Document:

Exhibit 4.1
                                                                     -----------

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

         Pursuant to Section 1007.F 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 Corporations Series 2006-A Preferred Stock, par
value $0.01 per share, of Harold's Stores, Inc. was filed with the Oklahoma
Secretary of State on January 24, 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
Correction to the Certificate of Designation pursuant to the provisions of
Section 1007.F of the Oklahoma General Corporation Act to reflect the changes
set forth below:

         1.   The fourth sentence of Section 3 of the Certificate of Designation
is hereby corrected to read as follows:

         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, 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 2006-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 2006-A Preferred, voting together as
         a class, are entitled to elect only one director, that director shall
         serve as Chairman of the Board.

         2.   The first sentence of Section 4(a)(i) is corrected to read as
follows:

              (i) for the shares of Series 2006-A Preferred issuable pursuant to
         any option or other right to acquire shares of Series 2006-A Preferred,
         the Conversion Price shall equal the Average Market Price of the Common
         Stock as of the twenty (20) trading days ending on the trading day next
         preceding the date such option or other right is granted, as quoted by
         the securities exchange upon which such Common Stock is traded (the
         "Stated Value Conversion Price"); and
<PAGE>
         3.   Section 4(c)(i) is corrected to read as follows:

              (i) such number of shares of Series 2006-A Preferred as shall from
         time to time to be sufficient to permit issuance of such shares
         pursuant to any option or other right to acquire shares of 2006-A
         Preferred Stock or for the payment of dividends on the Series 2006-A
         Preferred in additional shares of Series 2006-A Preferred; and

         4.   Section 6(d) is corrected to read as follows:

              (d) authorize or issue any class or series of capital stock, other
         than the issuance of 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
         2006-A 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);

         5.   The first sentence of Section 8 is corrected to read as follows:

         Except for the issuance of stock (a) as payment of dividends on 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 2006-A 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
         2006-A 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 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,
         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 2006-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 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

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<PAGE>
         Offer by its terms shall remain open and irrevocable for a period of
         thirty (30) days from the date of the Offer.

         6.   The Certificate of Designation of the Series 2006-A Preferred
Stock, as corrected is set forth in its entirety on Exhibit A attached hereto.

                        Signature page follows this page.

                                        3
<PAGE>

         IN WITNESS WHEREOF, Harold's Stores, Inc. has caused this certificate
to be duly executed on its behalf by the undersigned, Leonard Snyder, Interim
Chief Executive Officer, and attested by Jodi L. Taylor, its Secretary, this
31st day of August, 2006.

                                             HAROLD'S STORES, INC.

                                             By: /s/ Leonard Snyder
                                                 -------------------------------
                                                 Leonard Snyder
                                                 Interim Chief Executive Officer

ATTEST:

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

                                        4
<PAGE>
                                    EXHIBIT A
                           CERTIFICATE OF DESIGNATION
                                     OF THE
                          SERIES 2006-A PREFERRED STOCK
                                ($0.01 PAR VALUE)
                                       OF
                              HAROLD'S STORES, INC.

         Pursuant to Section 1032 of the Oklahoma General Corporation Act

         The undersigned, the interim 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 January 13, 2006, 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 2006-A Preferred Stock," which shall consist of 100,000
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 2006-A
Preferred Stock) are fixed as follows:

         1.   Dividends.

              (a) The holders of the Series 2006-A Preferred Stock (the "Series
         2006-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 2006-A Preferred
         ("Junior Securities"), an amount equal to eight percent (8%) 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 each
         anniversary of the Original Issue Date. Dividends payable on July 1 and
         October 1 shall be payable in additional shares of Series 2006-A
         Preferred. Dividends payable on January 1 and April 1 shall be payable
         in cash. After one year from the Original Issue Date as to any shares
         of Series 2006-A Preferred, dividends shall be payable in either cash
         or in additional shares of Series 2006-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 Date. In the absence of
<PAGE>
         a specific election by a holder, dividends shall be paid in cash. For
         purposes of determining the number of shares of Series 2006-A
         Preferred to be issued in connection with the payment of any dividend
         in such shares, the shares of Series 2006-A Preferred to be issued
         shall be valued at the Stated Value. No scrip or fractional shares of
         Series 2006-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 2006-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 2006-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 2006-A Preferred and any other
         preferred stock ranking as to dividends on a parity with the Series
         2006-A Preferred, all dividends declared upon shares of the Series
         2006-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 six percent (6%) 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 2006-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 2006-A Preferred shall be One
         Hundred Dollars ($100.00).

         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 2006-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, an amount per share
         equal to the Stated Value for each such share of Series 2006-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 2006-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 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

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<PAGE>
         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 2006-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 2006-A Preferred, such assets and funds as are
         available shall be distributed ratably among the holders of the Series
         2006-A Preferred and the holders of any such preferred stock ranking as
         to liquidation on a parity with the Series 2006-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 2006-A Preferred, the holders of the Series 2006-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 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 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 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 2006-A Preferred, the Series
              2003-A Preferred, the Series 2002-A Preferred and the

                                        3
<PAGE>

              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 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 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 2006-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 2006-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 2006-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 2006-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 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 2006-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 2006-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, 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 2006-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 2006-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 2006-A Preferred shall
not limit the right of the holders of the Series 2006-A Preferred to vote their
shares of Series 2006-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
2006-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 2006-A Preferred have
conversion rights as follows (the "Conversion Rights"):

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<PAGE>
              (a) Right to Convert. Each share of Series 2006-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 2006-A Preferred issuable
              pursuant to any option or other right to acquire shares of Series
              2006-A Preferred, the Conversion Price shall equal the Average
              Market Price of the Common Stock as of the twenty (20) trading
              days ending on the trading day next preceding the date such option
              or other right is granted, as quoted by the securities exchange
              upon which such Common Stock is traded (the "Stated Value
              Conversion Price"); and

                  (ii) for the shares of Series 2006-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 2006-A Preferred into Common Stock, the Conversion Price
              shall be equal to 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 2006-A Preferred that may
              be issued by the Corporation, the Conversion Price shall be
              established by separate resolution of the Board of Directors of
              the Corporation.

         No fractional shares of Common Stock shall be issued upon conversion of
         Series 2006-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 2006-A Preferred
         electing to convert shares of Series 2006-A Preferred into full shares
         of Common Stock and to receive certificates therefor shall surrender
         the certificate or certificates representing the shares of Series
         2006-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 2006-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 2006-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

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<PAGE>
         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 2006-A Preferred
         as shall from time to time to be sufficient to permit issuance of such
         shares pursuant to any option or other right to acquire shares of
         2006-A Preferred Stock or for the payment of dividends on the Series
         2006-A Preferred in additional shares of Series 2006-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 2006-A Preferred; and if at any time the number of
         authorized but unissued shares of Series 2006-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 2006-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
         2006-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.

                  (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 2006-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 2006-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
              2006-A Preferred.

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<PAGE>
                  (iii) Adjustments for Reclassification, Exchange and
              Substitution. If the Common Stock issuable upon conversion of the
              Series 2006-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
              2006-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 2006-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 2006-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 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 2006-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 2006-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 2006-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
              2006-A Preferred.

              (e) Limitation on Conversion. The shares of 2006-A Preferred shall
         be convertible only to the extent that any shareholder approval
         required for them to be convertible as required by the rules of any
         securities exchange upon which the Common Stock may be listed is
         obtained prior to the conversion. The Corporation shall take all
         necessary action to present to the shareholders for approval at the
         first annual meeting after the date of this certificate a proposal to
         approve the conversion rights of the 2006-A Preferred to the extent
         required by such rules.

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<PAGE>
         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 2006-A Preferred. Unless otherwise agreed by any affected holder
         and only with respect to such holder's shares of Series 2006-A
         Preferred, the Corporation shall not redeem less than all of the Series
         2006-A Preferred held by any holder.

              (b) The Corporation shall redeem to the extent it may legally do
         so the Series 2006-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 2006-A Preferred
         be redeemed in accordance with this Section 5, no shares of the capital
         stock of the Corporation (other than shares of Series 2006-A Preferred)
         shall be redeemed prior to the redemption of the Series 2006-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 2006-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 2006-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 2006-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 2006-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 2006-A Preferred on the redemption date are
         insufficient to redeem the total number of shares of Series 2006-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 2006-A Preferred. The shares of Series 2006-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 2006-A Preferred, such funds will
         immediately be used to

                                        8
<PAGE>
         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 2006-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 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 2006-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 2006-A Preferred;

              (c) redeem any shares of the Corporation's capital stock (except
         for the Series 2003-A Preferred, the Series 2002-A Preferred or the
         Amended Series 2001-A Preferred as provided in the Certificates of
         Designation therefor filed with the Oklahoma Secretary of State or
         except for the Series 2006-A Preferred in accordance with Section 5
         hereof);

              (d) authorize or issue any class or series of capital stock, other
         than the issuance of 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
         2006-A 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;

                                        9
<PAGE>
              (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;

              (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 2006-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 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 2006-A Preferred, the Series 2003-A
Preferred, the Series 2002-A Preferred and the

                                       10
<PAGE>
Amended Series 2001-A Preferred, or (b) pursuant to existing conversion rights
or options or warranted granted to persons to acquire shares of Series 2006-A
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 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, 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 2006-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 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 2006-A Preferred than those offered to
any prospective third party purchaser.

         9.   Ranking. The Series 2006-A Preferred shall rank for purposes of
dividends and distribution of assets on liquidation of the Corporation on a
parity with the Series 2003-A Preferred, the Series 2002-A Preferred, the
Amended Series 2001-A Preferred and any other series of preferred stock which
specifically states that it ranks on a parity with the Series 2006-A Preferred
for such purposes.

                                       11EXHIBIT 4.2
                                                                     -----------

                            CERTIFICATE OF AMENDMENT
                                       TO
                           CERTIFICATE OF DESIGNATION
                                     OF THE
                          SERIES 2006-A 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 Corporations Series 2006-A Preferred Stock, par
value $0.01 per share, of Harold's Stores, Inc. was filed with the Oklahoma
Secretary of State on January 24, 2006 and was corrected by Certificate of
Correction 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 100,000 shares of the
Corporation's authorized and unissued preferred stock as Series 2006-A Preferred
Stock;

         2. The Corporation presently has 25,000 shares of such Series 2006-A
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-A Preferred
Stock be decreased from 100,000 to 75,000; and

         4. Therefore, upon the filing of this amendment to the Certificate of
Designation, 25,000 shares of the Corporation's authorized but unissued
preferred stock shall resume the undesignated status which they 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.

<PAGE>

         IN WITNESS WHEREOF, Harold's Stores, Inc. has caused this certificate
to be duly executed on its behalf by the undersigned, Leonard Snyder, Interim
Chief Executive Officer, and attested by Jodi L. Taylor, its Secretary, this
31st day of August, 2006.

                                         HAROLD'S STORES, INC.

                                         By: /s/ Leonard Snyder
                                             ------------------------
                                             Leonard Snyder
                                             Interim Chief Executive Officer

ATTEST:

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

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