Document:

ex10_3.htm

    
      Exhibit
10.3

      

      SHARE
EXCHANGE AND ACQUISITION AGREEMENT

      

      BY
AND AMONG

      

      ROYAL
STYLE DESIGN, INC.

      

      AND

      

      DIVERSIFIED
GLOBAL HOLDINGS INC.

      

      Dated
NOVEMBER 20, 2009

       

       

       

       

      THIS EXCHANGE AGREEMENT (the
"Agreement"), is made and entered into as of November 20, 2009, by and among
Royal Style Design, Inc., a Florida corporation ("RSD"), and Diversified Global
Holdings Inc., a Delaware corporation ("DGH"), and the stockholders of DGH set
forth on the signature pages to this Agreement (collectively, "DGH" and the "DGH
Shareholders"), with respect to the following facts:

      

      RECITALS

      

      A.          The
DGH Shareholders own 100% of the issued and outstanding shares of DGH common
stock, no par value, in the denominations as set forth opposite their respective
names on Schedule I to this Agreement.

      

      B.           RSD
desires to acquire from the DGH Shareholders, and the DGH Shareholders desire to
sell and transfer to RSD, all of the DGH Shares owned by them on the Closing
Date in exchange for the issuance and delivery by RSD of shares of Common
Stock,  par value $.001 per share, of RSD ("Common Stock"), as set
forth in Schedule I hereto, on the terms and conditions set forth below (the
"Exchange"); and

       

      C.           The
Exchange shall qualify as a transaction in securities exempt from registration
or qualification under the Securities Act and under the applicable securities
laws of each state or jurisdiction where shareholders of the Company
reside.

       

      NOW,
THEREFORE, in consideration of the foregoing premises and representations,
warranties, covenants and agreements contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, the parties hereto
hereby agree as follows:

      

      ARTICLE
I

       

      EXCHANGE
OF SECURITIES

      Section
1.1 The Exchange.

      

      On the
terms and subject to the conditions of this Agreement, on the Closing Date, RSD
shall issue and deliver to each of the DGH Shareholders such number of shares of
Common Stock as is set forth opposite such DGH Shareholder name on Schedule I
hereto, and each such DGH Shareholder shall sell, transfer and deliver to RSD,
the number of issued and outstanding DGH Shares set forth opposite such DGH
Shareholder's name on Schedule I hereto along with a duly executed share
assignment endorsed in favor of RSD or the DGH Acquisition Subsidiary, as
specified by RSD.

       

      
        
          
          

        

        
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      ARTICLE
II

       

      THE
CLOSING

      

      Section
2.1 Closing Date.

      

      The
closing of the Exchange and the other transactions contemplated by this
Agreement (the "Closing") shall take place at the offices of RSD at 11:00 AM
on  November 20, 2009, or at such other location, date and time as RSD
and DGH may agree. The time and date upon which the Closing actually occurs
being referred to herein as the "Closing Date".

      

      Section
2.2 Transactions at Closing.

      

      At the
Closing, the following transactions shall take place and no transaction shall be
deemed to have been completed or any document delivered until all such
transactions have been completed and all required documents
delivered:

      

      (a) RSD
shall deliver the following documents:

      

      (i)
Validly executed stock certificates corresponding to the Common Stock issued in
the name of the DGH Shareholders in the amounts set forth in Schedule
I;

      

      (ii)
Certificate of good standing from the Secretary of State of the State of
Florida, dated at or about the Closing Date, to the effect that RSD is in good
standing under the laws of said state;

      

      (iii)
Certified copy of the Certificate of Incorporation of RSD, as certified by the
Secretary of State of the State of Florida at or about the Closing
Date;

      

      (iv) An
officer's certificate duly executed by RSD's chief executive officer to the
effect that the conditions set forth in Section 7.1(a) below have been
satisfied, dated as of the date of the Closing; and

      

      (v) Such
other documents and instruments as DGH may reasonably request.

      

      (b) DGH
shall deliver or cause to be delivered the following documents and/or shall take
the following actions:

      

      (i) DGH
shall deliver to RSD share certificates in the name of, or assigned to, RSD or
the DGH Acquisition Subsidiary, as specified by RSD, in respect of all DGH
Shares and shall register DGH Shares in the name of RSD or the DGH Acquisition
Subsidiary, as the case may be, in the shareholders register of
DGH;

      

      (ii)
Certificate of good standing from the Secretary of State of the State of
Delaware, dated at or about the Closing Date, to the effect that DGH is a
corporation organized and in good standing under the laws of said
jurisdiction;

      

      (iii)
Certified copy of the Certificate of Incorporation of DGH, as amended to the
Closing Date;

      

      (iv) An
officer's certificate duly executed by DGH's chief executive officer to the
effect that the conditions set forth in Section7.2(a) below have been satisfied,
dated as of the date of the Closing;

      

      (v) An
officer's certificate duly executed by DGH's Chief Executive Officer and
Secretary certifying that the attached stock register of DGH is an accurate and
complete stock register of DGH as of the Closing Date; and

      

      (vi) Such
other documents and instruments as RSD may reasonably request, including
documents evidencing such resignations from and appointments to the governing
body of DGH, effective the Closing Date, as are set forth in Schedule II
hereto.

      

      (c) The
DGH Shareholders shall deliver the following documents:

      

      (i) to
RSD, duly executed share assignments effecting the immediate and unconditional
sale, assignment and irrevocable transfer of DGH Shares to RSD or the DGH
Acquisition Subsidiary, as specified by RSD, free and clear of any liens, or any
other third party rights of any kind and nature, whether voluntarily incurred or
arising by operation of law; and

      

      (ii) to
DGH, as agent for RSD, all share certificates in respect of DGH
Shares.

       

      
        
          
          

        

        
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      ARTICLE
III

       

      REPRESENTATIONS
AND WARRANTIES OF RSD

       

      RSD
hereby makes the following representations and warranties to DGH and each DGH
Shareholder:

      

      Section
3.1 Organization and Qualification.

      

      RSD is
duly organized, validly existing and in good standing under the laws of its
jurisdiction of organization, with the corporate power and authority to own and
operate its business as presently conducted, except where the failure to be or
have any of the foregoing would not have a Material Adverse Effect. RSD is duly
qualified as a foreign corporation to do business and is in good standing in
each jurisdiction where the character of its properties owned or held under
lease or the nature of its activities makes such qualification necessary, except
for such failures to be so qualified or in good standing as would not have a
Material Adverse Effect. RSD has no subsidiaries and is not a participant in any
joint venture, partnership, or similar arrangement.

      

      Section
3.2 Authorization.

      

      RSD has
the requisite corporate power and authority to execute, deliver and perform its
obligations under this Agreement and to consummate the Exchange.

       

      Section
3.3 Validity and Effect of Agreement.

      

      This
Agreement has been duly and validly executed and delivered by RSD and, assuming
that it has been duly authorized, executed and delivered by the other parties
hereto, constitutes a legal, valid and binding obligation of RSD in accordance
with its terms except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, and other laws of general application affecting
enforcement of creditors' rights generally.

      

      Section
3.4 No Conflict.

      

      Neither
the execution and delivery of this Agreement by RSD nor the performance by such
parties of their respective obligations hereunder, nor the consummation of the
Exchange, will: (i) conflict with RSD's Certificate of Incorporation or Bylaws;
(ii) violate any statute, law, ordinance, rule or regulation, applicable to RSD
or any of the properties or assets of RSD; or (iii) violate, breach, be in
conflict with or constitute a default (or an event which, with notice or lapse
of time or both, would constitute a default) under, or permit the termination of
any provision of, or result in the termination of, the acceleration of the
maturity of, or the acceleration of the performance of any obligation of RSD
and/or affect any of the obligations hereunder, or result in the creation or
imposition of any Lien upon any properties, assets or business of RSD under, any
Contract or any order, judgment or decree to which RSD is a party or by which it
or any of its assets or
properties is bound or encumbered except, in the case of clauses (ii) and (iii),
for such violations, breaches, conflicts, defaults or other occurrences which,
individually or in the aggregate, would not have a material adverse effect on
its obligation to perform its covenants under this Agreement.

      

      Section
3.5 Required Filings and Consents.

      

      The
execution and delivery of this Agreement by RSD does not, and the performance of
this Agreement by RSD will not, require any consent, approval, authorization or
permit of, or filing with or notification to, Governmental Authority with
respect to RSD except: (i) compliance with applicable requirements of the
Securities Act, the Exchange Act and state securities laws ("Blue Sky Laws");
and (ii) where the failure to obtain such consents, approvals, authorizations or
permits, or to make such filings or notifications would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect on RSD,
or would not prevent or materially delay consummation of the Exchange or
otherwise prevent the parties hereto from performing their respective
obligations under this Agreement.

      

      Section
3.6 Capitalization.

      

      The
authorized capital stock of RSD consists of 100,000,000 shares of Common Stock,
par value $.001 per share, of which 6,500,000 shares are issued and outstanding,
and 10,000,000 shares of Preferred Stock, par value $.001 per share, of which no
shares are outstanding. Except for the transactions contemplated by this
Agreement, there are no other share capital, pre-emptive rights, convertible
securities, outstanding warrants, options or other rights to subscribe for,
purchase or acquire from RSD any shares of capital stock of RSD and there are no
contracts or commitments providing for the issuance of, or the granting of
rights to acquire, any shares of capital stock of RSD or under which RSD is, or
may become, obligated to issue any of its securities. All shares of capital
stock of RSD outstanding as of the date of this Agreement have been duly
authorized and validly issued, are fully paid and non­assessable, and are
free of pre-emptive rights. As of the Closing Date (as defined herein), there
will be no more than 6,500,000 shares of Common Stock issued or outstanding
prior to the Exchange.

       

      
        
          
          

        

        
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      Section
3.7 Status of Common Stock.

      

      The
Common Stock, when issued and allotted at the Closing in exchange for DGH
Shares, will be duly authorized, validly issued, fully paid, non-assessable, and
free of any pre-emptive rights, will be issued in compliance with all applicable
laws concerning the issuance of securities,and will have the rights,
preferences, privileges, and restrictions set forth in RSD's charter and bylaws,
and will be free and clear of any Liens of any kind and duly registered in the
name of the DGH Shareholders, in RSD's stockholders ledger.

      

      Section
3.8 Litigation.

      

      There is
no Action pending or threatened against RSD that, individually or in the
aggregate, directly or indirectly, would be reasonably likely to have a Material
Adverse Effect, nor is there any outstanding judgment, decree or injunction, in
each case against RSD, that, individually or in the aggregate, has or would be
reasonably likely to have a Material Adverse Effect.

      

      Section
3.9 Books and Records.

      

      The books
and records, financial and others, of RSD are in all material respects complete
and correct and have been maintained in accordance with good business accounting
practices.

      

      Section
3.10 Insurance.

      

      RSD has
no insurable properties and RSD does not maintain any insurance covering its
assets, business, equipment, properties, operations, employees, officers, or
directors. To RSD's knowledge since inception there has not been any damage,
destruction or loss, which could have been deemed as an "Insurance
Event".

      

      Section
3.11 Compliance.

      

      RSD is in
compliance with all foreign, federal, state and local laws and regulations of
any Governmental Authority, except to the extent that failure to comply would
not, individually or in the aggregate, have a Material Adverse Effect. RSD has
not received any notice asserting a failure, or possible failure, to comply with
any such law or regulation, the subject of which notice has not been resolved as
required thereby or otherwise to the satisfaction of the party sending the
notice, except for such failure as would not, individually or in the aggregate,
have a Material Adverse Effect. RSD does not, and is not require to, hold any
permits, licenses or franchises from Governmental Authorities.

      

      Section
3.12 Absence of Certain Changes.

      

      Since
September 30, 2009, except as expressly permitted or required by this Agreement
or with the consent of DGH, RSD has not:

      

      (a) sold
or otherwise issued any shares of capital stock;

       

      (b)
acquired any assets or incurred any Liabilities;

      

      (c)
amended its certificate of incorporation or bylaws;

      

      (d)
waived any rights of value which in the aggregate are extraordinary or material
considering the business of RSD;

      

      (e) made
any material change in its method of management, operation or
accounting;

      

      (f) made
any accrual or arrangement for or payment of bonuses or special compensation of
any kind or any severance or termination pay to any present or former officer or
employee;

      

      
        
          
          

        

        
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        (g)
granted or agreed to grant any options, warrants or other rights for its stocks,
bonds or other corporate securities calling for the issuance thereof, which
option, warrant or other right has not been cancelled as of the Closing
Date;

      

      (h)
borrowed or agreed to borrow any funds or incurred or become subject to, any
material obligation or liability (absolute or contingent) except liabilities
incurred in the ordinary course of business;

      

      (i)
become subject to any law or regulation which materially and adversely affects,
or in the future may adversely affect, the business, operations, properties,
assets or condition of RSD or become subject to any change or development in, or
effect on, RSD that has or could reasonably be expected to have a Material
Adverse Effect; or

      

      (j)
entered into any agreement to take any action described in clauses (a) through
(i) above

      

      Section
3.13 Previous Sales of Securities.

      

      Since
inception, RSD has sold Common Stock to investors only in reliance upon
applicable exemptions from the registration requirements under any applicable
law including the laws of the United States and any applicable states and all
such sales were made in accordance with the laws of said
jurisdictions.

      

      Section
3.14 Principals of RSD.

      

      During
the past five years, no officer or director of RSD has been:

      

      (a) the
subject of any bankruptcy petition filed by or against any business of which
such person was a general partner or executive officer either at the time of the
bankruptcy or within two years prior to that time;

      

      (b) the
subject of any conviction in a criminal proceeding or being subject to a pending
criminal proceeding (excluding traffic violations and other minor
offenses);

      

      (c) the
subject of any order, judgment, or decree, not subsequently reversed, suspended
or vacated, of any court of competent jurisdiction, permanently or temporarily
enjoining, barring, suspending or otherwise limiting his involvement in any type
of business, securities or banking activities; or

      

      (d) found
by a court of competent jurisdiction (in a civil action), the Commission or the
Commodity Futures Trading Commission to have violated a federal or state
securities or commodities law, and the judgment has not been reversed,
suspended, or vacated.

      

      

      Section
3.15 Brokers and Finders.

      

      Neither
RSD, nor any of its respective officers, directors, employees or managers, has
employed any broker, finder, advisor or consultant, or incurred any liability
for any investment banking fees, brokerage fees, commissions or finders' fees,
advisory fees or consulting fees in connection with the Exchange for which RSD
has or could have any liability.

      

      Section
3.16 Disclosure.

      

      As of the
Closing Date, there is no known material fact or information relating to the
business, condition (financial or otherwise), affairs, operations or assets of
RSD and/or its subsidiaries that has not been disclosed in writing to DGH and/or
the DGH Shareholders by RSD. No representation or warranty of RSD in this
Agreement or any statement or document delivered in connection herewith or
therewith, contained or will contain any untrue statement of a material fact or
fail to state any material fact necessary in order to make the statements made,
in light of the circumstances under which they were made, not
misleading.

       

      
        
          
          

        

        
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      ARTICLE
IV

      

      REPRESENTATIONS
AND WARRANTIES OF DGH

      

      DGH
hereby makes the following representations and warranties to RSD:

       

      Section
4.1 Organization and Qualification.

       

      DGH is
duly organized and validly existing under the laws of the State of Delaware,
with the corporate power and authority to own and operate its business as
presently conducted, except where the failure to be or have any of the foregoing
would not have a Material Adverse Effect. DGH is duly qualified as a foreign
corporation to do business in each jurisdiction where the character of its
properties owned or held under lease or the nature of its activities makes such
qualification necessary, except for such failures to be so qualified as would
not have a Material Adverse Effect.

      

      Section
4.2 Subsidiaries.

      

      DGH has
three subsidiaries: Wood Imagination, Inc., a Florida corporation (“Wood
Imagination”); Forms Gallery, Inc., a Florida corporation (“Forms Gallery”); and
Kontakt, Ltd., a limited liability company organized under the laws of the
Russian Federation (“Kontakt”), individually each a “Subsidiary” and
collectively the “Subsidiaries”.  DGH owns 100% of the outstanding
shares of or other equity ownership interests in each Subsidiary. Each of the
Subsidiaries is duly organized and validly existing under the laws of its
jurisdiction of organization, with the corporate power and authority to own and
operate its business as presently conducted, except where the failure to be or
have any of the foregoing would not have a Material Adverse Effect. Each
Subsidiary is duly qualified to do business in each jurisdiction where the
character of its properties owned or held under lease or the nature of its
activities makes such qualification necessary, except for such failures to be so
qualified as would not have a Material Adverse Effect.

      

      Section
4.3 Authorization; Validity and Effect of Agreement.

      

      DGH has
the requisite corporate power and authority to execute, deliver and perform its
obligations under this Agreement and to consummate the Exchange. This Agreement
has been duly and validly executed and delivered by DGH and, assuming that it
has been duly authorized, executed and delivered by the other parties hereto,
constitutes a legal, valid and binding obligation of DGH, in accordance with its
terms except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, and other laws of general application affecting enforcement of
creditors' rights generally.

      

      Section
4.4 No Conflict.

      

      Neither
the execution and delivery of this Agreement by DGH nor the performance by DGH
of its obligations hereunder, nor the consummation of the Exchange, will: (i)
conflict with DGH's organization or governing documents; (ii) violate any
statute, law, ordinance, rule or regulation, applicable to DGH or any of its
properties or assets; or (iii) violate, breach, be in conflict with or
constitute a default (or an event which, with notice or lapse of time or both,
would constitute a default) under, or permit the termination of any provision
of, or result in the termination of, the acceleration of the maturity of, or the
acceleration of the performance of any obligation of DGH, or result in the
creation or imposition of any Lien upon any properties, assets or business of
DGH under, any Material Contract or any order, judgment or decree to which DGH
is a party or by which it or any of its assets or Properties is bound or
encumbered except, in the case of clauses (ii) or (iii), for such violations,
breaches, conflicts, defaults or other occurrences which, individually or in the
aggregate, would not have a Material Adverse Effect on its obligation to perform
its covenants under this Agreement.

      

      Section
4.5 Required Filings and Consents.

      

      The
execution and delivery of this Agreement by DGH do not, and the performance of
this Agreement by DGH will not require any consent, approval, authorization or
permit of, or filing with or notification to, any Governmental Authority, with
respect to DGH, except: (i) compliance with applicable requirements of the
Securities Act, the Exchange Act, and Blue Sky Laws; and (ii) where the failure
to obtain such consents, approvals, authorizations or permits, or to make such
filings or notifications would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect on DGH, or materially delay
consummation of the Exchange or otherwise prevent the parties hereto from
performing their obligations under this Agreement.

       

      Section
4.6 Capitalization.

      

      The
authorized capital stock of DGH consists of 1,500 shares of common stock, no par
value, of which 1,480 shares are issued and outstanding. All DGH Shares
outstanding as of the date of this Agreement have been duly authorized and
validly issued, are fully paid and non-assessable, and are free of pre-emptive
rights.

       

      
        
          
          

        

        
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      Section
4.7 Financial Statements.

      

      DGH has
previously furnished to RSD true and complete copies of its balance sheets as of
September 30, 2009 and December 31, 2008, and its related statements of
operations for the periods ended September 30, 2009, and December 31, 2008 (all
of such financial statements of DGH collectively, the "DGH Financial
Statements"). The DGH Financial Statements (including the notes thereto) present
fairly in all material respects the financial position and results of operations
and cash flows of DGH at the date or for the period set forth therein, in each
case in accordance with GAAP applied on a consistent basis throughout the
periods involved (except as otherwise indicated therein). The DGH Financial
Statements have been prepared from and in accordance with the books and records
of DGH and its subsidiaries, as applicable.

      

      Section
4.8 No Undisclosed Liabilities.

      

      Except as
disclosed in the DGH Financial Statements, DGH has no material liabilities,
indebtedness or obligations, except those that have been incurred in the
ordinary course of business, whether absolute, accrued, contingent or otherwise,
and whether due or to become due, and to the Knowledge of DGH, there is no
existing condition, situation or set of circumstances that could reasonably be
expected to result in such a liability, indebtedness or obligation.

      

      Section
4.9 Properties and Assets.

      

      DGH has
good and marketable title to, valid leasehold interests in, or the legal right
to use, all of the assets, properties and leasehold interests reflected in the
most recent DGH Financial Statements, except for those sold or otherwise
disposed of since the date of such DGH Financial Statements in the ordinary
course of business consistent with past practice.

      

      Section
4.10 Litigation.

      

      There is
no Action pending or threatened against DGH that, individually or in the
aggregate, directly or indirectly, would be reasonably likely to have a Material
Adverse Effect, nor is there any outstanding judgment, decree or injunction, in
each case against DGH, that, individually or in the aggregate, has or would be
reasonably likely to have a Material Adverse Effect.

       

      Section
4.11 Taxes.

      

      DGH has
timely filed (or has had timely filed on its behalf) with the appropriate tax
authorities all tax returns required to be filed by it or on behalf of it, and
each such tax return was complete and accurate in all material respects, and DGH
has timely paid (or has had paid on its behalf) all material Taxes due and owing
by it, regardless of whether required to be shown or reported on a tax return,
including Taxes required to be withheld by it. No deficiency for a material Tax
has been asserted in writing or otherwise, to DGH's Knowledge, against DGH or
with respect to any of its assets, except for asserted deficiencies that either
(i) have been resolved and paid in full or (ii) are being contested in good
faith. There are no material Liens for Taxes upon DGH's assets.

      

      Section
4.12 Compliance.

      

      To DGH's
Knowledge, DGH is in compliance with all federal, state and local laws and
regulations of any Governmental Authority applicable to its operations or with
respect to which compliance is a condition of engaging in the business thereof,
except to the extent that failure to comply would not, individually or in the
aggregate, have a Material Adverse Effect. DGH has not received any notice
asserting a failure, or possible failure, to comply with any such law or
regulation, the subject of which notice has not been resolved as required
thereby or otherwise to the satisfaction of the party sending the notice, except
for such failure as would not, individually or in the aggregate, have a Material
Adverse Effect. To DGH's Knowledge, DGH holds all permits, licenses and
franchises from Governmental Authorities required to conduct its business as it
is now being conducted, except for such failures to have such permits, licenses
and franchises that would not, individually or in the aggregate, have a Material
Adverse Effect.

      

      
        
          
          

        

        
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      Section
4.13 Absence of Certain Changes.

      

      Since the
date of the most recent DGH Financial Statements,

      (a)         there
has been no change or development in, or effect on, DGH that has or could
reasonably be expected to have a Material Adverse Effect,

      (b)         DGH
has not sold, transferred, disposed of, or agreed to sell, transfer or dispose
of, any material amount of its assets other than in the ordinary course of
business,

      (c)         DGH
has not paid any dividends or distributed any of its assets to any of its
shareholders,

      (d)   
     DGH has not acquired any material amount of assets
except in the ordinary course of business, nor acquired or merged with any other
business,

      (e)         DGH
has not waived or amended any of its respective material contractual rights
except in the ordinary course of business, and

      (f)          DGH
has not entered into any agreement to take any action described in clauses (a)
through (e) above.

      

      

      Section
4.14 Principals of DGH.

      

      During
the past five years, no officer or director of DGH has been:

      

      (a) the
subject of any bankruptcy petition filed by or against any business of which
such person was a general partner or executive officer either at the time of the
bankruptcy or within two years prior to that time;

      

      (b) the
subject of any conviction in a criminal proceeding or being subject to a pending
criminal proceeding (excluding traffic violations and other minor
offences);

      

      (c) the
subject of any order, judgment, or decree, not subsequently reversed, suspended
or vacated, of any court of competent jurisdiction, or temporarily enjoining,
barring, suspending or otherwise limiting his involvement in any type of
business, securities or banking activities; or

      

      (d) found
by a court of competent jurisdiction (in a civil action) to have violated a
federal or state securities or commodities law, and the judgment has not been
reversed, suspended, or vacated.

      

      
        ARTICLE
V

         

      

      REPRESENTATIONS
AND WARRANTIES OF DGH SHAREHOLDERS

      

      Each DGH
Shareholder, severally and not jointly, hereby make the following
representations and warranties to DGH and RSD:

      

      Section
5.1 Authority and Validity.

      

      Each DGH
Shareholder has all requisite power to execute and deliver, to perform its
obligations under, and to consummate the transactions contemplated by, this
Agreement.

       

      Section
5.2 Validity.

      

      Upon the
execution and delivery of each other document to which each DGH Shareholder is a
party (assuming due execution and delivery by each other party thereto) each
such other document will be the legal, valid and binding obligations of such DGH
Shareholder, enforceable against such DGH Shareholder in accordance with their
respective terms except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, and other laws of general application affecting
enforcement of creditors' rights generally.

       

      Section
5.3 No Breach or Violation.

      

      The
execution, delivery and performance by each DGH Shareholder of this Agreement
and each other document to which it is a party, and the consummation of the
transactions contemplated hereby and thereby in accordance with the terms and
conditions hereof and thereof, do not and will not conflict with (i) the
certificate of incorporation or bylaws of such DGH Shareholder, if applicable,
or (ii) any agreement to which such DGH Shareholder is a party, or by which such
DGH Shareholder or such DGH Shareholder's Assets are bound or
affected.

       

      
        
          
          

        

        
          Page
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      Section
5.4 Consents and Approvals.

      

      No
consent, approval, authorization or order of, registration or filing with, or
notice to, any Government Authority or any other Person is necessary to be
obtained, made or given by each DGH Shareholder in connection with the
execution, delivery and performance by such DGH Shareholder of this Agreement or
any other document to which it is a party or for the consummation by such DGH
Shareholder of the transactions contemplated hereby or thereby.

       

      Section
5.5 Title.

      

      DGH
Shares to be delivered by each DGH Shareholder in connection with the
transactions contemplated herein are, and at the Closing will be owned, of
record and beneficially, solely by such DGH Shareholder, free and clear of any
Lien and represent such DGH Shareholder's entire ownership interest in
DGH.

      

      Section
5.6 Investor Status.

      

      No DGH
Shareholder is a U.S. Person and nor is acquiring the RSD Common Stock for the
account of any U.S. Person, (ii) if a corporation, it is not organized or
incorporated under the laws of the United States; (iii) if a corporation, no
director or executive officer is a national or citizen of the United States; and
(iv) it is not otherwise deemed to be a "U.S. Person" within the meaning of
Regulation S. If a resident of the United States, the DGH Shareholder represents
that he or she is an “accredited investor” as defined in Rule 501 promulgated
under the Securities Act.  Each DGH Shareholder represents and
warrants that he or she has such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of his or
her investment in RSD.  Each DGH Shareholder has the financial ability
to bear the economic risks of his or her entire investment in RSD for an
indefinite period, would be able to sustain a complete loss of his or her
investment, and has no need for liquidity with respect to his or her investment
in RSD.

       

      Section
5.7 Investment Intent.

      

      The
shares of Common Stock are being acquired by each DGH Shareholder for each DGH
Shareholder's own account for investment purposes only, not as a nominee or
agent and not with a view to the resale or distribution of any part thereof, and
each DGH Shareholder has no present intention of selling, granting any
participation in or otherwise distributing the same. Each DGH Shareholder
further represents that the DGH Shareholder does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participation to such person or third person with respect to any of DGH
Shares.

       

      Section
5.8 Restrictions on Transfer.

      

      Each DGH
Shareholder understands that the shares of Common Stock have not been registered
under the Securities Act or registered or qualified under any foreign or state
securities law, and may not be, directly or indirectly, sold, transferred,
offered for sale, pledged, hypothecated or otherwise disposed of without
registration under the Securities Act and registration or qualification under
applicable state securities laws or the availability of an exemption therefrom.
In any case where such an exemption is relied upon by each DGH Shareholder from
the registration requirements of the Securities Act and the registration or
qualification requirements of such state securities laws, each DGH Shareholder
shall furnish RSD with an opinion of counsel stating that the proposed sale or
other disposition of such securities may be effected without registration under
the Securities Act and will not result in any violation of any applicable state
securities laws relating to the registration or qualification of securities for
sale, such counsel and opinion to be satisfactory to RSD. Each DGH Shareholder
acknowledges that it is able to bear the economic risks of an investment in the
Common Stock for an indefinite period of time, and that its overall commitment
to investments that are not readily marketable is not disproportionate to its
net worth.

      

      Section
5.9 Informed Investment.

      

      Each DGH
Shareholder has made such investigations in connection herewith as it deemed
necessary or desirable so as to make an informed investment decision without
relying upon DGH for legal or tax advice related to this investment. In making
its decision to acquire the Common Stock, each DGH Shareholder has not relied
upon any information other than information contained in this Agreement and in
the other Offering Documents.

       

      
        
          
          

        

        
          Page
9

          
            

          

        

        
          
          

        

      

       

      Section
5.10 Access to Information.

      

      Each DGH
Shareholder acknowledges that it has had access to and has reviewed all
documents and records relating to RSD, including, but not limited to, the RSD
SEC Documents, that it has deemed necessary in order to make an informed
investment decision with respect to an investment in RSD; that it has had the
opportunity to ask representatives of RSD certain questions and request certain
additional information regarding the terms and conditions of such investment and
the finances, operations, business and prospects of RSD and has had any and all
such questions and requests answered to its satisfaction; and that based on the
foregoing it understands the risks and other considerations relating to an
investment in RSD.

      

      Section
5.11 Reliance on Representations.

      

      Each DGH
Shareholder understands that the shares of Common Stock are being offered and
sold to it in reliance on specific exemptions from the registration and/or
public offering requirements of the U.S. federal and state securities laws and
that RSD and DGH is relying in part upon the truth and accuracy of, and such DGH
Shareholder's compliance with, the representations, warranties, agreements,
acknowledgments and understandings of such DGH Shareholder set forth herein in
order to determine the availability of such exemptions and the eligibility of
such DGH Shareholder to acquire the Common Stock. Each DGH Shareholder
represents and warrants to RSD and DGH that any information the DGH Shareholder
has heretofore furnished or furnishes herewith to RSD and DGH is complete and
accurate, and further represents and warrants that it will notify and supply
corrective information to RSD and DGH immediately upon the occurrence of any
change therein occurring prior to DGH's issuance of the Common Stock. Within
five (5) days after receipt of a request from DGH, each DGH Shareholder will
provide such information and such documents as may reasonably be necessary to
comply with any and all laws and regulations to which DGH is
subject.

      

      Section
5.12 No General Solicitation.

      

      Each DGH
Shareholder is unaware of, and in deciding to participate in the transactions
contemplated hereby is in no way relying upon, and did not become aware of the
transactions contemplated hereby through or as a result of, any form of general
solicitation or general advertising including, without limitation, any article,
notice, advertisement or other communication published in any newspaper,
magazine or similar media, or broadcast over television or radio or the
internet, in connection with the transactions contemplated hereby.

       

      Section
5.13 Representation by Counsel.

      

      Each DGH
Shareholder represents that it is represented by their own counsel in this
transaction and that such counsel has carefully reviewed with it the terms and
legal consequences of the Exchange and, in particular, the Tax consequences of
the Exchange to such DGH Shareholder. DGH and each DGH Shareholder acknowledges
and understands that Michael Paige PLLC, Counsel to Jackson & Campbell,
P.C., Washington, D.C., acts as counsel to RSD. DGH and each DGH Shareholder
also acknowledges and understands that, in connection with the Exchange
contemplated by this Agreement and subsequent advice to and legal services
performed for RSD, Michael Paige PLLC and Jackson & Campbell, P.C. and will
not be representing DGH or the DGH Shareholders, but will be representing
RSD.

      

      ARTICLE
VI

      

      REPRESENTATIONS
AND WARRANTIES AS TO WOOD IMAGINATION INC.

      

      Victor
Belitchenko, the former owner of Wood Imagination, individually, hereby makes to
RSD the following representations and warranties as to Wood
Imagination:

      

      Section
6.1 Organization and Qualification.

       

      Wood
Imagination is duly organized and validly existing under the laws of the State
of Florida, with the corporate power and authority to own and operate its
business as presently conducted, except where the failure to be or have any of
the foregoing would not have a Material Adverse Effect. Wood Imagination is duly
qualified as a foreign corporation to do business in each jurisdiction where the
character of its properties owned or held under lease or the nature of its
activities makes such qualification necessary, except for such failures to be so
qualified as would not have a Material Adverse Effect.

      

      
        
          
          

        

        
          Page
10

          
            

          

        

        
          
          

        

      

      

      Section
6.2 Subsidiaries.

      

      Wood
Imagination has no subsidiaries.

      

      Section
6.3 Capitalization.

      

      The
authorized capital stock of Wood Imagination consists of 3,000 shares of common
stock, no par value, of which 100 shares are issued and outstanding and owned by
DGH. All Wood Imagination Shares outstanding as of the date of this Agreement
have been duly authorized and validly issued, are fully paid and non-assessable,
and are free of pre-emptive rights.

      

      Section
6.4 Financial Statements.

      

      Wood
Imagination has previously furnished to RSD true and complete copies of its
balance sheets as of November 20, 2009 and December 31, 2008, and its related
statements of operations for the periods ended November 20, 2009, and December
31, 2008 (all of such financial statements of Wood Imagination collectively, the
"Wood Imagination Financial Statements"). The Wood Imagination Financial
Statements (including the notes thereto) present fairly in all material respects
the financial position and results of operations and cash flows of Wood
Imagination at the date or for the period set forth therein, in each case in
accordance with GAAP applied on a consistent basis throughout the periods
involved (except as otherwise indicated therein). The Wood Imagination Financial
Statements have been prepared from and in accordance with the books and records
of Wood Imagination and its subsidiaries, as applicable.

      

      Section
6.5 No Undisclosed Liabilities.

      

      Except as
disclosed in the Wood Imagination Financial Statements, Wood Imagination has no
material liabilities, indebtedness or obligations, except those that have been
incurred in the ordinary course of business, whether absolute, accrued,
contingent or otherwise, and whether due or to become due, and to the Knowledge
of Wood Imagination, there is no existing condition, situation or set of
circumstances that could reasonably be expected to result in such a liability,
indebtedness or obligation.

      

      Section
6.6 Properties and Assets.

      

      Wood
Imagination has good and marketable title to, valid leasehold interests in, or
the legal right to use, all of the assets, properties and leasehold interests
reflected in the most recent Wood Imagination Financial Statements, except for
those sold or otherwise disposed of since the date of such Wood Imagination
Financial Statements in the ordinary course of business consistent with past
practice.

      

      Section
6.7 Litigation.

      

      There is
no Action pending or threatened against Wood Imagination that, individually or
in the aggregate, directly or indirectly, would be reasonably likely to have a
Material Adverse Effect, nor is there any outstanding judgment, decree or
injunction, in each case against Wood Imagination, that, individually or in the
aggregate, has or would be reasonably likely to have a Material Adverse
Effect.

       

       

       

      Section
6.8 Taxes.

      

      Wood
Imagination has timely filed (or has had timely filed on its behalf) with the
appropriate tax authorities all tax returns required to be filed by it or on
behalf of it, and each such tax return was complete and accurate in all material
respects, and Wood Imagination has timely paid (or has had paid on its behalf)
all material Taxes due and owing by it, regardless of whether required to be
shown or reported on a tax return, including Taxes required to be withheld by
it. No deficiency for a material Tax has been asserted in writing or otherwise,
to Wood Imagination's Knowledge, against Wood Imagination or with respect to any
of its assets, except for asserted deficiencies that either (i) have been
resolved and paid in full or (ii) are being contested in good faith. There are
no material Liens for Taxes upon Wood Imagination's assets.

       

      
        
          
          

        

        
          Page
11

          
            

          

        

        
          
          

        

      

      

      Section
6.9 Compliance.

      

      To Wood
Imagination's Knowledge, Wood Imagination is in compliance with all federal,
state and local laws and regulations of any Governmental Authority applicable to
its operations or with respect to which compliance is a condition of engaging in
the business thereof, except to the extent that failure to comply would not,
individually or in the aggregate, have a Material Adverse Effect. Wood
Imagination has not received any notice asserting a failure, or possible
failure, to comply with any such law or regulation, the subject of which notice
has not been resolved as required thereby or otherwise to the satisfaction of
the party sending the notice, except for such failure as would not, individually
or in the aggregate, have a Material Adverse Effect. To Wood Imagination's
Knowledge, Wood Imagination holds all permits, licenses and franchises from
Governmental Authorities required to conduct its business as it is now being
conducted, except for such failures to have such permits, licenses and
franchises that would not, individually or in the aggregate, have a Material
Adverse Effect.

      

      Section
6.10 Absence of Certain Changes.

      

      Since the
date of the most recent Wood Imagination Financial Statements,

      (a)         there
has been no change or development in, or effect on, Wood Imagination that has or
could reasonably be expected to have a Material Adverse Effect,

      (b)         Wood
Imagination has not sold, transferred, disposed of, or agreed to sell, transfer
or dispose of, any material amount of its assets other than in the ordinary
course of business,

      (c)         Wood
Imagination has not paid any dividends or distributed any of its assets to any
of its shareholders,

      (d)      
  Wood Imagination has not acquired any material amount of assets
except in the ordinary course of business, nor acquired or merged with any other
business,

      (e)         Wood
Imagination has not waived or amended any of its respective material contractual
rights except in the ordinary course of business, and

      (f)      
   Wood Imagination has not entered into any agreement to take
any action described in clauses (a) through (e) above.

      

      

      Section
6.11 Principals of Wood Imagination.

      

      During
the past five years, no officer or director of Wood Imagination has
been:

      

      (a) the
subject of any bankruptcy petition filed by or against any business of which
such person was a general partner or executive officer either at the time of the
bankruptcy or within two years prior to that time;

      

      (b) the
subject of any conviction in a criminal proceeding or being subject to a pending
criminal proceeding (excluding traffic violations and other minor
offences);

      

      (c) the
subject of any order, judgment, or decree, not subsequently reversed, suspended
or vacated, of any court of competent jurisdiction, or temporarily enjoining,
barring, suspending or otherwise limiting his involvement in any type of
business, securities or banking activities; or

      

      (d) found
by a court of competent jurisdiction (in a civil action) to have violated a
federal or state securities or commodities law, and the judgment has not been
reversed, suspended, or vacated.

      

      

      

      ARTICLE
VII

      

      REPRESENTATIONS
AND WARRANTIES AS TO FORMS GALLERY INC.

      

      Carole
Lynn, the former owner of Forms Gallery, individually, hereby makes to RSD the
following representations and warranties as to Forms Gallery:

      

      Section
7.1 Organization and Qualification.

       

      Forms
Gallery is duly organized and validly existing under the laws of the State of
Florida, with the corporate power and authority to own and operate its business
as presently conducted, except where the failure to be or have any of the
foregoing would not have a Material Adverse Effect. Forms Gallery is duly
qualified as a foreign corporation to do business in each jurisdiction where the
character of its properties owned or held under lease or the nature of its
activities makes such qualification necessary, except for such failures to be so
qualified as would not have a Material Adverse Effect.

       

      
        
          
          

        

        
          Page
12

          
            

          

        

        
          
          

        

      

      

      Section
7.2 Subsidiaries.

      

      Forms
Gallery has no subsidiaries.

      

      Section
7.3 Capitalization.

      

      The
authorized capital stock of Forms Gallery consists of 50,000 shares of common
stock, par value $1.00 per share, of which 500 shares are issued and outstanding
and owned by DGH. All Forms Gallery Shares outstanding as of the date of this
Agreement have been duly authorized and validly issued, are fully paid and
non-assessable, and are free of pre-emptive rights.

      

      Section
7.4 Financial Statements.

      

      Forms
Gallery has previously furnished to RSD true and complete copies of its balance
sheets as of November 20, 2009 and December 31, 2008, and its related statements
of operations for the periods ended November 20, 2009, and December 31, 2008
(all of such financial statements of Forms Gallery collectively, the "Forms
Gallery Financial Statements"). The Forms Gallery Financial Statements
(including the notes thereto) present fairly in all material respects the
financial position and results of operations and cash flows of Forms Gallery at
the date or for the period set forth therein, in each case in accordance with
GAAP applied on a consistent basis throughout the periods involved (except as
otherwise indicated therein). The Forms Gallery Financial Statements have been
prepared from and in accordance with the books and records of Forms Gallery and
its subsidiaries, as applicable.

      

      Section
7.5 No Undisclosed Liabilities.

      

      Except as
disclosed in the Forms Gallery Financial Statements, Forms Gallery has no
material liabilities, indebtedness or obligations, except those that have been
incurred in the ordinary course of business, whether absolute, accrued,
contingent or otherwise, and whether due or to become due, and to the Knowledge
of Forms Gallery, there is no existing condition, situation or set of
circumstances that could reasonably be expected to result in such a liability,
indebtedness or obligation.

      

      Section
7.6 Properties and Assets.

      

      Forms
Gallery has good and marketable title to, valid leasehold interests in, or the
legal right to use, all of the assets, properties and leasehold interests
reflected in the most recent Forms Gallery Financial Statements, except for
those sold or otherwise disposed of since the date of such Forms Gallery
Financial Statements in the ordinary course of business consistent with past
practice.

      

      Section
7.7 Litigation.

      

      There is
no Action pending or threatened against Forms Gallery that, individually or in
the aggregate, directly or indirectly, would be reasonably likely to have a
Material Adverse Effect, nor is there any outstanding judgment, decree or
injunction, in each case against Forms Gallery, that, individually or in the
aggregate, has or would be reasonably likely to have a Material Adverse
Effect.

       

      Section
7.8 Taxes.

      

      Forms
Gallery has timely filed (or has had timely filed on its behalf) with the
appropriate tax authorities all tax returns required to be filed by it or on
behalf of it, and each such tax return was complete and accurate in all material
respects, and Forms Gallery has timely paid (or has had paid on its behalf) all
material Taxes due and owing by it, regardless of whether required to be shown
or reported on a tax return, including Taxes required to be withheld by it. No
deficiency for a material Tax has been asserted in writing or otherwise, to
Forms Gallery's Knowledge, against Forms Gallery or with respect to any of its
assets, except for asserted deficiencies that either (i) have been resolved and
paid in full or (ii) are being contested in good faith. There are no material
Liens for Taxes upon Forms Gallery's assets.

       

      
        
          
          

        

        
          Page
13

          
            

          

        

        
          
          

        

      

      

      Section
7.9 Compliance.

      

      To Forms
Gallery's Knowledge, Forms Gallery is in compliance with all federal, state and
local laws and regulations of any Governmental Authority applicable to its
operations or with respect to which compliance is a condition of engaging in the
business thereof, except to the extent that failure to comply would not,
individually or in the aggregate, have a Material Adverse Effect. Forms Gallery
has not received any notice asserting a failure, or possible failure, to comply
with any such law or regulation, the subject of which notice has not been
resolved as required thereby or otherwise to the satisfaction of the party
sending the notice, except for such failure as would not, individually or in the
aggregate, have a Material Adverse Effect. To Forms Gallery's Knowledge, Forms
Gallery holds all permits, licenses and franchises from Governmental Authorities
required to conduct its business as it is now being conducted, except for such
failures to have such permits, licenses and franchises that would not,
individually or in the aggregate, have a Material Adverse Effect.

      

      Section
7.10 Absence of Certain Changes.

      

      Since the
date of the most recent Forms Gallery Financial Statements,

      (a)         there
has been no change or development in, or effect on, Forms Gallery that has or
could reasonably be expected to have a Material Adverse Effect,

      (b)         Forms
Gallery has not sold, transferred, disposed of, or agreed to sell, transfer or
dispose of, any material amount of its assets other than in the ordinary course
of business,

      (c)         Forms
Gallery has not paid any dividends or distributed any of its assets to any of
its shareholders,

      (d)     
   Forms Gallery has not acquired any material amount of assets
except in the ordinary course of business, nor acquired or merged with any other
business,

      (e)         Forms
Gallery has not waived or amended any of its respective material contractual
rights except in the ordinary course of business, and

      (f)          Forms
Gallery has not entered into any agreement to take any action described in
clauses (a) through (e) above.

      

      

      Section
7.11 Principals of Forms Gallery.

      

      During
the past five years, no officer or director of Forms Gallery has
been:

      

      (a) the
subject of any bankruptcy petition filed by or against any business of which
such person was a general partner or executive officer either at the time of the
bankruptcy or within two years prior to that time;

      

      (b) the
subject of any conviction in a criminal proceeding or being subject to a pending
criminal proceeding (excluding traffic violations and other minor
offences);

      

      (c) the
subject of any order, judgment, or decree, not subsequently reversed, suspended
or vacated, of any court of competent jurisdiction, or temporarily enjoining,
barring, suspending or otherwise limiting his involvement in any type of
business, securities or banking activities; or

      

      (d) found
by a court of competent jurisdiction (in a civil action) to have violated a
federal or state securities or commodities law, and the judgment has not been
reversed, suspended, or vacated.

      

      

      ARTICLE
VIII

      

      REPRESENTATIONS
AND WARRANTIES AS TO KONTAKT, LTD.

      

      Nikolay
Uraev, the former owner of Kontakt, individually, hereby makes to RSD the
following representations and warranties as to Kontakt:

      

      Section
8.1 Organization and Qualification.

       

      Kontakt
is duly organized and validly existing under the laws of the Russian Federation,
with the power and authority to own and operate its business as presently
conducted, except where the failure to be or have any of the foregoing would not
have a Material Adverse Effect. Kontakt is duly qualified to do business in each
jurisdiction where the character of its properties owned or held under lease or
the nature of its activities makes such qualification necessary, except for such
failures to be so qualified as would not have a Material Adverse
Effect.

       

      
        
          
          

        

        
          Page
14

          
            

          

        

        
          
          

        

      

      

      Section
8.2 Subsidiaries.

      

      Kontakt
has no subsidiaries.

      

      Section
8.3 Capitalization.

      

      The
authorized capital stock of Kontakt consists of shares of capital stock, 10,000
rubles nominal value, all of which are owned by DGH. All Kontakt Shares
outstanding as of the date of this Agreement have been duly authorized and
validly issued, are fully paid and non-assessable, and are free of pre-emptive
rights.

      

      Section
8.4 Financial Statements.

      

      Kontakt
has previously furnished to RSD true and complete copies of its balance sheets
as of November 20, 2009 and December 31, 2008, and its related statements of
operations for the periods ended November 20, 2009, and December 31, 2008 (all
of such financial statements of Kontakt collectively, the "Kontakt Financial
Statements"). The Kontakt Financial Statements (including the notes thereto)
present fairly in all material respects the financial position and results of
operations and cash flows of Kontakt at the date or for the period set forth
therein, in each case in accordance with GAAP applied on a consistent basis
throughout the periods involved (except as otherwise indicated therein). The
Kontakt Financial Statements have been prepared from and in accordance with the
books and records of Kontakt and its subsidiaries, as applicable.

      

      Section
8.5 No Undisclosed Liabilities.

      

      Except as
disclosed in the Kontakt Financial Statements, Kontakt has no material
liabilities, indebtedness or obligations, except those that have been incurred
in the ordinary course of business, whether absolute, accrued, contingent or
otherwise, and whether due or to become due, and to the Knowledge of Kontakt,
there is no existing condition, situation or set of circumstances that could
reasonably be expected to result in such a liability, indebtedness or
obligation.

      

      Section
8.6 Properties and Assets.

      

      Kontakt
has good and marketable title to, valid leasehold interests in, or the legal
right to use, all of the assets, properties and leasehold interests reflected in
the most recent Kontakt Financial Statements, except for those sold or otherwise
disposed of since the date of such Kontakt Financial Statements in the ordinary
course of business consistent with past practice.

      

      Section
8.7 Litigation.

      

      There is
no Action pending or threatened against Kontakt that, individually or in the
aggregate, directly or indirectly, would be reasonably likely to have a Material
Adverse Effect, nor is there any outstanding judgment, decree or injunction, in
each case against Kontakt, that, individually or in the aggregate, has or would
be reasonably likely to have a Material Adverse Effect.

       

      Section
8.8 Taxes.

      

      Kontakt
has timely filed (or has had timely filed on its behalf) with the appropriate
tax authorities all tax returns required to be filed by it or on behalf of it,
and each such tax return was complete and accurate in all material respects, and
Kontakt has timely paid (or has had paid on its behalf) all material Taxes due
and owing by it, regardless of whether required to be shown or reported on a tax
return, including Taxes required to be withheld by it. No deficiency for a
material Tax has been asserted in writing or otherwise, to Kontakt's Knowledge,
against Kontakt or with respect to any of its assets, except for asserted
deficiencies that either (i) have been resolved and paid in full or (ii) are
being contested in good faith. There are no material Liens for Taxes upon
Kontakt's assets.

      

      Section
8.9 Compliance.

      

      To
Kontakt's Knowledge, Kontakt is in compliance with all laws and regulations of
any Governmental Authority applicable to its operations or with respect to which
compliance is a condition of engaging in the business thereof, except to the
extent that failure to comply would not, individually or in the aggregate, have
a Material Adverse Effect. Kontakt has not received any notice asserting a
failure, or possible failure, to comply with any such law or regulation, the
subject of which notice has not been resolved as required thereby or otherwise
to the satisfaction of the party sending the notice, except for such failure as
would not, individually or in the aggregate, have a Material Adverse Effect. To
Kontakt's Knowledge, Kontakt holds all permits, licenses and franchises from
Governmental Authorities required to conduct its business as it is now being
conducted, except for such failures to have such permits, licenses and
franchises that would not, individually or in the aggregate, have a Material
Adverse Effect.

       

      
        
          
          

        

        
          Page
15

          
            

          

        

        
          
          

        

      

      

      Section
8.10 Absence of Certain Changes.

      

      Since the
date of the most recent Kontakt Financial Statements,

      (a)         there
has been no change or development in, or effect on, Kontakt that has or could
reasonably be expected to have a Material Adverse Effect,

      (b)         Kontakt
has not sold, transferred, disposed of, or agreed to sell, transfer or dispose
of, any material amount of its assets other than in the ordinary course of
business,

      (c)         Kontakt
has not paid any dividends or distributed any of its assets to any of its
shareholders,

      (d)      
  Kontakt has not acquired any material amount of assets except in the
ordinary course of business, nor acquired or merged with any other
business,

      (e)         Kontakt
has not waived or amended any of its respective material contractual rights
except in the ordinary course of business, and

      (f)          Kontakt
has not entered into any agreement to take any action described in clauses (a)
through (e) above.

      

      

      Section
8.11 Principals of Kontakt.

      

      During
the past five years, no officer or manager of Kontakt has been:

      

      (a) the
subject of any bankruptcy petition filed by or against any business of which
such person was a general partner or executive officer either at the time of the
bankruptcy or within two years prior to that time;

      

      (b) the
subject of any conviction in a criminal proceeding or being subject to a pending
criminal proceeding (excluding traffic violations and other minor
offences);

      

      (c) the
subject of any order, judgment, or decree, not subsequently reversed, suspended
or vacated, of any court of competent jurisdiction, or temporarily enjoining,
barring, suspending or otherwise limiting his involvement in any type of
business, securities or banking activities; or

      

      (d) found
by a court of competent jurisdiction (in a civil action) to have violated a
federal or state securities or commodities law, and the judgment has not been
reversed, suspended, or vacated.

      

      

      ARTICLE
IX

       

      CERTAIN
COVENANTS

      Section
9.1 Conduct of Businesses by Parties.

       

      RSD and
DGH agree that, between the date of this Agreement and the Closing Date, except
as contemplated by any other provision of this Agreement, or unless the other
party shall otherwise consent in writing:

      

      (a) the
businesses of RSD and DGH shall be conducted only in, and such parties shall not
take any action except in, the ordinary course of business and in a manner
consistent with past practice; and

      

      (b) RSD and
DGH shall use their reasonable best efforts to preserve substantially intact
their respective business organizations, to keep available the services of their
current officers, employees and consultants and to preserve the current
relationships of RSD and DGH with customers, suppliers and other persons with
which RSD or DGH, as the case may be, has significant business
relations.

       

      
        
          
          

        

        
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      Section
9.2 Access to Information.

      

      At all
times prior to the Closing or the earlier termination of this Agreement in
accordance with the provisions of Article IX, and in each case subject to
Section 6.3 below, each party hereto shall provide to the other party (and the
other party's authorized representatives) reasonable access during normal
business hours and upon reasonable prior notice to the premises, properties,
books, records, assets, liabilities, operations, contracts, personnel, financial
information and other data and information of or relating to such party
(including without limitation all written proprietary and trade secret
information and documents, and other written information and documents relating
to intellectual property rights and matters), and will cooperate with the other
party in conducting its due diligence investigation of such party, provided that
the party granted such access shall not interfere unreasonably with the
operation of the business conducted by the party granting access, and provided
that no such access need be granted to privileged information or any agreements
or documents subject to confidentiality agreements.

       

      
 

      Section
9.3 Confidentiality.

      

      Each
party shall hold, and shall cause its respective Affiliates and representatives
to hold, all Confidential Information made available to it in connection with
the Exchange in strict confidence, shall not use such information except for the
sole purpose of evaluating the Exchange and shall not disseminate or disclose
any of such information other than to its directors, officers, managers,
employees, shareholders, interest holders, Affiliates, agents and
representatives, as applicable, who need to know such information for the sole
purpose of evaluating the Exchange (each of whom shall be informed in writing by
the disclosing party of the confidential nature of such information and directed
by such party in writing to treat such information confidentially). The above
limitations on use, dissemination and disclosure shall not apply to Confidential
Information that (i) is learned by the disclosing party from a third party
entitled to disclose it; (ii) becomes known publicly other than through the
disclosing party or any third party who received the same from the disclosing
party, provided that the disclosing party had no Knowledge that the disclosing
party was subject to an obligation of confidentiality; (iii) is required by law
or court order to be disclosed by the parties; or (iv) is disclosed with the
express prior written consent thereto of the other party. The parties shall
undertake all necessary steps to ensure that the secrecy and confidentiality of
such information will be maintained. In the event a party is required by court
order or subpoena to disclose information which is otherwise deemed to be
confidential or subject to the confidentiality obligations hereunder, prior to
such disclosure, the disclosing party shall: (i) promptly notify the
non-disclosing party and, if having received a court order or subpoena, deliver
a copy of the same to the non-disclosing party; (ii) cooperate with the
non-disclosing party, at the expense of the non-disclosing party, in obtaining a
protective or similar order with respect to such information; and (iii) provide
only that amount of information as the disclosing party is advised by its
counsel is necessary to strictly comply with such court order or
subpoena.

      

      Section
9.4 Further Assurances.

      

      Each of
the parties hereto agrees to use its best efforts before and after the Closing
Date to take or cause to be taken all action, to do or cause to be done, and to
assist and cooperate with the other party hereto in doing, all things necessary,
proper or advisable under applicable laws to consummate and make effective, in
the most expeditious manner practicable, the Exchange, including, but not
limited to: (i) satisfying the conditions precedent to the obligations of any of
the parties hereto; (ii) obtaining all waivers, consents and approvals from
other parties necessary for the consummation of the Exchange, (iii) making all
filings with, and obtain all consents, approvals and authorizations that are
required to be obtained from, Governmental Authorities, (iv) defending of any
lawsuits or other legal proceedings, whether judicial or administrative,
challenging this Agreement or the performance of the obligations hereunder; and
(v) executing and delivering such instruments, and taking such other actions, as
the other party hereto may reasonably require in order to carry out the intent
of this Agreement.

       

      
        
          
          

        

        
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      Section
9.5 Public Announcements.

      

      RSD, the
DGH Shareholders and DGH shall consult with each other before issuing any press
release or otherwise making any public statements with respect to the Exchange
or this Agreement, and shall not issue any other press release or make any other
public statement without prior consent of the other parties, except as may be
required by law or, with respect to RSD, by obligations pursuant to rule or
regulation of the Exchange Act, the Securities Act, any rule or regulation
promulgated thereunder or any rule or regulation of the National Association of
Securities Dealers.

      

      Section
9.6 Notification of Certain Matters.

      

      Each
party hereto shall promptly notify the other party in writing of any events,
facts or occurrences that would result in any breach of any representation or
warranty or breach of any covenant by such party contained in this
Agreement.

      

      Section
9.7 Prohibition on Trading in RSD Securities.

      

      All
parties acknowledge that information concerning the matters that are the subject
matter of this Agreement may constitute material non-public information under
United States federal securities laws, and
that United States federal securities laws prohibit any person who has received
material non-public information relating to RSD from purchasing or selling
securities of RSD, or from communicating such information to any person under
circumstances in which it is reasonably foreseeable that such person is likely
to purchase or sell securities of RSD. Accordingly, until such time as any such
non-public information has been adequately disseminated to the public, the
parties to this Agreement shall not purchase or sell any securities of
RSD.

      

      Section
9.8 Capital for RSD.

      

      Immediately
following the Closing Date, in conjunction with the Exchange, the DGH
Shareholders shall cause DGH to contribute the sum of US$-0- to the capital of
RSD.

      

      Section
9.9 DGH Shareholders Right to Require “Spin-Off” by RSD of Formerly Owned
Companies.

      

      Following
the Closing, Victor Belitchenko, Carole Lynn and Nikolay Uraev shall each have
the right, on or before the third anniversary of the Closing Date, to require
RSD to take the following actions: on thirty (30) days notice to the Board of
Directors of RSD by such former RSD Shareholder, RSD shall initiate the
regulatory filing process for clearance by the SEC of the spin-off ("Spin-Off")
to its shareholders of the shares of one or more subsidiaries of DGH as
specified by one or more of such former DGH Shareholders, such distribution to
be made being pro-rata as a dividend to the shareholders of
RSD.   Upon SEC clearance, RSD shall proceed promptly with the
Spin-Off, and from the date of the Spin-Off distribution, the business of the
subsidiary or subsidiaries so spun off shall be operated as a separate reporting
company under the Exchange Act by its management.  The management and
former owners of DGH  shall provide full cooperation to RSD in the SEC
clearance process.  All expenses of the Spin-Off shall be borne
equally by RSD and the subsidiary or subsidiaries to be spun off.

      

      Section
9.10 DGH Shareholders Right to Repurchase Ownership of Formerly Owned
Company.

      

      Following
the Closing Date, Victor Belitchenko, Carole Lynn and Nikolay Uraev shall have
the right to repurchase  ownership of the particular company each such
DGH Shareholder sold to DGH, i.e., Wood Imagination, Forms Gallery and Kontakt,
respectively, as follows: the shares of the particular subsidiary held by RSD
may be repurchased by the DGH Shareholder that is the former owner of that
subsidiary at any time in the first year following the Closing Date, at the
option of such DGH Shareholder and on ninety (90) days notice to RSD, by the DGH
Shareholder paying to RSD the value of that subsidiary, as such value is
determined by the Board of Directors of RSD (RSD Common Stock may be
retransfered to RSD by the DGH Shareholders as part of the consideration to
repurchase the subsidiary, and any shares of Common Stock so retransferred shall
be valued at market at the time of the repurchase).

      

      
        
          
          

        

        
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      ARTICLE
X

       

      CONDITIONS
TO CONSUMMATION OF THE EXCHANGE

       

      Section
10.1 Conditions to Obligations of DGH and DGH Shareholders.

      

      The
obligations of DGH and DGH Shareholders to consummate the Exchange shall be
subject to the fulfillment, or written waiver by DGH, at or prior to the
Closing, of each of the following conditions:

       

      (a) RSD
shall have delivered to DGH each of the documents required by Section 2.2(a) of
this Agreement;

      

      (b) The
representations and warranties of RSD set out in this Agreement shall be true
and correct in all material respects at and as of the time of the Closing as
though such representations and warranties were made at and as of such
time;

      

      (c) RSD
shall have performed and complied in all material respects with all covenants,
conditions, obligations and agreements required by this Agreement to be
performed or complied with by such parties on or prior to the Closing
Date;

      

      (d) All
consents, approvals, permits, authorizations and orders required to be obtained
from, and all registrations, filings and notices required to be made with or
given to, any Governmental Authority or Person as provided herein shall have
been obtained;

      

      (e) DGH
shall have completed a due diligence review of the business, operations,
financial condition and prospects of RSD and shall have been satisfied with the
results of its due diligence review in its sole and absolute
discretion;

      

      (f) There
has been no Material Adverse Effect on the business, condition or prospects of
RSD until the Closing Date;

      

      (g) RSD
shall file if applicable with the SEC a Schedule 14(f)-l with respect to any
change of control transactions described in this Agreement, and shall have
caused the Schedule 14(f)01 to be mailed to each registered holder of its Common
Stock;

      

      (h)
Holders of all of the DGH Shares shall have become party to the Exchange;
and

      

      (i) The
outstanding shares of Common Stock of RSD prior to the Closing shall not exceed
6,500,000 shares.

      

      Section
10.2 Conditions to Obligations of RSD.

      

      The
obligations of RSD to consummate the Exchange shall be subject to the
fulfillment, or written waiver by RSD, at or prior to the Closing of each of the
following conditions:

      

      (a) DGH
shall have delivered to RSD each of the documents required by Section 2.2(b) of
this Agreement;

      

      (b) The
DGH Shareholders shall have delivered to RSD the documents required by Section
2.2(c) of this Agreement;

      

      (c) The
representations and warranties of DGH and the DGH Shareholders set out in this
Agreement shall be true and correct in all material respects at and as of the
time of the Closing as though such representations and warranties were made at
and as of such time;

       

      (d) DGH
shall have performed and complied in all material respects with all covenants,
conditions, obligations and agreements required by this Agreement to be
performed or complied with by DGH on or prior to the Closing Date;

       

      (e) All
consents, approvals, permits, authorizations and orders required to be obtained
from, and all registrations, filings and notices required to be made with or
given to, any Governmental Authority or Person as provided herein shall have
been obtained;

      

      (f) RSD
shall have completed a due diligence review of the business, operations,
financial condition and prospects of DGH and shall have been satisfied with the
results of its due diligence review in its sole and absolute
discretion;

      

      (g) There
has been no Material Adverse Effect on the business, condition or prospects of
DGH until the Closing Date;

      

      (h) DGH
shall have paid all of the costs and expenses of DGH associated with the
transactions contemplated herein;

       

      
        
          
          

        

        
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      (i)
Holders of at least 100% of DGH Shares shall have become party to the Exchange;
and

      

      (j) RSD,
at its option, shall have received such opinions from DGH’s attorneys and
auditors as may be reasonably required by RSD and its counsel.

      

      ARTICLE
XI

       

      INDEMNIFICATION

      Section
11.1 Indemnification by RSD.

      

      (a)
Notwithstanding any other indemnification provision hereunder, RSD (the
"Indemnifying Party") shall indemnify and hold harmless DGH and its officers,
directors and employees and each of the DGH Shareholders (each an "Indemnified
Party"), from and against any and all demands, claims, actions or causes of
action, judgments, assessments, losses, liabilities, damages or penalties and
reasonable attorneys' fees and related disbursements (collectively, "Claims")
suffered by such Indemnified Party resulting from or arising out of (i) any
inaccuracy in or breach of any of the representations or warranties made by the
Indemnifying Party at the time they were made, and, except for representations
and warranties that speak as of a specific date or time (which need only be true
and correct as of such date or time), on and as of the Closing Date, (ii) any
breach or nonfulfillment of any covenants or agreements made by the Indemnifying
Party, (iii) any misrepresentation made by the Indemnifying Party, in each case
as made herein or in the Schedules or Exhibits annexed hereto or in any closing
certificate, schedule or any ancillary certificates or other documents or
instruments furnished by the Indemnifying Party pursuant hereto or in connection
with the Exchange, and (v) the operations and liabilities of RSD and/or any of
its subsidiaries, whether known or unknown, arising out of any action, omission
and/or period of time preceding the Closing Date, including but not limited to
any taxes levied with respect to same.

      

      Section
11.2 Indemnification by DGH.

       

      (a)
Notwithstanding any other indemnification provision hereunder, DGH and the DGH
Shareholders (each, the "Indemnifying Party") shall, severally and jointly,
indemnify and hold harmless RSD, its officers, directors, attorneys, accountants
and employees (each an "Indemnified Party"), from and against any and all
demands, claims, actions or causes of action, judgments, assessments, losses,
liabilities, damages or penalties and reasonable attorneys' fees and related
disbursements (collectively, "Claims") suffered by such Indemnified Party
resulting from or arising out of (i) any inaccuracy in or breach of any of the
representations or warranties made by the Indemnifying Party at the time they
were made, and, except for representations and warranties that speak as of a
specific date or time (which need only be true and correct as of such date or
time), on and as of the Closing Date, (ii) any breach or nonfulfillment of any
covenants or agreements made by the Indemnifying Party, or (iii) any
misrepresentation made by the Indemnifying Party, in each case as made herein or
in the Schedules or Exhibits annexed hereto or in any closing certificate,
schedule or any ancillary certificates or other documents or instruments
furnished by the Indemnifying Party pursuant hereto or in connection with the
Exchange.

      

      Section
11.3 Indemnification Procedures.

      

      (a) Upon
obtaining knowledge of any Claim by a third party which has given rise to, or is
expected to give rise to, a claim for indemnification hereunder, the Indemnified
Party shall give written notice ("Notice of Claim") of such claim or demand to
the Indemnifying Party, specifying in reasonable detail such information as the
Indemnified Party may have with respect to such indemnification claim (including
copies of any summons, complaint or other pleading which may have been served on
it and any written claim, demand, invoice, billing or other document evidencing
or asserting the same). No failure or delay by the Indemnified Party in the
performance of the foregoing shall reduce or otherwise affect the obligation of
the Indemnifying Party to indemnify and hold the Indemnified Party harmless,
except to the extent that such failure or delay shall have actually adversely
affected the Indemnifying Party's ability to defend against, settle or satisfy
any Claims for which the Indemnified Party entitled to indemnification
hereunder.

       

      
        
          
          

        

        
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      (b) If
the claim or demand set forth in the Notice of Claim given by an Indemnified
Party pursuant to Section 8.1 hereof is a claim or demand asserted by a third
party, the Indemnifying Party shall have fifteen (15) days after the date on
which Notice of Claim is given to notify Indemnified Party in writing of their
election to defend such third party claim or demand on behalf of the Indemnified
Party. If the Indemnifying Party elects to defend such third party claim or
demand, Indemnified Party shall make available to the Indemnifying Party and its
agents and representatives all records and other materials that are reasonably
required in the defense of such third party claim or demand and shall otherwise
cooperate with, and assist the Indemnifying Party in the defense of, such third
party claim or demand. So long as the Indemnifying Party is defending such third
party claim in good faith, the Indemnified Party shall not pay, settle or
compromise such third party claim or demand. If the Indemnifying Party elects to
defend such third party claim or demand, the Indemnified Party shall have the
right to participate in the defense of such third party claim or demand, at such
Indemnified Party's own expense. In the event, however, that such Indemnified
Party reasonably determines that representation by counsel to the Indemnifying
Party of both the Indemnifying Party and such Indemnified Party could reasonably
be expected to present counsel with a conflict of interest, then the Indemnified
Party may employ separate counsel to represent or defend it in any such action
or proceeding and the Indemnifying Party will pay the fees and expenses of such
counsel. If the Indemnifying Party does not elect to defend such third party
claim or demand or does not defend such third party claim or demand in good
faith, the Indemnified Party shall have the right, in addition to any other
right or remedy it may have hereunder, at the Indemnifying Party's expense, to
defend such third party claim or demand; provided, however, that (i) such
Indemnified Party shall not have any obligation to participate in the defense
of, or defend, any such third party claim or demand; (ii) such Indemnified
Party's defense of or its participation in the defense of any such third party
claim or demand shall not in any way diminish or lessen the obligations of the
Indemnifying Party under the agreements of indemnification set forth in this
Article XI; and (iii) such Indemnified Party may not settle any claim without
the consent of the Indemnifying Party, which consent shall not be unreasonably
withheld or delayed.

      

      (c) The
Indemnifying Party and the other Indemnified Parties, if any, shall cooperate
fully in all aspects of any investigation, defense, pre-trial in respect of
which indemnity is sought pursuant to this Article VIII, including, but not
limited to, by providing the other party with reasonable access to employees and
officers (including as witnesses) and other information.

      

      (d)
Except for third party claims being defended in good faith, the Indemnifying
Party shall satisfy its obligations under this Article XI in respect of a valid
claim for indemnification hereunder that is not contested by DGH in good faith
in cash within thirty (30) days after the date on which Notice of Claim is
given.

       

      Section
11.4 Indemnification Procedures for Non-Third Party Claims.

      

      In the
event any Indemnified Party should have an indemnification claim against the
Indemnifying Party under this Agreement that does not involve a claim by a third
party, the Indemnified Party shall promptly deliver notice of such claim to the
Indemnifying Party in writing
and in reasonable detail. The failure by any Indemnified Party to so notify the
Indemnifying Party shall not relieve the Indemnifying Party from any liability
that it may have to such Indemnified Party, except to the extent that the
Indemnifying Party has been actually prejudiced by such failure. If the
Indemnifying Party does not notify the Indemnified Party within fifteen
(15) Business Days following its receipt of such notice that the Indemnifying
Party disputes such claim, such claim specified by the Indemnifying Party in
such notice shall be conclusively deemed a liability of the Indemnifying Party
under this Article XI and the Indemnifying Party shall pay the amount of such
liability to the Indemnified Party on demand, or in the case of any notice in
which the amount of the claim is estimated, on such later date when the amount
of such claim is finally determined. If the Indemnifying Party disputes its
liability with respect to such claim in a timely manner, DGH and the Indemnified
Party shall proceed in good faith to negotiate a resolution of such dispute and,
if not resolved through negotiations, such dispute shall be resolved pursuant to
Section 13.11.

       

      Section
11.5 Limitations on Indemnification.

      

      No claim
for indemnification under this Article XI shall be asserted by, and no liability
for such indemnify shall be enforced against, the Indemnifying Party to the
extent the Indemnified Party has theretofore received indemnification or
otherwise been compensated for such Claim. In the event that an Indemnified
Party shall later collect any such amounts recovered under insurance policies
with respect to any Claim for which it has previously received payments under
this Article XI from the Indemnifying Party, such Indemnified Party shall
promptly repay to the Indemnifying Party such amount recovered.

       

      
        
          
          

        

        
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      ARTICLE
XII

       

      TERMINATION

      Section
12.1 Termination.

      

      This
Agreement may be terminated at any time prior to the Closing:

      

      (a) by
mutual consent of RSD and DGH;

      

      (b) by
DGH, if the Closing shall not have occurred on or before December 1, 2009, or if
any of the conditions to the Closing set forth in Section 10.1 shall have become
incapable of fulfillment by December 1, 2009 and shall not have been waived in
writing by DGH; provided, however, that the right to terminate this Agreement
under this Section 12.1(b) shall not be available to DGH if its action or
failure to act has been a principal cause of or resulted in the failure of the
Exchange to occur on or before such date and such action or failure to act
constitutes a breach of this Agreement;

      

      (c) by
RSD, if the Closing shall not have occurred on or before December 1, 2009 or if
any of the conditions to the Closing set forth in Section 10.2 shall have become
incapable of fulfillment by December 1, 2009 and shall not have been waived in
writing by RSD; provided, however, that the right to terminate this Agreement
under this Section 12.1(c) shall not be available to RSD if its action or
failure to act has been a principal cause of or resulted in the failure of the
Exchange to occur on or before such date and such action or failure to act
constitutes a breach of this Agreement;

      

      (d) by
RSD or DGH if any Governmental or judicial Authority shall have issued an
injunction, order, decree or ruling or taken any other action restraining,
enjoining or otherwise prohibiting any material portion of the Exchange and such
injunction, order, decree, ruling or other action shall have become final and
nonappealable;

      

      Section
12.2 Procedure and Effect of Termination.

      

      In the
event of termination of this Agreement pursuant to Section 9.1 hereof, written
notice thereof shall forthwith be given by the terminating party to the other
party, and, except as set forth below, this Agreement shall terminate and be
void and have no effect and the Exchange shall be abandoned without any further
action by the parties hereto; provided that, if such termination shall result
from the failure of or agreement in this of any representation a party to
perform a covenant, obligation Agreement or from the breach by RSD, or DGH or
warranty contained herein, such party shall be fully liable for any and all
damages incurred or suffered by the other party as a result of such failure or
breach. The provisions of Section 9.3, Section 9.5, Section 12.2, and Article XI
hereof and Article XIII shall survive the termination of this Agreement for any
reason whatsoever.

       

      

      ARTICLE
XIII

       

      MISCELLANEOUS

       

      Section
13.1 Entire Agreement.

      

      This
Agreement and the Schedules and Exhibits hereto contain the entire agreement
between the parties and supersedes all prior agreements and understandings, both
written and oral, between the parties with respect to the subject matter
hereof.

      

      Section
13.2 Amendment and Modifications.

      

      This
Agreement may not be amended, modified or supplemented except by an instrument
or instruments in writing signed by the party against whom enforcement of any
such amendment, modification or supplement is sought.

      

      Section
13.3 Extensions and Waivers.

      

      At any
time prior to the Closing, the parties hereto entitled to the benefits of a term
or provision may (a) extend the time for the performance of any of the
obligations or other acts of the parties hereto, (b) waive any inaccuracies in
the representations and warranties contained herein or in any document,
certificate or writing delivered pursuant hereto, or (c) waive compliance with
any obligation, covenant, agreement or condition contained herein. Any agreement
on the part of a party to any such extension or waiver shall be valid only if
set forth in an instrument or instruments in writing signed by the party against
whom enforcement of any such extension or waiver is sought. No failure or delay
on the part of any party hereto in the exercise of any right hereunder shall
impair such right or be construed to be a waiver of, or acquiescence in, any
breach of any representation, warranty, covenant or agreement.

       

      
        
          
          

        

        
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      Section
13.4 Successors and Assigns.

      

      This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, provided, however, that no party
hereto may assign its rights or delegate its obligations under this Agreement
without the express prior written consent of the other party hereto. Except as
provided in Article VIII, nothing in this Agreement is intended to confer upon
any person not a party hereto (and their successors and assigns) any rights,
remedies, obligations or liabilities under or by reason of this
Agreement.

      

      Section
13.5 Survival of Representations, Warranties and Covenants.

       

      The
representations and warranties contained herein shall survive the Closing and
shall thereupon terminate June 30, 2010. All covenants and agreements contained
herein which by their terms contemplate actions following the Closing shall
survive the Closing and remain in full force and effect in accordance with their
terms.

      

      Section
13.6 Headings; Definitions.

      

      The
Section and Article headings contained in this Agreement are inserted for
convenience of reference only and will not affect the meaning or interpretation
of this Agreement. All references to Sections or Articles contained herein mean
Sections or Articles of this Agreement unless otherwise stated. All capitalized
terms defined herein are equally applicable to both the singular and plural
forms of such terms.

      

      Section
13.7 Severability.

      

      If any
provision of this Agreement or the application thereof to any Person or
circumstance is held to be invalid or unenforceable to any extent, the remainder
of this Agreement shall remain in full force and effect and shall be reformed to
render the Agreement valid and enforceable while reflecting to the greatest
extent permissible the intent of the parties.

       

      Section
13.8 Specific Performance.

      

      The
parties hereto agree that in the event that any party fails to consummate the
Exchange in accordance with the terms of this Agreement, irreparable damage
would occur, no adequate remedy at law would exist and damages would be
difficult to determine. It is accordingly agreed that the parties shall be
entitled to specific performance in such event, without the necessity of proving
the inadequacy of money damages as a remedy, in addition to any other remedy at
law or in equity.

       

      Section
13.9 Notices.

      

      All
notices hereunder shall be sufficiently given for all purposes hereunder if in
writing and delivered personally, sent by documented overnight delivery service
or, to the extent receipt is confirmed, telecopy, telefax, email or other
electronic transmission service to the appropriate address or number as set
forth below (or any other address duly notified by a party hereto pursuant to
the provisions of this Section 10.9).

      

      If to
RSD:

      Royal
Style Design, Inc.

      2561
Forsythe Road, Unit D

      Orlando,
FL 32807

      Attn:
Chief Executive Officer

       

      
        
          
          

        

        
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      If to
DGH:

      Richard
Lloyd

      301 East
Pine Street ,Suite150

      Orlando,
FL 32801

      Attn:
Chief Executive Officer

      

      Section
13.10 Governing Law.

      

      This
Agreement shall be governed by and construed in accordance with the laws of the
State of Florida, without regard to the conflicts of laws
principles.

       

      

      Section
13.11 Consent to Jurisdiction.

      

      The
parties shall in good faith attempt to resolve all disputes arising under this
Agreement or by reason of the Exchange by discussion or mediation resulting in
mutual agreement as to the manner of resolution of the particular dispute.
Failing such resolution, the Federal courts of competent jurisdiction in the
State of Florida shall have sole jurisdiction to resolve any disputes arising
under this Agreement or by reason of the Exchange.  Any action, suit
or other legal proceeding which is commenced to resolve any matter arising under
or relating to any provision of this Agreement shall be commenced only in a
federal court of competent jurisdiction the State of Florida and the parties
hereto each consents to the jurisdiction of such a court.

      

      Section
13.12 Counterparts.

      

      This
Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original, but all of which together shall constitute one and the
same agreement.

      

      Section
13.13 Certain Definitions. As used herein:

      (a)
"Affiliate" shall have the meanings ascribed to such term in Rule 12b-2 of the
Exchange Act;

      

      (b)
"Business Day" shall mean any day other than a Saturday, Sunday or a day on
which federally chartered financial institutions are not open for
business.

      

      (c)
"Confidential Information" shall mean the existence and contents of this
Agreement and the Schedules and Exhibits hereto, and all proprietary technical,
economic, environmental, operational, financial and/or business information or
material of one party which, prior to or following the Closing Date, has been
disclosed by DGH, on the one hand, or RSD, on the other hand, in written, oral
(including by recording), electronic, or visual form to, or otherwise has come
into the possession of, the other;

      

      (d)
"Contract" shall mean any oral, written or implied contracts, agreements,
licenses, instruments, indentures leases, powers of attorney, guaranties, surety
arrangements or other commitments of any kind;

      

      (e)
"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder;

      

      (f)
"GAAP" shall mean generally accepted accounting principles in the United States
as in effect on the date or for the period with respect to which such principles
are applied;

      

      (g)
"Governmental Authority" shall mean any nation or government, any state,
municipality or other political subdivision thereof and any entity, body,
agency, commission or court, whether

      domestic,
foreign or multinational, exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government and any
executive official thereof;

      

      (h)
"Knowledge" shall mean (i) with respect to an individual, knowledge of a
particular fact or other matter, if such individual is aware of such fact
or other matter,
and (ii) with respect to a Person that is not an individual, knowledge of a
particular fact or other matter if any individual who is serving, or who has at
any time served, as a director, officer, partner, executor, or trustee of such
Person (or in any similar capacity) has, or at any time had, knowledge of such
fact or other matter;

       

      
        
          
          

        

        
          Page
24

          
            

          

        

        
          
          

        

      

      

      (i)
"Lien" shall mean any security or other property interest or right, claim, lien,
pledge, option, charge, security interest, contingent or conditional sale, or
proxy, pre-emptive rights, first refusal rights, participation rights, or other
title claim or retention agreement, interest or other right or claim of third
parties, whether perfected or not perfected, voluntarily incurred or arising by
operation of law, and including any agreement (other than this Agreement) to
grant or submit to any of the foregoing in the future;

      

      (j)
"Material Adverse Effect" shall mean any adverse effect on the business,
condition (financial or otherwise) or results of operation of the applicable
entity;

      

      (k)
"Material Contract" shall mean any Contract, other than automotive loans and
equipment and furniture leases entered into in the ordinary course of business,
the liabilities or commitments associated therewith exceed, in the case of DGH,
$50,000 individually or $100,000 in the aggregate;

      

      (1)
"Person" shall mean any individual, corporation, partnership, association, trust
or other entity or organization, including a governmental or political
subdivision or any agency or institution thereof;

      

      (m) “RSD
SEC Documents” shall mean all reports filed by RSD with the SEC under the
Exchange Act.

      

      (n) "SEC"
shall mean the Securities and Exchange Commission;

      

      (o)
"Securities Act" shall mean the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder; and

      

      (p) “DGH
Acquisition Subsidiary” shall mean a 100% owned subsidiary corporation of RSD
formed for the purpose of holding the DGH Shares.

      

      (q)
"Taxes" shall mean all taxes (whether U.S. federal, state, local or other
non-U.S.) based upon or measured by income or gains from the sale
of  property and any other tax whatsoever, including, without
limitation, gross receipts, profits, sales, levies, imposts, deductions,
charges, rates, duties, use, occupation, value added, ad valorem, transfer,
franchise, withholding, payroll and social security, employment, excise, stamp
duty or property taxes, together with any interest, penalties, charges or fees
imposed with respect thereto.

      

      

      (BALANCE
OF PAGE LEFT INTENTIONALLY BLANK]

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          Page
25

          
            

          

        

        
          
          

        

      

      

      IN
WITNESS WHEREOF, each of the parties have caused this Agreement to be signed by
their respective officers hereunto duly authorized, all as of the date first
written above.

      

      ROYAL
STYLE DESIGN, INC.

      

      
        	
                By:  /s/
      Nikolay Lobachev

              	 
      	
                By:
      /s/ Dmitry Terikov

              	 
      	
                By:
      /s/ Ivan Sorokoumov

              
	
                 

                Name:
      Nikolay Lobachev

              	 
      	
                 

                Name:
      Dmitry Terikov

              	 
      	
                 

                Name:
      Ivan Sorokoumov

              
	
                 

                Title:
      CEO

              	 
      	
                 

                Title:
      Chairman

              	 
      	
                 

                Title:

              

      

       
 

      

      

      DIVERSIFIED
GLOBAL HOLDINGS, INC.

      

      
        	
                By:
      /s/ Richard Lloyd

              	 
      	
                By:
      /s/ Vadim Enikeev

              	 
      	 
      
	
                 

                Name:
      Richard Lloyd

              	 
      	
                 

                Name:
      Vadim Enikeev

              	 
      	 
      
	
                 

                Title:
      CEO

              	 
      	
                 

                Title:

              	 
      	 
      

      

      

      

      
 

      

      

      DGH
Shareholders' COUNTERPART SIGNATURE PAGE [Signature page must be executed by
each DGH Shareholder]

      

      
        
          	
                  /s/
      Richard Lloyd

                	 
      
	
                   

                	 
      
	
                  Richard
      Lloyd

                	 
      
	 
      	 
      
	
                  /s/
      Vadim Enikeev

                	 
      
	
                   

                	 
      
	
                  Vadim
      Enikeev

                	 
      
	 
      	 
      
	
                  /s/
      Victor Belitchenko

                	 
      
	
                   

                	 
      
	
                  Victor
      Belitchenko

                	 
      
	 
      	 
      
	
                  /s/
      Carole Lynn

                	 
      
	
                   

                	 
      
	
                  Carole
      Lynn

                	 
      
	 
      	 
      
	
                  /s/
      Nikolay Uraev

                	 
      
	
                   

                	 
      
	
                  Nikolay
      Uraev

                	 
      

        

        
          
            
            

          

          
            Page
26

            
              

            

          

          
            
            

          

        

      SCHEDULE
I

       

       

      
        	Name of
      Shareholder    	 	
                No. of Shares of
      DGH

                to be
      Exchanged  

              	
                No.
      of  Shares of RSD

                to be Received in
      Exchange

              	 
	 	 	 	 	 
	
                Richard
      Lloyd

              	 
      	
                200

              	
                28,000,000

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Vadim
      Enikeev

              	 
      	
                200

              	
                28,000,000

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Nikolay
      Uraev

              	 
      	
                360

              	
                29,100,000

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Victor
      Belitchenko

              	 
      	
                360

              	
                135,800

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Carole
      Lynn

              	 
      	
                360

              	
                1,000,000

              	 
      

      

      
 

       

       
Page 27EX-10.1

INDEMNIFICATION AGREEMENT

THIS INDEMNIFICATION AGREEMENT is made and entered into this        day of October, 2009
(“Agreement”), among Starwood Hotels & Resorts Worldwide, Inc., a Maryland corporation (the
“Company”), and        (“Indemnitee”).

WHEREAS, at the request of the Company, Indemnitee currently serves as a director, officer or
employee of the Company, of one or more of its subsidiaries or affiliates, or of any other
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which
Indemnitee serves at the request of the Company (a “Portfolio Company”), or has been elected or
appointed a director, officer or employee of the Company, one or more of its subsidiaries or
affiliates or of a Portfolio Company effective at a later date, and may, therefore, be subjected to
claims, suits or proceedings arising as a result of such service; and

WHEREAS, as an inducement to Indemnitee to continue to serve as such director, officer or
employee, the Company has agreed to indemnify and to advance expenses and costs incurred by
Indemnitee in connection with any such claims, suits or proceedings, to the fullest extent
permitted by law; and

WHEREAS, the parties by this Agreement desire to set forth their agreement regarding
indemnification and advance of expenses;

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

Section 1. Definitions. For purposes of this Agreement:

(a) “Board” means the Board of Directors of the Company.

(b) “Change in Control” shall be deemed to have occurred if the event set forth in any one
of the following paragraphs shall have occurred:

(i) any Person is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company (not including in the securities beneficially owned by such Person
any securities acquired directly from the Company or its affiliates) representing 25% or
more of the combined voting power of the Company’s then outstanding securities, excluding
any Person who becomes such a Beneficial Owner in connection with a transaction described in
clause (1) of paragraph (iii) below; or

(ii) the following individuals cease for any reason to constitute a majority of
the number of directors then serving: individuals who, on the date hereof, constitute the
Board and any new director (other than a director whose initial assumption of office is in
connection with an actual or threatened election contest, including but not limited to a
consent solicitation, relating to the election of directors of the Company) whose
appointment or election by the Board or nomination for election by the Company’s
stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the
directors then still in office who either were directors on the date hereof or whose
appointment, election or nomination for election was previously so approved or recommended;
or

(iii) there is consummated a merger or consolidation of the Company or any direct or
indirect subsidiary of the Company with any other corporation, other than (1) a merger or
consolidation which would result in the voting securities of the Company outstanding
immediately prior to such merger or consolidation continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving entity
or any parent thereof), in combination with the ownership of any trustee or other fiduciary
holding securities under an employee benefit plan of the Company or any subsidiary of the
Company, at least 70% of the combined voting power of the securities of the Company or such
surviving entity or any parent thereof outstanding immediately after such merger or
consolidation, and in proportion to their voting power immediately prior to such merger or
consolidation, or (2) a merger or consolidation effected to implement a recapitalization of
the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner,
directly or indirectly, of securities of the Company representing 25% or more of the
combined voting power of the Company’s then outstanding securities; or

(iv) the stockholders of the Company approve a plan of complete liquidation or
dissolution of the Company or there is consummated an agreement for the sale or disposition
by the Company of all or substantially all of the Company’s assets, other than a sale or
disposition by the Company of all or substantially all of the Company’s assets to an entity,
at least 70% of the combined voting power of the voting securities of which are owned by
stockholders of the Company in substantially the same proportions as their ownership of the
Company immediately prior to such sale. Notwithstanding the foregoing, a “Change in
Control” shall not be deemed to have occurred by virtue of the consummation of any
transaction or series of integrated transactions immediately following which the record
holders of the common stock of the Company immediately prior to such transaction or series
of transactions continue to have substantially the same proportionate ownership in an entity
which owns all or substantially all of the assets of the Company immediately following such
transaction or series of transactions.

(c) “Corporate Status” means the status of a person who is or was a director, trustee,
officer, employee or agent of the Company, one or more of its subsidiaries or affiliates, or of any
Portfolio Company.

(d) “Disinterested Director” means a director of the Company who is not and was not a party to
the Proceeding in respect of which indemnification is sought by Indemnitee.

(e) “Effective Date” means the date set forth in the first paragraph of this Agreement.

(f) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, and all other disbursements or
expenses of the types customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding.

(g) “Independent Counsel” means a law firm, or a member of a law firm that is experienced in
matters of corporation law and neither presently is, nor in the past five years has been, retained
to represent: (i) the Company or Indemnitee in any matter material to either such party, or (ii)
any other party to the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s
rights under this Agreement. If a Change in Control has not occurred, Independent Counsel shall be
selected by the Board, with the approval of Indemnitee, which approval will not be unreasonably
withheld. If a Change in Control has occurred, Independent Counsel shall be selected by
Indemnitee, with the approval of the Board, which approval will not be unreasonably withheld.

(h) “Person” as used herein shall be broadly interpreted to include, without limitation,
any corporation, company, group, partnership or individual.

(i) “Proceeding” includes any threatened, pending or completed action, suit, arbitration,
alternate dispute resolution mechanism, investigation, administrative hearing or any other
proceeding, whether civil, criminal, administrative or investigative (including on appeal), except
one (i) initiated by an Indemnitee pursuant to Section 11 of this Agreement to enforce his rights
under this Agreement or (ii) pending or completed on or before the Effective Date, unless otherwise
specifically agreed in writing by the Company and Indemnitee.

Section 2. Services by Indemnitee. Indemnitee currently serves as a director, officer
or employee of the Company, of one or more of its subsidiaries or affiliates, or of a Portfolio
Company, or has been elected or appointed a director, officer or employee of the Company, one or
more of its subsidiaries or affiliates or of a Portfolio Company. However, this Agreement shall
not impose any obligation on Indemnitee or the Company to continue Indemnitee’s service to the
Company, any of its subsidiaries, affiliates or Portfolio Company beyond any period otherwise
required by law or by other agreements or commitments of the parties, if any.

Section 3. Indemnification — General. The Company shall indemnify, and advance
Expenses to, Indemnitee (a) as provided in this Agreement and (b) otherwise to the fullest extent
permitted by Maryland law in effect on the date hereof and as amended from time to time; provided,
however, that no change in Maryland law shall have the effect of reducing the benefits available to
Indemnitee hereunder based on Maryland law as in effect on the date hereof. The rights of
Indemnitee provided in this Section 3 shall include, without limitation, the rights set forth in
the other sections of this Agreement, including any additional indemnification permitted by Section
2-418(g) of the Maryland General Corporation Law (“MGCL”).

Section 4. Proceedings Other Than Proceedings by or in the Right of the Company.

(a) Indemnitee shall be entitled to the rights of indemnification provided in this
Section 4 if, by reason of Indemnitee’s Corporate Status, he or she is, or is threatened to
be, made a party to or a witness in any threatened, pending, or completed Proceeding, other
than a Proceeding by or in the right of the Company. Pursuant to this Section 4, Indemnitee
shall be indemnified against all judgments, penalties, fines and amounts paid in settlement
and all Expenses actually and reasonably incurred by Indemnitee or on his or her behalf in
connection with a Proceeding by reason of Indemnitee’s Corporate Status unless it is
established that (i) the act or omission of Indemnitee was material to the matter giving
rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active
and deliberate dishonesty, (ii) Indemnitee actually received an improper personal benefit in
money, property or services, or (iii) in the case of any criminal Proceeding, Indemnitee had
reasonable cause to believe that his conduct was unlawful.

(b) Indemnitee shall be deemed to have acted in good faith if, in performing his or her
duties, Indemnitee relied on any information, opinion, report or statement, including any
financial statement or other financial data prepared or presented by:

(i) an officer or employee of the Company whom Indemnitee reasonably believes to be reliable
and competent in the matters presented;

(ii) a lawyer, certified public accountant, or other person, as to a matter which Indemnitee
reasonably believes to be within the person’s professional or expert competence; or

(iii) a committee of the Board on which Indemnitee does not serve, as to a matter within its
designated authority, if Indemnitee reasonably believes the committee to merit confidence.

(c) Indemnitee has not acted in good faith if he or she had any knowledge concerning the
matter in question which would cause the reliance set forth in paragraph (b) above to be
unwarranted.

Section 5. Proceedings by or in the Right of the Company.

(a) Indemnitee shall be entitled to the rights of indemnification provided in this
Section 5 if, by reason of Indemnitee’s Corporate Status, he or she is, or is threatened to
be, made a party to or a witness in any threatened, pending or completed Proceeding brought
by or in the right of the Company to procure a judgment in its favor. Pursuant to this
Section 5, Indemnitee shall be indemnified against all amounts paid in settlement and all
Expenses actually and reasonably incurred by Indemnitee or on his or her behalf in
connection with such Proceeding unless it is established that (i) the act or omission of
Indemnitee was material to the matter giving rise to such a Proceeding and (a) was committed
in bad faith or (b) was the result of active and deliberate dishonesty or (ii) Indemnitee
actually received an improper personal benefit in money, property or services.

(b) Indemnitee shall be deemed to have acted in good faith if, in performing his or her
duties, Indemnitee relied on any information, opinion, report or statement, including any
financial statement or other financial data prepared or presented by:

(i) an officer or employee of the Company whom Indemnitee reasonably believes to be reliable
and competent in the matters presented;

(ii) a lawyer, certified public accountant, or other person, as to a matter which Indemnitee
reasonably believes to be within the person’s professional or expert competence; or

(iii) a committee of the Board on which Indemnitee does not serve, as to a matter within its
designated authority, if Indemnitee reasonably believes the committee to merit confidence.

(c) Indemnitee has not acted in good faith if he or she had any knowledge concerning the
matter in question which would cause the reliance set forth in paragraph (b) above to be
unwarranted.

Section 6. Court-Ordered Indemnification. Notwithstanding any other provision of this
Agreement, a court of appropriate jurisdiction, upon application of a director or officer
(including the Indemnitee) and such notice as the court shall require, may order indemnification in
the following circumstances:

(a) if it determines a director or officer is entitled to reimbursement under Section
2-418(d)(1) of the MGCL, the court shall order indemnification, in which case the director
or officer shall be entitled to recover the expenses of securing such reimbursement; or

(b) if it determines that the director or officer is fairly and reasonably entitled to
indemnification in view of all the relevant circumstances, whether or not the director or
officer (i) has met the standards of conduct set forth in Section 2-418(b) of the MGCL or
(ii) has been adjudged liable for receipt of an improper personal benefit under Section
2-418(c) of the MGCL, the court may order such indemnification as the court shall deem
proper. However, indemnification with respect to any Proceeding by or in the right of the
Company or in which liability shall have been adjudged in the circumstances described in
Section 2-418(c) of the MGCL shall be limited to Expenses.

Section 7. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement, and without limiting any such provision, to
the extent that Indemnitee is, by reason of his Corporate Status, made a party to and is successful
in accordance with the standards in Section 4 or Section 5, as applicable, on the merits or
otherwise, in the defense of any Proceeding, he shall be indemnified for all Expenses actually and
reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly
successful in accordance with the standards in Section 4 or Section 5, as applicable, in such
Proceeding such that he would not be entitled to indemnification as to some or all matters under
Section 4 or Section 5, as applicable, but is successful in accordance with the standards in
Section 4 or Section 5, as applicable, on the merits or otherwise, as to one or more but less than
all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee under this
Section 7 for all Expenses actually and reasonably incurred by him or on his behalf in connection
with each successfully resolved claim, issue or matter. For purposes of this Section and without
limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with
or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.
Notwithstanding anything to the contrary contained herein, regardless of the outcome of any
Proceeding, Indemnitee’s defense in any such Proceeding shall be deemed successful for purposes of
this Section 7 so long as none of the matters set forth in the last sentence of Section 4(a) or
Section 5(a) above, as applicable, shall have been conclusively established.

Section 8. Advance of Expenses. The Company shall advance all reasonable Expenses
incurred by or on behalf of Indemnitee in connection with any Proceeding to which Indemnitee is, or
is threatened to be, made a party or a witness, within ten days after the receipt by the Company of
a statement or statements from Indemnitee requesting such advance or advances from time to time,
whether prior to or after final disposition of such Proceeding. Such statement or statements shall
reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or
accompanied by a written affirmation by Indemnitee of Indemnitee’s good faith belief that the
standard of conduct necessary for indemnification by the Company as authorized by law and by this
Agreement has been met and a written undertaking by or on behalf of Indemnitee, in substantially
the form attached hereto as Exhibit A or in such form as may be required under applicable
law as in effect at the time of the execution thereof, to reimburse the portion of any Expenses
advanced to Indemnitee relating to claims, issues or matters in the Proceeding as to which it shall
ultimately be established that the standard of conduct has not been met and which has not been
successfully resolved as described in Section 7. To the extent that Expenses advanced to
Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses
shall be allocated on a reasonable and proportionate basis. The undertaking required by this
Section 8 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be
accepted without reference to Indemnitee’s financial ability to repay such advanced Expenses and
without any requirement to post security therefor.

Section 9. Procedure for Determination of Entitlement to Indemnification.

(a) To obtain indemnification under this Agreement, Indemnitee shall submit to the
Company a written request, including therein or therewith such documentation and information
as is reasonably available to Indemnitee and is reasonably necessary to determine whether
and to what extent Indemnitee is entitled to indemnification. The Secretary of the Company
shall, promptly upon receipt of such a request for indemnification, advise the Board of
Directors in writing that Indemnitee has requested indemnification.

(b) Upon written request by Indemnitee for indemnification pursuant to the first
sentence of Section 9(a) hereof, a determination, if required by applicable law, with
respect to Indemnitee’s entitlement thereto shall promptly be made in the specific case: (i)
if a Change in Control shall have occurred, by Independent Counsel in a written opinion to
the Board, a copy of which shall be delivered to Indemnitee; or (ii) if a Change of Control
shall not have occurred, (A) by the Board (or a duly authorized committee thereof) by a
majority vote of a quorum consisting of Disinterested Directors (as herein defined), or (B)
if a quorum of the Board consisting of Disinterested Directors is not obtainable or, even if
obtainable, such quorum of Disinterested Directors so directs, by Independent Counsel in a
written opinion to the Board, a copy of which shall be delivered to Indemnitee, or (C) if so
directed by a majority of the members of the Board, by the stockholders of the Company; and,
if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee
shall be made within ten days after such determination. Indemnitee shall cooperate with the
person, persons or entity making such determination with respect to Indemnitee’s entitlement
to indemnification, including providing to such person, persons or entity upon reasonable
advance request any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and reasonably
necessary to such determination. Any costs or Expenses (including reasonable attorneys’
fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or
entity making such determination shall be borne by the Company (irrespective of the
determination as to Indemnitee’s entitlement to indemnification) and the Company hereby
agrees to indemnify and hold Indemnitee harmless therefrom.

Section 10. Presumptions and Effect of Certain Proceedings.

(a) In making a determination with respect to entitlement to indemnification hereunder,
the person or persons or entity making such determination shall presume that Indemnitee is
entitled to indemnification under this Agreement if Indemnitee has submitted a request for
indemnification in accordance with Section 9(a) of this Agreement, and the Company shall
have the burden of proof to overcome that presumption in connection with the making of any
determination contrary to that presumption.

(b) The termination of any Proceeding by judgment, order, settlement, conviction, a
plea of nolo contendere or its equivalent, or an entry of an order of
probation prior to judgment, does not create a presumption that Indemnitee did not meet the
requisite standard of conduct described herein for indemnification.

Section 11. Remedies of Indemnitee.

(a) If (i) a determination is made pursuant to Section 9 of this Agreement that
Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of Expenses
is not timely made pursuant to Section 8 of this Agreement, (iii) no determination of
entitlement to indemnification shall have been made pursuant to Section 9(b) of this
Agreement within 90 days after receipt by the Company of the request for indemnification,
(iv) payment of indemnification is not made pursuant to Section 7 of this Agreement within
ten days after receipt by the Company of a written request therefor, or (v) payment of
indemnification is not made within ten days after a determination has been made that
Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication
in an appropriate court of the State of Maryland, or in any other court of competent
jurisdiction, of his entitlement to such indemnification or advance of Expenses.
Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted
by a single arbitrator pursuant to the commercial Arbitration Rules of the American
Arbitration Association. Indemnitee shall commence such proceeding seeking an adjudication
or an award in arbitration within 180 days following the date on which Indemnitee first has
the right to commence such proceeding pursuant to this Section 11(a); provided, however,
that the foregoing clause shall not apply in respect of a proceeding brought by Indemnitee
to enforce his rights under Section 7 of this Agreement.

(b) In any judicial proceeding or arbitration commenced pursuant to this Section 11 the
Company shall have the burden of proving that Indemnitee is not entitled to indemnification
or advance of Expenses, as the case may be.

(c) If a determination shall have been made pursuant to Section 9(b) of this Agreement
that Indemnitee is entitled to indemnification, the Company shall be bound by such
determination in any judicial proceeding or arbitration commenced pursuant to this Section
11, absent a misstatement by Indemnitee of a material fact, or an omission of a material
fact necessary to make Indemnitee’s statement not materially misleading, in connection with
the request for indemnification.

(d) In the event that Indemnitee, pursuant to this Section 11, seeks a judicial
adjudication of or an award in arbitration to enforce his rights under, or to recover
damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the
Company, and shall be indemnified by the Company for, any and all Expenses actually and
reasonably incurred by him in such judicial adjudication or arbitration. If it shall be
determined in such judicial adjudication or arbitration that Indemnitee is entitled to
receive part but not all of the indemnification or advance of Expenses sought, the Expenses
incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be
appropriately prorated.

Section 12. Defense of the Underlying Proceeding.

(a) Indemnitee shall notify the Company promptly upon being served with or receiving
any summons, citation, subpoena, complaint, indictment, information, notice, request or
other document relating to any Proceeding which may result in the right to indemnification
or the advance of Expenses hereunder; provided, however, that the failure to give any such
notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any
right of Indemnitee, to indemnification or the advance of Expenses under this Agreement
unless the Company’s ability to defend in such Proceeding or to obtain proceeds under any
insurance policy is materially and adversely prejudiced thereby, and then only to the extent
the Company is thereby actually so prejudiced.

(b) Subject to the provisions of the last sentence of this Section 12(b) and of Section
12(c) below, the Company shall have the right to defend Indemnitee in any Proceeding which
may give rise to indemnification hereunder; provided, however, that the Company shall notify
Indemnitee of any such decision to defend within 15 calendar days following receipt of
notice of any such Proceeding under Section 12(a) above. The Company shall not, without the
prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed,
consent to the entry of any judgment against Indemnitee or enter into any settlement or
compromise which (i) includes an admission of fault of Indemnitee or (ii) does not include,
as an unconditional term thereof, the full release of Indemnitee from all liability in
respect of such Proceeding, which release shall be in form and substance reasonably
satisfactory to Indemnitee. This Section 12(b) shall not apply to a Proceeding brought by
Indemnitee under Section 11 above or Section 18 below.

(c) Notwithstanding the provisions of Section 12(b) above, if in a Proceeding to which
Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably
concludes, based upon an opinion of Independent Counsel, that he or she may have separate
defenses or counterclaims to assert with respect to any issue which may not be consistent
with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon
an opinion of Independent Counsel, that an actual or apparent conflict of interest or
potential conflict of interest exists between Indemnitee and the Company, or (iii) if the
Company fails to assume the defense of such Proceeding in a timely manner, Indemnitee shall
be entitled to be represented by separate legal counsel of Indemnitee’s choice, subject to
the prior approval of the Company, which shall not be unreasonably withheld, at the expense
of the Company. In addition, if the Company fails to comply with any of its obligations
under this Agreement or in the event that the Company or any other person takes any action
to declare this Agreement void or unenforceable, or institutes any Proceeding to deny or to
recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder,
Indemnitee shall have the right to retain counsel of Indemnitee’s choice, subject to the
prior approval of the Company, which shall not be unreasonably withheld, at the expense of
the Company (subject to Section 11(d)), to represent Indemnitee in connection with any such
matter.

Section 13. Non-Exclusivity; Survival of Rights; Insurance; Subrogation.

(a) The rights of indemnification and advance of Expenses as provided by this Agreement
shall not be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Charter or Bylaws of the Company or any subsidiary or
Portfolio Company, as applicable, any agreement or a resolution of the stockholders entitled
to vote generally in the election of directors or of the Board, or otherwise. No amendment,
alteration or repeal of this Agreement or of any provision hereof shall limit or restrict
any right of Indemnitee under this Agreement in respect of any action taken or omitted by
such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.

(b) In the event of any payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all papers required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring suit to enforce
such rights.

(c) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise
actually received such payment under any insurance policy, contract, agreement or otherwise.

Section 14. Insurance. The Company will use its reasonable best efforts to acquire
directors and officers liability insurance, on terms and conditions deemed appropriate by the Board
of the Company, with the advice of counsel, covering Indemnitee or any claim made against
Indemnitee for service as a director or officer of the Company or any of its subsidiaries or
affiliates and covering the Company for any indemnification or advance of expenses made by the
Company to Indemnitee for any claims made against Indemnitee for service as a director or officer
of the Company or any of its subsidiaries or affiliates. Such insurance will apply to an
Indemnitee who is providing services to a Portfolio Company only to the extent Portfolio Company’s
directors and officers liability insurance does not cover Indemnitee. Without in any way limiting
any other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment
by Indemnitee arising out of the amount of any deductible or retention and the amount of any excess
of the aggregate of all judgments, penalties, fines, settlements and reasonable expenses incurred
by Indemnitee in connection with a Proceeding over the coverage of any insurance referred to in the
first sentence of this Section 14.

Section 15. Indemnification for Expenses of a Witness. Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a
witness in any Proceeding, whether instituted by the Company or any other party, and to which
Indemnitee is not a party, he shall be advanced all reasonable Expenses and indemnified against all
Expenses actually and reasonably incurred by him or on his behalf in connection therewith.

Section 16. Duration of Agreement; Binding Effect.

(a) This Agreement shall continue until and terminate ten years after the date that
Indemnitee shall have ceased to serve as a director, trustee, officer, employee, or agent of
the Company or of any other corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise which Indemnitee served at the request of the Company; provided,
that the rights of Indemnitee hereunder shall continue until the later of final termination
(i) of any Proceeding then pending in respect of which Indemnitee is granted rights of
indemnification or advance of Expenses hereunder and (ii) of any proceeding commenced by
Indemnitee pursuant to Section 11 of this Agreement relating thereto.

(b) The indemnification and advance of Expenses provided by, or granted pursuant to,
this Agreement shall be binding upon and be enforceable by the parties hereto and their
respective successors and assigns (including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business or assets of
the Company), shall continue as to an Indemnitee who has ceased to be a director, trustee,
officer, employee or agent of the Company or of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise which such person is or was
serving at the request of the Company, and shall inure to the benefit of Indemnitee and his
or her spouse, assigns, heirs, devisees, executors and administrators and other legal
representatives.

(c) The Company shall require and cause any successor (whether direct or indirect by
purchase, merger, consolidation or otherwise) to all, substantially all or a substantial
part, of the business and/or assets of the Company, by written agreement in form and
substance satisfactory to Indemnitee, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to
perform if no such succession had taken place.

Section 17. Severability. If any provision or provisions of this Agreement shall be
held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality
and enforceability of the remaining provisions of this Agreement (including, without limitation,
each portion of any section of this Agreement containing any such provision held to be invalid,
illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way
be affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this
Agreement (including, without limitation, each portion of any section of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that is not itself invalid,
illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

Section 18. Exception to Right of Indemnification or Advance of Expenses.
Notwithstanding any other provision of this Agreement, Indemnitee shall not be entitled to
indemnification or advance of Expenses under this Agreement with respect to any Proceeding brought
by Indemnitee, unless (a) the Proceeding is brought to enforce indemnification under this Agreement
or otherwise or (b) the Company’s Bylaws, as amended, the Charter, a resolution of the stockholders
entitled to vote generally in the election of directors or of the Board or an agreement approved by
the Board to which the Company is a party expressly provide otherwise.

Section 19. Identical Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which
together shall constitute one and the same Agreement. One such counterpart signed by the party
against whom enforceability is sought shall be sufficient to evidence the existence of this
Agreement.

Section 20. Headings. The headings of the paragraphs of this Agreement are inserted
for convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

Section 21. Modification and Waiver; Entire Agreement. No supplement, modification or
amendment of this Agreement shall be binding unless executed in writing by both of the parties
hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a
continuing waiver. This Agreement constitutes the full and entire understanding and agreement
among the parties with regard to the subject matter hereof, and supercedes all prior agreements.

Section 22. Notice by Indemnitee. Indemnitee shall promptly notify the Company in
writing upon being served with any summons, citation, subpoena, complaint, indictment, information
or other document relating to any Proceeding or matter which may be subject to indemnification or
advance of Expenses covered hereunder.

Section 23. Notices. All notices and other communications under this Agreement shall
be in writing and shall be deemed given (i) when delivered personally by hand (with written
confirmation of receipt), (ii) when sent by facsimile (with written confirmation of transmission)
or (iii) three business days following the day sent by overnight courier (with written confirmation
of receipt), in each case at the following addresses and facsimile numbers (or to such other
address or facsimile number as a party may have specified by notice given to the other party
pursuant to this provision):

(a) If to Indemnitee, to: The address set forth on the signature page hereto.

(b) If to the Company to:

	 	 	 
	Starwood Hotels & Resorts Worldwide, Inc.

	1111 Westchester Avenue

White Plains, NY 10604

Attn:

	 	

Kenneth S. Siegel

Chief Administrative Officer and General Counsel

or to such other address as may have been furnished to Indemnitee by the Company or to the Company
by Indemnitee, as the case may be.

Section 24. Governing Law. The parties agree that this Agreement shall be governed
by, and construed and enforced in accordance with, the laws of the State of Maryland, without
regard to its conflicts of laws rules.

Section 25. Miscellaneous. Use of the masculine pronoun shall be deemed to include
usage of the feminine pronoun where appropriate.

[SIGNATURE PAGE FOLLOWS]

1

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

	 	 	 
	ATTEST:
	 	STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

	     
	 	By:        (SEAL)

Name:

	 	 	Title:

	WITNESS:
	 	INDEMNITEE

	     
	 	     

Name:

Address:

EXHIBIT A

FORM OF UNDERTAKING TO REPAY EXPENSES ADVANCED

The Board of Directors of Starwood Hotels & Resorts Worldwide, Inc.

Re: Undertaking to Repay Expenses Advanced

Ladies and Gentlemen:

This undertaking is being provided pursuant to that certain Indemnification Agreement dated
the        day of      , 2009, by and between Starwood Hotels & Resorts Worldwide, Inc., a
Maryland corporation, (the “Company”), and the undersigned Indemnitee (the “Indemnification
Agreement”), pursuant to which I am entitled to advance of expenses in connection with [Description
of Proceeding] (the “Proceeding”).

Terms used herein and not otherwise defined shall have the meanings specified in the
Indemnification Agreement.

I am subject to the Proceeding by reason of my Corporate Status or by reason of alleged
actions or omissions by me in such capacity. I hereby affirm that at all times, insofar as I was
involved as [a director] [an officer] of the Company or one of its subsidiaries, in any of the
facts or events giving rise to the Proceeding, I (1) acted in good faith and honestly, (2) did not
receive any improper personal benefit in money, property or services and (3) in the case of any
criminal proceeding, had no reasonable cause to believe that any act or omission by me was
unlawful.

In consideration of the advance of expenses by the Company for reasonable attorney’s fees and
related expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I
hereby agree that if, in connection with the Proceeding, it is established that (1) an act or
omission by me was material to the matter giving rise to the Proceeding and (a) was committed in
bad faith or (b) was the result of active and deliberate dishonesty or (2) I actually received an
improper personal benefit in money, property or services or (3) in the case of any criminal
proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall
promptly reimburse the portion of the Advanced Expenses relating to the claims, issues or matters
in the Proceeding as to which the foregoing findings have been established and which have not been
successfully resolved as described in Section 7 of the Indemnification Agreement. To the extent
that Advanced Expenses do not relate to a specific claim, issue or matter in the Proceeding, I
agree that such Expenses shall be allocated on a reasonable and proportionate basis.

IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this        day of
     , 200      .

WITNESS:

             (SEAL)

2

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