Document:

EXHIBIT 4.1
                                                                     -----------

                            CERTIFICATE OF AMENDMENT
                                       TO
                           CERTIFICATE OF DESIGNATION
                                     OF THE
                          SERIES 2006-B PREFERRED STOCK
                                ($0.01 PAR VALUE)
                                       OF
                              HAROLD'S STORES, INC.

         Pursuant to Section 1032 of the Oklahoma General Corporation Act

         WHEREAS, a Certificate of Designation setting forth certain resolutions
of the Corporation's Board of Directors establishing the powers, preferences,
rights and limitations of the Corporation's Series 2006-B Preferred Stock, par
value $0.01 per share, of Harold's Stores, Inc. was filed with the Oklahoma
Secretary of State on August 31, 2006 (the "Certificate of Designation");

         WHEREAS, the undersigned officers of Harold's Stores, Inc., an Oklahoma
corporation (the "Corporation"), do hereby execute and file this Certificate of
Amendment to the Certificate of Designation pursuant to the provisions of
Section 1032 of the Oklahoma General Corporation Act to reflect the changes set
forth below:

         1. The Certificate of Designation designated 25,000 shares of the
Corporation's authorized and unissued preferred stock as Series 2006-B Preferred
Stock;

         2. The Corporation presently has no shares of such Series 2006-B
Preferred Stock issued and outstanding;

         3. The Board of Directors of the Corporation has authorized and
directed by a duly adopted resolution that the number of shares of the
Corporation's authorized preferred stock designated as Series 2006-B Preferred
Stock be decreased from 25,000 to 15,000; and

         4. Therefore, upon the filing of this amendment to the Certificate of
Designation, 10,000 shares of the Corporation's authorized but unissued
preferred stock shall resume the undesignated status which such shares had prior
to the adoption by the Board of Directors of the aforementioned resolutions set
forth in the Certificate of Designation.

                        Signature page follows this page.

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         IN WITNESS WHEREOF, Harold's Stores, Inc. has caused this certificate
to be duly executed on its behalf by the undersigned, Ron Staffieri, Chief
Executive Officer, and attested by Jodi L. Taylor, its Secretary, this 26th day
of April, 2007.

                                           HAROLD'S STORES, INC.

                                           By: /s/ Ron Staffieri
                                               ------------------------
                                               Ron Staffieri
                                               Chief Executive Officer

ATTEST:

/s/ Jodi L. Taylor
-----------------------------
Jodi L. Taylor, Secretary

                                        2EXHIBIT 4.2
                                                                     -----------

                           CERTIFICATE OF DESIGNATION
                                     OF THE
                      SERIES 2007-A SENIOR PREFERRED STOCK
                                ($0.01 PAR VALUE)
                                       OF
                              HAROLD'S STORES, INC.

        Pursuant to Section 1032 of the Oklahoma General Corporation Act

         The undersigned, the Chief Executive Officer of Harold's Stores, Inc.,
an Oklahoma corporation (the "Corporation"), does hereby certify that the
following resolution was duly adopted by the Board of Directors of the
Corporation on April 26, 2007, pursuant to the provisions of Section 1032.A of
the Oklahoma General Corporation Act:

         RESOLVED, that pursuant to authority expressly granted to and vested in
the Board of Directors by the provisions of the Certificate of Incorporation of
the Corporation (the "Certificate of Incorporation"), the issuance of a series
of the preferred stock, par value $0.01 per share, of the Corporation to be
designated "Series 2007-A Senior Preferred Stock," which shall consist of 5,000
shares of preferred stock that the Corporation now has authority to issue, be,
and the same hereby is, authorized, and the powers, designations, preferences
and rights, and the qualifications, limitations or restrictions of the shares of
such series (in addition to the rights and limitations set forth in the
Certificate of Incorporation that may be applicable to the Series 2007-A Senior
Preferred Stock) are fixed as follows:

         1. Dividends.

                  (a) The holders of the Series 2007-A Senior Preferred Stock
         (the "Series 2007-A Preferred") shall be entitled to receive, out of
         any assets legally available therefor, prior and in preference to any
         declaration or payment of any dividend (payable other than in common
         stock, par value $.01 per share ("Common Stock"), of the Corporation or
         other securities and rights convertible into or entitling the holder
         thereof to receive, directly or indirectly, additional shares of Common
         Stock of the Corporation) on the Common Stock or any other securities
         issued by the Corporation that are junior to the Series 2007-A
         Preferred ("Junior Securities"), an amount equal to thirteen and
         one-half percent (13.5%) of the Stated Value (as defined below) per
         annum, subject to adjustment as set forth below (the "Dividend Rate").
         Dividends shall accrue daily after issuance and shall be payable
         quarterly on the first day of January, April, July and October (each a
         "Dividend Date") commencing on the first of such dates after the date
         of issuance of the shares (the "Original Issue Date"). Dividends not
         paid on a Dividend Date shall cumulate. Cumulated dividends shall
         compound annually on January 1 of each year. From the Original Issue
         Date as to any shares of Series 2007-A Preferred, dividends shall
         either cumulate or be payable in either cash or in additional shares of
         Series 2007-A Preferred, or a combination thereof, at the option of the
         holder as provided to the Corporation by written notice not less than
         ten (10) days prior to the applicable Dividend

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         Date. In the absence of a specific election by a holder, dividends
         shall be paid in cash. For purposes of determining the number of shares
         of Series 2007-A Preferred to be issued in connection with the payment
         of any dividend in such shares, the shares of Series 2007-A Preferred
         to be issued shall be valued at the Stated Value. No scrip or
         fractional shares of Series 2007-A Preferred shall be issued. In lieu
         of any fractional shares to which the holder would otherwise be
         entitled, the Corporation shall pay cash equal to such fraction
         multiplied by the Stated Value.

                  (b) No dividend will be declared or paid or set apart for
         payment on preferred stock of any series ranking as to dividends on a
         parity with the Series 2007-A Preferred unless full cumulative
         dividends have been or contemporaneously are declared and paid or
         declared and a sum sufficient for the payment thereof set apart for
         such payment on the Series 2007-A Preferred for all dividend payment
         periods terminating on or prior to the date of payment of such
         dividend. When dividends are not paid in full upon the Series 2007-A
         Preferred and any other preferred stock ranking as to dividends on a
         parity with the Series 2007-A Preferred, all dividends declared upon
         shares of the Series 2007-A Preferred and any other preferred stock
         ranking on a parity as to dividends will be declared pro rata.

                  (c) If the Corporation's operating income for any fiscal year
         ending after the Original Issue Date exceeds $4,750,000, as reflected
         in its audited financial statements for such year, the Dividend Rate
         will be reduced to eleven and one-half percent (11.5%) per annum
         effective as of the first day of the following fiscal year. The
         Corporation will give written notice of any such adjustment to the
         Dividend Rate to the holders of the Series 2007-A Preferred within ten
         (10) days following the issuance of an audit opinion by the
         Corporation's independent public accountant.

                  (d) The "Stated Value" of the Series 2007-A Preferred shall be
         One Thousand Dollars ($1,000.00).

         2. Liquidation Preference.

                  (a) Preferential Amounts. In the event of any liquidation,
         dissolution or winding up of the affairs of the Corporation, whether
         voluntary or involuntary (a "Liquidation Event"), the holders of the
         Series 2007-A Preferred shall be entitled to receive, prior and in
         preference to any distribution of any of the assets or surplus funds of
         the Corporation to the holders of Common Stock or any other Junior
         Securities, an amount per share equal to the Stated Value for each such
         share of Series 2007-A Preferred then so held (as adjusted for any
         stock dividends, combinations, recapitalizations, splits or otherwise
         on such shares), plus a further amount equal to all accrued but unpaid
         dividends (which shall include all cumulated dividends) on such shares.
         All of the preferential amounts to be paid to the holders of the Series
         2007-A Preferred under this Section 2 shall be paid or declared and set
         apart for payment before the payment or setting apart for payment of
         any amount for, or the distribution of any assets or funds of the
         Corporation to, the holders of the Common Stock or any other

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<PAGE>

         Junior Securities in connection with such Liquidation Event. Neither
         the merger nor consolidation of the Corporation with or into any other
         corporation, nor the merger or consolidation of any other corporation
         into or with the Corporation, nor a sale or transfer of all or any part
         of the assets of the Corporation, shall without a contemporaneous
         liquidation, dissolution or winding up, be deemed to be a Liquidation
         Event.

                  (b) Insufficient Assets. If, upon a Liquidation Event, the
         assets and funds of the Corporation are insufficient to provide for the
         payment of the full aforesaid preferential amount to the holders of the
         Series 2007-A Preferred and the full preferential amount due to the
         holders of any preferred stock ranking as to liquidation on a parity
         with the Series 2007-A Preferred, such assets and funds as are
         available shall be distributed ratably among the holders of the Series
         2007-A Preferred and the holders of any such preferred stock ranking as
         to liquidation on a parity with the Series 2007-A Preferred in
         proportion to the full preferential amount each such holder is
         otherwise entitled to receive.

                  (c) No Further Participation. After the payment or the setting
         apart of payment of the full preferential amount to the holders of the
         Series 2007-A Preferred, the holders of the Series 2007-A Preferred
         shall not be entitled to any further participation in any distribution
         of assets by the Corporation in connection with a Liquidation Event.

                  (d) Non-cash Distribution. If any of the assets of the
         Corporation are to be distributed other than in cash under this Section
         2 or for any purpose, then the Board of Directors of the Corporation
         shall promptly engage an independent appraiser to determine the value
         of the assets to be distributed to the holders of the Series 2007-B
         Senior Preferred Stock (the "Series 2007-B Preferred"), the Series
         2007-A Preferred, the Series 2006-B Preferred Stock (the "Series 2006-B
         Preferred), the Series 2006-A Preferred Stock (the "Series 2006-A
         Preferred"), the Series 2003-A Preferred Stock (the "Series 2003-A
         Preferred"), the Series 2002-A Preferred Stock (the "Series 2002-A
         Preferred"), the Amended Series 2001-A Preferred Stock (the "Amended
         Series 2001-A Preferred") and the Common Stock. The Corporation shall,
         upon receipt of such appraiser's valuation, give prompt written notice
         to each holder of Series 2007-B Preferred, Series 2007-A Preferred,
         Series 2006-B Preferred, Series 2006-A Preferred, Series 2003-A
         Preferred, 2002-A Preferred, Amended Series 2001-A Preferred and Common
         Stock of the appraiser's valuation. Notwithstanding the above, any
         securities to be distributed to the shareholders shall be valued as
         follows (the "Average Market Price"):

                           (i) if traded on a securities exchange, the value
                  shall be deemed to be the average of the closing prices of the
                  securities on such exchange over the twenty (20) trading day
                  period ending on the trading day prior to the closing of the
                  transaction, adjusted appropriately for any stock splits,
                  stock dividends or similar changes in capitalization occurring
                  during such period;

                           (ii) if actively traded over-the-counter, the value
                  shall be deemed to be the average of the closing bid prices
                  over the twenty (20) trading day period

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<PAGE>

                  ending on the trading day prior to the closing of the
                  transaction, adjusted appropriately for any stock splits,
                  stock dividends or similar changes in capitalization occurring
                  during such period; and

                           (iii) if there is no active public market, the value
                  shall be the fair market value thereof, as mutually determined
                  by the Corporation and the holders of a majority of the total
                  combined outstanding shares of the Series 2007-B Preferred,
                  the Series 2007-A Preferred, the Series 2006-B Preferred, the
                  Series 2006-A Preferred, the Series 2003-A Preferred, the
                  Series 2002-A Preferred and the Amended Series 2001-A
                  Preferred, provided that if the Corporation and the holders of
                  a majority of the total combined outstanding shares of the
                  Series 2007-B Preferred, the Series 2007-A Preferred, the
                  Series 2006-B Preferred, the Series 2006-A Preferred, the
                  Series 2003-A Preferred, the Series 2002-A Preferred and the
                  Amended Series 2001-A Preferred are unable to reach agreement,
                  then by independent appraisal by an investment banker hired
                  and paid by the Corporation but acceptable to the holders of a
                  majority of the total combined outstanding shares of the
                  Series 2007-B Preferred, the Series 2007-A Preferred, the
                  Series 2006-B Preferred, the Series 2006-A Preferred, the
                  Series 2003-A Preferred, the Series 2002-A Preferred and the
                  Amended Series 2001-A Preferred.

         3. Voting Rights. Except as set forth herein or as otherwise required
by law, the holder of each share of Series 2007-A Preferred shall be entitled to
that number of votes allotted by law and hereunder equal to the number of shares
of Common Stock into which such share of Series 2007-A Preferred could be
converted at the record date for determination of the shareholders entitled to
vote on such matters, or, if no such record date is established, at the date
such vote is taken or any written consent of shareholders is solicited, such
votes to be counted together with all other shares of capital stock of the
Corporation having general voting power and not counted separately as a class,
except as set forth in this Certificate or as otherwise required by law. The
holders of the Series 2007-A Preferred shall be entitled to vote as a single
class for the election of a number of members of the board of directors of the
Corporation such that the number of directors so elected by the holders of the
Series 2007-A Preferred represents a percentage of the total membership of the
Corporation's board of directors that equals, as nearly as practicable, the
percentage of the Corporation's outstanding Common Stock (treating the
outstanding Common Stock and shares of Common Stock issuable upon the conversion
of the Series 2007-B Preferred, the Series 2007-A Preferred, the Series 2006-B
Preferred, the Series 2006-A Preferred, the Series 2003-A Preferred, the Series
2002-A Preferred and the Amended Series 2001-A Preferred as outstanding in the
aggregate) represented by the outstanding Series 2007-A Preferred on an
as-converted basis, rounded up or down to the nearest whole number. For so long
as such percentage rounds to zero, the holders of the Series 2007-A Preferred
shall not be entitled, voting together as a class, to elect any directors. In
the event the holders of the Amended Series 2001-A Preferred and the Series
2002-A Preferred (voting together) and the Series 2003-A Preferred (voting
separately) and the Series 2006-A Preferred (voting separately) and the Series
2006-B

                                        4
<PAGE>

Preferred (voting separately) no longer have the right to designate the Chairman
of the Board and/or the Vice-Chairman of the Board as described in the
Certificates of Designation establishing such series of preferred stock, then
one such director elected by the holders of the Series 2007-A Preferred shall
serve as Chairman of the Board and one such director shall serve as
Vice-Chairman of the Board, provided that if the holders of the Series 2007-A
Preferred, voting together as a class, are entitled to elect only one director,
that director shall serve as Chairman of the Board. This voting right of the
Series 2007-A Preferred shall not limit the right of the holders of the Series
2007-A Preferred to vote their shares of Series 2007-A Preferred or any other
voting shares of the Corporation held by any of such holders, as to any other
matter as to which the shareholders of the Corporation are entitled to vote,
including in connection with a shareholder vote for the election of directors
generally. The holders of Series 2007-A Preferred shall be entitled to notice of
any shareholders' meeting in accordance with the Bylaws of the Corporation.

         4. Conversion. The holders of the Series 2007-A Preferred have
conversion rights as follows (the "Conversion Rights"):

                  (a) Right to Convert. Each share of Series 2007-A Preferred
         shall be convertible, at the option of the holder thereof, at any time
         after the date of issuance of such share, into such number of fully
         paid and nonassessable shares of Common Stock as is determined by
         dividing the Stated Value for such share by the applicable conversion
         price (each a "Conversion Price"), as follows:

                           (i) for the shares of Series 2007-A Preferred
                  issuable pursuant to any option or other right to acquire
                  shares of Series 2007-A Preferred, the Conversion Price shall
                  equal sixty-six and two-thirds percent (66.667%) of the
                  Average Market Price of the Common Stock as of the twenty (20)
                  trading days ending on the trading day next preceding the date
                  of the exercise of any such option or other right (the "Stated
                  Value Conversion Price"); and

                           (ii) for the shares of Series 2007-A Preferred issued
                  in satisfaction of any dividend, and for all such shares
                  accrued from the last Dividend Date through the date of
                  conversion of any Series 2007-A Preferred into Common Stock,
                  the Conversion Price shall be equal to sixty-six and
                  two-thirds percent (66.667%) of the Average Market Price of
                  the Common Stock as of the twenty (20) trading days ending on
                  the trading day next preceding such Dividend Date, adjusted
                  appropriately for any stock splits, stock dividends or similar
                  changes in capitalization occurring during such period (the
                  "Dividend Conversion Price"); and

                           (iii) for any other shares of Series 2007-A Preferred
                  that may be issued by the Corporation, the Conversion Price
                  shall be equal to sixty-six and two-thirds percent (66.667%)
                  of the Average Market Price of the Common Stock as of the
                  twenty (20) trading days ending on the trading day next
                  preceding the date of

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<PAGE>

                  issuance of such shares of Series 2007-A Preferred, unless
                  otherwise determined by the Board of Directors of the
                  Corporation.

         No fractional shares of Common Stock shall be issued upon conversion of
         Series 2007-A Preferred. In lieu of any fractional shares to which the
         holder would otherwise be entitled, the Corporation shall pay cash
         equal to such fraction multiplied by the applicable Average Market
         Price of a whole share used for purposes of computing the Conversion
         Price.

                  (b) Mechanics of Conversion. Any holder of Series 2007-A
         Preferred electing to convert shares of Series 2007-A Preferred into
         full shares of Common Stock and to receive certificates therefor shall
         surrender the certificate or certificates representing the shares of
         Series 2007-A Preferred to be converted, if such share certificates
         have been issued by the Corporation, duly endorsed, at the office of
         the Corporation or of any transfer agent for the Series 2007-A
         Preferred, and shall give written notice to the Corporation at such
         office that it elects to convert the certificated shares surrendered
         with the notice of conversion and any other shares as to which share
         certificates have not been issued by the Corporation. The Corporation
         shall, as soon as practicable thereafter, issue and deliver at such
         office to such holder of Series 2007-A Preferred, a certificate or
         certificates for the number of shares of Common Stock to which it shall
         be entitled as aforesaid and a check payable to the holder in the
         amount of any cash amounts payable as the result of a conversion into
         fractional shares of Common Stock. Such conversion shall be deemed to
         have been made immediately prior to the close of business on the date
         of delivery to the Corporation of the holder's written notice of
         conversion, and the person or persons entitled to receive the shares of
         Common Stock issuable upon such conversion shall be treated for all
         purposes as the record holder or holders of such shares of Common Stock
         on such date.

                  (c) Reservation of Preferred and Common Stock. The Corporation
         shall at all times reserve and keep available out of its authorized but
         unissued shares: (i) such number of shares of Series 2007-A Preferred
         as shall from time to time to be sufficient to permit the issuance of
         such shares pursuant to any option or other right to acquire shares of
         Series 2007-A Preferred or for payment of dividends on the Series
         2007-A Preferred in additional shares of Series 2007-A Preferred; and
         (ii) such number of its shares of Common Stock as shall from time to
         time be sufficient to effect the conversion of all outstanding shares
         of the Series 2007-A Preferred; and if at any time the number of
         authorized but unissued shares of Series 2007-A Preferred or Common
         Stock shall not be sufficient to effect the payment of dividends or
         conversion of all then outstanding shares of the Series 2007-A
         Preferred as contemplated by this Section 4(c), in addition to such
         other remedies as shall be available to the holder of such Series
         2007-A Preferred, the Corporation will take such corporate action as
         may, in the opinion of its counsel, be necessary to increase its
         authorized but unissued shares to such number of shares as shall be
         sufficient for such purposes.

                  (d) Adjustments to Conversion Price.

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<PAGE>

                           (i) Adjustments for Stock Dividends, Subdivisions,
                  Combinations or Consolidations of Common Stock. In the event
                  the outstanding shares of Common Stock shall be subdivided (by
                  stock dividends, splits, or otherwise) into a greater number
                  of shares of Common Stock, each Conversion Price then in
                  effect shall, concurrently with the effectiveness of such
                  subdivision, be proportionately decreased. In the event the
                  outstanding shares of Common Stock shall be combined or
                  consolidated, by reclassification or otherwise, into a lesser
                  number of shares of Common Stock, each Conversion Price then
                  in effect shall, concurrently with the effectiveness of such
                  combination or consolidation, be proportionately increased.

                           (ii) Adjustments for Other Distributions. In the
                  event the Corporation at any time or from time to time makes
                  or fixes a record date for the determination of holders of
                  Common Stock entitled to receive any distribution payable in
                  securities or assets of the Corporation other than shares of
                  Common Stock, in each such event provision shall be made so
                  that the holders of Series 2007-A Preferred shall receive upon
                  conversion thereof, in addition to the number of shares of
                  Common Stock receivable thereupon, the amount of securities or
                  assets of the Corporation which they would have received had
                  their Series 2007-A Preferred been converted into Common Stock
                  on the date of such event and had they thereafter, during the
                  period from the date of such event to and including the date
                  of conversion, retained such securities or assets receivable
                  by them as aforesaid during such period, subject to all other
                  adjustments called for during such period under this Section 4
                  with respect to the rights of the holders of the Series 2007-A
                  Preferred.

                           (iii) Adjustments for Reclassification, Exchange and
                  Substitution. If the Common Stock issuable upon conversion of
                  the Series 2007-A Preferred shall be changed into the same or
                  a different number of shares of any other class or classes of
                  stock, whether by capital reorganization, reclassification or
                  otherwise (other than a subdivision or combination of shares
                  provided for above), then in each such event the holder of
                  each share of Series 2007-A Preferred shall have the right
                  thereafter to convert such share into the kind and amount of
                  shares of stock and other securities and property receivable
                  upon such reorganization or reclassification or other change
                  by holders of the number of shares of Common Stock that would
                  have been subject to receipt by the holders upon conversion of
                  the Series 2007-A Preferred immediately before such change,
                  all subject to further adjustment as provided herein.

                           (iv) No Impairment. Without the prior written consent
                  of the holders of at least a majority of the outstanding
                  Series 2007-A Preferred, the Corporation will not, by
                  amendment of its Certificate of Incorporation or through any
                  reorganization, transfer of assets, consolidation, merger,
                  dissolution, issuance or sale of securities or any other
                  voluntary action, avoid or seek to avoid the

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<PAGE>

                  observance or performance of any of the terms to be observed
                  or performed hereunder by the Corporation but will at all
                  times in good faith assist in the carrying out of all the
                  provisions of Section 4 and in the taking of all such action
                  as may be necessary or appropriate in order to protect the
                  Conversion Rights of the holders of the Series 2007-A
                  Preferred against impairment.

                           (v) Certificate as to Adjustments. Upon the
                  occurrence of each adjustment or readjustment of the
                  Conversion Price pursuant to Section 4, the Corporation at its
                  expense shall promptly compute such adjustment or readjustment
                  in accordance with the terms hereof and furnish to each holder
                  of Series 2007-A Preferred a certificate setting forth such
                  adjustment or readjustment and showing in detail the facts
                  upon which such adjustment or readjustment is based. The
                  Corporation shall, upon the written request at any time of any
                  holder of Series 2007-A Preferred, furnish or cause to be
                  furnished to such holder a like certificate setting forth (i)
                  such adjustments and readjustments, (ii) each Conversion Price
                  at the time in effect, and (iii) the number of shares of
                  Common Stock and the amount, if any, of other property which
                  at the time would be received upon the conversion of Series
                  2007-A Preferred.

         5. Redemption.

                  (a) Commencing at any time on or after three (3) years from
         the Original Issue Date, the Corporation, at its option, may redeem the
         Series 2007-A Preferred. Unless otherwise agreed by any affected holder
         and only with respect to such holder's shares of Series 2007-A
         Preferred, the Corporation shall not redeem less than all of the Series
         2007-A Preferred held by any holder.

                  (b) The Corporation shall redeem to the extent it may legally
         do so the Series 2007-A Preferred by paying a price per share equal to
         the Stated Value for such shares plus all accrued but unpaid dividends
         (including cumulated dividends) on each such share. After the
         Corporation has given written request that the Series 2007-A Preferred
         be redeemed in accordance with this Section 5, no shares of the capital
         stock of the Corporation (other than shares of Series 2007-A Preferred
         and Series 2007-B Preferred) shall be redeemed prior to the redemption
         of the Series 2007-A Preferred.

                  (c) At least six (6) months and one (1) week prior to the
         redemption date, or such lesser period as the holders of at least a
         majority of the Series 2007-A Preferred may agree, written notice shall
         be mailed, first class postage prepaid, to each holder of record (at
         the close of business on the business day immediately preceding the day
         on which notice is given) of the Series 2007-A Preferred, at the
         address last shown on the records of the Corporation for such holder,
         specifying the number of shares to be redeemed from each holder, the
         redemption price, the place at which payment may be obtained and
         calling upon such holder to surrender to the Corporation, in the manner
         and at the price designated, its certificate or certificates
         representing such holder's shares to be redeemed (the "Redemption
         Notice"). On or after the redemption date, such holder of Series 2007-

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<PAGE>

         A Preferred to be redeemed shall surrender to the Corporation the
         certificate or certificates representing such shares, in the manner and
         at the price designated in the Redemption Notice, and thereupon the
         redemption price of such shares shall be payable to the order of the
         person whose name appears on such certificate or certificates as the
         owner thereof and each surrendered certificate shall be canceled.

                  (d) From and after the redemption date, unless there shall
         have been a default in payment of the redemption price, all rights of
         the holders of shares of Series 2007-A Preferred designated for
         redemption in the Redemption Notice (except the right to receive the
         redemption price without interest upon surrender of their certificate
         or certificates) shall cease with respect to such shares at such time,
         and such shares shall not thereafter be transferred on the books of the
         Corporation or be deemed to be outstanding for any purpose whatsoever.
         If the funds of the Corporation legally available for redemption of
         shares of Series 2007-A Preferred on the redemption date are
         insufficient to redeem the total number of shares of Series 2007-A
         Preferred to be redeemed, those funds that are legally available will
         be used to redeem the maximum possible number of such shares ratably
         among the holders of such shares to be redeemed based upon their
         holdings of Series 2007-A Preferred. The shares of Series 2007-A
         Preferred not redeemed shall remain outstanding and entitled to all the
         rights and preferences provided herein. At any time thereafter when
         additional funds of the Corporation are legally available for the
         redemption of shares of Series 2007-A Preferred, such funds will
         immediately be used to redeem the balance of the shares that the
         Corporation has become obligated to redeem on the redemption date.

         6. Protective Provisions. For so long as the shares of Common Stock
issuable upon the conversion of the outstanding Series 2007-A Preferred
represent in the aggregate at least ten percent (10%) of the Corporation's
outstanding Common Stock (treating the outstanding Common Stock and shares of
Common Stock issuable upon the conversion of the Series 2007-B Preferred, the
Series 2007-A Preferred, the Series 2006-B Preferred, the Series 2006-A
Preferred, the Series 2003-A Preferred, the Series 2002-A Preferred and the
Amended Series 2001-A Preferred as outstanding in the aggregate), the
Corporation shall not, without first obtaining the affirmative vote or written
consent of the holders of at least a majority of the outstanding shares of
Series 2007-A Preferred, voting together as a single class on an as-converted to
Common Stock basis:

                  (a) amend, repeal or waive any provision of the Corporation's
         Certificate of Incorporation or Bylaws;

                  (b) alter or change the rights, preferences or privileges of
         the Series 2007-A Preferred;

                  (c) redeem any shares of the Corporation's capital stock
         (except for the Series 2007-A Preferred in accordance with Section 5
         hereof);

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<PAGE>

                  (d) authorize or issue any class or series of capital stock,
         other than the issuance of Series 2007-B Preferred, Series 2007-A
         Preferred, Series 2006-B Preferred, Series 2006-A Preferred, Series
         2003-A Preferred, Series 2002-A Preferred and Amended Series 2001-A
         Preferred in satisfaction of dividends or pursuant to existing
         conversion rights or options or warrants granted to persons to acquire
         shares of Series 2007-B Preferred, Series 2007-A Preferred, Series
         2006-A Preferred or Series 2006-B Preferred, provided that the
         Corporation may issue options and other stock-based awards (and the
         shares upon exercise thereof) pursuant to the following Subsection (e);

                  (e) adopt, amend or modify (including modification by the
         repricing of existing awards, except and only to the extent resulting
         from a stock split or similar transaction) any stock option plan or
         employee stock ownership plan or issue any shares of capital stock of
         the Corporation to its or its subsidiaries' employees or directors,
         except pursuant to the Corporation's 1993 or 2002 Performance and
         Equity Incentive Plan and 1993 Employee Stock Purchase Plan, each as
         amended;

                  (f) pay or declare any dividend or other distribution on
         Junior Securities, except as provided herein;

                  (g) authorize, or take any action to effect, or otherwise
         permit a sale or other disposition of all or substantially all of the
         assets of the Corporation or any subsidiary, or a merger, acquisition,
         recapitalization, other corporate reorganization or sale of control of
         the Corporation or any subsidiary, or a license of a substantial
         portion of the assets of the Corporation or any subsidiary;

                  (h) undertake or effect any liquidation, dissolution or
         winding up of the Corporation or any material subsidiary, any
         assignment for the benefit of creditors, or any bankruptcy or similar
         filing;

                  (i) create any new subsidiary of the Corporation or permit any
         subsidiary of the Corporation to sell or otherwise issue any capital
         stock or any right to acquire any of its capital stock to any party
         other than the Corporation;

                  (j) change the size of the Corporation's board of directors;

                  (k) take any action which results in the Corporation making,
         or permitting any subsidiary to make, any loan to, or investment in,
         another entity, other than a subsidiary of the Corporation;

                  (L) take any action to incur or assume more than $1,000,000 of
         indebtedness, either individually or on a cumulative basis, in excess
         of the amount of the Corporation's existing indebtedness and
         availability at such time under credit facilities that exist as of the
         Original Issue Date, excluding the extension of trade credit in the
         ordinary course of business consistent with past practices;

                                       10
<PAGE>

                  (m) take any action which results in the Corporation and its
         subsidiaries making, or becoming obligated to make, any capital
         expenditures in excess of $4,000,000 in the aggregate in any fiscal
         year;

                  (n) enter into, or permit any subsidiary to enter into, any
         agreement, contract, arrangement or transaction, whether oral or
         written, with or for the benefit of any of its or any subsidiary's
         officers, directors or shareholders, any individual or entity that is
         an "affiliate" of the Corporation within the meaning of the rules
         promulgated under the Securities Exchange Act of 1934, as amended, or
         any individual related by blood, marriage, or adoption to any such
         individual or entity, unless such agreement, contract, arrangement or
         transaction is entered into in the ordinary course of business and on
         terms no less favorable to the Corporation than those the Corporation
         would have been reasonably likely to obtain as the result of
         arms-length negotiations with an unrelated third party;

                  (o) approve any material change in any line of business of the
         Corporation or any subsidiary; or

                  (p) enter into any acquisition or series of related
         acquisitions, directly or through a subsidiary, involving an aggregate
         transaction value in excess of $500,000.

         7. Limitations on Reissuance. No share or shares of Series 2007-A
Preferred acquired by the Corporation by reason of redemption, purchase,
conversion or otherwise shall be reissued, and all such shares shall be
canceled, retired and eliminated from the shares which the Corporation shall be
authorized to issue.

         8. Preemptive Rights. Except for the issuance of stock (a) as payment
of dividends on the Series 2007-B Preferred, the Series 2007-A Preferred, the
Series 2006-B Preferred, the Series 2006-A Preferred, the Series 2003-A
Preferred, the Series 2002-A Preferred and the Amended Series 2001-A Preferred
and the issuance of Common Stock on conversion of the Series 2007-B Preferred,
the Series 2007-A Preferred, the Series 2006-B Preferred, the Series 2003-A
Preferred, the Series 2002-A Preferred and the Amended Series 2001-A Preferred,
or (b) pursuant to existing conversion rights or options or warrants granted to
persons to acquire shares of Series 2007-A Preferred, Series 2007-B Preferred,
Series 2006-A Preferred or Series 2006-B Preferred, the Corporation shall not
issue, sell or exchange, agree or obligate itself to issue, sell or exchange, or
reserve or set aside for issuance, sale or exchange, any (i) shares of Common
Stock, (ii) any other equity security of the Corporation, including without
limitation, shares of Series 2007-B Preferred, Series 2007-A Preferred, Series
2006-B Preferred, Series 2006-A Preferred, Series 2003-A Preferred, Series
2002-A Preferred or Amended Series 2001-A Preferred, (iii) any debt security of
the Corporation (other than debt with no equity feature) including without
limitation, any debt security which by its terms is convertible into or
exchangeable for any equity security of the Corporation, (iv) any security of
the Corporation that is a combination of debt and equity, or (v) any option,
warrant or other right to subscribe for, purchase or otherwise acquire any such
equity security or any such debt security of the Corporation, except for the
issuance of options and other awards, and shares issuable thereon,

                                       11
<PAGE>

pursuant to the Corporation's 1993 or 2002 Performance and Equity Incentive Plan
and 1993 Employee Stock Purchase Plan, each as amended, or any other employee
incentive plan approved in accordance with Section 6 hereof, unless in each case
the Corporation shall have first offered to sell such securities (the "Offered
Securities") to the holders of the Series 2007-A Preferred as follows: the
Corporation shall offer to sell to such holders that portion of the Offered
Securities as the number of shares of Common Stock (treating the outstanding
Common Stock and shares of Common Stock issuable upon the conversion of the
Series 2007-B Preferred, the Series 2007-A Preferred, the Series 2006-B
Preferred, the Series 2006-A Preferred, the Series 2003-A Preferred, the Series
2002-A Preferred and the Amended Series 2001-A Preferred as outstanding in the
aggregate) then held by each such holder bears to the total number of shares of
Common Stock so determined as are then outstanding on such date, at a price and
on such other terms as shall have been specified by the Corporation in a writing
delivered to such holder (the "Offer"), which Offer by its terms shall remain
open and irrevocable for a period of thirty (30) days from the date of the
Offer. The price and other terms included in any Offer shall be no less
favorable to the holders of the Series 2007-A Preferred than those offered to
any prospective third party purchaser.

         9. Ranking. The Series 2007-A Preferred shall rank for purposes of
dividends and distribution of assets on liquidation of the Corporation on a
parity with the Series 2007-B Preferred and prior to all other existing series
of preferred stock of the Corporation, including the Series 2006-B Preferred,
the Series 2006-A Preferred, the Series 2003-A Preferred, the Series 2002-A
Preferred, the Amended Series 2001-A Preferred, any other series of preferred
stock which does not specifically state that it ranks prior to or on a parity
with the Series 2007-A Preferred for such purposes, and the Common Stock, all of
which shall be Junior Securities for purposes of this Certificate of
Designation.

                        SIGNATURE PAGE FOLLOWS THIS PAGE.

                                       12
<PAGE>

         IN WITNESS WHEREOF, Harold's Stores, Inc. has caused this certificate
to be duly executed on its behalf by the undersigned, Ron Staffieri, Chief
Executive Officer, and attested by Jodi L. Taylor, its Secretary, this 26th day
of April, 2007.

                                      HAROLD'S STORES, INC.

                                      By: /s/ Ron Staffieri
                                          ----------------------------
                                          Ron Staffieri, Chief Executive Officer

Attest:

/s/ Jodi L. Taylor
-----------------------------
Jodi L. Taylor, Secretary

                                       13

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