorized Securities. The
authorized Securities of the Company (the “Authorized Securities”) consist of
100,000,000 shares of $.001 par value Common Stock and 10,000,000 shares of
$.001 par value preferred stock. The Company will authorize the Warrants
described in this Agreement.

2.3          Officers and
Directors.
The initial officers and directors shall be as set
forth on attached Schedule
2.3.

2.4          Issuance of
Initial Securities. Subject to the terms of
this Agreement and a budget agreed to by the board of directors, the Company
will issue the following Securities within ten (10) Business Days of the
date of this Agreement:

2.4.1       An
aggregate of 18,000,000 shares of its Common Stock equaling 60% of the issued
and outstanding shares of the Company’s Common Stock after giving effect to the
shares issued pursuant to Section 2.4.2 below to the investors (the “Investors”)
who are currently members of TDS, in the amounts as set forth next to each
Investor’s name on attached Schedule 

 

 

2.4.1 in consideration of $100,000 previously invested, the
sale  by TDS of all of the right, title
and interest in and to certain of the Assets to the Company and execution by
the Investors of the Revolving Credit Agreement, a copy of which is attached as
Exhibit A and made a part hereof,
to loan up to $2,500,000. The foregoing loan will be repaid solely from the
proceeds of the sale of additional Authorized Securities.

2.4.2       12,000,000
shares of its Common Stock equaling 40% of the total issued and outstanding
shares of the Company’s Common Stock to GL or his assigns in exchange for GL
executing the Employment Agreement described in Article 3 below. It is
agreed between the parties that the valuation of the Company as of the date of
the issuance of these shares is $300,000 and the valuation of the shares issued
to GL and assigns is $120,000.

2.5          Issuance of Additional Securities. No Securities other than those set forth in Section 2.4
of this Agreement will be issued by the Company without the prior written
consent of the Parties. The parties agree that the Company intends to go public
through a reverse merger with a publicly traded company (referred to herein as “Pubco”)
and to raise additional capital through the sale of equity securities of the
Company or Pubco. It is agreed that the sale of up to $5,000,000 of the Company’s
or Pubco’s Authorized Securities and any dilution to the Company shareholders
arising from the reverse merger  will
only dilute the Investors and that the shares issued to GL or his assigns will
continue to constitute 40% of the issued and outstanding shares of the Company’s
or Pubco’s Common Stock and that this will be accomplished  by the Investors cancelling their shares in
the amount  of the additional securities
of the Company or Pubco that are sold up to a maximum of $5,000,000 of sales of
such securities, the amount of dilution arising from the reverse merger and, in
addition, the amount of securities of Pubco issued to GL pursuant to the
excercise of the Warrants described in Section 3.2 hereof. The sale of
Authorized Securities in excess of $5,000,000 will dilute the Investors and GL
and his assigns equally in proportion to the shares of the Company’s or Pubco’s
Common Stock then held. Further, any underwriter warrants and equity consulting
fees, regardless of the amount of Authorized Securities sold, will dilute the
Investors and GL and  his assigns on a
percentage basis.

(p)                        2.6          Transfer Restrictions.

2.6.1       The
Securities may only be disposed of pursuant to an effective registration
statement under the Securities Act or pursuant to an available exemption from
the registration requirements of the Securities Act, and in compliance with any
applicable state securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or to The Company or
pursuant to Rule 144(k), except as otherwise set forth herein, The Company
may require the transferor to provide to the Company an opinion of counsel
selected by the transferor, the form and substance of which opinion shall be
reasonably satisfactory to The Company, to the effect that such transfer does
not require registration under the Securities Act.

2.6.2       The Parties agree to the imprinting, of a
legend substantially in the following form on any certificate evidencing
Securities:

“NEITHER THE ISSUANCE AND
SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO
WHICH THESE SECURITIES ARE [CONVERTIBLE] [EXERCISABLE]  HAS BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE 

 

 

COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS. NOTWITHSTANDING THE FOREGOING, THESE SECURITIES MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR
FINANCING ARRANGEMENT SECURED BY SUCH SECURITIES.”

2.7          Reservation of
Common Stock. The
Company shall maintain a reserve from its duly authorized shares of Common
Stock for issuance in such amount as may be required to fulfill its obligations
in full under this Article 2 and upon exercise of the Warrants under Section 3.2
below. In the event that at any time the then authorized shares of Common Stock
are insufficient for the Company to satisfy its obligations in full as set
forth above, the Company shall promptly take such actions as may be required to
increase the number of authorized shares.

ARTICLE 3

GL EMPLOYMENT AGREEMENT

3.1          Basic Terms of
Employment Agreement. Within ten (10) Business Days of the transfer of
all right title and interest to the Assets collateralizing the Debt Instrument
to the Company, GL will enter into an employment agreement (the “Employment
Agreement”), a copy of which is attached as Exhibit B
and made a part hereof, with the Company for a minimum term of three (3) years
and upon with such terms as are customary including but not limited to a
covenant not to compete and a confidentiality agreement and such other terms as
are acceptable to the Company and GL.

3.2          Additional
Terms of Employment Agreement. In addition to the
basic terms, the  Employment Agreement
will provide that GL will be issued Warrants upon his execution of the
Employment Agreement (with such date hereafter being  referred to as the “Grant Date” for purposes
of this Section)to purchase shares of Common Stock at a price per share equal
to the greater of $.01 per share or such other amount as is determined by
independent appraisal to be the fair market value per share for such Shares as
of the Grant Date, with such  Warrants
vesting  and becoming exercisable  as follows:

3.2.1       1,500,000 shares at such time that the
Company reports break even or better net operating income according to GAAP at
the conclusion of any three-month calendar period.

3.2.2       3,000,000 shares if, on or before December 31,
2007, the Company reports annual EBITDA of $44,000,000 according to GAAP.

3.2.3       3,000,000
shares, if, on or before December 31, 2008, the Company reports annual
EBITDA of $88,000,000 according to GAAP.

 

 

It
is the intent of the parties that the Warrants to be issued pursuant to this
Agreement and the Shares to be issued upon exercise thereof shall not be issued
in violation of or subject to taxation under Section 409A of the Internal
Revenue Code.

ARTICLE 4

INDEMNIFICATION

(q)                        4.1          Indemnification.

4.1.1       Indemnification by GL. GL shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless
the Company and each of its officers, directors, partners, members and agents
and indemnify and hold harmless each of the Investors and each of their
officers, directors, partners, members, agents, brokers, investment advisors
and employees of each of them, each Person who controls any such Investor
(within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act) and the officers, directors, partners, members, agents and
employees of each such controlling Person (all of the foregoing collectively,
the “Indemnified Parties”), to the fullest extent permitted by applicable law,
from and against any and all Losses, as incurred, asserted against the Company,
any of the Investors or any of the other Indemnified Parties by any creditors
of GL, GRS or any creditor of any other company previously operated by GL,
including but not limited to claims of the IRS, investors or shareholders
of  GL, GRS or any other company
previously operated by GL, former employees of GRS or any other company
previously operated by GL, or any other creditor of GRS. The Indemnified Parties
shall notify GL promptly of the institution, threat or assertion of any
Proceeding of which such Indemnified Party is aware in connection with the
transactions contemplated by this Agreement.

4.1.2       Conduct of Indemnification Proceedings. If any Proceeding shall be brought or
asserted against any Person entitled to indemnity hereunder such Indemnified
Party shall promptly notify GL in writing, and GL shall assume the defense
thereof, including the employment of counsel reasonably satisfactory to the
Indemnified Party and the payment of all fees and expenses incurred in
connection with defense thereof; provided, that the failure of any Indemnified
Party to give such notice shall not relieve GL of his obligations or
liabilities pursuant to this Agreement, except (and only) to the extent that it
shall be finally determined by a court of competent jurisdiction (which
determination is not subject to appeal or further review) that such failure
shall have proximately and materially adversely prejudiced GL.

An Indemnified Party shall have the right to employ separate counsel in
any such Proceeding and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Party or
Parties unless:  (i) GL has agreed
in writing to pay such fees and expenses; or (ii) GL shall have failed
promptly to assume the defense of such Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or (iii) the
named parties to any such Proceeding (including any impleaded parties) include
both such Indemnified Party and GL, and such Indemnified Party shall have been
advised by counsel that a conflict of interest is likely to exist if the same
counsel were to represent such Indemnified Party and GL (in which case, if such
Indemnified Party notifies GL in writing that it elects to employ separate
counsel at the expense of GL, GL shall not have the right to assume the defense
thereof and such counsel shall be at the 
reasonable expense of GL). GL shall not be liable for any settlement of
any such Proceeding effected without his written consent, which consent shall
not be unreasonably withheld. GL shall not, without the prior written consent
of the Indemnified Party, effect any settlement of any pending Proceeding in 

 

 

respect
of which any Indemnified Party is a party, unless such settlement includes an
unconditional release of such Indemnified Party from all liability on claims
that are the subject matter of such Proceeding.

(r)                            All fees and expenses of the
Indemnified Party (including reasonable fees and expenses to the extent
incurred in connection with investigating or preparing to defend such
Proceeding in a manner not inconsistent with this Section) shall be paid to the
Indemnified Party, as incurred, within ten (10) Business Days of written
notice thereof to GL (regardless of whether it is ultimately determined that an
Indemnified Party is not entitled to indemnification hereunder; provided, that
GL may require such Indemnified Party to undertake to reimburse all such fees and
expenses to the extent it is finally judicially determined that such
Indemnified Party is not entitled to indemnification hereunder).

4.1.3       Security
for Indemnification. GL agrees that for a
period of three (3) years from the Effective Date of the Employment
Agreement as that term is defined in the Employment Agreement, he will secure
his obligations of indemnification to the Company under this Article 4 by
a pledge of ten percent (10%) of all Securities of the Company owned of record
or beneficially owned by GL during such 3 -year period. At all times during
which the Shares are subject to this pledge, GL shall be treated as the owner
thereof, and as such shall be entitled to exercise all voting rights associated
therewith and shall receive all distributions, whether in the form of cash,
stock or property that are made with respect to the pledged shares during the
pledge term.

ARTICLE 5

CONDITIONS

(s)                           5.1          Conditions
Precedent to the Obligations of the Company. The obligations of
the Company regarding the transactions contemplated herein are subject to
the satisfaction or waiver by the Company of the condition that GL shall have
performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by him.

(t)                            5.2          Conditions
Precedent to the Obligations of the GL. The obligations of GL
regarding the transactions contemplated herein are subject to the satisfaction
or waiver of the condition that the Company shall have performed, satisfied and
complied in all material respects with all covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the
Company prior to performance by GL.

ARTICLE
6

MISCELLANEOUS

(u)                           6.1          Entire
Agreement. This Agreement, executed on July 5, 2006 to
reflect the agreements of the parties made on and as of February 2, 2006,
together with the exhibits and schedules hereto, contain the entire
understanding of the Parties with respect to the subject matter hereof and
restate and supersede all prior agreements and understandings, oral or written,
which the Parties acknowledge have been merged into such documents, exhibits
and schedules. Without further consideration, the Parties will execute and
deliver to each other such further documents as 

 

 

may be reasonably requested
in order to give practical effect to the intention of the Parties under this
Agreement.

(v)                           6.2          Notices.
Any notices, consents, waivers or other communications required or permitted to
be given under the terms of this Agreement must be in writing and will be
deemed to have been delivered:  (i) upon
receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or
electronically generated and kept on file by the sending party); or (iii) one
Business Day after deposit with an overnight courier service, in each case
properly addressed to the party to receive the same. The addresses and
facsimile numbers for such communications shall be as set forth on the
signature page of this Agreement or to such other address and/or facsimile
number and/or to the attention of such other Person as the recipient party has
specified by written notice given to each other party five (5) days prior
to the effectiveness of such change. Written confirmation of receipt (A) given
by the recipient of such notice, consent, waiver or other communication, (B) mechanically
or electronically generated by the sender’s facsimile machine containing the
time, date, recipient facsimile number and an image of the first page of
such transmission or (C) provided by an overnight courier service shall be
rebuttable evidence of personal service, receipt by facsimile or receipt from
an overnight courier service in accordance with clause (i), (ii) or (iii) above,
respectively.

(w)                          6.3          Amendments;
Waivers. No provision of this Agreement may be waived or amended
except in a written instrument signed, in the case of an amendment, by GL and
the Company or, in the case of a waiver, by the party against whom enforcement
of any such waiver is sought. No waiver of any default with respect to any
provision, condition or requirement of this Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any subsequent default or a
waiver of any other provision, condition or requirement hereof, nor shall any
delay or omission of either party to exercise any right hereunder in any manner
impair the exercise of any such right.

(x)                            6.4          Construction.
The headings herein are for convenience only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions
hereof. The language used in this Agreement will be deemed to be the language
chosen by the Parties to express their mutual intent, and no rules of
strict construction will be applied against any party.

(y)                           6.5          Successors
and Assigns. This Agreement shall be binding upon and inure to
the benefit of the Parties and their successors and permitted assigns. GL may
not assign this Agreement or any rights or obligations hereunder without the
prior written consent of the Company.

(z)                            6.6          No
Third-Party Beneficiaries. This Agreement is intended for the
benefit of the Parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person.

(aa)                         6.7          Governing
Law; Venue. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY,
ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF COLORADO. GL
AND THE COMPANY HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE
STATE AND FEDERAL COURTS SITTING IN THE CITY AND COUNTY OF DENVER, COLORADO FOR
THE ADJUDICATION OF ANY DISPUTE BROUGHT BY GL 

 

 

OR COMPANY HEREUNDER, IN
CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED
HEREIN AND HEREBY IRREVOCABLY WAIVE, AND AGREE NOT TO ASSERT IN ANY SUIT,
ACTION OR PROCEEDING BROUGHT BY GL OR THE COMPANY, ANY CLAIM THAT IT IS NOT
PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT,
ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL
SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT,
ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL
OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS
IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE
SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF.
NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE
PROCESS IN ANY MANNER PERMITTED BY LAW.

(bb)                         6.8          Survival.
The representations, warranties, agreements and covenants contained herein
shall survive the delivery and/or exercise of the Securities, as applicable.

(cc)                         6.9          Execution.
This Agreement may be executed in two or more counterparts, all of which when
taken together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that both Parties need not sign the same
counterpart. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile signature page were an original
thereof.

(dd)                         6.10        Severability.
If any provision of this Agreement is held to be invalid or unenforceable in
any respect, the validity and enforceability of the remaining terms and
provisions of this Agreement shall not in any way be affected or impaired
thereby and the Parties will attempt to agree upon a valid and enforceable
provision that is a reasonable substitute therefor, and upon so agreeing, shall
incorporate such substitute provision in this Agreement.

(ee)                         6.11        Remedies.
In addition to being entitled to exercise all rights provided herein or granted
by law, including recovery of damages, each of the Company and GL will be
entitled to specific performance under this Agreement. The Parties agree that
monetary damages may not be adequate compensation for any Loss incurred by
reason of any breach of obligations described in the foregoing sentence and
hereby agrees to waive in any action for specific performance of any such
obligation the defense that a remedy at law would be adequate.

(ff)                           6.12        Adjustments
in Share Numbers and Prices. In the event of any stock split,
subdivision, dividend or distribution payable in shares of Common Stock (or
other securities or rights convertible into, or entitling the holder thereof to
receive directly or indirectly shares of Common Stock), combination or other
similar recapitalization or event occurring after the date hereof, each
reference in this Agreement to a number of shares or a price per share shall be
amended to appropriately account for such event.

(gg)

[Remainder of Page Intentionally Blank; Signature Page Follows]

 

 

(hh)         IN WITNESS
WHEREOF, each of the Parties
hereto have caused their respective signature page to this Definitive
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above to reflect the agreements  made as of such date.

	
  

  	
  THE COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
  Triton Distribution Systems, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen D. Garland

  
	
   

  	
   

  	
  Stephen D. Garland, Director

  
	
   

  	
   

  	
   

  
	
   

  	
  TDS:

  
	
   

  	
   

  	
   

  
	
   

  	
  TDS Acquisition, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Underwood

  
	
   

  	
   

  	
  Michael Underwood, Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  GL:

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Gregory
  Lykiardopoulos

  
	
   

  	
  Gregory LykiardopoulosExhibit 10.10

EMLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into as of the 2nd
day of February, 2006, by and among Triton Distribution
Systems, Inc., a Nevada corporation (the “Company”), and Gregory Lykiardopoulos (“Gregory”).

EXPLANATORY STATEMENT

A.            The
Company desires to employ Gregory as provided herein.

B.            Gregory desires to accept such employment upon the terms
and conditions set forth herein.

C.            Gregory entered into a Definitive Agreement
(the “Definitive Agreement”) as of the date of this Agreement with investors in
the Company, a copy of which is attached as Exhibit A
and made a part hereof, and Gregory and the Company desire to incorporate the
terms and conditions of that agreement in this Agreement.

NOW, THEREFORE, in consideration of the foregoing
Explanatory Statement that is made a substantive part of this Agreement and the
mutual covenants and agreements contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

1.             Employment. The
Company hereby employs Gregory and Gregory hereby accepts employment with the
Company as it Chief Executive Officer upon the terms and conditions hereinafter
set forth.

2.             Duties.
Gregory will serve the Company as Chief Executive Officer and President and
will faithfully and diligently perform the services and functions relating to
such positions or otherwise reasonably incident to such positions, provided
that all such services and functions will be reasonable and within Gregory’s
area of expertise. Gregory will report directly to the Board of Directors (“Board”). Gregory will have the responsibilities, duties and
authorities that are customarily associated with such positions. The Board of
Directors may modify Gregory’s duties and objectives at its discretion from
time to time. Gregory will, during the term of this Agreement (or any extension
thereof), devote his time, attention and skills and best efforts as a full time
employee to the promotion of the business of the Company.

3.             Term. This Agreement
and Gregory’s employment shall commence on the 2nd day of February, 2006 (the “Effective
Date”) and shall continue for a term of three years (“Initial Term”) unless
terminated earlier in accordance with this Agreement. The term of this
Agreement may be extended by agreement of the Company and Gregory.

4.             Compensation. As
compensation for the services rendered to the Company under this Agreement
commencing on the Effective Date hereof, Gregory will be paid a base salary of
Two Hundred Fifty Thousand dollars ($250,000) per year, payable monthly, in
arrears, in two monthly installments or in accordance with the then current
payroll policies of the Company or as otherwise agreed to by the parties (the “Salary”).
At any time and from time to time, the Salary may be increased if so determined
by the Company’s board of directors after a review of Gregory’s performance of
his duties hereunder.

5.             Termination. This
Agreement will terminate upon the occurrence of any of the following events:

 

 

a.                                       The death of Gregory;

b.                                      The “Total Disability” (as hereinafter
defined) of Gregory;

c.                                       Written notice to Gregory from the Company of
termination for “Cause” (as hereinafter defined);

d.                                      The voluntary termination of this Agreement
by either party upon sixty (60) days prior written notice;

e.                                       The later of three (3) years from the
Effective Date of this Agreement or the date to which this Agreement is
extended in accordance with Section 3 above; or

f.                                         Written notice to Gregory from the Company
for any reason without “Cause.”

For purposes of Section 5b, the term “Total
Disability” means physical or mental disability, or both, determined to be (or
reasonably expected to be, based upon then available medical information) of
not less than twelve (12) months duration or more. The determination shall rest
upon the opinion of the physician regularly attending Gregory. If the Company
disagrees with said physician’s opinion, the Company may engage at their own
expense a physician to examine the Gregory, and Gregory hereby consents to such
examination and to waive, if applicable any privilege between the physician and
Gregory that may arise as a result of said examination. If after conferring,
the two physicians cannot concur on a final opinion, they shall choose a third
consulting physician whose opinion shall control. The expense of the third
consulting physician shall be borne equally by the Gregory and the Company.

For purposes of Section 5c, “Cause” means (i) Gregory
has failed to substantially perform his duties as reasonably determined by the
Board of Directors of the Company, (ii) Gregory engages in poor
performance that is not cured within thirty (30) days after counseling by the
Company, (iii) Gregory has failed to comply with the reasonable directives
and policies of the Board of Directors of the Company , or (iv) Gregory
breaches his fiduciary duty to the Company or commits any dishonest, unethical,
fraudulent, or felonious act.

6.             Benefits.
Gregory shall be entitled to participate in any Company benefits as they become
available, if at all, including group medical and dental insurance, life
insurance, incentive compensation, deferred compensation, stock option plans or
other Company programs or plans. At reasonable times and upon prior Company
approval, Gregory shall be entitled to three weeks paid vacation per calendar
year for each year employed during the term of this Agreement.

7.             Additional Compensation.
Specifically subject to Section 9c , Gregory is hereby granted and issued
as of the date of this Agreement (the “Grant Date”) warrants (the “Warrants”)
to purchase shares of the Company’s Common Stock at a price per share equal to
the greater of  $.01 per share or such
other amount as is determined by independent appraisal to be the fair market
value per share of such Shares as of the Grant Date, with such warrants vesting
and becoming  exercisable as follows:

a.             1,500,000 shares at such time that as the
Company reports break even or better net operating income according to
generally accepted accounting principals (“GAAP”) at the conclusion of any
three-month calendar period.

b.             An additional 3,000,000 shares if, on or
before December 31, 2007, the Company reports annual EBITDA of $44,000,000
according to GAAP.

 2
 

 

 

c.             An
additional 3,000,000 shares, if, on or before December 31, 2008, the
Company reports annual EBITDA of $88,000,000 according to GAAP.

For purposes of this Agreement, the term “GAAP”
means United States generally accepted accounting principles, consistently
applied, adjusted to not account for expensing any equity or options issued for
services to GL.

 It is the
intent of the Parties that the Warrants to be issued pursuant to this Agreement
and the Shares to be issued upon exercise thereof shall not be issued in
violation of or subject to taxation under Section 409A of the Internal
Revenue Code. In the event of any termination of Gregory’s employment, any
Warrants that have not previously been exercised shall immediately terminate.
In addition, all Warrants to be granted herein shall be exercisable in
accordance with the following and Section 9c below:

a.             If
Gregory’s employment is terminated for any reason other than “for Cause” as
defined herein, then the unexercised Warrants shall be exercisable for a period
of either (i) forty-five (45) days from the termination of Gregory’s
employment or (ii) the end of the initial term of this Agreement or any
extension thereof; whichever period is later.

b.             If
Gregory’s employment by the Company is terminated “for Cause” as defined in
this Agreement, then all unexercised Warrants granted to Gregory shall
immediately terminate and not be exercisable upon notice of Gregory’s
termination of employment “for Cause.”

8.             Business Expenses.
Upon submission of proper documentation, the Company shall pay or reimburse
Gregory for all reasonable and necessary office, telephone, travel and other
expenses which are incurred by Gregory in the pursuit of Gregory’s duties on
behalf of the Company.

9.             Non-Competition and
Confidentiality.

a.             Non-Competition. The Company and Gregory acknowledge and
agree that Gregory’s services are of a special and unusual character which have
a unique value to the Company, the loss of which cannot be adequately
compensated by damages in an action at law and if used in competition with the
Company, could cause serious harm to the Company. Accordingly, Gregory agrees
that during the term of this Agreement and for a period of three (3) years
after the termination of this employment by the Company, irrespective of the
reason for such termination, Gregory will not (1) enter into any agreement
with or directly or indirectly solicit or attempt to solicit any employee or
other representatives of the Company (the “Company”) for the purpose of causing
them  to leave the Company to take
employment with any other business entity, or (2) compete, directly or
indirectly, with the Company in any way and that Gregory will not act as an
officer, director, employee, consultant, shareholder, lender or agent of any
entity engaged in any business of the same nature as, or in competition with,
the business in which the Company is now engaged, was engaged during Gregory’s
employment or is engaged at the time of Gregory’s termination of employment,
except for the ownership of less than five percent (5%) of the outstanding
capital stock of a publicly traded company.

b.             Confidentiality.

(1)           Gregory acknowledges that in Gregory’s
employment hereunder, Gregory will be making use of, acquiring and adding to
the Company’s trade secrets and its confidential and proprietary information of
a special and unique nature and value relating to such matters as, but not
limited to, the Company’s business operations, internal structure, financial
affairs, programs, software systems, procedures, manuals, confidential reports,
lists of clients and prospective clients and sales and marketing methods, as
well as the amount, nature and type of services, equipment and methods used and

 3
 

 

 

preferred by the Company’s clients and the fees paid by such clients,
all of which shall be deemed to be confidential information. Gregory
acknowledges that such confidential information has been and will continue to
be of central importance to the business of the Company and that disclosure of
it to or its use by others could cause substantial loss to the Company. In
consideration of employment by the Company, Gregory agrees that during the
Initial Term and any renewal term of this Agreement and upon and after leaving
the employ of the Company for any reason whatsoever, Gregory shall not, for any
purpose whatsoever, directly or indirectly, divulge or disclose to any person
or entity any of such confidential information which was obtained by Gregory as
a result of the Gregory’s employment with the Company or any trade secrets of
the Company, but shall hold all of the same confidential and inviolate.

(2)           All
contracts, agreements, financial books, records, instruments and documents;
client lists; memoranda; data; reports; programs; software, tapes; Rolodexes;
computer files and records including but not limited to those on any computer
hard drives or media, telephone and address books; letters; research; card
decks; listings; programming; and any other instruments, records or documents
relating or pertaining to clients serviced by the Company or Gregory, the
services rendered by Gregory, or the business of the Company (collectively, the
“Records”) shall at all times be and remain the property of the Company. Upon
termination of this Agreement and Gregory’s employment under this Agreement for
any reason whatsoever, Gregory shall return to the Company all Records (whether
furnished by the Company or prepared by Gregory), and Gregory shall neither
make nor retain any copies of any of such Records after such termination.

(3)           All
inventions and other creations, whether or not patentable or copyrightable, and
all ideas, reports and other creative works, including, without limitation,
computer programs, manuals and related materials, made or conceived in whole or
in part by Gregory while employed by the Company and within one year
thereafter, which relate in any manner whatsoever to the business, existing or
proposed, of the Company or any other business or research or development
effort in which the Company or any of its subsidiaries or affiliates engages
during Gregory’s employment by the Company will be disclosed promptly by
Gregory to the Company and shall be the sole and exclusive property of the
Company. All copyrightable works created by Gregory and covered by this Section 9b(3) shall
be deemed to be works for hire. Gregory shall cooperate with the Company in
patenting or copyrighting all such inventions, ideas, reports and other
creative works, shall execute, acknowledge, seal and deliver all documents
tendered by the Company to evidence its ownership thereof through the world,
and shall cooperate with the Company obtaining, defending and enforcing its
rights therein.

c.             Certain Claims Upon
Termination. Gregory understands that if within one year from the
date of this Agreement Gregory has either (i) committed an act of theft,
dishonesty, gross dereliction of duty, fraud, embezzlement, misappropriation,
or breach of fiduciary duty against the Company or any other act of comparable
misconduct against the Company; or (ii) engaged in conduct constituting “Cause”
as defined in Section 5 of this Agreement, then the Company shall have the
right to purchase any or all shares of Common Stock of the Company owned by
Gregory at the time of such termination for a purchase price equal to the amount
that Gregory paid for such shares together with interest thereon at ten percent
(10%) per annum. If the Company desires to exercise such right, it shall notify
Gregory within 60 days after the date of such termination and Gregory shall
tender the shares being purchased by the Company at the time and place
designated in such notice from the Company upon receipt of the purchase price
for such shares. If Gregory fails to tender such shares, the shares shall be
deemed to be canceled as of the date the Company tenders payment of the
purchase price thereof.

d.             Enforceability. In the event of the breach of the covenants
contained in this Section 9, it is understood that damages will be
difficult to ascertain and the Company may petition a court of law or equity
for injunctive relief in addition to any other relief which the Company may
have under the law, this Agreement or any other agreement executed in
connection herewith. In connection with the bringing of any legal or equitable
action for the enforcement of this Agreement, the Company 

 4
 

 

 

shall be entitled to recover, whether the Company seeks equitable
relief, and regardless of what relief is afforded, such reasonable attorneys’
fees and expenses as the Company may incur in prosecution of the Company’s claim
for breach hereof.

It is hereby agreed that the provisions of this Section 9
are separate and independent from the other provisions of this Agreement, that
these provisions are specifically enforceable by the Company notwithstanding
any claim by Gregory that the Company has violated or breached this Agreement
or any claim that Gregory is entitled to any offset or compensation.

To induce the Company to enter into this Agreement,
Gregory represents and warrants to the Company that Section 9 of this
Agreement is enforceable by the Company in accordance with its terms.

The parties hereto agree that to the extent that any
provision or portion of Section 9 of this Agreement shall be held, found
or deemed to be unreasonable, unlawful or unenforceable by a court of competent
jurisdiction, then any such provision or portion thereof shall be deemed to be
modified to the extent necessary in order that any such provision or portion
thereof shall be legally enforceable to the fullest extent permitted by
applicable law; and the parties hereto do further agree that any court of
competent jurisdiction shall, and the parties hereto do hereby expressly
authorize, request and empower any court of competent jurisdiction to, enforce
any such provision or portion thereof or to modify any such provision or
portion thereof in order that any such provision or portion thereof shall be
enforced by such court to the fullest extent permitted by applicable law.

10.           Definitive  Agreement. The Definitive  Agreement is incorporated into this Agreement
including  Article 4 of the
Definitive Agreement .

11.           Waiver of Breach.
The waiver by any party hereto of a breach of any provision of this Agreement
will not operate or be construed as a waiver of any subsequent breach by any
party.

12.           Notices. Any
notices, consents, demands, request, approvals and other communications to be
given under this Agreement by either party to the other will be deemed to have
been duly given if given in writing and personally delivered, faxed or if sent
by mail, registered or certified, postage prepaid with return receipt
requested, as follows:

	
  If to the Company:

  	
  Triton Distribution Services, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  If to Gregory:

  	
  Gregory Lykiardopoulos

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

Notices
delivered personally will be deemed communicated as of actual receipt, notices
by fax shall be deemed delivered when such notices are faxed to recipient’s fax
number and notices by mail shall be deemed delivered when mailed.

13.           Entire Agreement.
This Agreement, executed on July 5, 2006 to reflect the agreement of the
parties made on and as of February 2, 2006,  and the agreements contemplated hereby
constitute the entire agreement of the parties regarding the subject matter
hereof, and supersede and restate all prior agreements and understanding, both
written and oral, among the parties, or any of them, with respect to 

 5
 

 

 

the subject matter hereof except for the
Pre-Incorporation Agreement that is incorporated herein by reference.

14.           Severability. If
any provision of this Agreement is held to be illegal, invalid, or
unenforceable under present or future laws effective during this Agreement,
such provision will be fully severable and this Agreement will be construed and
enforced as if such illegal, invalid or unenforceable provision never comprised
a part hereof; and the remaining provisions hereof will remain in full force
and effect and will not be affected by the illegal, invalid or unenforceable
provision or by its severance herefrom. Furthermore, in lieu of such illegal,
invalid or unenforceable provision, there will be added automatically, as part
of this Agreement, a provision as similar in its terms to such illegal, invalid
or unenforceable provision as may be possible and be legal, valid and enforceable.

15.           Governing Law. To
the extent permitted by applicable law, this Agreement and the rights and
obligations of the parties will be governed by and construed and enforced
exclusively in accordance with the substantive laws (but not the rules governing
conflicts of laws) of the State of Colorado and the State of Colorado shall
have exclusive jurisdiction regarding any legal actions relating to this
Agreement.

16.           Captions. The
captions in this Agreement are for convenience of reference only and will not
limit or otherwise affect any of the terms or provisions hereof.

17.           Gender and Number.
When the context requires, the gender of all words used herein will include the
masculine, feminine and neuter, and the number of all words will include the
singular and plural.

18.           Counterparts and Facsimile Signatures. This Agreement may be executed in one or more
counterparts, each of which will be deemed an original and all of which will
constitute one and the same instrument. A facsimile signature shall be deemed
an original signature for all purposes.

IN
WITNESS WHEREOF, the parties hereto have duly executed this Employment
Agreement as of the day and year first above written.

	
  

  	
  THE
  COMPANY:

  
	
   

  	
  Triton
  Distribution Systems, Inc.,

  
	
   

  	
  a Nevada
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen D. Garland

  
	
   

  	
   

  	
  Stephen D. Garland, Director

  
	
   

  	
   

  	
   

  
	
   

  	
  GREGORY:

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Gregory
  Lykiardopoulos

  
	
   

  	
  Gregory
  Lykiardopoulos

  

 

 6

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