EXHIBIT 10.5
                                                                    ------------

                      REAFFIRMATION OF CONTINUING GUARANTY
                      ------------------------------------

         The undersigned,

             (a) THE CORNER PROPERTIES, INC., an Oklahoma corporation,

             (b) HAROLD'S DBO, INC., a Texas corporation,

             (c) HAROLD'S LIMITED PARTNERS, INC., an Oklahoma corporation,

             (d) HAROLD'S OF WHITE FLINT, INC., a Maryland corporation,

             (e) HSGA, INC., a Georgia corporation, and

             (f) HSTX, INC., a Texas corporation,

have executed that certain Continuing Guaranty and Security Agreement, dated as
of February 5, 2003 (the "Guaranty"), in favor of Wells Fargo Retail Finance II,
LLC, a Delaware limited liability company formerly known as Wells Fargo Retail
Finance, LLC, as collateral agent and administrative agent ("Agent"), under and
in accordance with that certain Loan and Security Agreement (as amended from
time to time, the "Loan Agreement"), dated as of February 5, 2003, by and among
Agent, the lenders that are signatories thereto ("Lenders"), and each of the
following Persons: (a) HAROLD'S STORES, INC., (b) HAROLD'S FINANCIAL
CORPORATION, (c) HAROLD'S DIRECT, INC., (d) HAROLD'S OF TEXAS, L.P., (e)
HAROLD'S OF GEORGIA, L.P., and (f) HAROLD'S OF JACKSON, INC. (Capitalized terms
used herein, not otherwise defined herein, shall have the meaning assigned to
such terms in the Loan Agreement).

         The undersigned hereby (i) consent and agree to the terms and
provisions of Amendment No. 4 to Loan and Security Agreement (the "Amendment"),
dated June 1, 2006, and (ii) agree that the Guaranty remains in full force and
effect and continues to be the legal, valid and binding obligation of each of
the undersigned enforceable against each of the undersigned in accordance with
its terms.

         Furthermore, the undersigned hereby agree and acknowledge that (a) the
Guaranty is not subject to any claims, defenses or offsets, (b) nothing
contained in the Amendment shall adversely affect any right or remedy of Agent
or Lenders under the Guaranty or any agreement executed by the undersigned in
connection therewith, (c) the execution and delivery of the Amendment or any
agreement entered into by Agent in connection therewith shall in no way reduce,
impair or discharge any obligations of the undersigned pursuant to the Guaranty
and shall not constitute a waiver by Agent or Lenders of any of Agent's or
Lenders' rights against the undersigned under the Guaranty, (d) the consent of
the undersigned is not required to the effectiveness of the Amendment and (e) no
consent by the undersigned is required for the effectiveness of any future
amendment, modification, forbearance or other action with respect to the Loan
Agreement or any present or future Loan Document (other than the Guaranty). In
addition to the foregoing, each of the undersigned hereby reaffirms and
continues all liens, assignments, pledges and security interests granted or made
by the undersigned pursuant to the Guaranty.

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         Executed on June 1, 2006.


                            THE CORNER PROPERTIES, INC., an Oklahoma
                            corporation

                            By: /s/ Jodi L. Taylor
                                -------------------------------
                            Name: Jodi L. Taylor
                            Title: Secretary/Treasurer


                            HAROLD'S DBO, INC., a Texas corporation

                            By: /s/ Jodi L. Taylor
                                -------------------------------
                            Name: Jodi L. Taylor
                            Title: Secretary-Treasurer


                            HAROLD'S LIMITED PARTNERS, INC., an Oklahoma
                            corporation

                            By: /s/ Jodi L. Taylor
                                -------------------------------
                            Name: Jodi L. Taylor
                            Title: Secretary-Treasurer


                            HAROLD'S OF WHITE FLINT, INC., a Maryland
                            corporation

                            By: /s/ Jodi L. Taylor
                                -------------------------------
                            Name: Jodi L. Taylor
                            Title: Secretary-Treasurer


                            HSGA, INC., a Georgia corporation

                            By: /s/ Jodi L. Taylor
                                -------------------------------
                            Name: Jodi L. Taylor
                            Title: Secretary-Treasurer


                            HSTX, INC., a Texas corporation

                            By: /s/ Jodi L. Taylor
                                -------------------------------
                            Name: Jodi L. Taylor
                            Title: Secretary-Treasurer