JIAHUA STORES HOLDINGS LIMITEDXXX Corporation
佳華百貨控股有限公司XXX公司
 (Incorporated in the Cayman Islands with limited liabilityXXX with limited liability)

Minutes of a meeting (the “Meeting”) of the board of directors of Jiahua Stores Holdings LimitedXXX (the “Company”) held at Room 302, 3/F, Hip Kwan Commercial Building, 38 Pitt Street, Yau Ma Tei,, Kowloon, Hong Kong *** on 5 August, 2008 at 3:30 p.m.

PRESENT : ***Mr. Chin Kam Cheung – Independent Non-Executive Director
  Mr. Ai Ji – Independent Non-executive Director (by conference call)

IN ATTENDANCE  : Mr. Ho Yuet Lee, Leo - Company Secretary (by conference call)
  Mr. Zhuang Pei Zhong - Chief Financial Officer (by conference call)

1. CHAIRMAN

Mr. Chin Kam Cheung *** took the chair and acted as chairman (the “Chairman”) of the Meeting.

2. NOTICE

It was noted that notice of the Meeting had been given to all the directors of the Company (the “Directors”) in accordance with the articles of  (the “Articles of Association”).  The Chairman declared the Meeting properly constituted for the transaction of business.

3. QUORUM

A quorum being present, the Chairman declared the Meeting duly convened and constituted in accordance with the Articles of Association.  A quorum had been present acting and maintained throughout the Meeting.

4. DECLARATION OF INTERESTS

It was noted that each Director had duly declared his interest (if any) in connection with the matters to be considered at the Meeting and in accordance with the Articles of Association.  It was noted that none of the Directors present was prohibited by the Articles of Association from forming part of the quorum of this Meeting or voting in respect of the matters to be considered at this Meeting.

5. SHARE OPTION SCHEME

The Chairman referred to the share option scheme of the Company (the “Share Option Scheme”) which was adopted and approved by the shareholders of the Company (the “Shareholders”) pursuant to the written resolutions of all Shareholders dated 30 April 2007 (the “Written Resolutions”).

There were tabled before the Meeting the following documents:

(1) a copy of the Share Option Scheme;

(2) a copy of the Written Resolutions;

(3) a copy of the Listing Approval dated 18 May 2007 in which The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) approved, on a conditional basis, the listing of and permission to deal in any new shares to be issued upon exercise of options to be granted under the Share Option Scheme;
 
(4) a list of the persons for which options were proposed to be granted (the “Grantees”) and the respective number of the options proposed to be granted to each Grantee pursuant to the Share Option Scheme (the “List of Grantees”) marked “A” attached herewith and for the purpose of identification, signed by the Chairman; and

(5) a draft form of the letter to be issued by the Company to each of the Grantees for the grant of such number of options as set out in the List of Grantees (the “Form of Grant Letter”).

The Chairman reported that options (“Options”) in respect of a total of 9,750,000 new shares of the Company (the “Shares”) were proposed to be granted to the Grantees and that the Subscription Price (as defined in the Share Option Scheme) at which the options were proposed to be granted to the Grantees should be (i) HK$0.4560, representing the average closing price of the Shares as stated in the daily quotations sheets of the Stock Exchange for the five trading days immediately preceding the date of this Meeting; or (ii) the closing price of the Shares as stated in the daily quotations sheet of the Stock Exchange on the date of this Meeting, whichever is higher (the “Price”), and that the Option Period (as defined in the Share Option Scheme) was proposed to be from 9 August 2008 to 8 August 2013.

 IT WAS RESOLVED THAT:-

(a) the grant of the Options to the Grantees under the Share Option Scheme to subscribe for the respective numbers of Shares as set out in the List of Grantees at the Price and for the Option Period from 9 August 2008 to 8 August 2013 be and is hereby approved;

(b) the Form of Grant Letter be and is hereby approved and adopted, and that any Director be and is hereby authorized to approve any further amendments thereto and to sign the same for and on behalf of the Company;

(c) the secretary of the Company be and is hereby authorized to despatch to each Grantee the relevant Form of Grant Letter as signed by the Director; and

(d) any Director of the Company be and is hereby authorized to do all such acts and things as he shall in his absolute discretion consider necessary or desirable to give effect to the resolutions referred to above.

6. CLOSE OF MEETING

There being no other business, the Chairman declared the Meeting closed.

___________________
 (Chairman)

佳華百貨控股有限公司
（于開曼群島XXX注冊成立的有限公司）

佳華百貨XXX董事會于2008年8月5日下午3點半在香港九龍油麻地碧街38號協群商業大廈3樓302室***召開一次董事會議，會議記錄如下：

出席：    ***  Chin Kam Cheung先生—— 獨立非執行董事
            Ai Ji先生——獨立非執行董事（會上稱）

參加出席：  Ho Yuet Lee, Leo先生——公司秘書長（會上稱）
            Zhuang Pei Zhong先生——財政部長（會上稱）

1. 董事長
   Chin Kam Cheung ***先生作為會議主席主持了會議。

2. 通知
   根據公司章程，會議通知傳達給了公司的所有董事。董事長聲明是為了商事交易召開此次會議。

3. 法定人數
   達到法定出席人數后，董事長宣布會議正式按照公司章程召開。全部法定人數都出席了會議，直至會議結束。

4. 匯報利潤
   根據公司章程，每位董事都匯報了與這次會議討論內容相關的利潤情況。公司章程并未限制任何董事組成會議討論組或者針對會議討論內容發言。

5.股權計劃
   大會主席提到了公司的股權計劃。依照2007年4月30日股東們的的書面決議，這一方案經股東認可并采用。
  
   會議前擺放好了以下文件：
   （1）   一份股權計劃的復印件；
   （2）   一份書面協議的復印件；
   （3）   一份2007年5月18日核準清單的復印件，經香港證券交易所認可，在一定條件基礎上，行使股權時允許進行其他發行股份的交易活動；
   （4）   一份被授予選擇權的人員名單以及依照股權計劃擬定的各自編號。以下在旁邊注明“A”便于辨認，由大會主席注明；
   （5）   公司擬定的一份草案，發給持有購股函件所規定的購股權數目的每位股權人。

大會主席稱，公司有975萬的新股將會派發給股權人，股權計劃規定的認購價格為每股港幣0.4560元，這一價格是會議頭天之前每天交易報價單的平均收盤價。會議當天每張報價單上的收盤價都要高一些，股權計劃規定的股權僅限于2008年8月9日至2013年8月8日。

   會議決議：
（a） 按照股權計劃，股權人可認購相應購股權數目，股權僅限于2008年8月9日至2013年8月8日；
（b） 購股函通過批準并予以采用，任何董事都有權對其做出修改以及代表公司同樣具有簽字權力；
（c） 公司秘書長有權向各股權人派發由董事簽發的相關信件；
（d） 公司所有董事有權酌情對上述協議做必要的合理改動。

6.閉會

無其他事務，大會主席宣布會議閉幕。
                                                   ___________________
                                                          （大會主席）