Document:

QKL
STORES INC.

     

    AMENDMENT
NO. 1 TO

    2009
OMNIBUS SECURITIES AND INCENTIVE PLAN

     

    EMPLOYEE
STOCK OPTION AGREEMENT

     

    THIS
AGREEMENT made as of January 30, 2010, by and between QKL Stores, Inc., a
Delaware corporation (the “Company”), and Zhiguo
Jin (the “Optionee”).

    

    WHEREAS, on September 14, 2009 the
Company and the Optionee entered into an Employee Stock Option Agreement (the
“Option Agreement”); and

    

    WHEREAS, the Company and Optionee
desire to amend the Option Agreement to correct the exercise price in the Option
Agreement to be the closing price of the Company’s common stock on September 14,
2009.

    

    NOW THEREFORE, the parties do hereby
agree as follows.

     

    1.           The
parties hereto agree to amend Section 2 of the Option Agreement, with
retroactive effect to September 14, 2009 as follows:

     

    “2.  Grant of
Option

    

    The
Committee hereby grants to the Optionee an option to purchase 20,000 shares of
the Company’s Common Stock (“Shares”) for an Option price per Share equal to
$7.50 (not less than the fair market value of a Share on the date of the grant
of the Option (the “Option”).”

     

    2.           Except
as specifically amended hereby, the Option Agreement shall continue in full
force and effect and the parties hereby reaffirm the same.

     

    [SIGNATURE
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                OPTIONEE

              	 
      	
                QKL
      STORES INC.

              
	 
      	 
      	 
      
	
                /s/ Zhiguo Jin

              	 
      	
                By:

              	
                /s/ Zhuangyi Wang

              
	 
      	 
      	 
      	 
      
	
                Name:  Zhiguo
      Jin

              	 
      	
                Its:  

              	
                Chief
      Executive OfficerQKL
STORES, INC.

       

      2009
OMNIBUS SECURITIES AND INCENTIVE PLAN

       

      DIRECTOR
STOCK OPTION AGREEMENT

       

      THIS
AGREEMENT made as of September 14 2009, by and between QKL Stores, Inc., a
Delaware corporation (the “Company”), and Chaoying (Charles) Li
(the “Optionee”).

       

      WITNESSETH:

       

      WHEREAS,
the Company has adopted the QKL Stores, Inc. 2009 Omnibus Securities and
Incentive Plan (the “Plan”) for
the benefit of its employees, nonemployee directors and consultants and the
employees, nonemployee directors and consultants of its affiliates,
and

       

      WHEREAS,
the Committee has authorized the grant to the Optionee of an Option under the
Plan, on the terms and conditions set forth in the Plan and as hereinafter
provided,

       

      NOW,
THEREFORE, in consideration of the premises contained herein, the Company and
the Optionee hereby agree as follows:

       

      
        	
                 
      

              	
                1.

              	
                Definitions.

              

      

       

      Terms
used in this Agreement which are defined in the Plan shall have the same meaning
as set forth in the Plan.

       

      
        	
                 
      

              	
                2.

              	
                Grant of
  Option.

              

      

       

      The
Committee hereby grants to the Optionee an option to purchase 20,000 shares of
the Company’s Common Stock (“Shares”) for an Option price per Share
equal to $8.00 (not
less than the Fair Market Value of a Share on the date of the grant of the
Option) (the “Option”).

       

      
        	
                 
      

              	
                3.

              	
                Option Terms and Exercise
      Period.

              

      

       

      (a)           The
Option shall be exercised, and payment by the Optionee of the Option price shall
be made, pursuant to the terms of the Plan.

       

      (b)           All
or any part of the Option may be
exercised by the Optionee no later than the tenth (10th) anniversary of the
date of this Agreement.

       

      (c)           This
Agreement and the Option shall terminate on the earlier of (i) the fifth (5th)
anniversary of the date of this Agreement or (ii) the date the Option is fully
exercised.

       

      
        	
                 
      

              	
                4.

              	
                Vesting.

              

      

       

      Subject
to Section 10, the Option shall vest and become exercisable pursuant to the
following schedule:

      
        
           

        

        
           

          
            

          

        

        
           

        

      
 

      
        
          
            	
                    Number of Months Completed

                    Since Date of Grant

                  	 	
                    Shares Vested and

                    Exercisable

                  
	
                    Less
      than 12

                  	 	
                    0

                  
	
                    12
      but less than 24

                  	 	
                    6,667

                  
	
                    24
      but less than 36

                  	 	
                    13,334

                  
	
                    36
      or more

                  	 	
                    20,000

                  

          

        

      

       

      
        	
                 
      

              	
                5.

              	
                Termination of Director
      Status.

              

      

       

      Sections
6.2 and 6.4 of the Plan shall control.

       

      
        	
                 
      

              	
                6.

              	
                Restrictions
      on Transfer of Option.

              

      

       

      This
Agreement and the Option shall not be transferable otherwise than (a) by will or
by the laws of descent and distribution or (b) by gift to any Family Member of
the Optionee, and the Option shall be exercisable, during the Optionee’s
lifetime, solely by the Optionee, except on account of the Optionee’s Permanent
and Total Disability or death, and solely by the transferee in the case of a
transfer by gift to a Family Member of the Optionee.

       

      
        	
                 
      

              	
                7.

              	
                Exercise of
    Option.

              

      

       

      (a)           The
Option shall become exercisable at such time as shall be provided herein or in
the Plan and shall be exercisable by written notice of such exercise, in the
form prescribed by the Committee, to the Secretary of the Company, at its
principal office. The notice shall specify the number of Shares for which the
Option is being exercised.

       

      (b)           Shares
purchased pursuant to the Option shall be paid for in full at the time of such
purchase in cash, in Shares, including Shares acquired pursuant to the Plan, or
part in cash and part in Shares. Shares transferred in payment of the Option
price shall be valued as of the date of transfer based on their Fair Market
Value.

       

      
        	
                 
      

              	
                8.

              	
                Regulation by the
      Committee.

              

      

       

      This
Agreement and the Option shall be subject to any administrative procedures and
rules as the Committee shall adopt. All decisions of the Committee upon any
question arising under the Plan or under this Agreement, shall be conclusive and
binding upon the Optionee and any person or persons to whom any portion of the
Option has been transferred by will, by the laws of descent and distribution or
by gift to a Family Member of the Optionee.

       

      
        	
                 
      

              	
                9.

              	
                Rights as a
      Stockholder.

              

      

       

      The
Optionee shall have no rights as a stockholder with respect to Shares subject to
the Option until certificates for Shares of Common Stock are issued to the
Optionee.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      
        	 	
                10.

              	
                Change of
    Control.

              

      

       

      Notwithstanding
the vesting requirements contained in Section 4, upon a Change  of
Control, the Option shall automatically become fully vested and exercisable as
of the date of such Change of Control.

       

      
        	 	
                11.

              	
                Reservation of
      Shares.

              

      

       

      With
respect to the Option, the Company hereby agrees to at all times reserve for
issuance and/or delivery upon payment by the Optionee of the Option price, such
number of Shares as shall be required for issuance and/or delivery upon such
payment pursuant to the Option.

       

      
        	 	
                12.

              	
                Delivery of Share
      Certificates.

              

      

       

      Within a
reasonable time after the exercise of the Option the Company shall cause to be
delivered to the Optionee, his or her legal representative or his or her
beneficiary, a certificate for the Shares purchased pursuant to the exercise of
the Option.

       

      
        	 	
                13.

              	
                Amendment.

              

      

       

      The
Committee may amend this Agreement at any time and from time to time; provided,
however, that no amendment of this Agreement that would materially and adversely
impair the Optionee’s rights or entitlements with respect to the Option shall be
effective without the prior written consent of the Optionee.

       

      
        	 	
                14.

              	
                Plan
      Terms.

              

      

       

      The terms
of the Plan are hereby incorporated herein by reference.

       

      
        	 	
                15.

              	
                Effective Date of
      Grant.

              

      

       

      The
Option shall be effective as of the date first written above.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      
        	 	
                16.

              	
                Optionee
      Acknowledgment.

              

      

       

      By
executing this Agreement, the Optionee hereby acknowledges that he or she has
received and read the Plan and this Agreement and that he or she agrees to be
bound by all of the terms of both the Plan and this Agreement.  The
Optionee further acknowledges and agrees that any exercise of the Option shall
be strictly in compliance with applicable laws, including without limitation,
those regulations enacted by the State Administration of Foreign Exchange of the
People’s Republic of China, if applicable to the Optionee.

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      ATTEST:

                                                    	 
      	 	
                                                      QKL
      STORES, INC

                                                    
	 	
                                                      

                                                    	 	 
      

                                                      By:

                                                    	 	 
      
	 
      	 	 
      
	 
      	 	
                                                      Its:

                                                    	 	 
      
	 
      	 	
                                                      

                                                    	
                                                       Optionee

                                                    

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
           

        

        
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