X0306 4 2012-07-06 0 0000030302 ALCO STORES INC ALCS 0001502174 Peterson Wayne S. 401 COTTAGE ABILENE KS 67410 0 1 0 0 SVP/CFO Stock option (right to buy 09/20/2010) 12.69 2011-09-20 2015-09-20 Common stock 25000 25000 D Stock option (right to buy 04/30/2012) 9.82 2013-04-30 2017-04-30 Common stock 7500 32500 D Stock option (right to buy 07/06/2012) 9.43 2012-07-06 4 A 0 5250 0 A 2013-07-06 2022-07-06 Common stock 5250 37750 D Stock option (performance based 07/06/2012) 9.43 2012-07-06 4 A 0 12250 0 A 2022-07-06 Common stock 12250 50000 D The options become exercisable in four equal installments on September 20, 2011, 2012, 2013, and 2014. The options become exercisable in four equal installments on April 30, 2013, 2014, 2015, and 2016. The options become exercisable in four equal installments on July 6, 2013, 2014, 2015, and 2016. The options will one-half vest when Alco Stores, Inc. reaches a target Return on Equity of 5% as defined in the Company's Bonus Plan; and the remaining one-half will vest 12 months later if the optionee is still an employee of Alco Stores, Inc. /s/ Wayne S. Peterson 2012-07-10