Fuda Faucet Works (GREY:FUFW)

WEB NEWS

Thursday, October 2, 2008

Financial Target Agreements
Fuda Faucet Works entered into a Make Agreement with regards to its Share Exchange Transaction on December, 2007. The Company placed 3,000,000 shares into escrow. These shares are to be issued to the investors, via a prescribed formula, if the company earnings before interest and taxes (EBIT) does not reach certain target levels for 2007 and 2008.

2007 EBIT Financial Targets: $0.225

2008 EBIT Financial Targets:

a) With no warrant conversions: $0.3187
b) If all of the $1.80 warrants are exercised by June 30, 2008 and 50% of the $3.00 warrants are exercised by September 30, 2008: $.353
c) If all of the $1.80 warrants are exercised by June 30, 2008 and all of the $3.00 warrants are exercised by September 30, 2008


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