Aamaxan Trans Group (PINK:AAXT)

Key financial targets with regards to the reverse merger transaction:

In connection with the Share Exchange Agreement, management entered into a 'make good agreement' and has placed 4.0 million of its shares into an escrow to secure its obligations to meet specific 'Earnings per Share' targets for 2007 and 2008. If the targets are not achieved, a number of shares derived from a formula will be transferred pro-rata to the investors in the private placement.

Earnings targets:

(a) In 2007, earnings per share, as computed in accordance with US GAAP equal or exceed $0.31. “Earnings Per Share” is to be calculated by dividing the lesser of Net Income and Cash from Operations, plus any amounts that may have been recorded as charges or liabilities on the 2007 financial statements that meet certain defined characteristics.

(b) In 2008, earnings per share equal or exceed $0.45. “Earnings Per Share” to be calculated by dividing the lesser of Net Income and Cash from Operations, plus any amounts that may have been recorded as charges or liabilities on the 2008 financial statements that meet certain defined characteristics.

GeoTeam Note: We are assuming that these targets assume the 2007 tax rate of 28%.


Source: 8K April 21 2008