Document:

EXHIBIT 10.6
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THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY, INCLUDING THE
RIGHT TO DEMAND PAYMENT HEREUNDER AND TO ENFORCE ANY INSTRUMENTS SECURING THIS
GUARANTY, ARE MADE EXPRESSLY SUBJECT AND SUBORDINATE TO CERTAIN RIGHTS OF THE
HOLDER(S) OF THE INDEBTEDNESS AND OTHER OBLIGATIONS OWING FROM TIME TO TIME BY
HAROLD'S STORES, INC. AND CERTAIN OF ITS SUBSIDIARIES PURSUANT TO A LOAN AND
SECURITY AGREEMENT ENTERED INTO AS OF FEBRUARY 5, 2003, BETWEEN HAROLD'S STORES,
INC. AND CERTAIN OF ITS SUBSIDIARIES AND WELLS FARGO RETAIL FINANCE II, LLC, AS
THE SAME MAY BE AMENDED, MODIFIED, RESTATED AND SUPPLEMENTED FROM TIME TO TIME,
ALL AS MORE PARTICULARLY PROVIDED PURSUANT TO THE TERMS OF THE SUBORDINATION AND
INTERCREDITOR AGREEMENT ENTERED INTO IN AUGUST 2006, AMONG HAROLD'S STORES, INC.
AND CERTAIN OF ITS SUBSIDIARIES, RONHOW, LLC AND WELLS FARGO RETAIL FINANCE II,
LLC, AS THE SAME MAY BE AMENDED, MODIFIED, RESTATED AND SUPPLEMENTED FROM TIME
TO TIME, THE TERMS OF WHICH SUBORDINATION AND INTERCREDITOR AGREEMENT BY THIS
REFERENCE ARE MADE A PART OF THIS GUARANTY. PAYEE AND EACH OTHER HOLDER,
ASSIGNEE OR TRANSFEREE OF THIS GUARANTY, BY ACCEPTANCE HEREOF, AGREE TO BE BOUND
BY SUCH SUBORDINATION AND INTERCREDITOR AGREEMENT.

                              SUBORDINATED GUARANTY

     THIS SUBORDINATED GUARANTY ("GUARANTY"), dated as of August 31, 2006, is
executed and delivered by HAROLD'S FINANCIAL CORPORATION, an Oklahoma
corporation, HAROLD'S DIRECT, INC., an Oklahoma corporation, HAROLD'S STORES OF
TEXAS, L.P., a Texas limited partnership, HAROLD'S OF JACKSON, INC., a
Mississippi corporation, THE CORNER PROPERTIES, INC., an Oklahoma corporation,
HAROLD'S LIMITED PARTNERS, INC., an Oklahoma corporation, HAROLD'S DBO, INC., a
Texas corporation and HSTX, INC., a Texas corporation (each a "GUARANTOR" and
collectively, "GUARANTORS") for the benefit of RONHOW, LLC, a Georgia limited
liability company ("LENDER").

     WHEREAS, Harold's Stores, Inc., an Oklahoma corporation ("BORROWER") owns,
directly or indirectly, all of the issued and outstanding capital stock or
partnership interests of each of the Guarantors;

         WHEREAS, Borrower and Lender have entered into that certain
Subordinated Loan Agreement, dated as even date herewith (the "LOAN AGREEMENT");

         WHEREAS, pursuant to the Loan Agreement, Lender has agreed to make
available to Borrower certain financial accommodations on the terms and
conditions set forth in the Loan Agreement;

         WHEREAS, Guarantors' execution and delivery of this Guaranty is a
condition to Lender making, and continuing to make, such financial
accommodations to Borrower;
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         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by Guarantors, Guarantors,
intending to be legally bound, hereby agree as follows:

                  Section 1. Guaranty.

                  (a) Guarantors hereby absolutely, irrevocably and
unconditionally guarantee the due and punctual payment and performance when due,
whether at stated maturity, by acceleration or otherwise, of the following
(collectively referred to as the "GUARANTEED OBLIGATIONS"): (1) all present and
future indebtedness and obligations owing by Borrower to Lender under or in
connection with the Loan Agreement and any other Loan Document, including
without limitation, the repayment of all principal of the Loan, and the payment
of all interest, fees, charges, attorneys' fees and other amounts payable to
Lender thereunder or in connection therewith; (2) any and all extensions,
renewals, modifications, amendments or substitutions of the foregoing; (3) all
expenses, including, without limitation, attorneys' fees and disbursements, that
are incurred by Lender in the enforcement of any of the foregoing; and (4) all
other Obligations.

                  (b) All expenses, including, without limitation, attorneys'
fees and disbursements that are incurred by Lender in the enforcement of the
obligations of the Guarantors hereunder, shall be fully recoverable from the
Guarantors.

                  (c) All expenses, including, without limitation, attorneys'
fees and disbursements, that are incurred by Lender in connection with the Loan
Agreement and any other Loan Document shall be recoverable from Guarantors;.

                  (d) Any amounts due from Guarantors to Lender shall bear
interest from the date that is ten (10) days after Lender's demand therefor, and
in the case of all of the foregoing amounts, until such amounts are paid in full
at the highest rate then applicable to the Guaranteed Obligations.

                  Section 2. Guaranty of Payment and Not of Collection. This
Guaranty is a guaranty of payment, and not merely of collection. Accordingly,
Lender shall not be obligated or required before enforcing this Guaranty against
Guarantors: (a) to pursue any right or remedy Lender may have against Borrower
or any other person or commence any suit or other proceeding against Borrower or
any other person in any court or other tribunal; (b) to make any claim in a
liquidation or bankruptcy of Borrower or any other person; or (c) to make demand
of Borrower or any other person or to enforce or seek to enforce or realize upon
any collateral security held by Lender which may secure any of the Guaranteed
Obligations.

                  Section 3. Guaranty Absolute. Guarantors guarantee that the
Guaranteed Obligations will be paid strictly in accordance with the terms of the
documents evidencing the same, regardless of any applicable law now or hereafter
in effect in any jurisdiction affecting any of such terms or the rights of
Lender with respect thereto. The liability of Guarantors under this Guaranty
shall be absolute, irrevocable and unconditional in accordance with its terms
and shall remain in full force and effect without regard to, and shall not be
released, suspended, discharged, terminated or otherwise affected by, any
circumstance or occurrence whatsoever,

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including without limitation, the following (whether or not Guarantors consent
thereto or have notice thereof):

                  (a) (i) Any change in the amount, interest rate or due date or
other term of any of the Guaranteed Obligations, (ii) any change in the time,
place or manner of payment of all or any portion of the Guaranteed Obligations,
(iii) any amendment or waiver of, or consent to the departure from or other
indulgence with respect to, the Loan Agreement, any other Loan Document, or any
other document or instrument evidencing or relating to any Guaranteed
Obligations, or (iv) any waiver, renewal, extension, addition, or supplement to,
or deletion from, or any other action or inaction under or in respect of, the
Loan Agreement, any of the other Loan Documents, or any other documents,
instruments or agreements relating to the Guaranteed Obligations or any other
instrument or agreement referred to therein or evidencing any Guaranteed
Obligations or any assignment or transfer of any of the foregoing;

                  (b) any lack of validity or enforceability of the Loan
Agreement, any of the other Loan Documents, or any other document, instrument or
agreement referred to therein or evidencing any Guaranteed Obligations or any
assignment or transfer of any of the foregoing;

                  (c) any furnishing to Lender of any additional security for
the Guaranteed Obligations, or any sale, exchange, release or surrender of, or
realization on, any security for the Guaranteed Obligations;

                  (d) any settlement or compromise of any of the Guaranteed
Obligations, any security therefor, or any liability of any other party with
respect to the Guaranteed Obligations, or any subordination of the payment of
the Guaranteed Obligations to the payment of any other liability of Borrower or
any other obligor with respect to the Guaranteed Obligations;

                  (e) any bankruptcy, insolvency, reorganization, composition,
adjustment, dissolution, liquidation or other like proceeding relating to any
Guarantor, Borrower or any other person, or any action taken with respect to
this Guaranty by any trustee or receiver, or by any court, in any such
proceeding;

                  (f) any act or failure to act by Borrower or any other person
which may adversely affect the Guarantors' subrogation rights, if any, against
Borrower to recover payments made under this Guaranty;

                  (g) any nonperfection of any security interest or other lien
on any collateral securing in any way any of the Guaranteed Obligations;

                  (h) any application of sums paid by Borrower or any other
person with respect to the liabilities of Borrower to Lender, regardless of what
liabilities of Borrower remain unpaid;

                  (i) any defect, limitation or insufficiency in the borrowing
powers of Borrower or in the exercise thereof; or

                  (j) any other circumstance which might otherwise constitute a
defense available to, or a discharge of, the Guarantor hereunder, including,
without limitation, the failure by Lender to provide copies of any notice
delivered to Borrower in accordance with the terms of

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<PAGE>

any of the Loan Documents.

                  Section 4. Action with Respect to Guaranteed Obligations.
Lender may, at any time and from time to time, without the consent of, or notice
to, Guarantors, and without discharging Guarantors from their obligations
hereunder, take any and all actions described in SECTION 3 hereof and may
otherwise: (i) amend, modify, alter or supplement the Loan Agreement or any
other Loan Document; (ii) sell, exchange, release or otherwise deal with all, or
any part, of any collateral; (iii) release any person liable in any manner for
the payment or collection of the Guaranteed Obligations; (iv) exercise, or
refrain from exercising, any rights against Borrower or any other person; and
(v) apply any sum, by whomsoever paid or however realized, to the Guaranteed
Obligations in such order as Lender shall elect.

                  Section 5. Representations and Warranties. Each Guarantor
hereby makes to Administrative Agent and Lender the following representations
and warranties:

                  (a) Organization; Power; Qualification. Such Guarantor is a
corporation or limited partnership duly organized or formed, validly existing
and in good standing under the jurisdiction of its incorporation or formation,
has the power and authority to own or lease its respective properties and to
carry on its respective business as now being and hereafter proposed to be
conducted, and is duly qualified and is in good standing as a foreign
corporation or limited partnership, and authorized to do business, in each
jurisdiction in which the character of its properties or the nature of its
business requires such qualification or authorization and where the failure to
be so qualified or authorized would have, in each instance, a material adverse
effect on Borrower's or such Guarantor's operations, properties, financial
conditions or ability to perform its respective obligations under the Loan
Documents (a "MATERIAL ADVERSE EFFECT").

                  (b) Authorization. Such Guarantor has the right and power, and
has taken all necessary action to authorize it, to guaranty the Guaranteed
Obligations hereunder. Such Guarantor has the right and power, and has taken all
necessary action to authorize it, to execute, deliver and perform this Guaranty
and any other Loan Document to which it is a party in accordance with their
respective terms and to consummate the transactions contemplated hereby and
thereby. This Guaranty has been duly executed and delivered by the duly
authorized officers of such Guarantor, and each is a legal, valid and binding
obligation of the Guarantor, enforceable against it in accordance with its
respective terms.

                  (c) Compliance with Laws. The execution, delivery and
performance of this Guaranty in accordance with its terms do not and will not,
by the passage of time, the giving of notice, or otherwise: (i) require any
governmental approval, OTHER THAN such as have been obtained and are in full
force and effect, or violate any applicable law relating to such Guarantor; (ii)
conflict with, result in a breach of, or constitute a default under the articles
of incorporation or bylaws of such Guarantor or any indenture, agreement or
other instrument to which such Guarantor is a party or by which it or any of its
properties may be bound; or (iii) result in or require the creation or
imposition of any lien, other than liens in favor of Lender, upon or with
respect to any property now owned or acquired by such Guarantor.

                  (d) Governmental Approvals. Such Guarantor is in compliance
with each governmental approval applicable to it and in compliance with all
other applicable law relating to

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it, except for non-compliances which, and governmental approvals the failure to
possess which, would not, individually or in the aggregate, have a Material
Adverse Effect.

                  (e) Defaults. No Event of Default or any event that with the
giving of notice or passage of time would constitute an Event of Default has
occurred and is continuing or would exist after giving effect to any of the Loan
Documents.

                  Section 6. Contribution. To the extent that any Guarantor
shall be required hereunder to pay any portion of any Guaranteed Obligation
exceeding the greater of (a) the amount of the economic benefit actually
received by such Guarantor from the Loans and other Obligations and (b) the
amount such Guarantor would otherwise have paid if such Guarantor had paid the
aggregate amount of the Guaranteed Obligations (excluding the amount thereof
repaid by the Borrower) in the same proportion as such Guarantor's net worth on
the date enforcement is sought hereunder bears to the aggregate net worth of all
the Guarantors on such date, then such Guarantor shall be reimbursed by such
other Guarantors for the amount of such excess, pro rata, based on the
respective net worth of such other Guarantors on such date.

                  Section 7. Waiver. Guarantors, to the fullest extent permitted
by applicable law, hereby waive notice of acceptance hereof or any presentment,
demand, protest or notice of any kind which in any manner or to any extent might
vary the risk of Guarantors or which otherwise might operate to discharge
Guarantors from their obligations hereunder.

                  Section 8. Inability to Accelerate Loan. If Lender is
prevented under applicable law or otherwise from demanding or accelerating
payment of any of the Guaranteed Obligations by reason of any automatic stay or
otherwise, Lender shall be entitled, subject to the provisions of the
Intercreditor Agreement (as defined in Section 26 below), to receive from
Guarantors, upon demand therefor, the sums which otherwise would have been due
had such demand or acceleration occurred.

                  Section 9. Reinstatement of Guaranteed Obligations. Subject to
the terms of the Intercreditor Agreement, if claim is ever made on Lender for
repayment or recovery of any amount or amounts received in payment or on account
of any of the Guaranteed Obligations, and Lender repays all or part of said
amount by reason of (a) any judgment, decree or order of any court or
administrative body of competent jurisdiction, or (b) any settlement or
compromise of any such claim effected by Lender with any such claimant
(including Borrower or a trustee in bankruptcy for Borrower), then and in such
event Guarantors agree that any such judgment, decree, order, settlement or
compromise shall be binding on them, notwithstanding any revocation hereof or
the cancellation of the Loan Agreement, any of the other Loan Documents, or any
other instrument evidencing any liability of Borrower, and Guarantors shall be
and remain liable to Lender for the amounts so repaid or recovered to the same
extent as if such amount had never originally been paid to Lender. Guarantor's
liability under this SECTION 9 shall survive the termination of this Guaranty.

                  Section 10. Subrogation. Upon the making by Guarantors of any
payment hereunder for the account of Borrower, Guarantors shall be subrogated to
the rights of the payee against Borrower; PROVIDED, HOWEVER, that Guarantors
shall not enforce any right or receive any payment by way of subrogation or
otherwise take any action in respect of any other claim or

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cause of action Guarantors may have against Borrower arising by reason of any
payment or performance by Guarantors pursuant to this Guaranty, unless and until
all of the Guaranteed Obligations have been indefeasibly paid and performed in
full. If any amount shall be paid to Guarantors on account of or in respect of
such subrogation rights or other claims or causes of action, Guarantors shall
hold such amount in trust for the benefit of Lender and shall forthwith pay such
amount to Lender to be credited and applied against the Guaranteed Obligations,
whether matured or unmatured, in accordance with the terms of the Loan Agreement
or to be held by Lender as collateral security for any Guaranteed Obligations
existing.

                  Section 11. Set off. In addition to any rights now or
hereafter granted under any of the other Loan Documents or applicable law and
not by way of limitation of any such rights, Guarantors hereby authorize Lender,
at any time upon the occurrence and during the continuation of an Event of
Default, without any prior notice to Guarantors or to any other person, any such
notice being hereby expressly waived, to set off and to appropriate and to apply
any indebtedness at any time held or owing by Lender, or an affiliate of Lender,
to or for the credit or the account of Guarantors against and on account of any
of the Guaranteed Obligations, although such obligations shall be contingent or
unmatured. Lender agrees to give Guarantors prompt notice after the exercise by
Lender of such right of set off but the failure of Lender to give such notice
shall not affect the validity of any such set off.

                  Section 12. Information. Guarantors assume all responsibility
for being and keeping themselves informed of the financial condition of
Borrower, and of all other circumstances bearing upon the risk of nonpayment of
any of the Guaranteed Obligations and the nature, scope and extent of the risks
that the Guarantors assumes and incurs hereunder, and agrees that Lender shall
not have any duty whatsoever to advise Guarantors of information regarding such
circumstances or risks.

                  Section 13. Governing Law. THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF GEORGIA
APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE, AND
WITHOUT REFERENCE TO CONFLICT OF LAWS PRINCIPLES OR PROVISIONS.

                  Section 14. Consent to Jurisdiction, Exclusive Venue.
Guarantors hereby irrevocably consent to the jurisdiction of the United States
District Court for the Northern District of Georgia and of all Georgia state
courts sitting in Fulton County, Georgia, for the purpose of any litigation to
which Lender may be a party and which concerns this Guaranty or the Guaranteed
Obligations. It is further agreed that venue for any such action shall lie
exclusively with courts sitting in Fulton County, Georgia, unless Lender agrees
to the contrary in writing.

                  Section 15. Waiver of Trial by Jury. LENDER AND GUARANTORS
HEREBY KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COUNSEL WAIVE TRIAL BY JURY
IN ANY ACTIONS, PROCEEDINGS, CLAIMS OR COUNTER-CLAIMS, WHETHER IN CONTRACT OR
TORT OR OTHERWISE, AT LAW OR IN EQUITY, ARISING OUT OF OR IN ANY WAY RELATING TO
THIS GUARANTY OR THE LOAN DOCUMENTS.

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<PAGE>

                  Section 16. Standard of Care; Limitation of Damage. Lender
shall be liable to Guarantors only for matters arising from this Guaranty or
otherwise related to the Guaranteed Obligations resulting from Lender's gross
negligence or willful misconduct, and liability for all other matters is hereby
waived. Lender shall not in any event be liable to Guarantors for special or
consequential damages arising from this Agreement or otherwise related to the
Guaranteed Obligations.

                  Section 17. Loan Accounts. Lender may maintain books and
accounts setting forth the amounts of principal, interest and other sums paid
and payable with respect to the Guaranteed Obligations, and in the case of any
dispute relating to any of the outstanding amount, payment or receipt of any of
the Guaranteed Obligation or otherwise, the entries in such books and accounts
shall be deemed prima facie evidence of the matters set forth therein. The
failure of Lender to maintain such books and accounts shall not in any way
relieve or discharge Guarantors of any of its obligations hereunder.

                  Section 18. Waiver of Remedies. No delay or failure on the
part of Lender in the exercise of any right or remedy it may have against any
Guarantors hereunder or otherwise shall operate as a waiver thereof, and no
single or partial exercise by Lender of any such right or remedy shall preclude
other or further exercise thereof or the exercise of any other such right or
remedy.

                  Section 19. Termination. This Guaranty shall remain in full
force and effect until the indefeasible payment in full of the Guaranteed
Obligations.

                  Section 20. Successors and Assigns. Each reference herein to
Lender shall be deemed to include such person's respective successors and
assigns (including, but not limited to, any holder of the Guaranteed
Obligations) in whose favor the provisions of this Guaranty also shall inure,
and each reference herein to Guarantors shall be deemed to include Guarantors'
successors and assigns, upon whom this Guaranty also shall be binding. Lender
may, in accordance with the applicable provisions of the Loan Agreement, assign,
transfer or sell any Guaranteed Obligation, to any person without the consent
of, or notice to, Guarantors and without releasing, discharging or modifying
Guarantors' obligations hereunder. Guarantors hereby consent to the delivery by
Lender to any assignee (or any prospective assignee) of any financial or other
information regarding Borrower or Guarantors. Guarantors may not assign or
transfer their rights or obligations hereunder or under any other Loan Document
to any person without the prior written consent of (and any such assignment or
transfer without such consent shall be null and void).

                  Section 21. Amendments. This Guaranty may not be amended
except in writing signed by Lender and Guarantors.

                  Section 22. Notices. All notices and other communications
required or provided for hereunder shall be (a) in writing (including facsimile
transmission or similar writing), (b) sent in the case of Guarantors, to the
address provided on the signature page to this Guaranty unless a change of
address has been sent to all other parties in accordance with the terms of this
SECTION 21, or in the case of a notice to Lender, to the address provided for in
the Loan Agreement and (c) all such notices and other communications shall be
deemed effective (i)

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if mailed, when received; (ii) if telecopied, when transmitted, or (iii) if hand
delivered, when delivered; PROVIDED, HOWEVER, that any notice of a change of
address for notices shall not be effective until received.

                  Section 23. Severability. In case any provision of this
Guaranty shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

                  Section 24. Headings. Section headings used in this Guaranty
are for convenience only and shall not affect the construction of this Guaranty.

                  Section 25. Definitions. Capitalized terms used and not
otherwise defined herein have the respective meanings given them in the Loan
Agreement.

                  Section 26. Subordination. Guarantors' obligations to Lender
under this Guaranty are subordinated to Guarantors' obligations to Wells Fargo
Retail Finance II, LLC ("AGENT") and certain other lenders, pursuant to the
terms of that certain Subordination and Intercreditor Agreement, dated as of
even date herewith, by and among Lender, Borrower, Guarantors and Agent (the
"Intercreditor Agreement").

                            [Signatures on Next Page]

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<PAGE>

         IN WITNESS WHEREOF, Guarantors have duly executed and delivered this
Guaranty as of the date and year first written above.

                                       GUARANTORS:

                                       Address for Notices:

                                       c/o Harold's Stores, Inc.
                                       765 Asp Avenue
                                       Norman, OK  73069
                                       Attention:  Jodi Taylor
                                       Telecopy Number: 405-366-2538

                                       HAROLD'S FINANCIAL CORPORATION, an
                                       Oklahoma corporation

                                       By: /s/ Leonard M. Snyder
                                       Its:  Interim CEO

                                       HAROLD'S DIRECT, INC., an Oklahoma
                                       corporation

                                       By: /s/ Leonard M. Snyder
                                       Its: Interim CEO

                                       HAROLD'S STORES OF TEXAS, L.P., a Texas
                                       limited partnership

                                       By: Leonard M. Snyder
                                       Its: Interim CEO

                                       HAROLD'S OF JACKSON, INC, a Mississippi
                                       corporation

                                       By: /s/ Leonard M. Snyder
                                       Its: Interim CEO

                    [Signature Page to Subordinated Guaranty]
<PAGE>

                                       THE CORNER PROPERTIES, INC., an Oklahoma
                                       corporation

                                       By: /s/Leonard M. Snyder
                                       Its: Interim CEO

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

                                       By: /s/ Leonard M. Snyder
                                       Its: Interim CEO

                                       HAROLD'S DBO, INC., a Texas corporation

                                       By: /s/ Leonard M. Snyder
                                       Its: Interim CEO

                                       HSTX, INC., a Texas corporation

                                       By: /s/ Leonard M. Snyder
                                       Its: Interim CEO

                    [Signature Page to Subordinated Guaranty]EXHIBIT 10.7
                                                                    ------------

                    SUBORDINATION AND INTERCREDITOR AGREEMENT
                    -----------------------------------------

         THIS SUBORDINATION AND INTERCREDITOR AGREEMENT (this "Agreement") is
entered into as of August 31, 2006, by and among RONHOW, LLC, a Georgia limited
liability company, (the "Subordinated Creditor" or "Subordinated Lender"),
HAROLD'S STORES, INC., an Oklahoma corporation (the "Parent"), HAROLD'S
FINANCIAL CORPORATION, an Oklahoma corporation, HAROLD'S DIRECT, INC., an
Oklahoma corporation, HAROLD'S STORES OF TEXAS, L.P., a Texas limited
partnership, HAROLD'S OF JACKSON, INC., a Mississippi corporation, THE CORNER
PROPERTIES, INC., an Oklahoma corporation, HAROLD'S DBO, INC., a Texas
corporation, HAROLD'S LIMITED PARTNERS, INC., an Oklahoma corporation and HSTX,
INC., a Texas corporation (each, individually, a "Guarantor" and collectively
the "Guarantors"), and WELLS FARGO RETAIL FINANCE II, LLC, as agent (the
"Agent") and lender (together with any other lenders under the Senior Loan
Agreement as defined below, collectively the "Lender"; the Agent, the Lender,
and their respective successors, transferees, and assigns, being herein
sometimes collectively referred to as the "Senior Creditor").

                                 R E C I T A L S

         A. The Subordinated Creditor has agreed to make a loan (the
"Subordinated Loan") to the Parent as evidenced by Subordinated Loan Agreement
(as defined below) and the Guarantors have agreed to guarantee the obligations
of the Subordinated Creditor thereunder pursuant to the Subordinated Guaranty
(as defined below). The Subordinated Loan and the Subordinated Guaranty are to
be secured by the Subordinated Security Documents (as defined below).

         B. The Parent, certain of the Guarantors, Wells Fargo Retail Finance
II, LLC, as Agent and Lender, have entered into the Senior Loan Agreement (as
defined below) pursuant to which, among other things, the Lender has agreed,
subject to the terms and conditions set forth in the Senior Loan Agreement, to
make certain loans and financial accommodations to the Parent and certain of the
Guarantors, which loans and financial accommodations are secured by the Senior
Security Documents (as defined below).

         C. In order to induce Agent and Lender to consent to the Subordinated
Loan, the Subordinated Creditor has agreed to enter into this Agreement in order
to establish the relative rights and priorities of the Subordinated Creditor in
respect of the Subordinated Debt (as defined below) and the Subordinated
Security Documents, and the Senior Creditor in respect of the Senior Debt (as
defined below) and the Senior Security Documents (as defined below), all as more
particularly set forth herein.

         NOW, THEREFORE, in order to induce the Senior Creditor to consent to
the Subordinated Loan, and for other good and valuable consideration, the
receipt and sufficiency of which hereby are acknowledged, the parties hereto
hereby agree as follows:

1.       DEFINITIONS.

<PAGE>

         The following terms shall have the following meanings in this
Agreement:

                  "AGENT" shall mean Wells Fargo Retail Finance II, LLC, a
         Delaware limited liability company acting in its capacity as agent for
         the Lender, or any other Person appointed by the holders of the Senior
         Debt as agent for purposes of the Senior Debt Documents and this
         Agreement.

                  "BANKRUPTCY CODE" shall mean Title 11 of the United States
         Code, as amended from time to time and any successor statute and all
         rules and regulations promulgated thereunder.

                  "DISTRIBUTION" shall mean, with respect to any indebtedness or
         obligation, (a) any payment or distribution by any Person of cash,
         securities or other property, by set-off or otherwise, on account of
         such indebtedness or obligation, including but not limited to the
         payment of any special dividend or special distribution, (b) any
         redemption, purchase or other acquisition of such indebtedness or
         obligation by any Person, or (c) the granting of any lien or security
         interest to or for the benefit of the holders of such indebtedness or
         obligation in or upon any property of any Person.

                  "ENFORCEMENT ACTION" shall mean (a) to take from or for the
         account of any Obligor, by set-off, recoupment or in any other manner,
         the whole or any part of any moneys which may now or hereafter be owing
         or due to any Obligor and apply the same against the Subordinated Debt,
         (b) to sue for payment of, or to initiate or participate with others in
         any suit, action or Proceeding against any Obligor to enforce payment
         of or to collect, the whole or any part of the Subordinated Debt, (c)
         to commence judicial or nonjudicial enforcement of any of the rights
         and remedies under the Subordinated Debt Documents or applicable law
         with respect to the Subordinated Debt, including without limitation the
         provision of notices with respect to the existence or any exercise of
         rights and remedies in respect of the Subordinated Debt whether under
         applicable law or contract, (d) to make demand for payment of or
         accelerate the Subordinated Debt, (e) to exercise any put option or to
         cause any Obligor to honor any redemption or mandatory prepayment
         obligation in respect of any Subordinated Debt, (f) take any action
         under the provisions of any state or federal law, including, without
         limitation, the Uniform Commercial Code, or under any contract or
         agreement, to enforce, foreclose upon, take possession of or sell any
         property or assets of any Obligor, whether pursuant to the Subordinated
         Security Documents or otherwise, (g) commence or join in any action to
         seek relief from the automatic stay pursuant to Section 362 of the
         Bankruptcy Code with respect to any collateral or other property of any
         Obligor or seek adequate protection in respect of any liens or security
         interests securing the Subordinated Debt, or (h) commence or join in
         any proceedings for the appointment of a receiver, custodian or keeper
         of all, or any portion, of the assets of any Obligor; provided,
         however, that the Subordinated Creditor's (i) demand for payment
         (without further action) of Permitted Subordinated Debt Payments in
         accordance with the provisions of Section 2.3 hereof shall not be
         deemed to constitute an Enforcement Action for purposes of this
         Agreement and (ii) conversion of all or any portion of the Subordinated
         Debt into common stock (as defined in the Senior Loan Agreement) of
         Parent or preferred stock of Parent if the terms of such

                                        2
<PAGE>

         preferred stock have been approved by Senior Creditor shall not be
         deemed to constitute an Enforcement Action for purposes of this
         Agreement.

                  "OBLIGOR" means Parent, any Guarantor and any other Person
         obligated in respect of the Senior Debt or the Subordinated Debt from
         time to time.

                  "PERMITTED REFINANCING" shall mean any refinancing of all or
         any portion of the Senior Debt under the Senior Loan Agreement.

                  "PERMITTED REFINANCING SENIOR DEBT DOCUMENTS" shall mean any
         financing documentation which replaces the other Senior Loan Documents
         and pursuant to which the Senior Debt under the Senior Loan Agreement
         is refinanced, in whole or in part, as such financing documentation may
         be amended, modified, supplemented or otherwise modified from time to
         time in.

                  "PERMITTED SUBORDINATED DEBT PAYMENTS" means scheduled monthly
         payments of accrued but unpaid interest at the rates set forth in the
         Subordinated Note (including interest at the default rate to the extent
         then applicable) and payments on a scheduled monthly payment date of
         any accrued interest that remains unpaid due to application of this
         Agreement.

                  "PERSON" means any natural person, corporation, general or
         limited partnership, limited liability company, firm, trust,
         association, government, governmental agency or other entity, whether
         acting in an individual, fiduciary or other capacity.

                  "PROCEEDING" shall mean any voluntary or involuntary
         insolvency, bankruptcy, receivership, custodianship, liquidation,
         dissolution, reorganization, assignment for the benefit of creditors,
         appointment of a custodian, receiver, trustee or other officer with
         similar powers or any other proceeding for the liquidation, dissolution
         or other winding up of a Person.

                  "SENIOR COVENANT DEFAULT" shall mean any "Event of Default"
         under the Senior Debt Documents (other than a Senior Payment Default),
         or any condition or event that, after notice or lapse of time or both,
         would constitute such an Event of Default (other than a Senior Payment
         Default) if that condition or event were not cured or removed within
         any applicable grace or cure period set forth therein.

                  "SENIOR DEBT" shall mean all obligations, liabilities and
         indebtedness of every nature of the Parent and the Guarantors from time
         to time owed to the Senior Creditor under the Senior Debt Documents and
         any indebtedness arising pursuant to debtor-in-possession financing
         arrangements or pursuant to financing arrangements entered into in
         connection with the confirmation of a plan of reorganization under the
         Bankruptcy Code, including in each instance, without limitation, the
         principal amount of all debts, claims and indebtedness, accrued and
         unpaid interest and all fees, costs and expenses, whether primary,
         secondary, direct, contingent, fixed or otherwise, heretofore, now and
         from time to time hereafter owing, due or payable, whether before or
         after the filing of a Proceeding

                                        3
<PAGE>

         under the Bankruptcy Code together with (a) any amendments,
         modifications, renewals, increases, or extensions thereof, and (b) any
         interest accruing thereon after the commencement of a Proceeding,
         without regard to whether or not such interest is an allowed claim.
         Senior Debt shall be considered to be outstanding whenever any loan
         commitment under the Senior Debt Documents is outstanding.

                  "SENIOR DEBT DOCUMENTS" shall mean the Senior Loan Documents
         and, after the consummation of any Permitted Refinancing, the Permitted
         Refinancing Senior Debt Documents.

                  "SENIOR DEFAULT" shall mean any Senior Payment Default or
         Senior Covenant Default.

                  "SENIOR DEFAULT NOTICE" shall mean a written notice from or on
         behalf of the Senior Creditor to the Subordinated Creditor pursuant to
         which the Subordinated Creditor is notified of the occurrence of a
         Senior Default.

                  "SENIOR GUARANTY" shall mean that certain Continuing Guaranty
         and Security Agreement dated as of February 5, 2003, by and among
         Guarantors, certain other subsidiaries of Parent and Agent, as the same
         may be amended, modified, restated and supplemented from time to time.

                  "SENIOR LOAN AGREEMENT" shall mean that certain Loan and
         Security Agreement, dated as of February 5, 2003, by and among Parent,
         certain of the Guarantors, Agent and Lender, as the same may be
         amended, modified, restated and supplemented from time to time.

                  "SENIOR LOAN DOCUMENTS" shall mean the Senior Loan Agreement,
         the Senior Security Documents, and all other agreements, documents and
         instruments evidencing or securing the Senior Loan Agreement, as the
         same may be amended, modified, restated and supplemented from time to
         time.

                  "SENIOR PAYMENT DEFAULT" shall mean (a) any "Event of Default"
         under the Senior Debt Documents resulting from the failure of any
         Obligor to pay, on a timely basis, any principal, interest, fees or
         other obligations under the Senior Debt Documents including, without
         limitation, any default in payment of Senior Debt after acceleration
         thereof, or any condition or event that, after notice or lapse of time
         or both, would constitute such an Event of Default if that condition or
         event were not cured or removed within any applicable grace or cure
         period set forth therein and (b) the existence or continuation of any
         "Overadvance" pursuant to the Senior Debt Documents as in effect from
         time to time, whether or not such "Overadvance" shall exist with the
         consent or approval of Senior Creditor or otherwise be the subject of
         an agreed forbearance or similar arrangement with Parent or any other
         Person.

                                        4
<PAGE>

                  "SENIOR SECURITY DOCUMENTS" shall mean all security documents
         securing the Senior Debt and all security documents securing any
         Permitted Refinancing, as the same may be amended, modified, restated
         and supplemented from time to time.

                  "SUBORDINATED DEBT" shall mean all of the obligations of any
         Obligor to the Subordinated Creditor evidenced by or incurred pursuant
         to the Subordinated Debt Documents (including, without limitation, each
         future advance made pursuant to such Subordinated Debt Documents),
         together with any amounts that may be advanced to, or for the benefit
         of, any Obligor following the commencement of any Proceeding.

                  "SUBORDINATED DEBT DOCUMENTS" shall mean, collectively, the
         Subordinated Loan Agreement, the Subordinated Note, and the
         Subordinated Security Documents, and all other documents, agreements
         and instruments now existing or hereinafter entered into evidencing or
         securing all or any portion of the Subordinated Debt.

                  "SUBORDINATED DEBT DEFAULT" shall mean a default in the
         payment of the Subordinated Debt or in the performance of any term,
         covenant or condition contained in any of the Subordinated Debt
         Documents or any other occurrence permitting the Subordinated Creditor
         to accelerate the payment of, or cause a mandatory payment on or the
         redemption of, all or any portion of the Subordinated Debt.

                  "SUBORDINATED DEBT DEFAULT NOTICE" shall mean a written notice
         from the Subordinated Creditor or the Parent to the Senior Creditor
         pursuant to which the Senior Creditor is notified of the occurrence of
         a Subordinated Debt Default, which notice incorporates a reasonably
         detailed description of such Subordinated Debt Default.

                  "SUBORDINATED LOAN AGREEMENT" shall mean that certain
         Subordinated Loan Agreement, dated as of even date herewith, entered
         into by and between Subordinated Creditor and Parent, as the same may
         be amended, modified, restated and supplemented from time to time.

                  "SUBORDINATED GUARANTY" shall mean that certain Subordinated
         Guaranty, dated as of even date herewith, made by Guarantors for the
         benefit of the Subordinated Creditor, as the same may be amended,
         modified, restated and supplemented from time to time.

                  "SUBORDINATED NOTE" shall mean that certain Subordinated
         Secured Promissory Note, dated of even date herewith, made by Parent to
         the order of Subordinated Creditor, in the face principal amount of
         $10,000,000, as the same may be amended, modified, restated and
         supplemented from time to time.

                  "SUBORDINATED SECURITY DOCUMENTS" shall mean the Subordinated
         Guaranty and all other security documents now or hereafter securing the
         Subordinated Debt, as the same may be amended, modified, restated and
         supplemented from time to time.

2.       SUBORDINATION.

                                        5
<PAGE>

         2.1 SUBORDINATION OF SUBORDINATED DEBT TO SENIOR DEBT. Subordinated
Creditor (and each transferee of all or any portion of the Subordinated Debt by
its acceptance of the Subordinated Debt Documents or upon transfer or
assignment) hereby covenants and agrees, notwithstanding anything to the
contrary contained in any of the Subordinated Debt Documents, that the payment
of any and all of the Subordinated Debt shall be subordinate and subject in
right and time of payment, to the extent and in the manner hereinafter set forth
herein, to the prior indefeasible payment in full in cash of all Senior Debt.
Each holder of Senior Debt, whether now outstanding or hereafter created,
incurred, assumed or guaranteed, shall be deemed to have acquired the Senior
Debt in reliance upon the provisions contained in this Agreement. Parent and
each Guarantor acknowledge and agree to the subordination herein provided and
further covenant and agree that each of same shall abide by the terms and
provisions hereof.

         2.2 LIQUIDATION, DISSOLUTION, BANKRUPTCY. In the event of any
Proceeding involving any Obligor:

                  (a) All Senior Debt shall first be indefeasibly paid in full
         in cash and all commitments to lend under the Senior Debt Documents
         shall be terminated before any Distribution, whether in cash,
         securities or other property, shall be made to the Subordinated
         Creditor on account of any Subordinated Debt.

                  (b) Any Distribution, whether in cash, securities or other
         property, which would otherwise, but for the terms hereof, be payable
         or deliverable in respect of the Subordinated Debt shall be paid or
         delivered directly to the Senior Creditor or to an agent or trustee
         acting on behalf of the Senior Creditor in accordance with the terms of
         the Senior Debt Documents) until all Senior Debt is indefeasibly paid
         in full in cash and all commitments to lend under the Senior Debt
         Documents shall have been terminated. The Subordinated Creditor
         irrevocably authorizes, empowers and directs any debtor, debtor in
         possession, receiver, trustee, liquidator, custodian, conservator or
         other Person having authority, to pay or otherwise deliver all such
         Distributions to the Senior Creditor or to an agent or trustee acting
         on behalf of the Senior Creditor. The Subordinated Creditor also
         irrevocably authorizes and empowers the Senior Creditor, or any agent
         or trustee acting on behalf of the Senior Creditor, in the name of the
         Subordinated Creditor, to demand, sue for, collect and receive any and
         all such Distributions.

                  (c) The Subordinated Creditor agrees not to initiate,
         prosecute or participate in any claim, action or other proceeding
         challenging the enforceability, validity, perfection or priority of the
         Senior Debt or any liens and security interests of the Senior Security
         Documents.

                  (d) The Subordinated Creditor (i) agrees to execute, verify,
         deliver and file any proofs of claim in respect of the Subordinated
         Debt requested by the Senior Creditor and indicating that all such
         claims are junior and subordinate to claims of the Senior Creditor on
         the terms set forth herein and may be voted by such Senior Creditor or
         its agent, or any agent or trustee acting on behalf of the Senior
         Creditor, in connection with any such Proceeding and (ii) hereby
         irrevocably authorizes, empowers and appoints the

                                        6
<PAGE>

         Senior Creditor, or any agent or trustee acting on behalf of the Senior
         Creditor, its agent and attorney-in-fact to take any of the following
         actions: (x) execute, verify, deliver and file such proofs of claim
         upon the failure of the Subordinated Creditor promptly to do so prior
         to 30 days before the expiration of the time to file any such proof of
         claim; and (y) vote any claim filed by or on behalf of Subordinated
         Creditor in any such Proceeding; provided such Person shall have no
         obligation to execute, verify, deliver, file and/or vote any such proof
         of claim. In the event that the Senior Creditor, or any agent or
         trustee acting on behalf of the Senior Creditor, votes any claim in
         accordance with the authority granted hereby, the Subordinated Creditor
         shall not be entitled to change or withdraw such vote.

                  (e) The Senior Debt shall continue to be treated as Senior
         Debt and the provisions of this Agreement shall continue to govern the
         relative rights and priorities of the Senior Creditor and the
         Subordinated Creditor even if all or part of the Senior Debt or the
         liens security interests of the Senior Security Documents are
         subordinated, set aside, avoided, invalidated or disallowed in
         connection with any such Proceeding, and this Agreement shall be
         reinstated if at any time any payment of any of the Senior Debt is
         rescinded or must otherwise be returned by the Senior Creditor.

         2.3 SUBORDINATED DEBT PAYMENT RESTRICTIONS.

                  (a) Notwithstanding the terms of the Subordinated Debt
         Documents, each Obligor hereby agrees that it may not make, and the
         Subordinated Creditor hereby agrees that it will not accept, any
         Distribution with respect to the Subordinated Debt until the Senior
         Debt is indefeasibly paid in full in cash and all commitments to lend
         under the Senior Debt Documents have terminated; PROVIDED, HOWEVER,
         that the Parent may make, and the Subordinated Creditor may accept,
         Permitted Subordinated Debt Payments unless at the time of any such
         payment:

                           (i) a Senior Payment Default exists and such Senior
                  Payment Default shall not have been cured or waived to the
                  satisfaction of Senior Creditor; or

                           (ii) (A) the Parent and the Subordinated Creditor
                  shall have received a Senior Default Notice stating that a
                  Senior Covenant Default exists or would be created by the
                  making of such payment, and (B) such Senior Covenant Default
                  shall not have been cured or waived to the satisfaction of
                  Senior Creditor.

                  (b) The Parent may resume Permitted Subordinated Debt Payments
         (and may make any Permitted Subordinated Debt Payments missed due to
         the application of paragraph (a) of this Section 2.3) in respect of the
         Subordinated Debt upon a cure or waiver in writing of all Senior
         Defaults then existing subject to the limitations of Section 2.3(a)
         above.

                  (c) No Senior Default shall be deemed to have been waived for
         purposes of this Section 2.3 unless and until the Parent shall have
         received a written waiver thereof from the Senior Creditor or an agent
         or trustee acting on behalf of the Senior Creditor.

                                        7
<PAGE>

                  (d) Notwithstanding the provisions of Section 2.3(a) preceding
         and the continuation of a Senior Default, Subordinated Creditor may
         receive and retain the following deemed payments in respect of the
         Subordinated Debt so long as such payments do not involve any cash
         payment by any Obligor to, or for the benefit of, Subordinated
         Creditor: (i) the payment of the Subordinated Debt deemed to be made
         upon conversion of all, or a portion of, the Subordinated Debt into
         common stock (as defined in the Senior Loan Agreement) of Parent or
         preferred stock of Parent if the terms of such preferred stock have
         been approved by Senior Creditor; and (ii) the payment of Subordinated
         Debt deemed to be made as a result of an additional advance of
         Subordinated Debt for the account Parent as a result of Parent's
         failure to make a scheduled interest payment in respect of the
         Subordinated Debt when due and payable.

         2.4 SUBORDINATED DEBT STANDSTILL PROVISIONS. Until the Senior Debt is
indefeasibly paid in full in cash and all commitments to lend under the Senior
Debt Documents shall have been terminated, the Subordinated Creditor shall not,
without the prior written consent of the Senior Creditor, take any Enforcement
Action with respect to the Subordinated Debt. Notwithstanding the foregoing, the
Subordinated Creditor may file proofs of claim against the Company in any
Proceeding involving the Company, subject to the provisions of Section 2.2
hereof. Any Distributions or other proceeds of any Enforcement Action obtained
by the Subordinated Creditor shall in any event be held in trust by it for the
benefit of the Senior Creditor and promptly paid or delivered to the Senior
Creditor in the form received until all Senior Debt is indefeasibly paid in full
in cash and all commitments to lend under the Senior Debt Documents shall have
been terminated.

         2.5 INCORRECT PAYMENTS. If any Distribution on account of the
Subordinated Debt not permitted to be made by an Obligor or accepted by the
Subordinated Creditor under this Agreement is made and received by the
Subordinated Creditor, such Distribution shall not be commingled with any of the
assets of the Subordinated Creditor, shall be held in trust by the Subordinated
Creditor for the benefit of the Senior Creditor and shall be promptly paid over
to the Senior Creditor for application (in accordance with the Senior Debt
Documents ) to the payment of the Senior Debt then remaining unpaid, until all
of the Senior Debt is paid in full in cash and all commitments to lend under the
Senior Debt Documents shall have been terminated.

         2.6 SUBORDINATION OF LIENS AND SECURITY INTERESTS; AGREEMENT NOT TO
CONTEST; AGREEMENT TO RELEASE LIENS; PHYSICAL DELIVERY.

                           (a) Until the Senior Debt has been indefeasibly paid
         in full in cash and all lending commitments under the Senior Debt
         Documents have terminated, any liens and security interests of the
         Subordinated Creditor arising under the Subordinated Security Documents
         or otherwise in respect of any property of any Obligor, including any
         liens and security interests which may exist in breach of Subordinated
         Creditor's agreement pursuant to this Agreement, shall be and hereby
         are subordinated and made junior in priority for all purposes and in
         all respects to the liens and security interests of the Senior Creditor
         arising under the Senior Security Documents, regardless of the time,
         manner or order of perfection of any such liens and security interests.
         The Subordinated Creditor agrees that it will not at any time, and will
         not join with any other Person to,

                                        8
<PAGE>

         contest the validity, perfection, priority or enforceability of the
         Senior Debt, the Senior Debt Documents, or the liens and security
         interests of the Senior Security Documents. In connection with any sale
         or other disposition of any property of any Obligor subject to the
         Subordinated Security Documents or any other liens or security
         interests of the Subordinated Creditor in any property of an Obligor,
         whether such sale or other disposition is being effected voluntarily by
         the Obligor or pursuant to the exercise by the Senior Creditor of any
         rights or remedies pursuant to the Senior Security Documents or
         otherwise, the Subordinated Creditor shall, promptly upon request of
         the Senior Creditor and confirmation that proceeds of such sale or
         disposition are to be applied against the Senior Debt or Subordinated
         Debt, or both, or paid to any other Person having a Lien thereon or
         otherwise lawfully entitled thereto pursuant to rights therein superior
         to those of the Subordinated Creditor, or made available to the Obligor
         for use in its business, execute and deliver to the Senior Creditor
         such termination statements and releases as the Senior Creditor shall
         request to effect the release of the liens and security interests of
         the Subordinated Creditor in any such property being so sold or
         disposed of. In furtherance of the foregoing, the Subordinated Creditor
         hereby irrevocably appoints the Senior Creditor its attorney-in-fact,
         with full authority in the place and stead of the Subordinated Creditor
         and in the name of the Subordinated Creditor or otherwise, to execute
         and deliver any document or instrument which the Subordinated Creditor
         may be required to deliver pursuant to this Section 2.6.

                           (b) Senior Creditor and Subordinated Creditor agree
         that, until the indefeasible payment in full in cash of all Senior
         Debt, Senior Creditor shall (i) hold or control all of the collateral
         for the Senior Debt or the Subordinated Debt as to which the security
         interest therein is perfected by obtaining possession or dominion and
         control, as applicable, of such collateral (the "Controlled
         Collateral") and (ii) for so long as the Controlled Collateral forms a
         part of the collateral for the Subordinated Debt, Senior Creditor shall
         be deemed to hold or control as bailee for the Subordinated Creditor
         all of the Controlled Collateral pledged to the Subordinated Creditor
         pursuant to the Subordinated Loan Documents. To the extent permitted by
         applicable law, Senior Creditor shall deliver such Controlled
         Collateral possessed by it to the Subordinated Creditor at such time as
         the Senior Debt is indefeasibly paid in full in cash.

                           (c) Senior Creditor, Subordinated Creditor, Parent
         and each Guarantor acknowledge and agree that, on the date of this
         Agreement, an amount equal to $300,000 shall be funded by Subordinated
         Creditor as a portion of the Subordinated Debt shall be deposited into
         a deposit account maintained by Parent that is not swept to pay amounts
         due under the Senior Loan Documents, as contemplated by the
         Subordinated Loan Agreement (the "Delisting Fund"). The Delisting Fund
         shall constitute a portion of the Controlled Collateral but,
         notwithstanding the requirements of the Senior Loan Agreement to the
         contrary, shall not be applied against the Senior Debt as required by
         the Senior Debt Documents until such time as an Event of Default shall
         have occurred under the Senior Debt Documents and the indebtedness
         thereunder shall have been accelerated. The Delisting Fund shall be
         used by Parent solely for the purposes of funding expenses incurred in
         connection with a Qualified De-registration Transaction (as defined in
         the Senior Loan Agreement); provided, however, if Parent shall elect
         not to pursue a

                                        9
<PAGE>

         Qualified De-registration Transaction, any amounts remaining in the
         Delisting Fund shall be applied immediately by Parent in repayment of
         the Senior Debt as would have been required by the Senior Loan
         Agreement but for this Section 2.6(c).

         2.7 SALE, TRANSFER OR OTHER DISPOSITION OF SUBORDINATED DEBT.

                  (a) The Subordinated Creditor shall not sell, assign, pledge,
         dispose of or otherwise transfer all or any portion of the Subordinated
         Debt or any Subordinated Debt Document: (i) without giving prior
         written notice of such action to the Senior Creditor and receiving the
         prior written consent of Senior Creditor (which consent shall not be
         unreasonably withheld), (ii) unless, prior to the consummation of any
         such action, the transferee thereof shall execute and deliver to the
         Senior Creditor an agreement substantially identical to this Agreement,
         providing for the continued subordination of the Subordinated Debt to
         the Senior Debt as provided herein and for the continued effectiveness
         of all of the rights of the Senior Creditor arising under this
         Agreement and (iii) unless, following the consummation of any such
         action, there shall be no more than two holders of the Subordinated
         Debt.

                  (b) Notwithstanding the failure of any transferee to execute
         or deliver an agreement substantially identical to this Agreement, the
         subordination effected hereby shall survive any sale, assignment,
         pledge, disposition or other transfer of all or any portion of the
         Subordinated Debt, and the terms of this Agreement shall be binding
         upon the successors and assigns of the Subordinated Creditor, as
         provided in Section 9 hereof.

         2.8 LEGENDS. Until the termination of this Agreement in accordance with
Section 15 hereof, the Subordinated Creditor will cause to be clearly,
conspicuously and prominently inserted on the face of the Subordinated Loan
Agreement and the Subordinated Note, as well as any renewals or replacements
thereof, the following legend:

         "THIS [LOAN AGREEMENT/NOTE] AND THE RIGHTS AND OBLIGATIONS EVIDENCED
         HEREBY, INCLUDING THE RIGHT TO DEMAND PAYMENT HEREUNDER AND TO ENFORCE
         ANY INSTRUMENTS SECURING THIS NOTE, ARE MADE EXPRESSLY SUBJECT AND
         SUBORDINATE TO CERTAIN RIGHTS OF THE HOLDER(S) OF THE INDEBTEDNESS AND
         OTHER OBLIGATIONS OWING FROM TIME TO TIME BY HAROLD'S STORES, INC. AND
         CERTAIN OF ITS SUBSIDIARIES PURSUANT TO A LOAN AND SECURITY AGREEMENT
         ENTERED INTO AS OF FEBRUARY 5, 2003, BETWEEN HAROLD'S STORES, INC. AND
         CERTAIN OF ITS SUBSIDIARIES AND WELLS FARGO RETAIL FINANCE II, LLC, AS
         THE SAME MAY BE AMENDED, MODIFIED, RESTATED AND SUPPLEMENTED FROM TIME
         TO TIME, ALL AS MORE PARTICULARLY PROVIDED PURSUANT TO THE TERMS OF THE
         SUBORDINATION AND INTERCREDITOR AGREEMENT ENTERED INTO IN AUGUST 2006,
         AMONG HAROLD'S STORES, INC. AND CERTAIN OF ITS SUBSIDIARIES, RONHOW,
         LLC AND WELLS FARGO RETAIL FINANCE II, LLC, AS THE SAME

                                       10
<PAGE>

         MAY BE AMENDED, MODIFIED, RESTATED AND SUPPLEMENTED FROM TIME TO TIME,
         THE TERMS OF WHICH SUBORDINATION AND INTERCREDITOR AGREEMENT BY THIS
         REFERENCE ARE MADE A PART OF THIS [LOAN AGREEMENT/NOTE]. PAYEE AND EACH
         OTHER HOLDER, ASSIGNEE OR TRANSFEREE OF THIS [LOAN AGREEMENT/NOTE], BY
         ACCEPTANCE HEREOF, AGREE TO BE BOUND BY SUCH SUBORDINATION AND
         INTERCREDITOR AGREEMENT.

         2.9 CONTINUING SUBORDINATION. The subordination effected by this
Agreement is a continuing subordination, and the Subordinated Creditor hereby
unconditionally waives notice of the incurring of any of the Senior Debt and any
notice of reliance by any Senior Creditor upon the subordination effected by
this Agreement. The Subordinated Creditor acknowledges and agrees that the
foregoing subordination provisions are, and are intended to be, an inducement
and a consideration to the Senior Creditor, whether the Senior Debt was created
or acquired before or after the incurrence or creation of any Subordinated Debt,
and whether such Senior Creditor is now known or hereafter becomes known, and
each Senior Creditor shall be conclusively deemed to have relied upon such
subordination provisions in acquiring and holding, or in continuing to hold,
such Senior Debt and shall be entitled to enforce the provisions of this
Agreement directly as if it were a party to this Agreement.

         2.10 JUDGMENTS. If at any time the Subordinated Creditor obtains a
judgment against any Obligor in respect of the Subordinated Debt, the
enforcement and collection of such judgment shall be subject to the
subordination provisions of this Agreement and to the rights of the Senior
Creditor to the same extent as provided with respect to payment of the
Subordinated Debt under this Agreement.

3.       MODIFICATIONS.

         3.1 MODIFICATIONS TO SENIOR DEBT DOCUMENTS. Except as otherwise
provided in the Senior Debt Documents, the Senior Creditor may, at any time and
from time to time, without the consent of or notice to the Subordinated
Creditor, without incurring liability to the Subordinated Creditor and without
impairing or releasing the obligations of the Subordinated Creditor under this
Agreement, change the manner or place of payment or extend the time of payment
of or renew or alter any of the terms of the Senior Debt, or amend in any manner
any Senior Debt Document (other than this Agreement), including any increase in
the amount of the Senior Debt or any interest, fees, or other amounts payable in
respect thereof, any change, release, or non-perfection of any liens and
security interests on any property of any Obligor, and any amendment or waiver
of or consent to the departure from any agreements evidencing the obligations of
third parties in respect of any Obligor, or the Senior Debt.

         3.2 MODIFICATIONS TO SUBORDINATED DEBT DOCUMENTS; FUTURE ADVANCE. Until
the Senior Debt has been indefeasibly paid in full in cash and all lending
commitments under the Senior Debt Documents have terminated, and notwithstanding
anything to the contrary contained in the Subordinated Debt Documents, the
Subordinated Creditor shall not, without the prior written consent of Agent,
agree to any amendment, modification or supplement to the

                                       11
<PAGE>

Subordinated Debt Documents the effect of which is to (a) increase the maximum
principal amount of the Subordinated Debt or rate of interest on any of the
Subordinated Debt, (b) change the dates upon which payments of principal or
interest on the Subordinated Debt are due, (c) change or add any event of
default or any covenant with respect to the Subordinated Debt, (d) change any
redemption or prepayment provisions of the Subordinated Debt, (e) alter the
subordination provisions with respect to the Subordinated Debt, including,
without limitation, subordinating the Subordinated Debt to any other
indebtedness, (f) take any liens or security interests in any assets of an
Obligor, other than pursuant to the Subordinated Security Documents, or (g)
change or amend any other term of the Subordinated Debt Documents if such change
or amendment would result in a Senior Default, increase the obligations of any
Obligor or confer additional material rights on the Subordinated Creditor in a
manner adverse to any Obligor or the Senior Creditor. Subordinated Creditor
will, or will cause Parent to, notify Senior Creditor of additional advances
pursuant to the Subordinated Debt Documents as required pursuant to the Senior
Loan Agreement (provided however prior notice shall not be required in the event
an advance of Subordinated Debt is made to pay interest then due and payable in
respect of the Subordinated Debt as permitted pursuant to Section 2.3(d) above),
and Subordinated Creditor covenants and agree to limit the aggregate principal
amount of the Subordinated Debt to not more than $10,000,000 in aggregate
principal amount from time to time outstanding (but any increase above such
amount shall continue to be subordinated under the terms hereof).

4. REPRESENTATIONS AND WARRANTIES.

         4.1 REPRESENTATIONS AND WARRANTIES OF SUBORDINATED CREDITOR. The
Subordinated Creditor hereby represents and warrants to the Senior Creditor that
as of the date hereof: (a) the Subordinated Creditor is a limited liability
company duly formed and validly existing under the laws of the State of Georgia;
(b) the Subordinated Creditor has the power and authority to enter into,
execute, deliver and carry out the terms of this Agreement, all of which have
been duly authorized by all proper and necessary action; (c) the execution of
this Agreement by the Subordinated Creditor will not violate or conflict with
the organizational documents of the Subordinated Creditor, any material
agreement binding upon the Subordinated Creditor or any law, regulation or order
or require any consent or approval which has not been obtained; (d) this
Agreement is the legal, valid and binding obligation of the Subordinated
Creditor, enforceable against the Subordinated Creditor in accordance with its
terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally and by equitable principles; (e) the Subordinated
Creditor is the sole owner, beneficially and of record, of the Subordinated Debt
Documents and the Subordinated Debt; and (f) except for security provided by the
Subordinated Security Documents, the Subordinated Debt is, and at all times
prior to the termination of this Agreement shall remain, an unsecured debt
obligation of the Company.

         4.2 REPRESENTATIONS AND WARRANTIES OF SENIOR CREDITOR. The Senior
Creditor hereby represents and warrants to the Subordinated Creditor that as of
the date hereof: (a) the Senior Creditor is a limited liability company duly
formed and validly existing under the laws of the State of Delaware; (b) the
Senior Creditor has the power and authority to enter into, execute, deliver and
carry out the terms of this Agreement, all of which have been duly authorized by
all proper and necessary action; (c) the execution of this Agreement by the
Senior Creditor will not

                                       12
<PAGE>

violate or conflict with the organizational documents of the Senior Creditor,
any material agreement binding upon the Senior Creditor or any law, regulation
or order or require any consent or approval which has not been obtained; and (d)
this Agreement is the legal, valid and binding obligation of the Senior
Creditor, enforceable against the Senior Creditor in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally or by equitable principles.

5.       SUBROGATION.

         Subject to the prior indefeasible payment in full in cash of all Senior
Debt and the termination of all lending commitments under the Senior Debt
Documents, the Subordinated Creditor shall be subrogated to the rights of the
Senior Creditor to receive Distributions with respect to the Senior Debt until
the Subordinated Debt is paid in full. The Subordinated Creditor agrees that in
the event that all or any part of a payment made with respect to the Senior Debt
is recovered from the Senior Creditor in a Proceeding or otherwise, any
Distribution received by the Subordinated Creditor with respect to the Senior
Debt or the Subordinated Debt at any time after the date of the payment that is
so recovered, whether pursuant to the right of subrogation provided for in this
Agreement or otherwise, shall be deemed to have been received by the
Subordinated Creditor in trust as property of the Senior Creditor, and the
Subordinated Creditor shall forthwith deliver the same to the Senior Creditor
for application to the Senior Debt until the Senior Debt is paid in full in
cash. A Distribution made pursuant to this Agreement to the Senior Creditor
which otherwise would have been made to the Subordinated Creditor is not, as
between the Parent and the Guarantors and the Subordinated Creditor, a payment
by the Parent or any Guarantor to or on account of the Senior Debt.

6.       MODIFICATION.

         Any modification or waiver of any provision of this Agreement, or any
consent to any departure by any party from the terms hereof, shall not be
effective in any event unless the same is in writing and signed by Senior
Creditor and the Subordinated Creditor, and then such modification, waiver or
consent shall be effective only in the specific instance and for the specific
purpose given. Any notice to or demand on any party hereto in any event not
specifically required hereunder shall not entitle the party receiving such
notice or demand to any other or further notice or demand in the same, similar
or other circumstances unless specifically required hereunder.

7.       FURTHER ASSURANCES.

         Each party to this Agreement promptly will execute and deliver such
further instruments and agreements and do such further acts and things as may be
reasonably requested in writing by any other party hereto that may be necessary
or desirable in order to effect fully the purposes of this Agreement.

8.       NOTICES.

                                       13
<PAGE>

         Whenever it is provided herein that any notice, demand, request,
consent, approval, declaration or other communication shall or may be given to
or served upon any of the parties by any other party, or whenever any of the
parties desires to give or serve upon another any such communication with
respect to this Agreement, each such notice, demand, request, consent, approval,
declaration or other communication shall be in writing, signed by the party or
parties giving such notice, request, election or demand, and shall be delivered
personally, by facsimile notice, by recognized overnight courier service, or, if
mailed, sent by certified United States Mail, postage prepaid, to the other
party at the following address, as applicable:

         If to Wells Fargo Retail Finance II, LLC, as the Senior Creditor:

                  Wells Fargo Retail Finance II, LLC
                  One Boston Place, 18th Floor
                  Boston, MA 02108
                  Attention: Lynn Whitmore
                  Telecopy Number: 617-523-4029

         If to RonHow, LLC, as the Subordinated Creditor:

                  RonHow, LLC
                  3290 Northside Parkway, Suite 250
                  Atlanta, GA 30302
                  Attention: Bob Anderson
                  Telecopy Number:

                  with copies to:
                  Sutherland Asbill & Brennan LLP
                  999 Peachtree Street, NE
                  Atlanta, GA 30309-3996
                  Attention: Robert Pile, Esq.
                  Telecopy Number: 404-853-8806

         If to the Parent or any Guarantor:

                  Harold's Stores, Inc.
                  765 Asp Avenue
                  Norman, OK 73069
                  Attention: Jodi Taylor
                  Telecopy Number: 405-366-2538

or at such other address as may be substituted by notice given as herein
provided. The giving of any notice required hereunder may be waived in writing
by the party entitled to receive such notice. The effective date of any such
notice shall be the sooner to occur of the date of actual receipt, regardless of
the method of delivery, or the date which is four (4) business days after the
date on which the notice is postmarked by the United States Postal Service.
Rejection or other

                                       14
<PAGE>

refusal to claim or accept, or the inability to deliver because of a changed
address of which no notice was given as prescribed herein shall not affect the
effective date of such notice, request, election, demand, or other communication
sent as aforesaid. Delivery to a party or to any officer, partner, agent or
employee of such party at the designated address shall constitute effective
delivery for purposes hereof.

9.       SUCCESSORS AND ASSIGNS.

         This Agreement shall inure to the benefit of, and shall be binding
upon, the respective successors and assigns of the Senior Creditor, the
Subordinated Creditor and the Parent and each Guarantor. The Senior Creditor
may, from time to time, without notice to the Subordinated Creditor, assign or
transfer any or all of the Senior Debt or any interest therein to any Person
and, notwithstanding any such assignment or transfer, or any subsequent
assignment or transfer, the Senior Debt shall, subject to the terms hereof, be
and remain Senior Debt for purposes of this Agreement, and every assignee or
transferee of any of the Senior Debt or of any interest therein shall, to the
extent of the interest of such permitted assignee or transferee in the Senior
Debt, be entitled to rely upon and be the third party beneficiary of the
subordination provided under this Agreement and shall be entitled to enforce the
terms and provisions hereof to the same extent as if such assignee or transferee
were initially a party hereto.

10.      RELATIVE RIGHTS.

         This Agreement shall define the relative rights of the Senior Creditor
and the Subordinated Creditor. Nothing in this Agreement shall (a) impair, as
between the Parent and the Guarantors and the Subordinated Creditor, the
obligation of the Parent and the Guarantors with respect to the payment of the
Subordinated Debt, or as between the Senior Creditor and the Parent and the
Guarantors, the obligation of the Parent and the Guarantors with respect to the
payment of the Senior Debt, all in accordance with their respective terms, or
(b) affect the relative rights of the Senior Creditor or the Subordinated
Creditor with respect to any other creditors of the Parent or the Guarantors.

11.      CONFLICT.

         In the event of any conflict between any term, covenant or condition of
this Agreement and any term, covenant or condition of any of the Subordinated
Debt Documents, the provisions of this Agreement shall control and govern.

12.      HEADINGS.

         The paragraph headings used in this Agreement are for convenience only
and shall not affect the interpretation of any of the provisions hereof.

13.      COUNTERPARTS.

         This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

                                       15
<PAGE>

14.      SEVERABILITY.

         In the event that any provision of this Agreement is deemed to be
invalid, illegal or unenforceable by reason of the operation of any law or by
reason of the interpretation placed thereon by any court or governmental
authority, the validity, legality and enforceability of the remaining provisions
of this Agreement shall not in any way be affected or impaired thereby, and the
affected provision shall be modified to the minimum extent permitted by law so
as most fully to achieve the intention of this Agreement.

15.      CONTINUATION OF SUBORDINATION; TERMINATION OF AGREEMENT.

         This Agreement shall remain in full force and effect until the
indefeasible payment in full in cash of the Senior Debt and the termination of
all lending commitments under the Senior Debt Documents after which this
Agreement shall terminate without further action on the part of the parties
hereto. The liability and obligations of the Subordinated Creditor hereunder
shall be reinstated and revived, and the Senior Creditor's rights shall
continue, with respect to any amount at any time paid on account of the Senior
Debt which shall thereafter be required to be restored, disgorged or otherwise
returned by Senior Creditor in, or as a result of, any Proceeding or with
respect to any fraudulent transfer or conveyance law, all as though such amount
had not been paid.

16.      MISCELLANEOUS PROVISIONS.

         (a) The Subordinated Creditor hereby consents and agrees that the
Senior Creditor shall be under no obligation with respect to marshaling
collateral security for the Senior Debt in favor of the Subordinated Creditor or
in payment of indebtedness of any Obligor to Senior Creditor.

         (b) This Agreement is intended to be enforceable as a subordination
agreement under Bankruptcy Code section 510 notwithstanding the commencement of
any bankruptcy or other insolvency proceeding by or against any Obligor and, to
the full extent permitted by law, shall apply with full force and effect to any
indebtedness arising pursuant to debtor-in-possession financing arrangements or
pursuant to financing arrangements entered into in connection with the
confirmation of a plan of reorganization under the Bankruptcy Code.

         (c) This Agreement is solely for the benefit of the Senior Creditor
(including any lenders pursuant to a Permitted Refinancing) and the Subordinated
Creditor, and their respective successors and assigns, and neither the Parent
nor any other Obligor is intended to be a third party beneficiary hereunder or
to have any right, benefit, priority or interest under, or because of the
existence of, or to have any right to enforce, this Agreement. The Senior
Creditor and the Subordinated Creditor shall have the right to modify or
terminate this Agreement at any time without notice to or approval of the Parent
or any other Person. Nothing in this Agreement is intended to or shall impair,
as between the Parent and Guarantors and the Subordinated Creditor, the
obligation of the Parent or any Guarantor, which obligation is absolute and
unconditional, to pay the Subordinated Debt as and when the same shall become
due and payable in accordance with its terms.

                                       16
<PAGE>

17.      GOVERNING LAW; CONSENT TO JURISDICTION.

         (a) THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE
GOVERNED BY THE LAWS (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES
THEREOF) OF THE STATE OF NEW YORK.

         (b) The Subordinated Creditor hereby irrevocably and unconditionally
submits, for itself and its property, to the non-exclusive jurisdiction of the
United States District Court for the Southern District of New York, and of any
state court of the State of New York and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby or thereby, or for recognition or enforcement
of any judgment, and each of the parties hereto irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard
and determined in such New York state court or, to the extent permitted by
applicable law, such Federal court; provided, however, that the foregoing
submission shall not be deemed to waive or restrict any right to seek the
removal of any such suit, action, or proceeding from any such state court to
such Federal district court. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be
enforced in any jurisdictions by suit on the judgment or in any other manner
provided by law. Nothing in this Agreement or any other Senior Debt Document
shall affect any right that Agent or Lender may otherwise have to bring any
action or proceeding relating to this Agreement or any other Senior Debt
Document against the Subordinated Creditor or its properties in the courts of
any jurisdiction.

         (c) The Subordinated Creditor irrevocably and unconditionally waives
any objection which it may now or hereafter have to the laying of venue of any
such suit, action or proceeding described in paragraph (b) of this Section and
brought in any court referred to in paragraph (b) of this Section. Each of the
parties irrevocably waives, to the fullest extent permitted by applicable law,
the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

Each party to this Agreement irrevocably consents to the service of process in
the manner provided for notices in Section 8. Nothing in this Agreement or in
any other Senior Debt Document will affect the right of any party hereto to
serve process in any other manner permitted by law.

18.      WAIVER OF JURY TRIAL.

         EACH OF THE PARTIES TO THIS AGREEMENT IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). THE SUBORDINATED CREDITOR (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER,

                                       17
<PAGE>

AND (B) ACKNOWLEDGES THAT THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT AND THE OTHER SENIOR DEBT DOCUMENTS BY, AMONG OTHER THINGS,
THE WAIVERS AND CERTIFICATIONS IN THIS SECTION.

                            [signature page follows]

                                       18
<PAGE>

         IN WITNESS WHEREOF, the undersigned Subordinated Lender has executed
this Agreement as of the date first above written.

                                SUBORDINATED LENDER:

                                RONHOW, LLC, a Georgia limited liability company

                                By: Ronus, Inc., a Georgia corporation,
                                    Managing Member

                                    By: /s/ Robert L. Anderson
                                        -------------------------
                                        Robert L. Anderson, President

<PAGE>

         IN WITNESS WHEREOF, the undersigned Senior Creditor has executed this
Agreement as of the date first above written.

                                SENIOR CREDITOR:

                                WELLS FARGO RETAIL FINANCE II, LLC, a Delaware
                                limited liability company

                                By: /s/ Lynn Whitmore
                                    -------------------------
                                    Lynn Whitmore, Vice President

<PAGE>

         IN WITNESS WHEREOF, the undersigned Parent and Guarantors have executed
this Agreement as of the date first above written.

                                PARENT:

                                HAROLD'S STORES, INC.

                                By: /s/ Leonard M. Snyder
                                    ----------------------------
                                Name:  Leonard M. Snyder
                                Title: Interim CEO

                                GUARANTORS:

                                HAROLD'S FINANCIAL CORPORATION

                                By: /s/ Leonard M. Snyder
                                    ----------------------------
                                Name:  Leonard M. Snyder
                                Title: Interim CEO

                                HAROLD'S DIRECT, INC.

                                By: /s/ Leonard M. Snyder
                                    ----------------------------
                                Name:  Leonard M. Snyder
                                Title: Interim CEO

                                HAROLD'S STORES OF TEXAS, L.P.

                                By: HSTX, Inc., General Partner

                                    By: /s/ Leonard M. Snyder
                                    ----------------------------
                                    Name:  Leonard M. Snyder
                                    Title: Interim CEO

<PAGE>

                                HAROLD'S OF JACKSON, INC.

                                By: /s/ Leonard M. Snyder
                                    ----------------------------
                                Name:  Leonard M. Snyder
                                Title: Interim CEO

                                THE CORNER PROPERTIES, INC.

                                By: /s/ Leonard M. Snyder
                                    ----------------------------
                                Name:  Leonard M. Snyder
                                Title: Interim CEO

                                HAROLD'S DBO, INC.

                                By: /s/ Leonard M. Snyder
                                    ----------------------------
                                Name:  Leonard M. Snyder
                                Title: Interim CEO

                                HAROLD'S LIMITED PARTNERS, INC.

                                By: /s/ Leonard M. Snyder
                                    ----------------------------
                                Name:  Leonard M. Snyder
                                Title: Interim CEO

                                HSTX, INC.

                                By: /s/ Leonard M. Snyder
                                    ----------------------------
                                Name:  Leonard M. Snyder
                                Title: Interim CEO

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