FOCUS UNIVERSAL INC.

The Company’s executive compensation program reflects a pay-for-performance philosophy. The metrics that we use to determine the compensation of executives are designed to incentivize our executives to drive growth and long-term shareholder value. Below is an unranked list of the most important performance measures the Company used to link executive compensation and company performance for the most recently completed fiscal year:

Performance Measure

On-time filing of the quarterly and year end financials, barring any unmitigated legal or audit delays;

Increase of sales or accounts receivable over 20% on a quarter over quarter basis, due to efforts to build new lines of business (or building new lines of business, such as Lusher / One Touch Financial, related or unrelated, for investment and future growth);

Closure of merger(s) or acquisition(s) either through standard business combination or asset purchase agreement;

Completion of capital raise agreement(s), including ELOCs and convertibles, with associated parties including broker-dealers and investment funds; and

Average 90 day trading volume: Increase 15% over previous quarter.