Document:

EXHIBIT 10.2
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THIS PROMISSORY 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 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 PROMISSORY NOTE. PAYEE AND EACH OTHER HOLDER,
ASSIGNEE OR TRANSFEREE OF THIS PROMISSORY NOTE, BY ACCEPTANCE HEREOF, AGREES TO
BE BOUND BY SUCH SUBORDINATION AND INTERCREDITOR AGREEMENT.

            AMENDED AND RESTATED SUBORDINATED SECURED PROMISSORY NOTE

$12,000,000                                                       April 26, 2007

         FOR VALUE RECEIVED, the undersigned, HAROLD'S STORES, INC., an Oklahoma
corporation ("Maker"), promises to pay to the order of RONHOW, LLC, a Georgia
limited liability company ("Payee"; Payee and any subsequent holder[s] hereof
are hereinafter referred to collectively as "Holder"), at the office of Payee at
3290 Northside Parkway, Suite 250, Atlanta, Georgia 30302, or at such other
place as Holder may designate to Maker in writing from time to time, the
principal amount of up to TWELVE MILLION AND NO/100THS DOLLARS ($12,000,000) or
so much thereof as is advanced hereunder, together with interest on the
outstanding principal balance hereof calculated in accordance with the
provisions of this Note and any interest which is added to the outstanding
principal balance hereof in accordance with the provisions of this Note.

         This Note amends and restates the terms of, and is given in
substitution for and supersedes and replaces that certain Subordinated Secured
Promissory Note, dated as of August 31, 2006, in the face principal amount of
$10,000,000, made by Maker to the order of Payee (the "Original Note"). This
Note is not delivered in extinguishment of the indebtedness evidenced by the
Original Note and does not constitute a novation of the Original Note. This Note
is made to evidence (i) indebtedness in the principal amount of $7,078,750
outstanding as of the date hereof

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under the Tranche A Term Loan (as defined in the Loan Agreement which is defined
below); (ii) indebtedness in the principal amount of $2,000,000 outstanding as
of the date hereof under the Tranche B Term Loan (as defined in the Loan
Agreement); (iii) any additional indebtedness incurred under the Tranche B Term
Loan on or after the date hereof; (iv) any accrued interest added to the
principal amount outstanding under the Tranche A Term Loan or the Tranche B Term
Loan in accordance with the terms hereof; and (iv) all accrued but unpaid
interest on any of the foregoing.

         The principal amount of, and accrued but unpaid interest on, this Note
shall be paid in full no later than May 31, 2010 (the "Maturity Date"), unless
repaid earlier pursuant to the provisions of this Note.

         Interest on the outstanding principal balance of the Tranche A Term
Loan shall accrue at the rate of thirteen and one-half percent (13.5%) per annum
(computed on the basis of a 360-day year consisting of twelve 30 day months).
Interest on the outstanding principal balance of the Tranche B Term Loan shall
accrue at the rate of eighteen percent (18%) per annum (computed on the basis of
a 360-day year consisting of twelve 30 day months). Interest on the outstanding
principal balance of the Loan shall be payable, in arrears, on the first day of
each month or, if any such date shall not be a business day, on the next
succeeding business day to occur after such date (each date on which interest
shall be so payable, an "Interest Payment Date"), provided that, (i) until such
time as the aggregate amount of interest accruing from and after March 1, 2007,
under the Tranche A Term Loan and the Tranche B Term Loan equals $1,000,000, on
each Interest Payment Date the accrued interest under the Tranche A Term Loan
payable on such date shall be added to the principal balance thereof and the
accrued interest under the Tranche B Term Loan payable on such date shall be
added to the Tranche B Term Loan, in each case in lieu of cash payment of such
accrued interest by Maker; and (ii) all accrued and unpaid interest shall be due
and payable on the earlier of the Maturity Date and the date on which the Holder
demands repayment pursuant to the terms hereof.

         On each Interest Payment Date occurring after the aggregate amount of
interest accrued hereunder that has been added to the principal of the Tranche A
Term Loan and the Tranche B Term Loan equals $1,000,000, if any interest accrued
hereunder is not actually paid in cash to Holder, at Holder's option and in
Holder's sole discretion, the outstanding principal balance of this Note shall
be increased by an amount equal to the difference between (i) interest accruing
on the principal balance of such tranche during the period from and including
the previous Interest Payment Date to, but not including, such Interest Payment
Date and (ii) interest actually paid in cash on the principal balance of such
tranche on such Interest Payment Date, and such amount shall thereafter earn
interest as principal. Any such increase to the principal amount of this Note
shall be deemed a payment of interest then due under this Note, and no Event of
Default shall occur hereunder as a result thereof.

         This Note is given for one or more advances to be made by Payee to
Maker pursuant to that certain Subordinated Loan Agreement, dated as of August
31, 2006, by and between Payee and Maker (as amended, supplemented, modified,
extended or restated from time to time, the "Loan Agreement"). The entire
balance of all advances hereunder that may be outstanding from time to time
shall constitute a single indebtedness, and no single advance increasing the

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<PAGE>

outstanding balance hereof shall itself be considered a separate loan, but
rather an increase in the aggregate outstanding balance of the indebtedness
evidenced hereby. Advances, accrued interest, and payments shall be posted by
the Payee upon an appropriate accounting record, which record (and all computer
printouts thereof) shall constitute prima facie evidence of the outstanding
principal and interest on the advances.

         Subject to the Intercreditor Agreement, the indebtedness evidenced
hereby may be prepaid in whole or in part, at any time and from time to time,
without premium or penalty. Any such prepayments shall be credited first to any
accrued and unpaid interest of the Tranche A Term Loan, second to any accrued
and unpaid interest of the Tranche B Term Loan, third to the outstanding
principal balance of the Tranche A Term Loan, and fourth to the outstanding
principal balance of the Tranche B Term Loan.

         Time is of the essence of this Note. It is hereby expressly agreed that
in the event that any Event of Default shall occur under and as defined in the
Loan Agreement, which Event of Default is not cured following the giving of any
applicable notice and within any applicable cure period set forth in the Loan
Agreement, then, and in such event, the entire outstanding principal balance of
the indebtedness evidenced hereby, together with any other sums advanced
hereunder, under the Loan Agreement and/or under any other instrument or
document now or hereafter evidencing, securing or in any way relating to the
indebtedness evidenced hereby, together with all unpaid interest accrued
thereon, shall, at the option of Holder and without notice to Maker, at once
become due and payable and may be collected forthwith, regardless of the
stipulated date of maturity. Upon the occurrence of any Event of Default as set
forth herein, at the option of Holder and without notice to Maker, all accrued
and unpaid interest on each tranche, if any, shall be added to the outstanding
principal balance thereof, and the entire outstanding principal balance thereof,
as so adjusted, shall bear interest thereafter until paid at an annual rate (the
"Default Rate") equal to the lesser of (i) the rate that is four percentage
points (4.0%) in excess of the applicable above-specified interest rate for such
tranche, or (ii) the maximum rate of interest allowed to be charged under
applicable law (the "Maximum Rate"), regardless of whether or not there has been
an acceleration of the payment of principal as set forth herein. All such
interest shall be paid at the time of and as a condition precedent to the curing
of any such Event of Default.

         In the event this Note is placed in the hands of an attorney for
collection, or if Holder incurs any costs incident to the collection of the
indebtedness evidenced hereby, Maker and any endorsers hereof agree to pay to
Holder an amount equal to all such costs, including without limitation all
reasonable attorneys' fees and all court costs.

         Presentment for payment, demand, protest and notice of demand, protest
and nonpayment are hereby waived by Maker and all other parties hereto. No
failure to accelerate the indebtedness evidenced hereby by reason of an Event of
Default hereunder, acceptance of a past-due installment or other indulgences
granted from time to time, shall be construed as a novation of this Note or as a
waiver of such right of acceleration or of the right of Holder thereafter to
insist upon strict compliance with the terms of this Note or to prevent the
exercise of such right of acceleration or any other right granted hereunder or
by applicable law. No extension of the time for payment of the indebtedness
evidenced hereby or any installment due hereunder, made

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by agreement with any person now or hereafter liable for payment of the
indebtedness evidenced hereby, shall operate to release, discharge, modify,
change or affect the original liability of Maker hereunder or that of any other
person now or hereafter liable for payment of the indebtedness evidenced hereby,
either in whole or in part, unless Holder agrees otherwise in writing. This Note
may not be changed orally, but only by an agreement in writing signed by the
party against whom enforcement of any waiver, change, modification or discharge
is sought.

         The indebtedness and other obligations evidenced by this Note are
further evidenced by (i) the Loan Agreement and (ii) certain other instruments
and documents, as may be required to protect and preserve the rights of Maker
and Payee, as more specifically described in the Loan Agreement.

         All agreements herein made are expressly limited so that in no event
whatsoever, whether by reason of advancement of proceeds hereof, acceleration of
maturity of the unpaid balance hereof or otherwise, shall the amount paid or
agreed to be paid to Holder for the use of the money advanced or to be advanced
hereunder exceed the maximum amounts collectible under applicable laws in effect
from time to time (the "Maximum Rate"). If, from any circumstances whatsoever,
the fulfillment of any provision of this Note or any other agreement or
instrument now or hereafter evidencing, securing or in any way relating to the
indebtedness evidenced hereby shall involve the payment of interest in excess of
the Maximum Rate, then, ipso facto, the obligation to pay interest hereunder
shall be reduced to the Maximum Rate; and if from any circumstance whatsoever,
Holder shall ever receive interest, the amount of which would exceed the amount
collectible at the Maximum Rate, such amount as would be excessive interest
shall be applied to the reduction of the principal balance remaining unpaid
hereunder and not to the payment of interest. This provision shall control every
other provision in any and all other agreements and instruments existing or
hereafter arising between Maker and Holder with respect to the indebtedness
evidenced hereby.

         This Note is intended as a contract under and shall be construed and
enforceable in accordance with the laws of the State of Georgia.

         Maker hereby irrevocably consents 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 Note or the
indebtedness evidenced hereby. It is further agreed that venue for any such
action shall lie exclusively with courts sitting in Fulton County, Georgia,
unless Holder agrees to the contrary in writing.

         HOLDER AND MAKER HEREBY KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF
COUNSEL WAIVE TRIAL BY JURY IN ANY ACTIONS, PROCEEDINGS, CLAIMS OR
COUNTERCLAIMS, WHETHER IN CONTRACT OR TORT OR OTHERWISE, AT LAW OR IN EQUITY,
ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT OR THE LOAN DOCUMENTS.

         As used herein, the terms "Maker" and "Holder" shall be deemed to
include their respective successors, legal representatives and assigns, whether
by voluntary action of the parties or by operation of law.

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         IN WITNESS WHEREOF, Maker has caused this Note to be executed and
delivered by its duly authorized officer as of the date first shown above.

                                      MAKER:

                                      HAROLD'S STORES, INC.,
                                      an Oklahoma corporation

                                      By: /s/ Jodi L. Taylor
                                          -----------------------
                                      Title: Chief Financial Officer &Secretary

  [Signature Page to Amended and Restated Subordinated Secured Promissory Note]

                                        5EXHIBIT 10.3
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        GLOBAL AMENDMENT AND REAFFIRMATION OF SUBORDINATED DEBT DOCUMENTS

         This GLOBAL AMENDMENT AND REAFFIRMATION OF SUBORDINATED DEBT DOCUMENTS
(this "Global Amendment") is made as of April 26, 2007, by and among RONHOW,
LLC, a Georgia limited liability company, (the "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").

                                    RECITALS:

         WHEREAS, Lender and Parent have entered into that certain Subordinated
Loan Agreement, dated as of August 31, 2006 ("Subordinated Loan Agreement"), and
Guarantors have guaranteed the obligations of Parent thereunder in favor of
Lender pursuant to that certain Subordinated Guaranty, dated as of August 31,
2006 ("Subordinated Guaranty"). The Subordinated Loan Agreement and the
Subordinated Guaranty are secured by the Subordinated Security Agreement, dated
as of August 31, 2006, by Parent and Guarantors in favor of Lender
("Subordinated Security Agreement"); and

         WHEREAS, on the date hereof, Lender will convert $2,000,000.00 of the
obligations of Parent owed to Lender pursuant to the Tranche A Term Loan
(defined below) under the Subordinated Loan Agreement to Series 2007-A Senior
Preferred (defined below) of Parent; and

         WHEREAS, Parent, Guarantors, and Lender desire to amend certain
provisions of the Subordinated Loan Agreement, Subordinated Guaranty and the
Subordinated Security Agreement;

         NOW, THEREFORE, in consideration of the foregoing and the agreements
set forth in this Global Amendment, Parent, Guarantors, and Lender hereby agree
as follows:

         SECTION 1. DEFINITIONS. Capitalized terms used herein and not otherwise
         defined herein shall have the meanings ascribed to them in the
         Subordinated Loan Agreement.

         SECTION 2. GLOBAL AMENDMENT. All references to any written agreement,
         document or note described or defined in the Subordinated Loan
         Agreement, Subordinated Guaranty or Subordinated Security Agreement
         shall be deemed to refer to such written agreement, document or note as
         the same may have been or may be amended, supplemented, modified,
         extended or restated from time to time.

<PAGE>

         SECTION 3. AMENDMENTS TO SUBORDINATED LOAN AGREEMENT.

         A. The first WHEREAS clause of the RECITALS of the Subordinated Loan
Agreement is hereby amended by amending and restating such WHEREAS clause in its
entirety as follows:

         WHEREAS, Borrower has requested that Lender make available to Borrower
a term loan in the aggregate principal amount of up to Twelve Million Dollars
($12,000,000) (the "Loan"), on the terms and conditions hereinafter set forth,
and for the purpose(s) hereinafter set forth; and

         B. The second sentence of Section 1.1 of the Subordinated Loan
Agreement is hereby amended by amending and restating such sentence in its
entirety as follows:

         The Loan shall be evidenced by an Amended and Restated Subordinated
Secured Promissory Note in the face principal amount of Twelve Million Dollars
($12,000,000), dated as of April 26, 2007, executed by Borrower in favor of
Lender (the "Note").

C. Section 1.2 of the Subordinated Loan Agreement is hereby amended by amending
and restating such Section in its entirety as follows:

         1.2 Advances under the Loan.

         (a) Borrower has requested that Lender make available to Borrower a
term loan in the aggregate principal amount of Seven Million Dollars
($7,000,000) (the "Tranche A Term Loan"), and a term loan in the aggregate
principal amount of up to Five Million Dollars ($5,000,000) (the "Tranche B Term
Loan").

         (b) Lender made an initial advance under the Tranche A Term Loan of
$4,700,000. Subsequently, the Lender made, at the Borrower's request, additional
advances in the aggregate amount of $2,300,000 under the Tranche A Term Loan and
an initial advance under the Tranche B Term Loan of $2,000,000. Subject to
satisfaction of the conditions specified in Section 4.2 of this Agreement and
the provisions of Section 1.4, Lender shall make an additional advance under the
Tranche B Term Loan of $1,000,000. Thereafter, Lender shall not be obligated to
make any further advance to Borrower under the Loan. Any such further advance
shall be made at Lender's sole discretion and subject to such conditions as
Lender shall specify. Amounts borrowed and repaid under this Note may not be
re-borrowed.

         D. Section 1.4 of the Subordinated Loan Agreement is hereby amended by
amending and restating such Section in its entirety as follows:

         1.4 Use of Proceeds. Except as otherwise provided in this Section 1.4,
Borrower shall use the proceeds of the advances under the Loan to pay principal
and interest due under the Senior Loan. An advance of $300,000 under the Tranche
A Term Loan was deposited in a deposit account maintained by Borrower that is
not swept by the Senior Lender and may be used

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<PAGE>

for analysis and funding of Borrower's deregistration under the Securities
Exchange Act of 1934 in a manner approved by Borrower's Board of Directors (and
subject in any case to Board approval of such deregistration). If such $300,000
is not fully used in analysis of and/or funding of such deregistration, Borrower
shall use such remaining amount to pay principal and interest due under the
Senior Loan.

         E. Section 2.1(e) of the Subordinated Loan Agreement is hereby amended
by amending and restating such subpart in its entirety as follows:

         (e) Capitalization. The authorized capital stock of Borrower consists
of 25,000,000 shares of common stock, $0.01 par value (the "Common Stock"), of
which 6,223,508 shares (excluding 205 shares held in treasury) are issued and
outstanding, and 1,000,000 shares of Preferred Stock, $0.01 par value, 500,000
shares of which are presently designated as Amended Series 2001-A Preferred
Stock (the "Amended Series 2001-A Preferred"), 300,000 shares of which are
presently designated as Series 2002-A Preferred Stock (the "Series 2002-A
Preferred"), 100,000 shares of which are presently designated as series 2003-A
Preferred Stock (the "Series 2003-A Preferred"), 75,000 shares of which are
presently designated as Series 2006-A Preferred Stock (the "Series 2006-A
Preferred"), 15,000 shares of which are presently designated as Series 2006-B
Preferred Stock (the "Series 2006-B Preferred"), 5,000 shares of which are
presently designated as Series 2007-A Senior Preferred Stock (the "Series 2007-A
Senior Preferred"), and 5,000 shares of which are presently designated as Series
2007-B Senior Preferred Stock (the "Series 2007-B Senior Preferred"). There are
currently 341,296 shares of Amended Series 2001-A Preferred, 227,372 shares of
Series 2002-A Preferred, 55,673 shares of Series 2003-A Preferred, and 25,000
shares of Series 2006-A Preferred issued and outstanding. Simultaneously with
the additional advance of $1,000,000 under the Tranche B Term Loan, 2,000 shares
of Series 2007-A Senior Preferred will be issued and outstanding. There are
20,000 shares and 30,000 shares of Series 2003-A Preferred and Series 2006-A
Preferred, respectively, reserved for issuance upon exercise of options granted
to RonHow, LLC to convert certain loan participations into such shares. There
are 7,000 shares in the aggregate of Series 2006-B Preferred reserved for
issuance upon exercise of options granted to RonHow, LLC to convert a portion of
the Tranche A Term Loan (which is being reduced to 5,000 shares in the aggregate
as a result of RonHow, LLC's conversion of $2,000,000 of the Tranche A Term Loan
into shares of Series 2007-A Senior Preferred) and 1,032 shares of Series 2006-B
Preferred Stock reserved for issuance on exercise of a warrant to purchase such
shares held by RonHow, LLC. All of the shares of Series 2007-B Senior Preferred
will be reserved for issuance upon exercise of an option being granted to
RonHow, LLC to convert all or a portion of the Tranche B Term Loan into Series
2007-B Senior Preferred. All issued and outstanding shares have been duly
authorized and validly issued, are fully paid and nonassessable and have been
issued in compliance with applicable federal and state securities law. Borrower
has reserved all of its authorized but unissued shares of Common Stock (other
than shares reserved for issuance under the 2002 Performance and Equity
Incentive Plan) for issuance as Underlying Common Stock and has reserved the
balance of the authorized shares of each series of Preferred Stock for issuance
as Dividend Stock on the respective series.

         F. Article 4 of the Subordinated Loan Agreement is hereby amended by
adding there to the following Section 4.2:

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<PAGE>

         4.2 Advances under the Tranche B Term Loan. The obligation of Lender to
fund the initial advance of $2,000,000 under the Tranche B Term Loan was subject
to the acceptance and acknowledgment by execution of Borrower and delivery to
Lender, on or prior to April 4, 2007, of that certain letter agreement between
Lender and Borrower, dated as of March 30, 2007, regarding the $2,000,000
advance under this Agreement and the Note, a copy of which is attached hereto as
Exhibit B. The obligation of Lender to fund an additional advance of up to
$1,000,000 under the Tranche B Term Loan is subject to the fulfillment of each
of the following conditions:

         (a) Borrower shall have and shall have caused Guarantors to have
         performed and complied in all material respects with all of the
         covenants, agreements, obligations and conditions required by this
         Agreement and the other Loan Documents.

         (b) All representations and warranties of Borrower and Guarantors set
         forth in this Agreement and the other Loan Documents shall be true and
         correct in all material respects on and as of the date of such
         additional advance, as though made on and as of such date (except to
         the extent that such representations and warranties relate solely to an
         earlier date).

         (c) There does not exist any condition or event that constitutes a
         Default or an Event of Default, nor will any thereof occur after giving
         effect to such additional advance.

         (d) Borrower shall have delivered to Lender an Amended and Restated
         Subordinated Secured Promissory Note executed by Borrower, in form and
         substance satisfactory to Lender.

         (e) Borrower shall have delivered to Lender a Preferred Stock Purchase
         Agreement regarding Series 2007-A Senior Preferred executed by
         Borrower, in form and substance satisfactory to Lender.

         (f) Borrower shall have delivered to Lender an Option Agreement,
         executed by Borrower, in form and substance satisfactory to Lender,
         granting to Lender an option to purchase shares of Borrower's 2007-B
         Senior Preferred in exchange for forgiveness of principal and accrued
         and unpaid interest under the Tranche B Term Loan, on terms and
         conditions satisfactory to Lender.

         (g) Borrower shall have delivered to Lender a Global Amendment and
         Reaffirmation of Subordinated Debt Documents, by and among Lender,
         Borrower, and Guarantors (the "Global Amendment") executed by Borrower
         and Guarantors, in form and substance satisfactory to Lender.

         (h) Borrower shall have delivered to Lender a First Amendment to
         Subordination and Intercreditor Agreement, executed by Borrower,
         Guarantors, and Wells Fargo Retail Finance II, LLC, as the senior
         creditor, in form and substance satisfactory to Lender.

         (i) Borrower shall have delivered to Lender a certificate of the
         secretary or assistant secretary of Borrower certifying that: the copy
         of the corporate charter and other publicly filed organizational
         documents of Borrower, certified by the Secretary of State or other
         appropriate public official in the jurisdiction in which Borrower is
         formed and the copy of the bylaws of Borrower delivered to Lender on
         August 31, 2006, are true, correct and complete copies and, with the
         exception of certain Certificates of Designation or amendments to
         Certificates of Designation regarding Series 2006-B Preferred, Series
         2007-A Senior Preferred, or the Series 2007-B Senior Preferred, a copy
         of which is attached to such certificate, such corporate charters,
         organizational documents, and

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<PAGE>

         bylaws, have not been further amended, modified or rescinded and are in
         full force and effect as of the date of the Global Amendment.

         (j) Borrower shall have caused each Guarantor to deliver to Lender a
         certificate of the secretary or assistant secretary of such Guarantor
         certifying that: (x) the copy of the corporate charter and other
         publicly filed organizational documents of such Guarantor, certified by
         the Secretary of State or other appropriate public official in the
         jurisdiction in which such Guarantor is formed and the copy of the
         bylaws or limited partnership agreement, as applicable, of such
         Guarantor delivered to Lender on August 31, 2006, are true, correct and
         complete copies and such corporate charters, organizational documents,
         bylaws and limited partnership agreement, as applicable, have not been
         further amended, modified or rescinded and are in full force and effect
         as of the date of the Global Amendment; and (y) such Guarantor is in
         good standing in its jurisdiction of formation as of the date of the
         Global Amendment

         (k) Borrower shall have delivered to Lender certified copies of all
         corporate action taken by Borrower and each Guarantor, including
         resolutions of its Board of Directors, authorizing the execution,
         delivery and performance of the documents described in this Section
         4.2.

         (l) Borrower shall have delivered to Lender a certificate as to the
         legal existence and good standing of Borrower, issued by the Secretary
         of State or other appropriate public official in the jurisdiction in
         which Borrower, no more than thirty days prior to the effective date of
         the Global Amendment.

         (m) Borrower shall have delivered to Lender all other documents and
         legal matters in connection with the transactions contemplated by this
         Agreement or the Global Amendment which shall be in form an substance
         satisfactory to Lender.

         G. The Subordinated Loan Agreement is hereby amended by adding thereto
as Exhibit B the Exhibit B attached hereto.

         H. Schedule 2.1(b) The Subordinated Loan Agreement is herby amended by
amending and restating such schedule as the Schedule 2.1(b) attached hereto.

         SECTION 4. REFERENCES TO CERTAIN SUBORDINATED DEBT DOCUMENTS. All
         references to each of the Subordinated Loan Agreement, Subordinated
         Guaranty and Subordinated Security Agreement in any of the Loan
         Documents shall be deemed a reference to each of the Subordinated Loan
         Agreement, Subordinated Guaranty and Subordinated Security Agreement as
         amended by this Global Amendment. Except as expressly provided in this
         Global Amendment, the execution and delivery of this Global Amendment
         does not and will not amend, modify or supplement any provision of, or
         constitute a consent to or a waiver of any noncompliance with the
         provisions of, the Subordinated Loan Agreement, Subordinated Guaranty
         and Subordinated Security Agreement or any of the other Loan Documents
         executed in connection therewith. To the extent not inconsistent
         herewith, the Subordinated Loan Agreement, Subordinated Guaranty and
         Subordinated Security Agreement and each of the other Loan Documents
         executed by Parent, and Guarantors in connection therewith shall remain
         in full force and effect and are hereby ratified and confirmed by the
         parties thereto.

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<PAGE>

         SECTION 5. EFFECTIVE DATE. This Global Amendment shall become effective
         as of its date and shall bind all parties only upon (i) the execution
         and delivery by Parent and Guarantors of this Global Amendment to
         Lender, (ii) the execution and deliver by Parent, Guarantors, and Wells
         Fargo Retail Finance II, LLC to Lender of that certain First Amendment
         to Subordination and Intercreditor Agreement, dated as of the date
         hereof, and (iii) such other documents or agreements executed and
         delivered by Parent and Guarantors or any other party as Lender shall
         reasonably request; and shall be conditioned upon the correctness of
         all representations and warranties made by Parent and Guarantors.

         SECTION 6. REPRESENTATIONS AND WARRANTIES OF PARENT AND GUARANTORS.
         Each of Parent and Guarantors hereby represents and warrants to Lender
         as follows:

         A. Such party has the right and power, and has taken all necessary
action to authorize it, to execute, deliver and perform this Global Amendment in
accordance with its terms. This Global Amendment has been duly executed and
delivered by such party and is a legal, valid and binding obligation of it,
enforceable against it in accordance with its terms.

         B. The execution, delivery and performance of this Global Amendment 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 or violate any applicable law
relating to such party;

         (ii) conflict with, result in a breach of or constitute a default under
the organizational documents of such party, any material provision of any
indenture, agreement or other instrument to which it is a party or by which it
or any of its properties may be bound or any governmental approval relating to
it; or

         (iii) result in or require the creation or imposition of any lien
(except as permitted by the Loan Documents) upon or with respect to any property
now owned or hereafter acquired by such party.

         C. That, after giving affect to the amendments set forth in this Global
Amendment, the representations and warranties of such party set forth in the
Loan Documents and in any other document, instrument or agreement executed or
delivered in connection therewith are true and correct as of the date hereof as
if made on the date hereof.

         D. No Event of Default under the Loan Documents, other than as
specifically waived herein, has occurred and is continuing as of this date.

         SECTION 7. NO NOVATION. It is the intention of the parties hereto that
         this Global Amendment shall not constitute a novation of the
         Subordinated Loan Agreement, Subordinated Guaranty or Subordinated
         Security Agreement and shall in no way adversely affect or impair the
         validity of the Loan Documents, it being the intention of the parties
         hereto merely to amend the Subordinated Loan Agreement, Subordinated

                                        6
<PAGE>

         Guaranty or Subordinated Security Agreement as expressly set forth
         herein.

         SECTION 8. COUNTERPARTS. This Global Amendment 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.

         SECTION 9. GOVERNING LAW. THIS GLOBAL AMENDMENT 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 GEORGIA.

         SECTION 10. THIS GLOBAL AMENDMENT. This Global Amendment is executed
         pursuant to the Subordinated Loan Agreement, Subordinated Guaranty and
         Subordinated Security Agreement and shall be construed, administered
         and applied in accordance with all of the terms and provisions of the
         same.

         SECTION 11. REAFFIRMATION. Guarantors hereby

         (i) acknowledge that, as of the date hereof, the face principal amount
of the Subordinated Note has been increased to $12,000,000, the interest rate on
the Tranche B Term Loan is 18% per annum, Lender has agreed to defer payment of
up to $1,000,000 of interest on the Loan and permit such accrued but unpaid
interest to be added to the principal balance outstanding under the Amended and
Restated Subordinated Secured Promissory Note, dated the date hereof, in the
face principal amount of $12,000,000 executed by Parent in favor of Lender (the
"Note") and may, in its sole discretion, defer and/or permitted the addition to
principal of accrued interest under the Note in excess of $1,000,000;

         (ii) agree that each of the Subordinated Guaranty and Subordinated
Security Agreement remains in full force and effect and continues to be the
legal, valid and binding obligation of each of the Guarantors enforceable
against each of the Guarantors in accordance with its terms, except as expressly
modified by the relevant provisions of this Global Amendment; and

         (iii) affirms that the Subordinated Guaranty guarantees all of the
present and future indebtedness owing by Parent to Lender under or in connection
with the Subordinated Loan Agreement and the other Loan Documents, as modified
by the Amendments, and the Subordinated Security Agreement secures all of the
payment and performance obligations of Parent and Guarantors, whether now
existing or hereafter arising, under the Subordinated Loan Agreement, the Note
or the Subordinated Guaranty, as modified by the Amendments.

                            [SIGNATURE PAGES FOLLOW]

                                        7
<PAGE>

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

                                LENDER:

                                RONHOW, LLC, a Georgia limited liability company

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

                                    By: /s/ Robert L. Anderson
                                        ----------------------------
                                    Name: Robert L. Anderson
                                    Title: President

<PAGE>

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

                                PARENT:

                                HAROLD'S STORES, INC.

                                By: /s/ Ron Staffieri
                                Name: Ron Staffieri
                                Title: CEO

                                GUARANTORS:

                                HAROLD'S FINANCIAL CORPORATION

                                By: /s/ Ron Staffieri
                                Name: Ron Staffieri
                                Title: CEO

                                HAROLD'S DIRECT, INC.

                                By: /s/ Ron Staffieri
                                Name: Ron Staffieri
                                Title: CEO

                                HAROLD'S STORES OF TEXAS, L.P.

                                By: HSTX, Inc., General Partner

                                By: /s/ Ron Staffieri
                                Name: Ron Staffieri
                                Title: CEO

                                HAROLD'S OF JACKSON, INC.

                                By: /s/ Ron Staffieri
                                Name: Ron Staffieri
                                Title: CEO

                                THE CORNER PROPERTIES, INC.

                                By: /s/ Ron Staffieri
                                Name: Ron Staffieri
                                Title: CEO

<PAGE>

                                HAROLD'S DBO, INC.

                                By: /s/ Ron Staffieri
                                Name: Ron Staffieri
                                Title: CEO

                                HAROLD'S LIMITED PARTNERS, INC.

                                By: /s/ Ron Staffieri
                                Name: Ron Staffieri
                                Title: CEO

                                HSTX, INC.

                                By: /s/ Ron Staffieri
                                Name: Ron Staffieri
                                Title: CEO

<PAGE>

                                    Exhibit B

                                   [attached]

<PAGE>

                                   RonHow, LLC
                             3290 Northside Parkway
                                    Suite 250
                                Atlanta, GA 30302

                                 March 30, 2007

Harold's Stores, Inc.
765 Asp Avenue
Norman, OK  73069
Attn:  Jodi Taylor, Chief Financial Officer

Dear Jodi:

         In conjunction with discussions among Harold's Stores, Inc. and its
majority investors regarding continued financial support for Harold's, the
parties have developed a short-term financing plan as outlined in the attached
summary term sheet.

         Given Harold's immediate need for cash, RonHow is willing to make an
additional $2 million advance under the existing Subordinated Loan Agreement and
related note, each dated as of August 31, 2006. As a condition to making this
advance, RonHow is requiring that Harold's agree to the following:

          1.   Subject to the approval of Harold's senior lender, Wells Fargo
               Retail Finance II, LLC, interest will accrue on this $2 million
               advance at a rate of 18.0% per annum. Upon such approval, the
               18.0% per annum rate will be applied retroactively to the date of
               the advance, in place of the 13.5% per annum rate otherwise
               applicable pursuant to the current terms of the subordinated
               note.

          2.   Harold's will use commercially reasonable efforts to obtain, as
               promptly as practicable, the approval of Wells Fargo for the
               18.0% per annum interest rate on such advance.

          3.   Harold's will execute and deliver, and cause the guarantors of
               the subordinated loan to execute and deliver, any and all
               documents reasonably requested by RonHow to evidence the 18.0%
               per annum interest rate accruing on the advance and the
               continuing effectiveness of the guaranty and security provided by
               the guarantors with respect to all of the indebtedness
               outstanding under the subordinated debt facility, including this
               additional advance.

          4.   Harold's will use commercially reasonable efforts to obtain, as
               promptly as practicable, the consent and approval of Wells Fargo
               to all aspects of the proposed

<PAGE>

               short-term financing plan as described in the attached summary
               term sheet that require Wells Fargo's approval.

         If Harold's is in agreement with the above conditions to the $2 million
advance, please execute the enclosed copy of this letter in the place indicated
below and return it to me.

                                               Sincerely,

                                               /s/ Robert L. Anderson
                                               -------------------------------
                                               Robert L. Anderson
                                               President, Ronus, Inc.,
                                               Managing Member of RonHow, LLC

Accepted and agreed to on behalf of Harold's Stores, Inc.

By: /s/ Jodi L. Taylor
    -------------------------
Title: Chief Financial Officer
Date:  March 30, 2007

<PAGE>

                                 Schedule 2.1(b)

                                   [attached]

<PAGE>
                                 SCHEDULE 2.1(B)
                                       TO
                                GLOBAL AMENDMENT

                                  SUBSIDIARIES
<TABLE><CAPTION>

                                                                       PERCENTAGE OWNED BY
      DIRECT SUBSIDIARY             STATE OF ORGANIZATION             HAROLD'S STORES, INC.

<S>                                       <C>                                  <C>
Harold's Financial Corporation            Oklahoma                             100%
Harold's Direct, Inc.                     Oklahoma                             100%
Harold's Limited Partners, Inc.           Oklahoma                             100%
Harold's DBO, Inc.                          Texas                              100%
HSTX, Inc.                                  Texas                              100%
Harold's of Jackson, Inc.                Mississippi                           100%
The Corner Properties, Inc.               Oklahoma                             100%

     INDIRECT SUBSIDIARY            STATE OF ORGANIZATION                    OWNED BY

Harold's Stores of Texas, L.P.              Texas              HSTX, Inc. is a 1% General Partner and
                                                               Harold's Limited Partners, Inc. is a
                                                               99% Limited Partner.
</TABLE>

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