Document:

EX-4.2

 Exhibit 4.2 

FORM OF CERTIFICATE OF DESIGNATIONS 

OF 
 6.50%
NON-CUMULATIVE PERPETUAL 
 PREFERRED STOCK, SERIES A 

OF 
 NEW YORK COMMUNITY
BANCORP, INC. 
  
  

Pursuant to Section 151 of the 

General Corporation Law of the State of Delaware 
  

 
 NEW YORK
COMMUNITY BANCORP, INC., a corporation organized and existing under the General Corporation Law of the State of Delaware (the “Corporation”), in accordance with the provisions of Sections 141 and 151 thereof, does hereby certify:

 At a meeting of the board of directors (the “Board”) of the Corporation duly convened and held on October 27, 2015,
the Board duly adopted resolutions (i) approving and adopting the conversion of the outstanding preferred stock of Astoria Financial Corporation (“Astoria”) into a number of shares of preferred stock of the Corporation (the
“Preferred Stock”), and the issuance of the Corporation’s depository shares, each representing a 1/40th ownership interest in the Preferred Stock, as contemplated by the Agreement
and Plan of Merger, dated as of October 27, 2015, by and between the Corporation and Astoria and (ii) appointing a special committee (the “Special Committee”) of the Board to fix the rights, preferences, privileges, and
voting powers, and limitations and restrictions of the Corporation Preferred Stock, that, taken as a whole, are not materially less favorable than the rights, privileges and voting powers and limitations and restrictions of the preferred stock of
Astoria, taken as a whole. 
 Thereafter, on [●], the Pricing Committee duly adopted the following resolution creating a series of
135,000 shares of Preferred Stock of the Corporation designated as “6.50% Non-Cumulative Perpetual Preferred Stock, Series A”: 

RESOLVED, that pursuant to the provisions of the Certificate of Incorporation and the Bylaws of the Corporation, each as amended, and
applicable law, a series of Preferred Stock, par value $0.01 per share, of the Corporation be and hereby is created, and that the designation and number of shares of such series, and the voting and other powers, preferences and relative,
participating, optional or other rights, and the qualifications, limitations and restrictions thereof, of the shares of such series, are as follows: 

Section 1. Designation and Number of Shares. There is hereby created out of the authorized and unissued shares of Preferred Stock of
the Corporation a series of Preferred Stock designated as the “6.50% Non-Cumulative Perpetual Preferred Stock, Series A” (“Series A Preferred Stock”) initially consisting of 135,000 shares. The number of shares
constituting the Series A Preferred Stock may from time to time be increased (but not in excess of the total number of authorized shares of Preferred Stock) or decreased (but not below the number of shares of Series A Preferred Stock then
outstanding) by the Board (or a duly authorized committee of the Board), without the vote or consent of the holders of Series A Preferred Stock in accordance with law; provided, that any such additional shares are not treated as
“disqualified preferred stock” within the meaning of Section 1059(f)(2) of the Internal Revenue Code and such additional shares are otherwise treated as fungible with the Series A Preferred Stock for U.S. federal income tax purposes.
Shares of Series A Preferred Stock shall be dated the date of issue. In the event that the Corporation issues additional Series A Preferred Stock after the original issue date, dividends on such additional shares may accrue from the original issue
date or any other date the Corporation specifies at the time such additional shares are issued. Shares of outstanding Series A Preferred Stock that are redeemed, purchased or 

 otherwise acquired by the Corporation shall, after such redemption, purchase or acquisition, be cancelled and
shall revert to authorized but unissued shares of Preferred Stock undesignated as to series until such shares are once more designated as part of a particular series by the Board. 

Section 2. Definitions. As used herein with respect to the Series A Preferred Stock: 

(a) “Appropriate Federal Banking Agency” means the “appropriate Federal banking agency” with respect to the
Corporation as defined in Section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. § 1813(q)), or any successor provision. 

(b) “Board” means the Board of Directors of the Corporation. 

(c) “Business Day” means each Monday, Tuesday, Wednesday, Thursday or Friday that is not a day on which banking institutions
in New York, New York are generally authorized or obligated by law or executive order to close. 
 (d) “Bylaws” means the
bylaws of the Corporation, as such may be amended, modified or restated from time to time, 
 (e) “Certificate of
Designations” means this certificate of designations relating to the Series A Preferred Stock, as it may be amended from time to time. 

(f) “Certificate of Incorporation” means the certificate of incorporation of the Corporation, as such may be amended,
modified or restated from time to time 
 (g) “Common Stock” means the common stock, par value $0.01 per share, of the
Corporation. 
 (h) “Corporation” means New York Community Bancorp, Inc. 

(i) “Dividend Parity Stock” means any other class or series of capital stock of the Corporation now or hereafter authorized,
issued or outstanding that, by its terms, expressly provides that it ranks pari passu with the Series A Preferred Stock as to the payment of dividends (regardless whether such capital stock bears dividends on a non-cumulative or cumulative
basis). 
 (j) “Dividend Payment Date” means January 15, April 15, July 15 and October 15 of
each year, commencing [●]; provided, however, that if any such date falls on a day other than a Business Day, then such date shall nevertheless be a Dividend Payment Date, but dividends on the Series A Preferred Stock, when, as
and if declared, shall be paid on the next succeeding Business Day (without adjustment in the amount of the dividend per share of Series A Preferred Stock). 

(k) “Dividend Period” means the period from and including a Dividend Payment Date to, but excluding, the next Dividend
Payment Date, except that the initial Dividend Period shall commence on and include the Original Issue Date. 
 (l) “Dividend Record
Date” has the meaning set forth in Section 3(a). 
 (m) “DTC” means The Depository Trust Company, together
with its successors and assigns. 
 (n) “FRB” means the Board of Governors of the Federal Reserve System. 

(o) “Junior Stock” means (1) the Common Stock and (2) any other class or series of capital stock of the Corporation
now or hereafter authorized, issued or outstanding that, by its terms, does not expressly provide that it ranks pari passu with or senior to the Series A Preferred Stock as to (i) payment of dividends and (ii) distributions upon the
liquidation, dissolution or winding-up of the Corporation. 

  
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 (p) “Liquidation Junior Stock” means any other class or series of capital stock
of the Corporation now or hereafter authorized, issued or outstanding that, by its terms, does not expressly provide that it ranks pari passu with or senior to the Series A Preferred Stock as to distributions upon the liquidation, dissolution
or winding-up of the Corporation. 
 (q) “Liquidation Parity Stock” means any other class or series of capital stock of the
Corporation now or hereafter authorized, issued or outstanding that, by its terms, expressly provides that it ranks pari passu with the Series A Preferred Stock as to the payment of distributions upon the liquidation, dissolution or
winding-up of the Corporation. 
 (r) “Liquidation Preference” means, with respect to any class or series of capital stock
of the Corporation, the amount otherwise payable upon such class or series of capital stock in connection with any distribution upon the liquidation, dissolution or winding-up of the Corporation (assuming no limitation on the assets of the
Corporation available for such distribution), including an amount equal to any declared but unpaid dividends (and in the case of any holder of capital stock on which dividends accrue on a cumulative basis, an amount equal to any unpaid, accrued,
cumulative dividends, whether or not declared, as applicable). 
 (s) “Nonpayment Event” has the meaning set forth in
Section 6(c)(1). 
 (t) “Original Issue Date” means the first date on which any share of Series A Preferred Stock is
issued and outstanding. 
 (u) “Preferred Stock” means any and all series of preferred stock, par value $0.01 per share, of
the Corporation, including the Series A Preferred Stock. 
 (v) “Preferred Stock Directors” has the meaning set forth in
Section 6(c)(1). 
 (w) “Redemption Date” has the meaning set forth in Section 5(b). 

(x) “Redemption Depository” has the meaning set forth in Section 5(e). 

(y) “Redemption Price” means an amount equal to the Series A Liquidation Amount plus (except as provided herein) the per
share amount of any declared and unpaid dividends (without accumulation of any undeclared dividends) on the Series A Preferred Stock prior to the Redemption Date (but with no amount in respect of any dividends that have not been declared prior to
the Redemption Date). 
 (z) “Regulatory Capital Treatment Event” means the good faith determination by the Corporation
that, as a result of: 
 (1) any amendment to, or change (including any announced prospective change) in, the laws or
regulations of the United States or any political subdivision of or in the United States that is enacted or becomes effective (or will become effective) after the initial issuance of any share of the Series A Preferred Stock; 

(2) any proposed change in those laws or regulations that is announced or becomes effective (or will become effective) after
the initial issuance of any share of the Series A Preferred Stock; or 
 (3) any official administrative decision or judicial
decision or administrative action or other official pronouncement interpreting or applying those laws or regulations that is announced after the initial issuance of any share of the Series A Preferred Stock; 

  
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 there is more than an insubstantial risk that the Corporation will not be entitled to treat the full liquidation
value of the shares of the Series A Preferred Stock then outstanding as “Tier 1 Capital” (or its equivalent) for purposes of the capital adequacy guidelines or regulations promulgated by the FRB (or, as and if applicable, the capital
adequacy guidelines or regulations of any successor Appropriate Federal Banking Agency), as then in effect and applicable, for as long as any share of the Series A Preferred Stock is outstanding. 

(aa) “Series A Liquidation Amount” means $1,000 per share of Series A Preferred Stock. 

(bb) “Series A Preferred Stock” has the meaning set forth in Section 1. 

(cc) “Voting Parity Stock” means any and all series of Dividend Parity Stock having voting rights to elect directors upon a
Nonpayment Event. 
 (dd) “Voting Preferred Stock” means, with regard to any matter as to which the holders of Series A
Preferred Stock are entitled to vote as specified in Section 6 of this Certificate of Designations, any and all series of Dividend Parity Stock having voting rights equivalent to those described in Section 6(c). 

Section 3. Dividends. 

(a) Rate and Payment. Holders of Series A Preferred Stock shall be entitled to receive, when, as and if declared by the Board (or a duly
authorized committee of the Board), out of assets legally available under the Delaware General Corporation Law, non-cumulative cash dividends at a rate equal to 6.50% of the Series A Liquidation Amount per annum, payable in arrears, on each Dividend
Payment Date with respect to the Dividend Period (or portion thereof) ending on the day preceding such respective Dividend Payment Date. Dividends that are payable on the Series A Preferred Stock on any Dividend Payment Date shall be payable to
holders of record of Series A Preferred Stock as they appear on the Corporation’s stock register on the applicable record date, which shall be the 15th calendar day before the applicable Dividend Payment Date, or such other record date, no more
than 60 calendar days nor less than 10 calendar days before the applicable Dividend Payment Date, as shall be fixed by the Board (or a duly authorized committee of the Board) (the “Dividend Record Date”). A Dividend Record Date
established for the Series A Preferred Stock need not be a Business Day. Dividends payable on Series A Preferred Stock shall be computed on the basis of a 360-day year consisting of twelve 30-day months. Dollar amounts resulting from that
calculation shall be rounded to the nearest cent, with one-half cent being rounded upward. Dividends on the Series A Preferred Stock shall cease to accrue on the Redemption Date, if any, as described in Section 5, unless the Corporation
defaults in the payment of the Redemption Price of the shares of the Series A Preferred Stock called for redemption. The Corporation shall not pay interest or any sum of money instead of interest on any dividend payment that may be in arrears on the
Series A Preferred Stock. 
 (b) Dividends Non-Cumulative. Dividends on the Series A Preferred Stock will not be cumulative and will
not be mandatory. If the Board (or a duly authorized committee of the Board) does not declare a dividend on the Series A Preferred Stock in respect of a Dividend Period, then no dividend shall be deemed to have accrued for such Dividend Period, no
dividend shall be payable on the applicable Dividend Payment Date, and the Corporation shall have no obligation to pay any dividend for such Dividend Period, whether or not the Board (or a duly authorized committee of the Board) declares a dividend
for any future Dividend Period with respect to the Series A Preferred Stock or at any future time with respect to any other class or series of the Corporation’s capital stock. 

(c) Priority Regarding Dividends. So long as any share of Series A Preferred Stock remains outstanding, unless (A) the full
dividends for the most recently completed Dividend Period have been declared and paid (or declared and a sum sufficient for the payment thereof has been set aside) on all outstanding shares of Series A Preferred Stock and (B) the Corporation is
not in default on its obligation to redeem any shares of Series A Preferred Stock that have been called for redemption: 

(1) no dividend shall be declared, paid or set aside for payment, and no distribution shall be declared, made or set aside for
payment on any Junior Stock, other than (i) a dividend payable solely in Junior Stock or (ii) any dividend in connection with the implementation of a stockholders’ rights plan, or the redemption or repurchase of any rights under any
such plan; 

  
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 (2) no shares of Junior Stock shall be repurchased, redeemed or otherwise
acquired for consideration by the Corporation, directly or indirectly, other than (i) as a result of a reclassification of Junior Stock for or into other Junior Stock, (ii) the exchange or conversion of Junior Stock for or into other
Junior Stock, (iii) through the use of the proceeds of a substantially contemporaneous sale of other shares of Junior Stock, (iv) purchases, redemptions or other acquisitions of shares of Junior Stock in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of employees, officers, directors or consultants, (v) purchases of shares of Junior Stock pursuant to a contractually binding requirement to buy Junior Stock existing
prior to the date of issuance of the Series A Preferred Stock, including under a contractually binding stock repurchase plan (including a so-called Rule 10b5-1(c) purchase plan), or (vi) the purchase of fractional interests in shares of Junior
Stock pursuant to the conversion or exchange provisions of such stock or the security being converted or exchanged, nor shall any monies be paid to or made available for a sinking fund for the redemption of any such securities by the Corporation;
and 
 (3) no shares of Dividend Parity Stock shall be repurchased, redeemed or otherwise acquired for consideration by the
Corporation, directly or indirectly, other than (i) pursuant to pro rata offers to purchase all, or a pro rata portion, of the Series A Preferred Stock and such Dividend Parity Stock, (ii) as a result of a reclassification of
Dividend Parity Stock for or into other Dividend Parity Stock, (iii) the exchange or conversion of Dividend Parity Stock for or into other Dividend Parity Stock or Junior Stock, (iv) through the use of the proceeds of a substantially
contemporaneous sale of other shares of Dividend Parity Stock, (v) purchases of shares of Dividend Parity Stock pursuant to a contractually binding requirement to buy Dividend Parity Stock existing prior to the date of issuance of the Series A
Preferred Stock, including under a contractually binding stock repurchase plan (including a so-called Rule 10b5-1(c) purchase plan), or (vi) the purchase of fractional interests in shares of Dividend Parity Stock pursuant to the conversion or
exchange provisions of such stock or the security being converted or exchanged, nor shall any monies be paid to or made available for a sinking fund for the redemption of any such securities by the Corporation. 

When dividends are not paid in full upon the shares of Series A Preferred Stock and any Dividend Parity Stock, all dividends paid or declared
for payment on a dividend payment date with respect to the Series A Preferred Stock and the Dividend Parity Stock shall be shared based on the ratio between the then-current dividends due on shares of Series A Preferred Stock and (i) in the
case of any series of non-cumulative Dividend Parity Stock, the aggregate of the current and unpaid dividends due on such series of preferred stock and (ii) in the case of any series of cumulative Dividend Parity Stock, the aggregate of the
current and accumulated and unpaid dividends due on such series of preferred stock. 
 (d) Dividends Generally. Subject to
Section 3(c), and not otherwise, dividends (payable in cash, securities or otherwise) as may be determined by the Board (or a duly authorized committee of the Board) may be declared and paid on any class or series of Junior Stock or Dividend
Parity Stock from time to time out of any assets legally available therefor, and the holders of Series A Preferred Stock shall not be entitled to participate in any such dividend. Holders of Series A Preferred Stock shall not be entitled to receive
any dividends not declared by the Board (or a duly authorized committee of the Board) and no interest, or sum of money in lieu of interest, shall be payable in respect of any dividend not so declared. 

(e) Limitations Under Applicable Law. Dividends on the Series A Preferred Stock shall not be declared, paid or set aside for payment,
if the Corporation fails to comply, or if and to the extent such act would cause the Corporation to fail to comply, with applicable laws and regulations, including any capital adequacy guidelines or regulations of the FRB (or, as and if applicable,
the capital adequacy guidelines or regulations of any successor Appropriate Federal Banking Agency). 

  
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 Section 4. Liquidation. 

(a) Voluntary or Involuntary Liquidation. In the event of any voluntary or involuntary liquidation, dissolution or winding-up of the
Corporation, holders of Series A Preferred Stock shall be entitled to receive out of assets of the Corporation or proceeds thereof available for distribution to stockholders of the Corporation, after satisfaction of liabilities and obligations to
creditors and subject to the rights of holders of any securities ranking senior to Series A Preferred Stock with respect to distributions upon the voluntary or involuntary liquidation, dissolution or winding-up of the Corporation, before any
distribution of assets is made to holders of common stock or any Liquidation Junior Stock, a liquidating distribution in an amount equal to (1) the Series A Liquidation Amount plus (2) the per share amount of any declared and unpaid
dividends on the Series A Preferred Stock prior to the date of payment of such liquidating distribution (but without any amount in respect of dividends that have not been declared prior to such payment date). After payment of the full amount of such
liquidating distribution, the holders of Series A Preferred Stock shall not be entitled to any further participation in any distribution of assets of the Corporation. 

(b) Partial Payment. In any distribution described in Section 4(a), if the assets of the Corporation or proceeds thereof are not
sufficient to pay in full the Liquidation Preference to all holders of Series A Preferred Stock and all holders of Liquidation Parity Stock, the amounts paid to the holders of Series A Preferred Stock and to the holders of all Liquidation Parity
Stock shall be paid pro rata in accordance with the respective aggregate Liquidation Preferences of the Series A Preferred Stock and all other series of Liquidation Parity Stock. 

(c) Residual Distributions. If the Liquidation Preference has been paid in full to all holders of Series A Preferred Stock and all
corresponding amounts have been paid in full on all Liquidation Parity Stock, if any, the holders of any Liquidation Junior Stock shall be entitled to receive all remaining assets of the Corporation or proceeds thereof according to their respective
rights and preferences. 
 (d) Merger; Consolidation. For purposes of this Section 4, the merger or consolidation of the
Corporation with any other entity, including a merger or consolidation in which the holders of Series A Preferred Stock receive cash, securities or property for their shares, or the sale, lease or exchange of all or substantially all of the assets
of the Corporation (for cash, securities or other property), shall not constitute a liquidation, dissolution or winding-up of the Corporation. 

Section 5. Redemption. 

(a) No Mandatory Redemption; No Sinking Fund. The Series A Preferred Stock is perpetual and has no maturity date. The Series A Preferred
Stock is not subject to any mandatory redemption, sinking fund or other similar provisions. The holders of the Series A Preferred Stock shall not have the right to require the redemption or repurchase of the Series A Preferred Stock. 

(b) Optional Redemption. The Corporation may, at its option, subject to Section 5(f), through a resolution duly adopted by the
Board (or a duly authorized committee of the Board), redeem the Series A Preferred Stock at a price per share equal to the Redemption Price (1) in whole or in part, from time to time, on April 15, 2018, or any Dividend Payment Date
occurring thereafter or (2) in whole, but not in part, at any time following the occurrence of a Regulatory Capital Treatment Event. Holders of Series A Preferred Stock shall have no right to require the redemption or repurchase of the Series A
Preferred Stock. The Redemption Price shall be payable to the holder of any shares of Series A Preferred Stock redeemed on the date fixed for such redemption (the “Redemption Date”) against the surrender of the certificate(s)
evidencing such shares to the Corporation or its agent, if the shares of Series A Preferred Stock are issued in certificated form. Any declared but unpaid dividends payable on a Redemption Date that occurs subsequent to the Dividend Record Date for
a Dividend Period shall not be paid to the holder of Series A Preferred Stock entitled to receive the Redemption Price on the Redemption Date, but rather shall be paid to the holder of record of the redeemed shares on such Dividend Record Date
relating to the Dividend Payment Date as provided in Section 3. 
 (c) Notice of Redemption. If any shares of Series A Preferred
Stock are to be redeemed, a notice of redemption shall be given by first class mail to the holders of record of Series A Preferred Stock to be redeemed at their respective last addresses appearing on the books of the Corporation (provided,
that if Series A 

  
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Preferred Stock is held in book-entry form through DTC, the Corporation may give such notice in any manner permitted by DTC). Such notice shall be mailed at least 30 days and no more than 60 days
before the applicable Redemption Date for such shares. Each such notice of redemption shall include a statement setting forth: (1) the Redemption Date for such shares of Series A Preferred Stock; (2) the number of shares of Series A
Preferred Stock to be redeemed and, if less than all the shares held by such holder are to be redeemed, the number of such shares to be redeemed from such holder; (3) the Redemption Price; and (4) the place or places where the certificates
evidencing shares of Series A Preferred Stock are to be surrendered for payment of the Redemption Price. Any notice of redemption mailed or otherwise delivered as provided in this Section 5(c) shall be conclusively presumed to have been duly
given, whether or not any holder of Series A Preferred Stock receives such notice. Failure to duly give notice by mail or otherwise pursuant to this Section 5(c), or any defect in such notice, to any holder of shares of Series A Preferred Stock
designated for redemption shall not affect the validity of the proceedings for the redemption of any other shares of Series A Preferred Stock. 

(d) Partial Redemption. In case of any redemption of only part of the shares of Series A Preferred Stock at the time outstanding, the
shares of Series A Preferred Stock to be redeemed shall be selected either pro rata, by lot or in such other manner as the Corporation, through a resolution duly adopted by the Board (or a duly authorized committee of the Board), may
determine to be fair and equitable. 
 (e) Effectiveness of Redemption. If notice of redemption has been duly given and if on or
before the Redemption Date specified in such notice all funds necessary for the redemption have been set aside by the Corporation, separate and apart from its other assets, in trust for the pro rata benefit of the holders of the shares of
Series A Preferred Stock called for redemption, so as to be and continue to be available therefor, or deposited by the Corporation with a bank or trust company doing business in the Borough of Manhattan, City of New York, and having a capital
surplus of at least $500 million and selected by the Board (or any duly authorized committee of the Board) (the “Redemption Depository”) in trust for the pro rata benefit of the holders of the shares called for redemption,
then, notwithstanding that any certificate for any share so called for redemption has not been surrendered for cancellation, on and after the Redemption Date all shares of Series A Preferred Stock called for redemption shall cease to be outstanding,
all dividends with respect to such shares of Series A Preferred Stock shall cease to accrue on and after such Redemption Date, and all rights with respect to such shares shall forthwith on such Redemption Date cease and terminate, except only the
right of the holders thereof to receive the amount payable on such redemption from the Redemption Depository at any time after the applicable Redemption Date from the funds so deposited, without interest. The Corporation shall be entitled to
receive, from time to time, from the Redemption Depository any interest accrued on such funds, and the holders of any shares called for redemption shall have no claim to any such interest. Any funds so deposited and unclaimed at the end of three
years from the applicable Redemption Date shall, to the extent permitted by law, be released or repaid to the Corporation, and in the event of such repayment to the Corporation, the holders of record of the shares of Series A Preferred Stock called
for redemption shall be deemed to be unsecured creditors of the Corporation for an amount equivalent to the amount deposited as stated herein for the redemption of such shares and so repaid to the Corporation, but shall in no event be entitled to
any interest. 
 (f) Limitations Under Applicable Law. If then required under the capital adequacy guidelines or regulations of the
FRB (or, if and as applicable, the capital adequacy guidelines or regulations of any successor Appropriate Federal Banking Agency), any redemption of all or part of the Series A Preferred Stock is subject to the receipt by the Corporation of any
required prior approval by the FRB (or such successor Appropriate Federal Banking Agency) and to the satisfaction of any condition set forth in the capital guidelines or regulations of the FRB (or such successor Appropriate Federal Banking Agency)
applicable to such redemption. 
 Section 6. Voting Rights. 

(a) General. Except as provided herein or as expressly required by law, the holders of shares of Series A Preferred Stock shall have no
voting power, and no right to vote on any matter at any time, either as a separate series or class or together with any other series or class of shares of capital stock of the Corporation, and shall not be entitled to call a meeting of the holders
of any one or more series or classes of capital stock of the Corporation for any purpose, nor shall they be entitled to participate in any meeting of the holders of the Common Stock. Each holder of Series A Preferred Stock shall have one vote per
share (except as set forth otherwise in this Section 6) on any matter on which holders of Series A Preferred Stock are entitled to vote, including when acting by written consent. 

  
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 (b) Supermajority Voting Rights. So long as any shares of Series A Preferred Stock remain
outstanding, in addition to any other vote or consent of stockholders required by law or the Certificate of Incorporation, the affirmative vote or consent of the holders of at least two-thirds of all of the shares of Series A Preferred Stock at the
time outstanding and entitled to vote thereon, voting separately as a single class, shall be required to: 
 (1) authorize or
increase the authorized amount of, or issue shares of, any class or series of capital stock of the Corporation ranking senior to the Series A Preferred Stock with respect to payment of dividends or as to distributions upon the liquidation,
dissolution or winding-up of the Corporation, or issue any obligation or security convertible into or evidencing the right to purchase, any such class or series of capital stock of the Corporation; 

(2) amend the provisions of the Certificate of Incorporation, including the Certificate of Designations creating the Series A
Preferred Stock or any other series of preferred stock, or the Bylaws so as to materially and adversely affect the special powers, preferences, privileges or rights of Series A Preferred Stock, taken as a whole; or 

(3) for the period following the date of issuance of the Series A Preferred Stock until but excluding April 15, 2018,
consummate a binding share exchange or reclassification involving the Series A Preferred Stock, or of a merger or consolidation of the Corporation with or into another corporation or other entity, unless in each case (x) the shares of Series A
Preferred Stock remain outstanding or, in the case of any such merger or consolidation with respect to which the Corporation is not the surviving or resulting entity, are converted into or exchanged for preference securities of the surviving or
resulting entity or its ultimate parent, and (y) such shares remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, and limitations and restrictions thereof, taken
as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers, and limitations and restrictions thereof, of Series A Preferred Stock immediately prior to such consummation, taken
as a whole; 
 provided, however, that, for all purposes of this Section 6(b), the authorization, creation and issuance of, or an
increase in the authorized or issued amount of, Junior Stock or any series of Preferred Stock that ranks pari passu with the Series A Preferred Stock with respect to the payment of dividends (whether such dividends are cumulative or
noncumulative) and as to distributions upon the liquidation, dissolution or winding-up of the Corporation, or any securities convertible into or exchangeable or exercisable for Junior Stock or any series of Preferred Stock that ranks pari passu
with the Series A Preferred Stock with respect to the payment of dividends (whether such dividends are cumulative or non-cumulative) and as to distributions upon the liquidation, dissolution or winding-up of the Corporation, shall not be deemed
to adversely affect the powers, preferences, privileges or rights of, and shall not require the affirmative vote or consent of, the holders of any outstanding shares of Series A Preferred Stock. 

(c) Election of Directors under Certain Circumstances. 

(1) If and when dividends on the Series A Preferred Stock have not been declared and paid in an aggregate amount in full for at
least six quarterly Dividend Periods (whether or not consecutive) (a “Nonpayment Event”), the authorized number of directors then constituting the Board shall automatically be increased by two and the holders of Series A Preferred
Stock, together with the holders of any outstanding shares of Voting Preferred Stock, voting together as a single class, shall be entitled to elect the two additional directors (the “Preferred Stock Directors”) at any annual or
special meeting of stockholders at which directors are to be elected or any special meeting of the holders of the Series A Preferred Stock and any Voting Parity Stock for which dividends have not been paid; provided, that it shall be a
qualification for election for any such Preferred Stock Director that the election of such director shall not cause the Corporation to violate the corporate governance requirements of the New York Stock Exchange (or any other securities exchange or
other trading facility on which securities of the Corporation 

  
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may then be listed or traded) that listed or traded companies must have a majority of independent directors; and provided, further, that the Board of Directors shall at no time
include more than two such Preferred Stock Directors, including all directors that the holders of any series of Voting Parity Stock are entitled to elect pursuant to their voting rights. 

(2) In the event that the holders of Series A Preferred Stock and, if applicable, such other holders of Voting Preferred Stock
shall be entitled to vote for the election of the Preferred Stock Directors following a Nonpayment Event, such directors shall be initially elected following such Nonpayment Event only at a special meeting called at the request of the holders of
record of at least 20% of the aggregate number of shares of Series A Preferred Stock and each other series of Voting Preferred Stock which then have the right to exercise voting rights similar to those described herein then outstanding (unless such
request for a special meeting is received less than 90 days before the date fixed for the next annual or special meeting of the stockholders of the Corporation, in which event such election shall be held only at such next annual or special meeting
of stockholders), and at each subsequent annual meeting of stockholders of the Corporation. Such request to call a special meeting for the initial election of the Preferred Stock Directors after a Nonpayment Event shall be made by written notice,
signed by the requisite holders of Series A Preferred Stock or Voting Preferred Stock, and delivered to the Secretary of the Corporation in such manner as provided for in Section 10, or as may otherwise be required by applicable law. If the
Secretary of the Corporation fails to call a special meeting for the election of the Preferred Stock Directors within 20 days of receiving proper notice, any holder of Series A Preferred Stock may call such a meeting at the Corporation’s
expense, upon notice as provided for herein, solely for the election of the Preferred Stock Directors, and for this purpose only such Series A Preferred Stock holder shall have access to the Corporation’s stock ledger. The Preferred Stock
Directors elected at any such special meeting shall hold office until the next annual meeting of the stockholders if such office shall not have previously terminated as herein provided. 

(3) When dividends have been paid in full on the Series A Preferred Stock for four consecutive Dividend Periods after a
Nonpayment Event, then the right of the holders of Series A Preferred Stock to elect the Preferred Stock Directors shall cease (but subject always to the same provisions for the vesting of such voting rights in the case of any future Nonpayment
Event), and, if and when any rights of holders of Series A Preferred Stock and Voting Preferred Stock to elect the Preferred Stock Directors shall have ceased, the terms of office of all the Preferred Stock Directors shall forthwith terminate and
the number of directors constituting the Board shall automatically be reduced accordingly. 
 (4) Any Preferred Stock
Director may be removed at any time without cause by the holders of record of a majority of the outstanding shares of Series A Preferred Stock and Voting Preferred Stock (voting together as a single class), when they have the voting rights described
herein. In case any vacancy shall occur among the Preferred Stock Directors, a successor shall be elected by the Board to serve until the next annual meeting of the stockholders upon the nomination of the then remaining Preferred Stock Director or,
if no Preferred Stock Director remains in office, by the vote of the holders of record of a majority of the outstanding shares of Series A Preferred Stock and such Voting Preferred Stock for which dividends have not been paid, voting as a single
class. The Preferred Stock Directors shall each be entitled to one vote per director on any matter that shall come before the Board for a vote. 

(d) Changes after Provision for Redemption. The voting rights provided in this Section 6 shall not apply if, at or prior to the
time when the act with respect to which such vote or consent would otherwise be required shall be effected, all outstanding shares of Series A Preferred Stock have been redeemed or called for redemption upon proper notice and sufficient funds for
the redemption have been set aside in accordance with Section 5. 
 (e) Changes for Clarification. Without the consent of the
holders of Series A Preferred Stock, so long as such action does not adversely affect the rights, preferences, privileges and voting powers, and limitations and restrictions thereof, of the Series A Preferred Stock, the Corporation may amend, alter,
supplement or repeal any terms of the Series A Preferred Stock: 

  
 9 

 (1) to cure any ambiguity, or to cure, correct or supplement any provision
contained in this Certificate of Designations that may be defective or inconsistent; or 
 (2) to make any provision with
respect to matters or questions arising with respect to the Series A Preferred Stock that is not inconsistent with the provisions of this Certificate of Designations. 

(f) Procedures for Voting and Consents. The rules and procedures for calling and conducting any meeting of the holders of Series A
Preferred Stock (including, without limitation, the fixing of a record date in connection therewith), the solicitation and use of proxies at such a meeting, the obtaining of written consents and any other aspect or matter with regard to such a
meeting or such consents shall be governed by any rules the Board, in its discretion, may adopt from time to time, which rules and procedures shall conform to the requirements of the Certificate of Incorporation, the Bylaws, applicable law and any
national securities exchange or other trading facility on which the Series A Preferred Stock is listed or traded at the time. Whether the vote or consent of the holders of a plurality, majority or other portion of the shares of Series A Preferred
Stock and any Voting Preferred Stock has been cast or given on any matter on which the holders of shares of Series A Preferred Stock are entitled to vote shall be determined by the Corporation by reference to the respective specified liquidation
amounts of the shares of Series A Preferred Stock and Voting Preferred Stock voted or covered by the consent. 
 Section 7. Conversion
Rights. The holders of shares of Series A Preferred Stock shall not have any rights to convert such shares into shares of any other class or series of securities of the Corporation. 

Section 8. Preemptive Rights. The holders of shares of Series A Preferred Stock shall have no preemptive rights with respect to any
shares of the Corporation’s capital stock or any of its other securities convertible into or carrying rights or options to purchase any such capital stock. 

Section 9. Record Holders. To the fullest extent permitted by applicable law, the Corporation and the transfer agent for the Series A
Preferred Stock may deem and treat the record holder of any share of Series A Preferred Stock as the true and lawful owner thereof for all purposes, and neither the Corporation nor such transfer agent shall be affected by any notice to the contrary.

 Section 10. Notices. All notices or communications in respect of the Series A Preferred Stock shall be sufficiently given if given
in writing and delivered in person or by first class mail or if giving in such other manner as may be permitted herein, in the Certificate of Incorporation or Bylaws or by applicable law. Notwithstanding the foregoing, if shares of Series A
Preferred Stock or depositary shares representing an interest in shares of Series A Preferred Stock are issued in book-entry form through DTC, such notices may be given to the holders of the Series A Preferred Stock in any manner permitted by DTC.

 Section 11. Stock Certificates. The Corporation may at its option issue shares of Series A Preferred Stock without certificates.

 Section 12. Other Rights. The Series A Preferred Stock shall not have any powers, preferences, privileges or rights other than as
set forth herein or in the Certificate of Incorporation or as provided by applicable law. 
 [Remainder of page intentionally left
blank] 

  
 10 

 IN WITNESS WHEREOF, the Corporation has caused this Certificate of Designations to be signed by
the undersigned as of this [●] day of [●]. 
  

			
	NEW YORK COMMUNITY BANCORP, INC.
		
	By:	 	  

		 	Name:
		 	Title:ex101.htm

SHARE EXCHANGE AGREEMENT

 

THIS SHARE EXCHANGE AGREEMENT (this “Agreement”), dated as of the 28th day of January 2016 (this “Agreement”) is entered into by and among, CLOUDWEB INC., a Florida corporation (“CLOW”); and LIAO ZHI DE, an individual residing in China (“OWNER”). CLOW and OWNER are referred to singularly as a “Party” and collectively as the “Parties.”

 

 

WITNESSETH:

 

WHEREAS, OWNER owns 100% of the issued and outstanding shares of DATA CLOUD INC., a Nevada corporation (“Target”);

 

WHEREAS, Target is in the business of owning and operating a web hosting site.

 

WHEREAS, CLOW wishes to acquire all of the issued and outstanding shares of capital stock of Target (referred to hereinafter as the “Target Shares”), with the purpose of owning and operating Target as CLOW’s wholly-owned subsidiary; and

WHEREAS, CLOW and OWNER propose to enter into this Agreement which provides, among other things, that OWNER will deliver the Target Shares to CLOW in exchange for an aggregate total of Two Million Five Hundred Thousand (2,500,000) shares of CLOW’s common stock (the “Share Exchange”), on the terms and conditions set forth herein and such additional items as more fully described in this Agreement.

 

NOW, THEREFORE, in consideration, of the promises and of the mutual representations, warranties and agreements set forth herein, the Parties hereto agree as follows:

 

 

ARTICLE I

DEFINITIONS

Section 1.01.                       Definitions. The following terms shall have the following respective meanings:

 

	
“Business Day”

	
 

	
a day (other than a Saturday) on which banks in Utah are open for business throughout their normal business hours;

 

	

“Closing”

	 	
the closing of the transactions contemplated by this Agreement;

 

	
“Completion”

	
 

	
completion of acquisition of the Target Shares by CLOW and issuance of the Exchange Shares (as such term is defined below) in accordance with the terms and conditions of this Agreement;

 

	
“Encumbrance”

	
 

	
any mortgage, charge, pledge, lien, (otherwise than arising by statute or operation of law), equities, hypothecation or other encumbrance, priority or security interest, preemptive right deferred purchase, title retention, leasing, sale-and-repurchase or sale-and-leaseback arrangement whatsoever over or in any property, assets or rights of whatsoever nature and includes any agreement for any of the same and reference to “Encumbrances” shall be construed accordingly;

 

 

  

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Section 1.02.                      Rules of Construction.

                (a)           Unless the context otherwise requires, as used in this Agreement:  (i) “including” means “including, without limitation”; (ii) words in the singular include the plural; (iii) words in the plural include the singular; (iv) words applicable to one gender shall be construed to apply to each gender; (v) the terms “hereof,” “herein,” “hereby,” “hereto” and derivative or similar words refer to this entire Agreement,; (vi) the terms “Article” and “Section” shall refer to the specified Article or Section of or to this Agreement (vii) the term “day” shall refer to calendar days.

(b)           Titles and headings to Articles and Sections are inserted for convenience of reference only, and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

ARTICLE II

THE SHARE EXCHANGE

 

Section 2.01                      Share Exchange.

 

 

(a)           Subject to and upon the terms and conditions of this Agreement, on the Closing Date (as defined hereafter), CLOW shall acquire all of the Target Shares with all of such interests acquired being free from all Encumbrances together with all rights now or hereafter attaching thereto. CLOW shall be sole owner of Target and Target shall continue to operate in its normal course of business, as a wholly-owned subsidiary of CLOW.

 

 

(b)           In exchange for the delivery of the Target Shares, CLOW shall provide the following to OWNER at the closing, a total of Two Million Five Hundred Thousand (2,500,000) shares of CLOW’s common stock (the “Exchange Shares”).

 

 

(c)           The Share Exchange shall take place upon the terms and conditions provided for in this Agreement and in accordance with applicable law. If the Closing does not occur as set forth in Section 2.02 of this Agreement due to one Party’s failure to perform, then the other Party may terminate the Agreement.

 

Section 2.02.                      Closing Location.  The Closing of the Share Exchange and the other transactions contemplated by this Agreement will occur as soon as possible (the “Closing Date”), at the law offices of Eilers Law Group, 1000 Fifth Street, Suite 200 – P2, Miami Beach, FL 33139.

Section 2.03.                       OWNER’s Closing Documents.  At the Closing, OWNER shall tender to CLOW:

(a)           One (1) new certificate issued by the Target in the name of CLOW representing the Target Shares;

(b)           Certified copies of resolutions of the Board of Directors (or similar governing body) of OWNER in a form satisfactory to CLOW, acting reasonably, authorizing:

	
(i)  

	
the execution and delivery of the agreement by the OWNER; and

	
(ii)  

	
the transfer of the Target Shares to CLOW; and

(c)           A resolution from OWNER certifying that the conditions in Section 7.01(b) have been satisfied.

  

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Section 2.04.                       CLOW’s Closing Documents.  At the Closing, CLOW will tender to OWNER:

(a)           A certified copy(ies) of resolutions of the Board of Directors of CLOW in a form satisfactory to OWNER, acting reasonably, authorizing:

                                (i)           the execution and delivery of this Agreement by CLOW; and

 

	
  

	
(ii)

	
the issuance of the Exchange Shares to OWNER.

(b)           Share certificates, registered in the name of OWNER as set forth above representing the Exchange Shares; and

(c)           A certificate executed by a duly appointed officer of CLOW certifying that the conditions in Section 8.01(b) have been satisfied.

 

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

Section 3.01.                      Each Party represents and warrants to the other Party that each of the warranties it makes is accurate in all respects and not misleading as at the date of this Agreement.

Section 3.02.                      Each Party undertakes to disclose in writing to the other Party anything which is or may constitute a breach of or be inconsistent with any of the warranties immediately upon the same coming to its notice at the time of and after Completion.

Section 3.03.                      Each Party agrees that each of the warranties it makes shall be construed as a separate and independent warranty and (except where expressly provided to the contrary) shall not be limited or restricted by reference to or inference from the terms of any other warranty or any other term of this Agreement.

Section 3.04.                      Each Party acknowledges that the restrictions contained in Section 9.01 shall continue to apply after the Closing without limit in time.

  

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ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF CLOW

Section 4.01.                      Organization, Standing and Authority; Foreign Qualification. CLOW is a corporation duly organized, validly existing and in good standing under the laws of the State of Florida and has all requisite corporate power and authority to own, lease and operate its properties and to conduct its business as presently conducted and as proposed to be conducted and is duly qualified or licensed as a foreign corporation in good standing in each jurisdiction in which the character of its properties or the nature of its business activities require such qualification.

Section 4.02.                      Corporate Authorization. The execution, delivery and performance by CLOW of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of CLOW, and this Agreement constitutes a valid and binding agreement of CLOW. The Exchange Shares to be issued in accordance with this Agreement shall be duly authorized and, upon such issuance, will be validly issued, fully paid and non-assessable.

Section 4.03.                       Capitalization.  CLOW’s authorized capital stock, as of the Closing Date prior the issuance of the Exchange Shares, shall consist of 500,000,000 authorized shares of common stock, of which 310,013,800 common shares are issued and outstanding. All of such issued and outstanding shares of CLOW’s common stock are duly authorized, validly issued, fully paid and non-assessable. There are no outstanding options, warrants, agreements or rights to subscribe for or to purchase, or commitments to issue, shares of CLOW’s common stock or any other security of CLOW or any plan for any of the foregoing. CLOW is not obligated to register the resale of any of its common stock on behalf of any shareholder of CLOW under the United State Securities Act of 1933.

Section 4.04.                        Subsidiaries. Prior to the Closing, CLOW does not have any subsidiaries.

Section 4.05.                      Articles of Incorporation and Bylaws.  CLOW has heretofore delivered, or prior to Closing CLOW shall deliver, to OWNER true, correct and complete copies of its Articles of Incorporation and Bylaws or comparable instruments, certified by CLOW’s corporate secretary.

Section 4.06.                      No Conflict.  The execution, delivery and performance of this Agreement and the completion of the transactions contemplated herein will not:

(a)           violate any provision of the Articles of Incorporation, Bylaws or other charter or organizational document of CLOW;

(b)           violate, conflict with or result in the breach of any of the terms of, result in any modification of the effect of, otherwise give any other contracting party the right to terminate, or constitute (or with notice or lapse of time or both constitute) a default under, any contract to which CLOW is a party or by or to which either of its assets or properties, may be bound or subject;

(c)           violate any order, judgment, injunction, award or decree of any court, arbitrator or governmental or regulatory body against, or binding upon, or any agreement with, or condition imposed by, any governmental or regulatory body, foreign or domestic, binding upon CLOW or upon the securities, assets or business of CLOW;

(d)           violate any statute, law or regulation of any jurisdiction as such statute, law or regulation relates to CLOW or to the securities, properties or business of CLOW; or

(e)           result in the breach of any of the terms or conditions of, constitute a default under, or otherwise cause an impairment of, any permit or license held by CLOW.

Section 4.07.                      Litigation. There is no litigation, suit, proceeding, action or claim at law or in equity, pending or to CLOW’s best knowledge threatened against or affecting CLOW or involving any of CLOW’s property or assets, before any court, agency, authority or arbitration tribunal, including, without limitation, any product liability, workers' compensation or wrongful dismissal claims, or claims, actions, suits or proceedings relating to toxic materials, hazardous substances, pollution or the environment. CLOW is not subject to or in default with respect to any notice, order, writ, injunction or decree of any court, agency, authority or arbitration tribunal.

Section 4.08.                      Compliance with Laws. To the best knowledge of CLOW, it has complied with all laws, municipal bylaws, regulations, rules, orders, judgments, decrees and other requirements and policies imposed by any governmental authority applicable to it, its properties or the operation of its business, except where the failure to comply will not have a material adverse effect on the business, properties, financial condition or earnings of CLOW.

  

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ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE OWNER

The OWNER represents and warrants to CLOW as follows:

Section 5.01.                       Organization, Standing and Authority; Foreign Qualification. (a) Target is a British Virgin Islands corporation duly organized, validly existing and in good standing under the laws of its place of incorporation and has all requisite corporate power and authority to own, lease and operate its respective properties and to conduct its respective business as presently conducted and as proposed to be conducted and is duly qualified or licensed as a foreign corporation in good standing in each jurisdiction in which the character of its properties or the nature of its business activities require such qualification.

Section 5.02.                       Authorization. The execution, delivery and performance by OWNER of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary actions, as the case may be, on the part of OWNER. OWNER has duly executed and delivered this Agreement and this Agreement constitutes a valid and binding agreement of OWNER.

Section 5.03.                       Capitalization.

(a) All of the Target Shares are duly authorized, validly issued, fully paid and non-assessable.  There are no outstanding options, warrants, agreements or rights to subscribe for or to purchase, or commitments to issue, shares of capital stock in Target or any other security of Target or any plan for any of the foregoing.

(b) The Target Shares are not subject to any option, right of first refusal or any other restriction on transfer, whether by contract, agreement, applicable law, regulation or statute, as the case may be.

(c) There are no outstanding loans, debts, bonds, indentures or promissory notes giving the holder thereof the right to convert such instruments into shares of Target’s capital stock.

Section 5.04.                       Subsidiaries. Target does not have any subsidiaries, other than Web Hosting Solutions Limited, a UK company.

Section 5.05.                       Sale of Exchange Shares. Upon completion of the purchase and sale of the Exchange Shares, OWNER shall be the beneficial and record holder of the Exchange Shares.

Section 5.06.                      Investment Risk.  The OWNER understands that an investment in CLOW includes a high degree of risk, has such knowledge and experience in financial and business matters, investments, securities and private placements as to be capable of evaluating the merits and risks of its investment in the Exchange Shares, is in a financial position to hold the Exchange Shares for an indefinite period of time, and is able to bear the economic risk of, and withstand a complete loss of such investment in the Exchange Shares.

Section 5.07.                      Cooperation. If required by applicable securities laws or order of a securities regulatory authority, stock exchange or other regulatory authority, OWNER will execute, deliver, file and otherwise assist CLOW in filing such reports, undertakings and other documents as may be required with respect to the issuance of the Exchange Shares.

Section 5.08.                      Tax Advice.  OWNER is solely responsible for obtaining such legal, including tax, advice as it considers necessary or appropriate in connection with the execution, delivery and performance by OWNER of this Agreement and the transactions contemplated herein.

Section 5.09.                       Investment Representations.  All of the acknowledgements, representations, warranties and covenants set out in Exhibit A hereto are true and correct as of the date hereof and as of the Closing Date.

  

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Section 5.10.                      No Conflict.  The execution, delivery and performance of this Agreement and the completion of the transactions contemplated herein will not:

(a)           violate any provision of the Articles or Certificate of Incorporation, Bylaws or other charter or organizational document of Target;

(b)           violate, conflict with or result in the breach of any of the terms of, result in any modification of the effect of, otherwise give any other contracting party the right to terminate, or constitute (or with notice or lapse of time or both constitute) a default under, any contract to which Target or OWNER is a party or by or to which either’s assets or properties may be bound or subject;

(c)           violate any order, judgment, injunction, award or decree of any court, arbitrator or governmental or regulatory body against, or binding upon, or any agreement with, or condition imposed by, any governmental or regulatory body, foreign or domestic, binding upon Target or OWNER or upon the securities, assets or business of Target and/or OWNER;

(d)           violate any statute, law or regulation of any jurisdiction as such statute, law or regulation relates to Target and/or OWNER or to the securities, properties or business of Target and/or OWNER; or

(e)           result in the breach of any of the terms or conditions of, constitute a default under, or otherwise cause an impairment of, any permit or license held by Target.

Section 5.11.                      Articles of Incorporation and Bylaws.

                 (a)           OWNER has heretofore delivered to CLOW true, correct and complete copies of Target’s Articles of Incorporation and Bylaws or comparable instruments, certified by the corporate secretary thereof.

(b)           The minute books of Target accurately reflect all actions taken at all meetings and consents in lieu of meetings of its respective members or owners, and all actions taken at all meetings and consents in lieu of meetings of its managing members from the date of incorporation to the date hereof.

Section 5.12.                      Compliance with Laws.  To the best of OWNER’S knowledge, neither Target nor OWNER is in violation of any applicable order, judgment, injunction, award or decree nor are they in violation of any federal, provincial, state, local, municipal or foreign law, ordinance or regulation or any other requirement of any governmental or regulatory body, court or arbitrator, other than those violations which, in the aggregate, would not have a material adverse effect on Target or OWNER and have not received written notice that any violation is being alleged.

ARTICLE VI

COVENANTS AND AGREEMENTS OF CLOW

Section 6.01.                      Conduct of Businesses in the Ordinary Course.  From the date of this Agreement to the Closing Date, CLOW shall conduct its businesses substantially in the manner in which it is currently conducted and shall not enter into any material contracts.

  

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Section 6.02.                      Litigation.  From the date of this Agreement to the Closing Date, CLOW shall notify OWNER of any actions or proceedings of the type described in Section 4.07 that are threatened or commenced against CLOW or against any officer, director, employee, properties or assets of CLOW and of any requests for information or documentary materials by any governmental or regulatory body in connection with the transactions contemplated hereby.

Section 6.03.                      Conduct of CLOW Pending the Closing.  From the date hereof through the Closing Date:

(a)           CLOW shall use its best efforts to conduct its affairs in such a manner so that, except as otherwise contemplated or permitted by this Agreement, the representations and warranties contained in Article IV shall continue to be true and correct on and as of the Closing Date as if made on and as of the Closing Date; and

(b)           CLOW shall promptly notify OWNER of any event, condition or circumstance occurring from the date hereof through the Closing Date that would constitute a violation or breach of this Agreement by CLOW.

Section 6.04.                       Corporate Examinations and Investigations.  Prior to the Closing Date, OWNER shall be entitled, through employees and representatives, to make any investigation of the assets, liabilities, properties, business and operations of CLOW; and such examination of the books, records, tax returns, results of operations and financial condition of CLOW. Any such investigation and examination shall be conducted at reasonable times and under reasonable circumstances and CLOW and its employees and representatives shall cooperate fully with such representatives in connection with such reasonable review and examination.

ARTICLE VII

CONDITIONS PRECEDENT TO THE OBLIGATION OF CLOW TO CLOSE

The obligations of CLOW to be performed by it at the Closing pursuant to this Agreement are subject to the fulfillment on or before the Closing Date, of each of the following conditions, any one or more of which may be waived by it, to the extent permitted by law:

Section 7.01.                      Representations and Covenants.  

 

      (a) The representations and warranties of OWNER contained in this Agreement shall be true and correct on and as of the Closing Date with the same force and effect as though made on and as of the Closing Date, except that any of such representations and warranties that are given as of a particular date and relate solely to a particular date or period shall be true as of such date or period; and

     (b) The OWNER shall have performed and complied with all covenants and agreements required by this Agreement to be performed or complied with by it on or before the Closing Date. The OWNER shall have delivered to CLOW a certificate, dated the Closing Date, and signed by OWNER to the foregoing effect.

Section 7.02.                      Governmental Permits and Approvals.

                      (a)           All approvals, authorizations, consents, permits and licenses from governmental and regulatory bodies required for the transactions contemplated by this Agreement and to permit the business currently carried on by Target to continue to be carried on substantially in the same manner immediately following the Closing Date shall have been obtained and shall be in full force and effect, and CLOW shall have been furnished with appropriate evidence, reasonably satisfactory to them, of the granting of such approvals, authorizations, consents, permits and licenses; and

  

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      (b)           There shall not have been any action taken by any court, governmental or regulatory body then prohibiting or making illegal on the Closing Date the transactions contemplated by this Agreement.

Section 7.03.                      Third Party Consents.  All consents, permits and approvals from parties to contracts with Target that may be required in connection with the performance by OWNER hereunder or the continuance of such contracts in full force and effect after the Closing Date, shall have been obtained.

Section 7.04.                      Litigation.  No action, suit or proceeding shall have been instituted and be continuing or be threatened by any person to restrain, modify or prevent the carrying out of the transactions contemplated hereby, or to seek damages in connection with such transactions, or that has or could have a material adverse effect on Target, OWNER, or on the Target Shares.

ARTICLE VIII

CONDITIONS PRECEDENT TO THE OBLIGATION OF THE OWNER TO CLOSE

The obligations of OWNER to be performed by it at the Closing pursuant to this Agreement are subject to the fulfillment, on or before the Closing Date, of each the following conditions, any one or more of which may be waived by them, to the extent permitted by law:

Section 8.01.                      Representations and Covenants.

 

        (a)            The representations and warranties of CLOW contained in this Agreement shall be true and correct on and as of the Closing Date with the same force and effect as though made on and as of the Closing Date, except that any of such representations and warranties that are given as of a particular date and relate solely to a particular date or period shall be true as of such date or period; and

                 (b)           CLOW shall have performed and complied with all covenants and agreements required by this Agreement to be performed or complied with by it on or before the Closing Date. CLOW shall have delivered to OWNER a certificate dated the Closing Date, and signed by an authorized signatory of CLOW to the foregoing effect.

Section 8.02.                      Governmental Permits and Approvals.

 

                 (a)          All approvals, authorizations, consents, permits and licenses from governmental and regulatory bodies required for the transactions contemplated by this Agreement and to permit the business currently carried on by CLOW to continue to be carried on substantially in the same manner immediately following the Closing Date shall have been obtained and shall be in full force and effect, and OWNER shall have been furnished with appropriate evidence, reasonably satisfactory to them, of the granting of such approvals, authorizations, consents, permits and licenses; and

                         (b)           There shall not have been any action taken by any court, governmental or regulatory body then prohibiting or making illegal on the Closing Date the transactions contemplated by this Agreement.

Section 8.03.                      Litigation.  No action, suit or proceeding shall have been instituted and be continuing or be threatened by any person to restrain, modify or prevent the carrying out of the transactions contemplated hereby, or to seek damages in connection with such transactions, or that has or could have a material adverse effect on CLOW.

Section 8.04.                      Closing Documents.  CLOW shall have executed and delivered the documents described in Section 2.04 above.

  

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ARTICLE IX

MISCELLANEOUS

Section 9.01.                      Public Notices.  The Parties agree that all notices to third parties and all other publicity concerning the transactions contemplated by this Agreement shall be jointly planned and coordinated and no Party shall act unilaterally in this regard without the prior approval of the others, such approval not to be unreasonably withheld.

Section 9.02.                      Time.  Time shall be of the essence hereof.

Section 9.03.                      Notices.  Any notice or other writing required or permitted to be given hereunder or for the purposes hereof shall be sufficiently given if delivered or faxed to the Party to whom it is given or, if mailed, by prepaid registered mail addressed to such Party at:

if to OWNER, at:

Liao Zhi De

Hexiwan Gongguang 16.

Dong 701 Fang Fangchengqu, Fangchenggang, Shi

G CHN

53800 China

           if to CLOW, at:

Cloudweb Inc.

c/o William Eilers, Esq.

                Eilers Law Group

1000 Fifth Street, Suite 200 – P2

Miami Beach, FL 33139

or at such other address as the Party to whom such writing is to be given shall have last notified to the Party giving the same in the manner provided in this article. Any notice mailed shall be deemed to have been given and received on the fifth Business Day next following the date of its mailing unless at the time of mailing or within five (5) Business Days thereafter there occurs a postal interruption which could have the effect of delaying the mail in the ordinary and usual course, in which case any notice shall only be effectively given if actually delivered or sent by telecopy. Any notice delivered or faxed to the Party to whom it is addressed shall be deemed to have been given and received on the Business Day next following the day it was delivered or faxed.

Section 9.04.   Severability.  If a court of competent jurisdiction determines that any one or more of the provisions contained in this Agreement is invalid, illegal or unenforceable in any respect in any jurisdiction, the validity, legality and enforceability of such provision or provisions shall not in any way be affected or impaired thereby in any other jurisdiction and the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby, unless in either case as a result of such determination this Agreement would fail in its essential purpose.

Section 9.05.                      Entire Agreement.  This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements and understandings, oral or written, by and between any of the Parties with respect to the subject matter hereof.

Section 9.06.                      Further Assurances.  The Parties shall with reasonable diligence, do all such things and provide all such reasonable assurances as may be required to consummate the transactions contemplated by this Agreement, and each Party shall provide such further documents or instruments required by the other Party as may be reasonably necessary or desirable to give effect to the purpose of this Agreement and carry out its provisions whether before or after the Closing Date.

Section 9.07.                      Waiver.  Except as provided in this Article, no action taken or inaction pursuant to this Agreement will be deemed to constitute a waiver of compliance with any warranties, conditions or covenants contained in this Agreement and will not operate or be construed as a waiver of any subsequent breach, whether of a similar or dissimilar nature.  No waiver of any right under this Agreement shall be binding unless executed in writing by the Party to be bound thereby.

[the remainder of this page is intentionally left blank]

  

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Section 9.08.  Counterparts.  This Agreement may be executed in as many counterparts as may be necessary or by facsimile and each such counterpart agreement or facsimile so executed shall be deemed to be an original and such counterparts and facsimile copies together shall constitute one and the same instrument and shall be valid and enforceable.

IN WITNESS WHEREOF the Parties hereto have set their hand and seal as of the day and year first above written.

CLOUDWEB INC.,

a Florida corporation                                                                                     

By:                /s/ Amy Chaffe                                

Name:         Amy Chaffe

Title:           President

OWNER

   /s/ Liao Zhi De                                                      

                  Liao Zhi De

  

  

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EXHIBIT A

Non-U.S. Person Certificate

 

January 28, 2016

 

Cloudweb Inc.

c/o William Eilers, Esq.

Eilers Law Group

1000 Fifth Street, Suite 200 – P2

Miami Beach, FL 33139

Defined terms used but not defined herein shall have the meaning ascribed to such terms in the Share Exchange Agreement (the “Share Agreement”) dated [January [__], 2016], between Cloudweb Inc., a Florida corporation (the “Company”), and Letterston Investments Limited, a British Virgin Islands corporation (the “Owner”), whereby OWNER is acquiring shares of the Company’s common stock (the “Shares”).

	
1.  

	
the undersigned hereby represents, warrants and certifies that:

	
(a)  

	
It is not a “U.S. Person” (as such term is defined by Rule 902 of Regulation S under the U.S. Securities Act) and is not acquiring the Shares, directly or indirectly, for the account or benefit of any U.S. person.

Rule 902 under the U.S. Securities Act, defines a “U.S. Person” as:

	
(A)  

	
Any Natural person resident in the United States;

	
(B)  

	
Any partnership or corporation organized or incorporated under the laws of the United States;

	
(C)  

	
Any estate of which any executor or administrator is a U.S. Person;

	
(D)  

	
Any trust of which any trustee is a U.S. Person;

	
(E)  

	
Any agency or branch of a foreign entity located in the United States;

	
(F)  

	
Any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. Person;

	
(G)  

	
Any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and

  

11

  

	
(H)  

	
Any partnership or corporation if:

	
(1)  

	
Organized or incorporated under the laws of any foreign jurisdiction; and

	
(2)  

	
Formed by a U.S. Person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a) under the Securities Act) who are not natural person, estates or trusts.

The following are not “U.S. Persons:

	
(A)  

	
Any discretionary account or similar account (other than an estate or trust) held for the benefit or account of a Non-U.S. Person by a dealer or other professional fiduciary organized, incorporated, or (if an individual) resident in the United States;

	
(B)  

	
Any estate of which any professional fiduciary acting as executor or administrator is a U.S. Person if:

	
(1)  

	
An executor or administrator of the estate who is not a U.S. Person has sole or shared investment discretion with respect to the assets of the estate; and

	
(2)  

	
The estate is governed by foreign law;

	
(C)  

	
Any trust of which any professional fiduciary acting as trustee is a U.S. Person, if a trustee who is not a U.S. Person has sole or shared investment discretion with respect to the trust assets, and no beneficiary of the trust (and no settler if the trust is revocable) is a U.S. Person;

	
(D)  

	
Any employee benefit established and administered in accordance with the law of a country other than the United States and customary practices and documentation of such country;

	
(E)  

	
Any agency or branch of a U.S. person located outside the United States if:

	
(1)  

	
The agency or branch operates for valid business reasons; and

	
(2)  

	
The agency or branch is engaged in the business of insurance or banking and is subject to substantive insurance or banking regulation, respectively, in the jurisdiction where located; and

	
(F)  

	
The International Monetary Fund, the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, the United Nations, and their agencies, affiliates and pension plans, and any other similar international organizations, their agencies, affiliates and pension plans.

  

12

  

	
(b)  

	
The offer and scale of the Shares was made in an “offshore transaction” (as defined under Regulation S under the U.S. Securities Act), in that:

	
(i)  

	
The undersigned was outside the United States at the time the buy order for such Shares was originated; and

	
(ii)  

	
The offer to sell the Shares was not made to the undersigned in the United States.

	
(c)  

	
The transaction (i) has not been pre-arranged with a purchaser located inside of the United States or is a U.S. Person, and (ii) is not part of a plan or scheme to evade the registration requirements of the U.S. Securities Act.

	
2.  

	
The undersigned hereby covenants that:

	
(a)  

	
During the period prior to one year after the Closing (the “Restricted Period”) it will not engage in hedging transactions with regard to the Shares unless such transactions are made in compliance with the U.S. Securities Act;

	
(b)  

	
If it decides to offer, sell or otherwise transfer any of the Shares, it will not offer, sell or otherwise transfer any of such Shares directly or indirectly, unless:

	
(i)  

	
The sale is to the Company;

	
(ii)  

	
The sale is made outside the United States in a transaction meeting the requirements of Regulation S under the U.S. Securities Act and in compliance with applicable local laws and regulations; provided, however, that during the period prior to the expiration of the Restrictive Period no sale may be made to any U.S. Person or for the account or benefit of the U.S. person (other than a distributor) and all purchasers of such Shares will be required to execute and deliver to the Company a certificate substantially in the form hereof;

	
(iii)  

	
The sale is made in the United States pursuant to the exemption from the registration requirements under the U.S. Securities Act provided by Rule 144 thereunder and in accordance with any applicable state securities or “blue sky” laws and the purchaser has prior to such sale furnished to the Company an opinion of counsel reasonably satisfactory to the Company to the effect that such transaction does not require registration pursuant to Rule 144 under the U.S. Securities Act;

	
(iv)  

	
The Shares are sold in the United States in a transaction that does not require registration under U.S. Securities Act or any applicable state laws and regulations governing the offer and sale of securities, and it has prior to such sale furnished to the Company an opinion of counsel reasonably satisfactory to the Company to the effect that such transaction does not require registration; or

	
(v)  

	
The sale is made in the United States pursuant to an effective registration statement filed under the U.S. Securities Act.

	
3.  

	
The undersigned acknowledges and agrees that:

  

13

  

	
(a)  

	
The Shares are and will be “restricted securities” as that term is defined in Rule 144 under the U.S. Securities Act, and the certificates representing the Shares, as well as all certificates issued in exchange for or in substitution of the foregoing, until such time as is no longer required under the applicable requirements of the U.S. Securities Act or applicable state securities laws, will be subject to the terms of and bear, on the face of such certificate, a legend in substantially the following for:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE "U.S. SECURITIES ACT") OR ANY STATE SECURITIES LAWS, AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT. THESE SECURITIES ARE RESTRICTED SECURITIES (AS DEFINED UNDER RULE 144 UNDER THE U.S. SECURITIES ACT) AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF FOR VALUE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S PROMULGATED UNDER THE U.S. SECURITIES ACT, PURSUANT TO REGISTRATION UNDER THE U.S. SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION THEREUNDER.

 

DURING THE RESTRICTED PERIOD, WHICH DOES NOT END UNTIL ONE (1) FROM THE DATE THAT THE ISSUER OF THESE SECURITIES IS DEEMED NOT TO BE A “SHELL” COMPANY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY WITHIN THE UNITED STATES, TO A U.S. PERSON (AS DEFINIED IN REGULATION S UNDER THE U.S. SECURITIES ACT), OR FOR THE ACOUNT OR BENEFIT OF A U.S. PERSON, EXCEPT PURSUANT TO REGISTRATION UNDER THE U.S. SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION THEREUNDER. DURING THE RESTRICTED PERIOD HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS SUCH TRANSACTIONS ARE MADE IN COMPLIANCE WITH THE U.S. SECURITES ACT.  THIS PARAGRAPH SHALL HAVE NO FURTHER EFFECT SUBSEQUENT TO THE EXPIRATION OF THE RESTRICTED PERIOD AND THEREAFTER MAY BE REMOVED.

 

	
(b)  

	
The Company will refuse to register any sale of Shares made in breach of the provisions hereof.

	
(c)  

	
The addressees of this certificate and others will rely upon the truth and accuracy of the foregoing acknowledgements, representations, warranties and agreements, and irrevocably authorizes the addressees of this certificate to produce the same or a copy thereof to any interested party in any administrative or legal proceeding or official enquiry with respect to the matters set forth herein. The undersigned further agrees that if any of acknowledgements, representations, warranties or agreements made herein is no longer accurate, it shall promptly notify the Company.

 January 28, 2016

Liao Zhi De

  

14

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